IDEAS home Printed from https://ideas.repec.org/a/eee/jpolmo/v33y2011i2p311-327.html
   My bibliography  Save this article

The economic effects of common agricultural policy on Mediterranean montado/dehesa ecosystem

Author

Listed:
  • Fragoso, R.
  • Marques, C.
  • Lucas, M.R.
  • Martins, M.B.
  • Jorge, R.

Abstract

The decoupling of CAP payments leads production decisions and resources allocation to be more dependent on market prices and competitive advantages. The objective of this paper is to assess the effects of CAP trends on the montado/dehesa traditional ecosystem of Mediterranean regions in terms of farm income, land, labour and capital. A positive mathematical supply model disaggregated by the montado agro-forestry production systems of the Alentejo region in southern Portugal is developed. The results show that decoupling payments of CAP have negative economic effects on agricultural activities and resource use. Agricultural income increases with single farm payments but the foreseen increases in prices do not compensate the loss of the Agenda 2000 area payments in terms of competitiveness. These results reinforce the need to promote alternative agricultural and non-agricultural activities and policies in Mediterranean rural European areas and regions.

Suggested Citation

  • Fragoso, R. & Marques, C. & Lucas, M.R. & Martins, M.B. & Jorge, R., 2011. "The economic effects of common agricultural policy on Mediterranean montado/dehesa ecosystem," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 311-327, March.
  • Handle: RePEc:eee:jpolmo:v:33:y:2011:i:2:p:311-327
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0161-8938(10)00121-3
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fragoso, Rui Manuel Sousa & Marques, Carlos, 2007. "A competitividade do regadio em Portugal no contexto da Nova Política Agrícola Comum: o caso de uma exploração agrícola no Alentejo," Brazilian Journal of Rural Economy and Sociology (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 45(1), March.
    2. Thomas Heckelei & Hendrik Wolff, 2003. "Estimation of constrained optimisation models for agricultural supply analysis based on generalised maximum entropy," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(1), pages 27-50, March.
    3. Wolfgang Britz & Thomas Heckelei & Hendrik Wolff, 2003. "Symmetric Positive Equilibrium Problem: A Framework for Rationalizing Economic Behavior with Limited Information: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 1078-1081.
    4. Horner, G.L. & Corman, J. & Howitt, R.E. & Carter, C.A. & MacGregor, R.J., 1992. "The Canadian Regional Agriculture Model Structure, Operation and Development," Papers 1-92, Gouvernement du Canada - Agriculture Canada.
    5. Ottmar Röhm & Stephan Dabbert, 2003. "Integrating Agri-Environmental Programs into Regional Production Models: An Extension of Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 254-265.
    6. Bullock, David S. & Salhofer, Klaus, 2003. "Judging agricultural policies: a survey," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 28(3), May.
    7. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    8. Bruce Gardner, 1983. "Efficient Redistribution through Commodity Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 225-234.
    9. Arfini, Filippo & Donati, Michele & Paris, Quirino, 2008. "Innovation in Estimation of Revenue and Cost Functions in PMP Using FADN Information at Regional Level," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44008, European Association of Agricultural Economists.
    10. Heckelei, Thomas & Britz, Wolfgang, 2005. "Models Based on Positive Mathematical Programming: State of the Art and Further Extensions," 89th Seminar, February 2-5, 2005, Parma, Italy 234607, European Association of Agricultural Economists.
    11. Judez, Lucinio & de Andres, Rosario & Ibanez, M. & De Miguel, J.M. & Miguel, J.L. & Urzainqui, Elvira, 2008. "Impact Of The Cap Reform On The Spanish Agricultural Sector," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44830, European Association of Agricultural Economists.
    12. Hisham El-Osta & Ashok Mishra & Mary Ahearn, 2004. "Labor Supply by Farm Operators Under “Decoupled” Farm Program Payments," Review of Economics of the Household, Springer, vol. 2(4), pages 367-385, August.
    13. Fragoso, Rui Manuel de Sousa & Carvalho, Maria Leonor da Silva & Henriques, Pedro Damiao de Sousa, 2008. "Positive Mathematical Programming: a Comparison of Different Specification Rules," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44242, European Association of Agricultural Economists.
