IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i24p8242-d697200.html
   My bibliography  Save this article

“Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities

Author

Listed:
  • Aleksandra Pawłowska

    (Institute of Rural and Agricultural Development of the Polish Academy of Sciences, Nowy Świat Str. 72, 00-330 Warsaw, Poland)

  • Renata Grochowska

    (Institute of Agricultural and Food Economics—National Research Institute, Świętokrzyska Str. 20, 00-002 Warsaw, Poland)

Abstract

Taking into account the evolution of the Common Agricultural Policy (CAP), it is wondered to what extent the “green” transformation of this policy and the accompanying change in the distribution of direct payments between farms contributed to the elimination of disproportions in agricultural income. The aim of the study was to investigate the changes in the proclaimed concepts related to the development of the EU agricultural sector in terms of their “green” transformation, and to assess the impact of “green” CAP payments on income inequalities between farms. The research was conducted based on the data representative for Polish commercial farms for the years 2004–2019, covering three financial perspectives of the agricultural policy. The methods of counterfactual modelling and assessment of income inequality were used in the study. The analyses showed that the evolution of the CAP priorities, and hence instruments, towards the pro-environmental (or, more broadly, towards sustainability) have so far had a rather negative impact on the income of Polish farms. In its current form, the support dedicated to environmental and climate protection did not fully compensate farmers for income losses resulting from the use of pro-environmental agricultural practices. Moreover, “green” CAP payments did not play a significant role in shaping income inequalities. Therefore, we can conclude that the CAP instruments do not contribute sufficiently to sustainable development (economic, social, and environmental), because they do not support/motivate farmers to change their production standards.

Suggested Citation

  • Aleksandra Pawłowska & Renata Grochowska, 2021. "“Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities," Energies, MDPI, vol. 14(24), pages 1-15, December.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:24:p:8242-:d:697200
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/24/8242/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/24/8242/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sadowski, Arkadiusz & Wojcieszak-Zbierska, Monika & Zmyślona, Jagoda, 2021. "Economic Situation of Organic Farms in Poland on the Background of the European Union," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 319699, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    2. Ridier, Aude & Ben El Ghali, Mohamed & Nguyen, G. & Kephaliacos, Charilaos, 2013. "The role of risk aversion and labor constraints in the adoption of low input practices supported by the CAP green payments in cash crop farms," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 94(2).
    3. Grochowska, Renata & Kosior, Katarzyna, 2016. "EU budget negotiations in the shadow of the juste retour rule," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 252637, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    4. Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2003. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," Econometrica, Econometric Society, vol. 71(4), pages 1161-1189, July.
    5. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
    6. Władysława Łuczka & Sławomir Kalinowski & Nadiia Shmygol, 2021. "Organic Farming Support Policy in a Sustainable Development Context: A Polish Case Study," Energies, MDPI, vol. 14(14), pages 1-21, July.
    7. Thomas L. Dobbs & Jules N. Pretty, 2004. "Agri-Environmental Stewardship Schemes and “Multifunctionality”," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 220-237.
    8. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
    9. Guido W. Imbens, 2004. "Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 4-29, February.
    10. Thomas L. Dobbs & Jules N. Pretty, 2004. "Agri-Environmental Stewardship Schemes and "Multifunctionality"," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 220-237.
    11. Bazyli Czyżewski & Marta Guth, 2021. "Impact of Policy and Factor Intensity on Sustainable Value of European Agriculture: Exploring Trade-Offs of Environmental, Economic and Social Efficiency at the Regional Level," Agriculture, MDPI, vol. 11(1), pages 1-19, January.
    12. Bartkowski, Bartosz & Droste, Nils & Ließ, Mareike & Sidemo-Holm, William & Weller, Ulrich & Brady, Mark V., 2021. "Payments by modelled results: A novel design for agri-environmental schemes," Land Use Policy, Elsevier, vol. 102(C).
    13. Ridier, Aude & Ben El Ghali, Mohamed & Nguyen, G. & Kephaliacos, Charilaos, 2013. "The role of risk aversion and labor constraints in the adoption of low input practices supported by the CAP green payments in cash crop farms," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 2013(02), pages 195-219, June.
    14. Jean Joseph Minviel & Laure Latruffe, 2017. "Effect of public subsidies on farm technical efficiency: a meta-analysis of empirical results," Applied Economics, Taylor & Francis Journals, vol. 49(2), pages 213-226, January.
    15. Stefano Ciliberti & Angelo Frascarelli, 2018. "The CAP 2013 reform of direct payments: redistributive effects and impacts on farm income concentration in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-18, December.
    16. François J Dessart & Jesús Barreiro-Hurlé & René van Bavel, 2019. "Behavioural factors affecting the adoption of sustainable farming practices: a policy-oriented review," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(3), pages 417-471.
    17. 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.
    18. Severini, Simone & Tantari, Antonella, 2015. "The distributional impact of agricultural policy tools on Italian farm household incomes," Journal of Policy Modeling, Elsevier, vol. 37(1), pages 124-135.
    19. Tyllianakis, Emmanouil & Martin-Ortega, Julia, 2021. "Agri-environmental schemes for biodiversity and environmental protection: How we are not yet “hitting the right keys”," Land Use Policy, Elsevier, vol. 109(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Monika Kabadzhova & Mihaela Mihailova & Daniela Tsvyatkova, 2024. "Farmers’ Attitudes To Implementation CAP Greening Practices in Both the Blagoevgrad and Kyustendil Regions in Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 128-149.
    2. Irina Pilvere & Aleksejs Nipers & Aija Pilvere, 2022. "Evaluation of the European Green Deal Policy in the Context of Agricultural Support Payments in Latvia," Agriculture, MDPI, vol. 12(12), pages 1-22, November.

