Sven Anders () (Institute of Agricultural Policy and Market Research, University of Giessen) Johannes Harsche () (Forschungs- und Entwicklungsgesellschaft Hessen) Roland Herrmann () (Institute of Agricultural Policy and Market Research, University of Giessen) Klaus Salhofer () (Environmental Economics and Agricultural Policy Group, Technical University of Munich) Ramona Teuber
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The redistributive implications of the Common Agricultural Policy (CAP) of the European Union (EU) have regained a strong interest in recent years since economic and social cohe-sion has become a major goal of European policy. The empirical evidence is surprisingly di-verse and ranges from a clearly positive to a clearly negative regional redistributive impact of the CAP. It is the objective of this study to add new evidence to this discussion and to identify some of the reasons why earlier results might have differed so strongly. Firstly, the interregional dis-tribution of EU producer support is measured over time with various indicators of support. Computations are based on the NUTS III-level in the period 1986-2002 for 26 regions of the German Bundesland Hesse. Secondly, the interregional allocation of producer support is ex-plained by natural conditions, farm structure variables and economic development within a quantitative analysis. A major result is that the interregional allocation of producer support is (i) unequal and is (ii) affected by a number of variables characterizing farm structure and natural conditions. To what extent the interregional distribution of support is consistent with the political objective of cohesion depends on some crucial factors, i.e. the period of analysis, the measure of support, the methodological approach of a correlation versus a causality analy-sis, and the diversity of regions included.
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Paper provided by Technische Universität München, Environmental Economics and Agricultural Policy Group in its series Discussion Papers with number
052006.
Length: 38 pages Date of creation: 2006 Date of revision: Publication status: Published in Review of Regional Research (Jahrbuch für Regionalwissenschaften) 27(2) (revised version) Handle: RePEc:tuu:papers:052006