What role for public goods in the future of CAP?

The European Union’s Common Agricultural Policy continues to evolve. The public debate about its future post 2013 was launched in April 2010 and a formal Commission Communication on the future of the Common Agriculture Policy (CAP) was published in November 2010 (European Commission, 2010). The Commission’s detailed legislative proposals are now expected in October 2011. We focus here on one of the most important parts of the debate – public goods and the ‘greening of the CAP’. A major rationale for the large sums spent under the CAP each year appears now to be centred on the provision of public goods. We review the Commission’s proposals for the provision of public goods and raise questions about the apparent justification for the general approach. We question whether this logic properly appreciates the nature of public good problems and whether the apparently obvious solution – provision of compensatory payments from the public purse – actually solves any of the underlying public good problems