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The Common Agricultural Policy and Farming in Protected Ecosystems


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  • Reig Martínez Ernest


  • Estruch Guitart Vicent



The Common Agricultural Policy (CAP) of the European Union is currently in a state of evolution, where non-productive functions of agriculture are being increasingly recognised. The growing concern for the environmental consequences of farming activity has led European countries to the development of diverse agro-environmental schemes. This paper reflects on the effect of different policy scenarios, corresponding to old and new regulations of the European Common Agricultural Policy, on the private and social profitability of farming in protected ecosystems. We use as an empirical illustration the case of rice cultivation in the Albufera of Valencia. We use the Policy Analysis Matrix (PAM) to compute private and social profitability indicators, as well as to foresee the effects on rice farms profitability of the recent CAP reform, which will come into force by 2005-2006. The ability of PAM to integrate environmental aspects into the conventional efficiency analysis of farming systems is also emphasised.

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Bibliographic Info

Paper provided by Fundacion BBVA / BBVA Foundation in its series Working Papers with number 201044.

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Length: 37
Date of creation: Aug 2006
Date of revision:
Handle: RePEc:fbb:wpaper:201044

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Keywords: Environmental effects; sustainability; multifunctionality; Common Agricultural Policy; Policy Analysis Matrix; rice.;


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Cited by:
  1. Emilio Galdeano-Gómez, 2008. "Does an Endogenous Relationship Exist between Environmental and Economic Performance? A Resource-Based View on the Horticultural Sector," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 40(1), pages 73-89, May.


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