Hybrid linear programming to estimate CAP impacts of flatter rates and environmental top-ups
AbstractThis paper examines evolutions of the Common Agricultural Policy (CAP) decoupling regime and their impacts on Greek arable agriculture. Policy analysis is performed by using mathematical programming tools. Taking into account increasing uncertainty, we assume that farmers perceive gross margin in intervals rather than as expected crisp values. A bottom-up hybrid model accommodates both profit maximizing and risk prudent attitudes in order to accurately assess farmers’ response. Marginal changes to crop plans are expected so that flatter single payment rates cause significant changes in incomes and subsidies. Nitrogen reduction incentives result in moderate changes putting their effectiveness in question.
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Bibliographic InfoPaper provided by Agricultural University of Athens, Department Of Agricultural Economics in its series Working Papers with number 2010-03.
Length: 28 pages
Date of creation: 2010
Date of revision:
Interval Linear Programming; Min-Max Regret; Common Agricultural Policy; Arable cropping; Greece;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-10-16 (Agricultural Economics)
- NEP-ALL-2010-10-16 (All new papers)
- NEP-ENV-2010-10-16 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kazakci, Akin & Rozakis, Stelios, 2005. "Energy Crop Supply in France: A Min-Max Regret Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark, European Association of Agricultural Economists 24751, European Association of Agricultural Economists.
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