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Socio-Economic and Environmental Impact of AGENDA 2000 and Alternative Policy Choices for Market Liberalization on an Irrigated Area in Northwestern Spain

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  • Gomez-Limon, Jose Antonio
  • Arriaza Balmón, Manuel

Abstract

This paper presents a methodology to evaluate the impact of different policy scenarios using a farmer's utility function. The analysis shows the impact on farmers and on the environment. The case study is a community of irrigated farms (Bajo Carrión) in Northwestern Spain. The results obtained show how Agenda 2000 has little impact on farm crop distribution, gross margins, employment and environment (use of fertilizers and water). The most radical scenario (a 15 per cent COP price cut and no area payments) produces a 37.3 per cent reduction in farm gross margin, and an increase in fertilizer use of 6 per cent.

Suggested Citation

  • Gomez-Limon, Jose Antonio & Arriaza Balmón, Manuel, 2000. "Socio-Economic and Environmental Impact of AGENDA 2000 and Alternative Policy Choices for Market Liberalization on an Irrigated Area in Northwestern Spain," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 1(2), August.
  • Handle: RePEc:ags:aergaa:26458
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    File URL: http://purl.umn.edu/26458
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    References listed on IDEAS

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    1. Sumpsi, JoseMaria & Amador, Francisco & Romero, Carlos, 1997. "On farmers' objectives: A multi-criteria approach," European Journal of Operational Research, Elsevier, vol. 96(1), pages 64-71, January.
    2. Noel P. Russell & Iain M. Fraser, 1995. "The Potential Impact Of Environmental Cross-Compliance On Arable Farming," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 70-79.
    3. Guyomard, Herve & Baudry, Marc & Carpentier, Alain, 1996. "Estimating Crop Supply Response in the Presence of Farm Programmes: Application to the CAP," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 23(4), pages 401-420.
    4. B. Curtis Eaves, 1971. "On Quadratic Programming," Management Science, INFORMS, vol. 17(11), pages 698-711, July.
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    Cited by:

    1. Basil Manos & Thomas Bournaris & Mohd Kamruzzaman & Moss Begum & Ara Anjuman & Jason Papathanasiou, 2006. "Regional Impact of Irrigation Water Pricing in Greece under Alternative Scenarios of European Policy: A Multicriteria Analysis," Regional Studies, Taylor & Francis Journals, vol. 40(9), pages 1055-1068.
    2. Bartolini, F. & Bazzani, G.M. & Gallerani, V. & Raggi, M. & Viaggi, D., 2007. "The impact of water and agriculture policy scenarios on irrigated farming systems in Italy: An analysis based on farm level multi-attribute linear programming models," Agricultural Systems, Elsevier, vol. 93(1-3), pages 90-114, March.
    3. Garci­a-Vila, M. & Lorite, I.J. & Soriano, M.A. & Fereres, E., 2008. "Management trends and responses to water scarcity in an irrigation scheme of Southern Spain," Agricultural Water Management, Elsevier, vol. 95(4), pages 458-468, April.
    4. Manos, Basil & Begum, Moss. Anjuman Ara & Kamruzzaman, Mohd. & Nakou, Ioanna & Papathanasiou, Jason, 2007. "Fertilizer price policy, the environment and farms behavior," Journal of Policy Modeling, Elsevier, vol. 29(1), pages 87-97.
    5. Riesgo, Laura & Gomez-Limon, Jose A., 2006. "Multi-criteria policy scenario analysis for public regulation of irrigated agriculture," Agricultural Systems, Elsevier, vol. 91(1-2), pages 1-28, November.

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    Keywords

    Environmental Economics and Policy;

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