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The Economic Effects of Common Agricultural Policy Trends on Montado Ecosystem in Southern Portugal

Author

Listed:
  • Rui Fragoso

    (Universidade de Evora, Departamento de Gestão, CEFAGE-UE)

  • Carlos Marques

    (Universidade de Evora, Departamento de Gestão, CEFAGE-UE)

  • Maria Raquel Lucas

    (Universidade de Evora, Departamento de Gestão, CEFAGE-UE)

  • Maria Belém Martins

    (Universidade do Algarve, Faculdade de Ciências e Tecnologia, CEFAGE-UE)

  • Raúl Fernandes Jorge

    (Universidade Técnica de Lisboa, Instituto Superior de Agronomia)

Abstract

The decoupling of CAP payments leads production decisions and resources allocation to be dependent only on market prices and competitive advantages. The objective of this paper is to assess the effects of CAP trends on the montado ecosystem in southern Portugal in terms of land, labour and capital allocation and farm income. A positive mathematical supply model disaggregated by the main montado agro-forestry production system in the Alentejo region is developed. The results show that decoupling payments of CAP have important economic effects and the foreseen increases in prices do not compensate the loss of the Agenda 2000 area payments.

Suggested Citation

  • Rui Fragoso & Carlos Marques & Maria Raquel Lucas & Maria Belém Martins & Raúl Fernandes Jorge, 2009. "The Economic Effects of Common Agricultural Policy Trends on Montado Ecosystem in Southern Portugal," CEFAGE-UE Working Papers 2009_12, University of Evora, CEFAGE-UE (Portugal).
    • Handle: RePEc:cfe:wpcefa:2009_12
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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