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The impacts of agricultural subsidies of Common Agricultural Policy on agricultural emissions: The case of the European Union

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  • Jeremiás Máté Balogh

    (Department of Agricultural Economics, Institute of Sustainable Development, Corvinus University of Budapest, Budapest, Hungary)

Abstract

Agriculture is one of the main contributors to carbon emissions and is also significantly affected by changing climate. This article investigates the impacts of agricultural support on greenhouse gas emissions (GHG) from agriculture in the European Union. Panel regression models were used to examine the influence of subsidies in the Common Agricultural Policy (CAP) on reducing GHGs from agriculture. First, estimates show that direct agricultural subsidies encouraged agricultural-related carbon emissions. Second, the study concludes that the expansion of organic agriculture and the rural development expenditures contributed to emissions reduction in the member states. Finally, the CAP Health Check reform decreased while the Ciolos reform stimulated GHG emissions.

Suggested Citation

  • Jeremiás Máté Balogh, 2023. "The impacts of agricultural subsidies of Common Agricultural Policy on agricultural emissions: The case of the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(4), pages 140-150.
    • Handle: RePEc:caa:jnlage:v:69:y:2023:i:4:id:51-2023-agricecon
    DOI: 10.17221/51/2023-AGRICECON
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    References listed on IDEAS

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    1. Eva-Marie Meemken & Matin Qaim, 2018. "Organic Agriculture, Food Security, and the Environment," Annual Review of Resource Economics, Annual Reviews, vol. 10(1), pages 39-63, October.
    2. David Laborde & Abdullah Mamun & Will Martin & Valeria Piñeiro & Rob Vos, 2021. "Agricultural subsidies and global greenhouse gas emissions," Nature Communications, Nature, vol. 12(1), pages 1-9, December.
    3. Alexander Gocht & Pavel Ciaian & Maria Bielza & Jean-Michel Terres & Norbert Röder & Mihaly Himics & Guna Salputra, 2017. "EU-wide Economic and Environmental Impacts of CAP Greening with High Spatial and Farm-type Detail," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 651-681, September.
    4. Małgorzata Holka & Jolanta Kowalska & Magdalena Jakubowska, 2022. "Reducing Carbon Footprint of Agriculture—Can Organic Farming Help to Mitigate Climate Change?," Agriculture, MDPI, vol. 12(9), pages 1-21, September.
    5. Cunha, Arlindo & Swinbank, Alan, 2011. "An Inside View of the CAP Reform Process: Explaining the MacSharry, Agenda 2000, and Fischler Reforms," OUP Catalogue, Oxford University Press, number 9780199591572.
    6. Eleni Zafeiriou & Ioannis Mallidis & Konstantinos Galanopoulos & Garyfallos Arabatzis, 2018. "Greenhouse Gas Emissions and Economic Performance in EU Agriculture: An Empirical Study in a Non-Linear Framework," Sustainability, MDPI, vol. 10(11), pages 1-18, October.
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