Stefan Kilian () Klaus Salhofer () (Environmental Economics and Agricultural Policy Group, Technical University of Munich)
Abstract
Based on a simple graphical model we analyze the effects of the introduction of the single payment scheme (SPS) in the EU in 2003 on land prices and the distribution of rents. In particular, we are interested in if the single payments are capitalized into agricultural land values. All three different ways to implement the SPS are discussed: the historical model, the regional model and the hybrid model. We show that the outcome crucially depends on the proportion of agricultural area to entitlements and which model is in place.
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Publisher Info
Paper provided by Technische Universität München, Environmental Economics and Agricultural Policy Group in its series Discussion Papers with number
012007.