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Modelling the CAP Arable Crop Regime in Italy : Degree of Decoupling and Impact of Agenda 2000

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  • Daniele Moro
  • Paolo Sckokai

Abstract

In this paper, we model the CAP arable crop regime using a dual approach that allows us to measure in terms of elasticities the response of production and land allocation decisions to the compensatory payments scheme. We apply this methodology to a data sample of crop farms in the North of Italy, within the transition period of the CAP reform. The estimated model allows us to measure, for the area considered, supply and land allocation responses to the recent “Agenda 2000” reform package, as well as to analyse its degree of decoupling.

Suggested Citation

  • Daniele Moro & Paolo Sckokai, 1999. "Modelling the CAP Arable Crop Regime in Italy : Degree of Decoupling and Impact of Agenda 2000," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 53, pages 49-73.
  • Handle: RePEc:rae:jouces:v:53:y:1999:p:49-73
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    1. Xavier Vollenweider & Salvatore Di Falco & Cathal O�Donoghue, 2011. "Risk preferences and voluntary agrienvironmental schemes: does risk aversion explain the uptake of the Rural Environment Protection Scheme?," GRI Working Papers 48, Grantham Research Institute on Climate Change and the Environment.
    2. Carl GAIGNÉ & Cathie LAROCHE DUPRAZ & Alan MATTHEWS, 2015. "Thirty years of European research on international trade in food and agricultural products," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 96(1), pages 91-130.
    3. Zein Kallas & Teresa Serra & Jos頠 M. Gil, 2012. "Effects of policy instruments on farm investments and production decisions in the Spanish COP sector," Applied Economics, Taylor & Francis Journals, vol. 44(30), pages 3877-3886, October.
    4. Happe, Kathrin & Balmann, Alfons & Kellermann, Konrad & Sahrbacher, Christoph, 2008. "Does structure matter? The impact of switching the agricultural policy regime on farm structures," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 431-444, August.
    5. Giovanni Anania, 2007. "Multilateral trade negotiations, preferential trade agreements and European Union’s agricultural policies," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, July.
    6. Sckokai, Paolo & Moro, Daniele, 2002. "Modelling The Cap Arable Crop Regime Under Uncertainty," 2002 Annual meeting, July 28-31, Long Beach, CA 19860, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Anania, Giovanni, 2007. "Multilateral Negotiations, Preferential Trade Agreements and the CAP. What's Ahead?," Working Papers 7283, TRADEAG - Agricultural Trade Agreements.
    8. Letort, Elodie & Carpentier, Alain, 2010. "Variable Input Allocation: Why Heterogeneity Matters?," 120th Seminar, September 2-4, 2010, Chania, Crete 109387, European Association of Agricultural Economists.
    9. Bouali Guesmi & Teresa Serra, 2015. "Can We Improve Farm Performance? The Determinants of Farm Technical and Environmental Efficiency," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(4), pages 692-717.
    10. Polome, Philippe & Harmignie, Olivier & Frahan, Bruno Henry de, 2006. "Farm-level Acreage Allocation under Risk," 2006 Annual meeting, July 23-26, Long Beach, CA 21306, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Elisa Gatto & Guido Signorino, 2014. "Crop-diversity and Cereal Production under the CAP Reform: Evidence from Italy," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2014(3), pages 35-50.
    12. van Delden, Hedwig & Stuczynski, Tomasz & Ciaian, Pavel & Paracchini, Maria Luisa & Hurkens, Jelle & Lopatka, Artur & Shi, Yu-e & Prieto, Oscar Gomez & Calvo, Silvia & van Vliet, Jasper & Vanhout, Roe, 2010. "Integrated assessment of agricultural policies with dynamic land use change modelling," Ecological Modelling, Elsevier, vol. 221(18), pages 2153-2166.
    13. Alban Thomas & Vera Zaporozhets, 2017. "Bargaining Over Environmental Budgets: A Political Economy Model with Application to French Water Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 227-248, October.
    14. Rudiger Elsholz & Johannes Harsche, 2014. "Determinants of regional disparities in farm income: markets or policy?," ECONOMIA AGRO-ALIMENTARE, FrancoAngeli Editore, vol. 16(1), pages 13-36.
    15. Moro, Daniele & Sckokai, Paolo, 2013. "The impact of decoupled payments on farm choices: Conceptual and methodological challenges," Food Policy, Elsevier, vol. 41(C), pages 28-38.
    16. Fatima Lambarraa & Spiro Stefanou & Teresa Serra & José M. Gil, 2009. "The impact of the 1999 CAP reforms on the efficiency of the COP sector in Spain," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 355-364, May.
    17. Serra, Teresa & Goodwin, Barry K. & Featherstone, Allen M., 2011. "Risk behavior in the presence of government programs," Journal of Econometrics, Elsevier, vol. 162(1), pages 18-24, May.

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    Keywords

    decoupling; CAP; profit function; Agenda 2000; Italy;

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