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What role for public goods in the future of CAP?

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  • Harvey, David R.
  • Jambor, Attila

Abstract

The European Union’s Common Agricultural Policy continues to evolve. The public debate about its future post 2013 was launched in April 2010 and a formal Commission Communication on the future of the Common Agriculture Policy (CAP) was published in November 2010 (European Commission, 2010). The Commission’s detailed legislative proposals are now expected in October 2011. We focus here on one of the most important parts of the debate – public goods and the ‘greening of the CAP’. A major rationale for the large sums spent under the CAP each year appears now to be centred on the provision of public goods. We review the Commission’s proposals for the provision of public goods and raise questions about the apparent justification for the general approach. We question whether this logic properly appreciates the nature of public good problems and whether the apparently obvious solution – provision of compensatory payments from the public purse – actually solves any of the underlying public good problems

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Bibliographic Info

Paper provided by Agricultural Economics Society in its series 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK with number 108957.

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Date of creation: Apr 2011
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Handle: RePEc:ags:aesc11:108957

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Keywords: Public Economics;

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  1. David R. Harvey, 2003. "Agri-environmental Relationships and Multi-functionality: Further Considerations," The World Economy, Wiley Blackwell, vol. 26(5), pages 705-725, 05.
  2. Farley, Joshua & Costanza, Robert, 2010. "Payments for ecosystem services: From local to global," Ecological Economics, Elsevier, vol. 69(11), pages 2060-2068, September.
  3. Gómez-Baggethun, Erik & de Groot, Rudolf & Lomas, Pedro L. & Montes, Carlos, 2010. "The history of ecosystem services in economic theory and practice: From early notions to markets and payment schemes," Ecological Economics, Elsevier, vol. 69(6), pages 1209-1218, April.
  4. Barbier Edward B & Heal Geoffrey M, 2006. "Valuing Ecosystem Services," The Economists' Voice, De Gruyter, vol. 3(3), pages 1-6, February.
  5. Zahrnt, Valentin, 2009. "Public Money for Public Goods: Winners and Losers from CAP Reform," ECIPE Working Papers 51300, European Centre for International Political Economy (ECIPE).
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