IDEAS home Printed from https://ideas.repec.org/a/bla/jageco/v68y2017i3p651-681.html
   My bibliography  Save this article

EU-wide Economic and Environmental Impacts of CAP Greening with High Spatial and Farm-type Detail

Author

Listed:
  • Alexander Gocht
  • Pavel Ciaian
  • Maria Bielza
  • Jean-Michel Terres
  • Norbert Röder
  • Mihaly Himics
  • Guna Salputra

Abstract

This paper analyses the economic and environmental impacts of CAP greening. The simulated results reveal that the economic and environmental impacts of CAP greening are rather small. The CAP greening leads to a small increase in prices and a small decrease in production. Farm income slightly increases because the price effects offset the production decline. The environmental effects are positive on a per hectare basis, but the increase in UAA can reverse the sign for total impacts. GHG and ammonia emissions decrease in the EU, while the total N surplus, soil erosion and biodiversity-friendly farming practices slightly increase.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Alexander Gocht & Pavel Ciaian & Maria Bielza & Jean-Michel Terres & Norbert Röder & Mihaly Himics & Guna Salputra, 2017. "EU-wide Economic and Environmental Impacts of CAP Greening with High Spatial and Farm-type Detail," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 651-681, September.
  • Handle: RePEc:bla:jageco:v:68:y:2017:i:3:p:651-681
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/1477-9552.12217
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Heinrich, Barbara, 2012. "Calculating the 'greening' effect: A case study approach to predict the gross margin losses in different farm types in Germany due to the reform of the CAP," DARE Discussion Papers 1205, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    2. Heinrich, Barbara, 2012. "Calculating The ‘Greening’ Effect: A Case Study Approach To Predict The Gross Margin Losses In Different Farm Types In Germany Due To The Reform Of The Cap," Department of Agricultural and Rural Development (DARE) Discussion Papers 187445, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development (DARE).
    3. Shrestha, Shailesh & Ciaian, Pavel & Himics, Mihay & Van Doorslaer, Benjamin, 2013. "Impacts of Climate Change on EU Agriculture," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 16(2), pages 1-16, September.
    4. D'Artis Kancs & Pavel Ciaian, 2010. "Factor content of bilateral trade: the role of firm heterogeneity and transaction costs," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 305-317, May.
    5. Alison Burrell & Mihaly Himics & Benjamin Van Doorslaer & Pavel Ciaian & Shailesh Shrestha, 2014. "EU sugar policy: A sweet transition after 2015 ?," JRC Research Reports JRC76619, Joint Research Centre.
    6. Latacz-Lohmann, Uwe & Schulz, Norbert & Breustedt, Gunnar, 2014. "Assessing Farmers' Willingness to Accept "Greening": Insights from a Discrete Choice Experiment in Gremany," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 170560, Agricultural Economics Society.
    7. Heckelei, Thomas & Mittelhammer, Ronald C. & Jansson, Torbjorn, 2008. "A Bayesian Alternative To Generalized Cross Entropy Solutions For Underdetermined Econometric Models," Discussion Papers 56973, University of Bonn, Institute for Food and Resource Economics.
    8. Francesco Diotallevi & Emanuele Blasi & Silvio Franco, 2015. "Greening as compensation to production of environmental public goods: how do common rules have an influence at local level? The case of durum wheat in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-14, December.
    9. Jansson, Torbjorn & Bakker, Martha M. & Boitier, B. & Fougeyrollas, A. & Helming, John F.M. & van Meijl, Hans & Verkerk, P.J., 2008. "Linking models for land use analysis: experiences from the SENSOR project," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44169, European Association of Agricultural Economists.
    10. Alexander Gocht & Pavel Ciaian & Maria Bielza & Jean-Michel Terres & Norbert Röder & Mihaly Himics & Guna Salputra, 2017. "EU-wide Economic and Environmental Impacts of CAP Greening with High Spatial and Farm-type Detail," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 651-681, September.
    11. Alison Burrell & Maria Blanco & Stephan Hubertus Gay & Martin Henseler & Aikaterini Kavallari & Robert M'barek & Ignacio Perez & Axel Tonini, 2010. "Impacts of the EU Biofuel Target on Agricultural Markets and Land Use - A Comparative Modelling Assessment," JRC Research Reports JRC58484, Joint Research Centre.
    12. Heinrich, Barbara, 2012. "Calculating The ‘Greening’ Effect: A Case Study Approach To Predict The Gross Margin Losses In Different Farm Types In Germany Due To The Reform Of The Cap," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187445, German Association of Agricultural Economists (GEWISOLA).
