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Farm‐level impacts of the CAP post‐2020 reform: A scenario‐based analysis

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  • Athanasios Petsakos
  • Pavel Ciaian
  • Maria Espinosa
  • Angel Perni
  • Dimitrios Kremmydas

Abstract

We analyze the farm‐level economic and environmental impacts of the post‐2020 reform of the Common Agricultural Policy (CAP) of the European Union, examining six scenarios constructed around the budget allocated to eco‐schemes and the stringency of enhanced conditionality. Results suggest that the CAP post‐2020 can improve environmental performance but at a cost for farms. Enhanced conditionality appears to play a greater role than eco‐schemes in delivering environmental improvements. The new CAP provides the Member States ample options to choose among different measures. The optimal policy mix will depend on the balancing of income support versus environmental performance that reflects policy priorities.

Suggested Citation

  • Athanasios Petsakos & Pavel Ciaian & Maria Espinosa & Angel Perni & Dimitrios Kremmydas, 2023. "Farm‐level impacts of the CAP post‐2020 reform: A scenario‐based analysis," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 1168-1188, June.
    • Handle: RePEc:wly:apecpp:v:45:y:2023:i:2:p:1168-1188
    DOI: 10.1002/aepp.13257
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    References listed on IDEAS

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    1. Galli, Francesca & Prosperi, Paolo & Favilli, Elena & D'Amico, Simona & Bartolini, Fabio & Brunori, Gianluca, 2020. "How can policy processes remove barriers to sustainable food systems in Europe? Contributing to a policy framework for agri-food transitions," Food Policy, Elsevier, vol. 96(C).
    2. 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.
    3. 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.
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