    14. Blanco Fonseca, Maria & Iglesias Martinez, Eva, 2005. "Modelling New EU Agricultural Policies: Global Guidelines, Local Strategies," 89th Seminar, February 2-5, 2005, Parma, Italy 240760, European Association of Agricultural Economists.
    15. Courleux, F. & Guyomard, Herve & Piet, Laurent, 2008. "Mapping the Decoupling : Transfer Efficiency of the Single Farm Payment Scheme," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44185, European Association of Agricultural Economists.
    16. Martins, M.B. & Marques, C., 2006. "Is agricultural policy promoting a new role for farmers?: A case study," Journal of Policy Modeling, Elsevier, vol. 28(8), pages 847-860, November.
    17. Quirino Paris, 2001. "Symmetric Positive Equilibrium Problem: A Framework for Rationalizing Economic Behavior with Limited Information," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 1049-1061.
    18. Ooms, Daan L. & Hall, Alastair R., 2005. "On- and Off-Farm Labour Supply of Dutch Dairy Farmers: Estimation and Policy Simulations," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24506, European Association of Agricultural Economists.
    19. Gohin, Alexandre & Chantreuil, Frédéric, 1999. "La programmation mathématique positive dans les modèles d'exploitation agricole : Principes et importance du calibrage," Cahiers d'Economie et de Sociologie Rurales (CESR), INRA (French National Institute for Agricultural Research), vol. 53.
    20. Judez, Lucinio & de Andres, Rosario & Ibanez, M. & Urzainqui, Elvira, 2008. "A Method For Including In Pmp Models Activities Non-Existent In The Baseline Situation," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44243, European Association of Agricultural Economists.
    21. Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
    22. Gohin, Alexandre & Chantreuil, Frédéric, 1999. "La programmation mathématique positive dans les modèles d'exploitation agricole : Principes et importance du calibrage," Cahiers d'Economie et de Sociologie Rurales (CESR), INRA (French National Institute for Agricultural Research), vol. 52.
    23. Douarin, Elodie, 2008. "Do decoupled payments really encourage farmers to work more off farm? A micro-level analysis of incentives and preferences," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44024, European Association of Agricultural Economists.
    24. David S. Bullock & Klaus Salhofer & Jukka Kola, 1999. "The Normative Analysis of Agricultural Policy: A General Framework and Review," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 512-535.
    25. Katranidis, Stelios D. & Kotakou, Christina A., 2008. "Are CAP Decoupling Policies Really Production Neutral?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44184, European Association of Agricultural Economists.
    26. Alexandre Gohin & Frédéric Chantreuil, 1999. "La programmation mathématique positive dans les modèles d'exploitation agricole : Principes et importance du calibrage," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 52, pages 59-78.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Louhichi, Kamel & Ciaian, Pavel & Espinosa, Maria & Colen, Liesbeth & Perni, Angel & Paloma, Sergio, 2015. "The Impact of Crop Diversification Measure: EU-wide Evidence Based on IFM-CAP Model," 2015 Conference, August 9-14, 2015, Milan, Italy 211542, International Association of Agricultural Economists.
    2. Louhichi, Kamel & Ciaian, Pavel & Espinosa, Maria & Colen, Liesbeth & Perni, Angel & Gomez y Paloma, Sergio, 2015. "Farm-level economic impacts of EU-CAP greening measures," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205309, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    3. El Benni, Nadja & Finger, Robert, 2013. "The effect of agricultural policy reforms on income inequality in Swiss agriculture - An analysis for valley, hill and mountain regions," Journal of Policy Modeling, Elsevier, vol. 35(4), pages 638-651.
    4. Kamel Elouhichi & Maria Espinosa Goded & Pavel Ciaian & Angel Perni Llorente & Bouda Vosough Ahmadi & Liesbeth Colen & Sergio Gomez Y Paloma, 2018. "The EU-Wide Individual Farm Model for Common Agricultural Policy Analysis (IFM-CAP v.1): Economic Impacts of CAP Greening," JRC Working Papers JRC108693, Joint Research Centre (Seville site).
    5. Louhichi, Kamel & Ciaian, Pavel & Espinosa, Maria & Colen, Liesbeth & Perni, Angel & Gomez y Paloma, Sergio, 2015. "EU-wide individual Farm Model for CAP Analysis (IFM-CAP): Application to Crop Diversification Policy," 2015 Conference, August 9-14, 2015, Milan, Italy 212155, International Association of Agricultural Economists.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:33:y:2011:i:2:p:311-327. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/505735 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.