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Effects Of Eu Dairy Policy Reform For Dutch Agriculture And Economy: Applying An Agricultural Programming/Mixed Input-Output Model

Author

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  • Helming, John F.M.
  • Peerlings, Jack H.M.

Abstract

A modelling system is presented and used to analyse the effects of EU dairy policy reform (Agenda 2000 and milk quota abolition with and without decoupled direct income payments) on Dutch agriculture and economy. The modelling system consists of a regionalised, agri-environmental, partial equilibrium, mathematical programming model of agriculture supply in the Netherlands integrated into a mixed input-output model. It was e.g. found that decoupling of direct income payments gives an extra stimulus to milk production after milk quota abolition. However, the increase in milk production is restricted by nutrient and manure policies in the Netherlands. It is also found that, although the total effect on Dutch GDP is limited, the income effects for individual industries can be large. Moreover, economy wide effects for non-agricultural industries exceed changes for agriculture.

Suggested Citation

  • Helming, John F.M. & Peerlings, Jack H.M., 2003. "Effects Of Eu Dairy Policy Reform For Dutch Agriculture And Economy: Applying An Agricultural Programming/Mixed Input-Output Model," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25815, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae03:25815
    DOI: 10.22004/ag.econ.25815
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    Cited by:

    1. Jan Babecký & Fabrizio Coricelli & Roman Horváth, 2009. "Assessing Inflation Persistence: Micro Evidence on an Inflation Targeting Economy," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 59(2), pages 102-127, June.
    2. Donati, Michele & Bodini, Diego & Arfini, Filippo & Zezza, Annalisa, 2013. "An integrated PMP model to assess the development of agro-energy crops and the effect on water requirements," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(3), pages 1-21, December.
    3. G. Lindberg & P. Midmore & Y. Surry, 2012. "Agriculture’s Inter-industry Linkages, Aggregation Bias and Rural Policy Reforms," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 552-575, September.

    More about this item

    Keywords

    Agricultural and Food Policy;

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