    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. Metin Çakır & Joseph V. Balagtas & Abigail M. Okrent & Mariana Urbina‐Ramirez, 2021. "Effects of Package Size on Household Food Purchases," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 781-801, June.
    2. Rodrigo Dorantes-Gilardi & Aurora A. Ramírez-Álvarez & Diana Terrazas-Santamaría, 2023. "Is there a differentiated gender effect of collaboration with super-cited authors? Evidence from junior researchers in economics," Scientometrics, Springer;Akadémiai Kiadó, vol. 128(4), pages 2317-2336, April.
    3. Justine S. Hastings & Christopher A. Neilson & Seth D. Zimmerman, 2012. "The Effect of School Choice on Intrinsic Motivation and Academic Outcomes," Working Papers 2012-3, Princeton University. Economics Department..
    4. Simpson, Katherine & Armsworth, Paul R. & Dallimer, Martin & Nthambi, Mary & de Vries, Frans P. & Hanley, Nick, 2023. "Improving the ecological and economic performance of agri-environment schemes: Payment by modelled results versus payment for actions," Land Use Policy, Elsevier, vol. 130(C).
    5. Michael Lechner & Anthony Strittmatter, 2019. "Practical procedures to deal with common support problems in matching estimation," Econometric Reviews, Taylor & Francis Journals, vol. 38(2), pages 193-207, February.
    6. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    7. Sophie Guthmuller & Florence Jusot & Jérôme Wittwer & Caroline Despres, 2010. "Le recours à l’Aide complémentaire santé : les enseignements d’une expérimentation sociale à Lille," Working Papers DT36, IRDES institut for research and information in health economics, revised Dec 2010.
    8. Rahul Singh & Liyuan Xu & Arthur Gretton, 2020. "Kernel Methods for Causal Functions: Dose, Heterogeneous, and Incremental Response Curves," Papers 2010.04855, arXiv.org, revised Oct 2022.
    9. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    10. Bruno Cirillo & Stefano Brusoni & Giovanni Valentini, 2014. "The Rejuvenation of Inventors Through Corporate Spinouts," Organization Science, INFORMS, vol. 25(6), pages 1764-1784, December.
    11. Erlend E. Bø & Elin Halvorsen & Thor O. Thoresen, 2019. "Heterogeneity of the Carnegie Effect," Journal of Human Resources, University of Wisconsin Press, vol. 54(3), pages 726-759.
    12. Zongwu Cai & Ying Fang & Ming Lin & Shengfang Tang, 2020. "Inferences for Partially Conditional Quantile Treatment Effect Model," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 202005, University of Kansas, Department of Economics, revised Feb 2020.
    13. Jenny C. Aker & Marcel Fafchamps, 2015. "Mobile Phone Coverage and Producer Markets: Evidence from West Africa," The World Bank Economic Review, World Bank, vol. 29(2), pages 262-292.
    14. Nicolas CARAYOL & Marianne LANOË, 2017. "The Impact of Project-Based Funding in Science: \r\nLessons from the ANR Experience," Cahiers du GREThA (2007-2019) 2017-04, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    15. Maoyong Fan & Yanhong Jin, 2015. "The Supplemental Nutrition Assistance Program and Childhood Obesity in the United States: Evidence from the National Longitudinal Survey of Youth 1997," American Journal of Health Economics, MIT Press, vol. 1(4), pages 432-460, Fall.
    16. Galina Besstremyannaya, 2014. "Heterogeneous effect of coinsurance rate on healthcare costs: generalized finite mixtures and matching estimators," Discussion Papers 14-014, Stanford Institute for Economic Policy Research.
    17. Valerie Mueller & Agnes Quisumbing & Hak Lim Lee & Klaus Droppelmann, 2014. "Resettlement for Food Security’s Sake: Insights from a Malawi Land Reform Project," Land Economics, University of Wisconsin Press, vol. 90(2), pages 222-236.
    18. Bijwaard, Govert & Alessie, Rob & Angelini, Viola, 2018. "The Effect of Early Life Health on Later Life Home Care Use: The Mediating Role of Household Composition," IZA Discussion Papers 11729, Institute of Labor Economics (IZA).
    19. Dridi, Ichrak & Boughrara, Adel, 2023. "Flexible inflation targeting and stock market volatility: Evidence from emerging market economies," Economic Modelling, Elsevier, vol. 126(C).
    20. Renata Grochowska & Aleksandra Pawłowska & Aldona Skarżyńska, 2021. "Searching for more balanced distribution of direct payments among agricultural farms in the CAP post-2020," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(5), pages 181-188.

    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:gam:jeners:v:14:y:2021:i:24:p:8242-:d:697200. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.