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Regional redistributive effects of common price support policies

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  • S. TARDITI
  • E. CROCI ANGELINI

Abstract

The policy of price support sustained by import levies and export subsidies leads to a transfer of income from consumers to agricultural producers. This intersectoral transfer has a regional impact insofar as the amounts going to consumers and producers vary from region to region. As a result, income flows are created which pass from regions which are net consumers, to those which are net producers. Graphs are used to show the redistriburive effects arising from price support on regions within a customs union, taking possible effects on world market prices into account. A way of estimating interregional income transfers is proposed which seems to reflect the impact of the policy instruments used by CAP more realistically than under the ‘small country assumption’. Finally, an example is presented of the estimation of income redistribution between regions in Italy as a result of the olive oil price support.

Suggested Citation

  • S. Tarditi & E. Croci Angelini, 1982. "Regional redistributive effects of common price support policies," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 9(3), pages 255-270.
    • Handle: RePEc:oup:erevae:v:9:y:1982:i:3:p:255-270.
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    File URL: http://hdl.handle.net/10.1093/erae/9.3.255
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    Cited by:

    1. Schmitz, P. Michael, 1991. "Do Developed Exporting Countries Contribute To Food Security? The Case Of The Ec," Staff Papers 13351, University of Minnesota, Department of Applied Economics.
    2. Henning, Christian H.C.A. & Glauben, Thomas, 2000. "Dynamik, Dimensionen Und Determinanten Der Gemeinsamen Europäischen Agrarpolitik," Working Paper Series 24406, University of Kiel, Chair of Agricultural Policy.
    3. Schmitz, Michael, 1997. "Cap and Food Security," 1997 Occasional Paper Series No. 7 198056, International Association of Agricultural Economists.
    4. Hansen, H. & Harsche, J., 2006. "Die Förderung landwirtschaftlicher Erzeugnisse durch die Europäische Agrarpolitik Regionale Auswirkungen in Deutschland und Bestimmungsgründe," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 41, March.
    5. Harald Witzke, 1986. "Endogenous supranational policy decisions: The Common Agricultural Policy of the European Community," Public Choice, Springer, vol. 48(2), pages 157-174, January.

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