    13. Louhichi, Kamel & Ciaian, Pavel & Espinosa, Maria & Colen, Liesbeth & Perni, Angel & Paloma, Sergio, 2015. "The Impact of Crop Diversification Measure: EU-wide Evidence Based on IFM-CAP Model," 2015 Conference, August 9-14, 2015, Milan, Italy 211542, International Association of Agricultural Economists.
    14. Kempen, Markus & Heckelei, Thomas & Britz, Wolfgang & Adrian, Leip & Koeble, Renate, 2005. "A Statistical Approach for Spatial Disaggregation of Crop Production in the EU," 89th Seminar, February 2-5, 2005, Parma, Italy 234612, European Association of Agricultural Economists.
    15. Matthews, Alan, 2013. "Greening agricultural payments in the EU’s Common Agricultural Policy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(1), pages 1-27, April.
    16. Gocht, Alexander & Britz, Wolfgang, 2011. "EU-wide farm type supply models in CAPRI--How to consistently disaggregate sector models into farm type models," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 146-167, January.
    17. Brown, Matthew & Jones, James, 2013. "The Predicted Impacts of the Proposed Greening Measures of the 2014 CAP Reform on Farming Businesses in North Cornwall," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158855, Agricultural Economics Society.
    18. Norbert Schulz & Gunnar Breustedt & Uwe Latacz-Lohmann, 2014. "Assessing Farmers' Willingness to Accept “Greening”: Insights from a Discrete Choice Experiment in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(1), pages 26-48, January.
    19. Alexander Gocht & Pavel Ciaian & Maria Bielza & Jean-Michel Terres & Norbert Röder & Mihaly Himics & Guna Salputra, 2016. "Economic and environmental impacts of CAP greening: CAPRI simulation results," JRC Research Reports JRC102519, Joint Research Centre.
    20. Kempen, Markus & Witzke, Peter & Pérez Domínguez, Ignacio & Jansson, Torbjörn & Sckokai, Paolo, 2011. "Economic and environmental impacts of milk quota reform in Europe," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 29-52, January.
    21. Leip, Adrian & Bielza, Maria & Bulgheroni, Claudia & Ciaian, Pavel & Lamboni, Matiyendou & Koeble, Renate & Paracchini, Maria-Luisa & Terres, Jean-Michael & Weiss, Franz & Witzke, Heinz-Peter, 2015. "Spatially Explicit Evaluation of the Agri-environmental Impact of CAP," 2015 Conference, August 9-14, 2015, Milan, Italy 211541, International Association of Agricultural Economists.
    22. Heinrich, Barbara, 2012. "Calculating The ‘Greening’ Effect – A Case Study Approach To Estimate The Gross Margin Losses In Different Farm Types In Germany Due To The Reform Of The Cap," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137155, German Association of Agricultural Economists (GEWISOLA).
    23. Solazzo, Roberto & Pierangeli, Fabio, 2016. "How does greening affect farm behaviour? Trade-off between commitments and sanctions in the Northern Italy," Agricultural Systems, Elsevier, vol. 149(C), pages 88-98.
    24. Alexander Gocht & Wolfgang Britz & Pavel Ciaian & Sergio Gomez y Paloma, 2013. "Farm Type Effects of an EU-wide Direct Payment Harmonisation," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 1-32, February.
    25. Mili, Samir & Judez, Lucinio & de Andres, Rosario, 2015. "Effects of New CAP Reform and Trends in Sustainable Olive Growing Systems in Southern Spain," 2015 Conference, August 9-14, 2015, Milan, Italy 212462, International Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexander Gocht & Pavel Ciaian & Maria Bielza & Jean-Michel Terres & Norbert Röder & Mihaly Himics & Guna Salputra, 2016. "Economic and environmental impacts of CAP greening: CAPRI simulation results," JRC Research Reports JRC102519, Joint Research Centre.
    2. Kamel Louhichi & Pavel Ciaian & Maria Espinosa & Angel Perni & Sergio Gomez y Paloma, 2018. "Economic impacts of CAP greening: application of an EU-wide individual farm model for CAP analysis (IFM-CAP)," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 45(2), pages 205-238.
    3. Amanda Sahrbacher & Jordan Hristov & Mark V. Brady, 2017. "A combined approach to assess the impacts of Ecological Focus Areas on regional structural development and agricultural land use," Review of Agricultural, Food and Environmental Studies, Springer, vol. 98(3), pages 111-144, December.
    4. Louhichi, Kamel & Ciaian, Pavel & Espinosa, Maria & Colen, Liesbeth & Perni, Angel & Gomez y Paloma, Sergio, 2015. "Farm-level economic impacts of EU-CAP greening measures," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205309, Agricultural and Applied Economics Association.
    5. Louhichi, Kamel & Ciaian, Pavel & Espinosa, Maria & Colen, Liesbeth & Perni, Angel & Paloma, Sergio, 2015. "The Impact of Crop Diversification Measure: EU-wide Evidence Based on IFM-CAP Model," 2015 Conference, August 9-14, 2015, Milan, Italy 211542, International Association of Agricultural Economists.
    6. Louhichi, Kamel & Ciaian, Pavel & Espinosa, Maria & Colen, Liesbeth & Perni, Angel & Gomez y Paloma, Sergio, 2015. "EU-wide individual Farm Model for CAP Analysis (IFM-CAP): Application to Crop Diversification Policy," 2015 Conference, August 9-14, 2015, Milan, Italy 212155, International Association of Agricultural Economists.
    7. Kamel Elouhichi & Maria Espinosa Goded & Pavel Ciaian & Angel Perni Llorente & Bouda Vosough Ahmadi & Liesbeth Colen & Sergio Gomez Y Paloma, 2018. "The EU-Wide Individual Farm Model for Common Agricultural Policy Analysis (IFM-CAP v.1): Economic Impacts of CAP Greening," JRC Research Reports JRC108693, Joint Research Centre.
    8. Francesco Diotallevi & Emanuele Blasi & Silvio Franco, 2015. "Greening as compensation to production of environmental public goods: how do common rules have an influence at local level? The case of durum wheat in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-14, December.
    9. Solazzo, Roberto & Pierangeli, Fabio, 2016. "How does greening affect farm behaviour? Trade-off between commitments and sanctions in the Northern Italy," Agricultural Systems, Elsevier, vol. 149(C), pages 88-98.
    10. Gava, Oriana & Andreoli, Maria & Bartolini, Fabio & Brunori, Gianluca, 2015. "CAP post-2013: alternative greening designs in Tuscany (Italy)," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207359, Italian Association of Agricultural and Applied Economics (AIEAA).
    11. Britz, Wolfgang & Ciaian, Pavel & Gocht, Alexander & Kanellopoulos, Argyris & Kremmydas, Dimitrios & Müller, Marc & Petsakos, Athanasios & Reidsma, Pytrik, 2021. "A design for a generic and modular bio-economic farm model," Agricultural Systems, Elsevier, vol. 191(C).
    12. Ewa Kiryluk-Dryjska & Agnieszka Baer-Nawrocka & Obinna Okereke, 2022. "The Environmental and Climatic CAP Measures in Poland vs. Farmers’ Expectations—Regional Analysis," Energies, MDPI, vol. 15(13), pages 1-13, June.
    13. Schulte, Michael Clemens & Theuvsen, Ludwig & Wiese, Armin & Steinmann, Horst-Henning, 2016. "Die Ökonomische Bewertung Von Glyphosat Im Deutschen Ackerbau," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244761, German Association of Agricultural Economists (GEWISOLA).
    14. Espinosa, Maria & Gocht, Alexander & Heckelei, Thomas & Paloma, Sergio Gomez y, 2016. "Incorporating farm structural change in models assessing the Common Agricultural Policy: An application in the CAPRI farm type model," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1040-1059.
    15. Danilo Bertoni & Daniele Cavicchioli & Franco Donzelli & Giovanni Ferrazzi & Dario G. Frisio & Roberto Pretolani & Elena Claire Ricci & Vera Ventura, 2018. "Recent Contributions of Agricultural Economics Research in the Field of Sustainable Development," Agriculture, MDPI, vol. 8(12), pages 1-20, December.
    16. Blanco, Maria & Ramos, Fabien & Van Doorslaer, Benjamin, 2014. "Economic impacts of climate change on agrifood markets: A bio-economic approach with a focus on the EU," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182826, European Association of Agricultural Economists.
    17. Marianne Lefebvre & Jesus Barreiro‐Hurlé & Ciaran Blanchflower & Liesbeth Colen & Laure Kuhfuss & Jens Rommel & Tanja Šumrada & Fabian Thomas & Sophie Thoyer, 2021. "Can Economic Experiments Contribute to a More Effective CAP?," EuroChoices, The Agricultural Economics Society, vol. 20(3), pages 42-49, December.
    18. Ciaian, Pavel & Espinosa, Maria & Louhichi, Kamel & Perni, Angel, 2020. "Farm Level Impacts of Trade Liberalisation and CAP Removal Across EU: An Assessment using the IFM-CAP Model," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 69(2), May.
    19. Ewa Kiryluk-Dryjska & Agnieszka Baer-Nawrocka, 2021. "Regional Differences in Benefits from the EU Common Agricultural Policy in Poland and Their Policy Implications," Agriculture, MDPI, vol. 11(4), pages 1-14, March.
    20. Blanco, María & Ramos, Fabien & Van Doorslaer, Benjamin & Martínez, Pilar & Fumagalli, Davide & Ceglar, Andrej & Fernández, Francisco J., 2017. "Climate change impacts on EU agriculture: A regionalized perspective taking into account market-driven adjustments," Agricultural Systems, Elsevier, vol. 156(C), pages 52-66.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jageco:v:68:y:2017:i:3:p:651-681. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.