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Ex-ante Spatial Policy Impact Analysis of the Rural Development Policy in European Rural Areas (RURAL ECMOD)

Author

Listed:
  • Demetrios Psaltopoulos

    () (Department of Economics - University of Patras)

  • Euan Phimister

    () (Department of Economics - University of Aberdeen)

  • Tomas Ratinger

    () (Institute for Agricultural Economics and Information (ÚZEI) Praha)

  • Deborah Roberts

    () (Department of Economics - University of Aberdeen)

  • Dimitris Skuras

    () (Department of Economics - University of Patras)

  • Eudokia Balamou

    (Department of Economics - University of Patras)

  • Zuzana Bednarikova

    () (Institute for Agricultural Economics and Information (ÚZEI) Praha)

  • Maria Espinosa

    () (European Commission – JRC)

  • Sergio Gomez y Paloma

    () (European Commission – JRC)

  • Sebastien Mary

    () (European Commission – JRC)

  • Frantisek Nohel

    () (Institute for Agricultural Economics and Information (ÚZEI) Praha)

  • Fabien Santini

    () (European Commission – JRC)

Abstract

The present study aims at modelling the impact of different CAP (Common Agricultural Policy) scenarios on 6 case study regional economies. The starting point is the construction of a Social Accounting Matrix (SAM) obtained through a combination of mechanical downscaling of higher level input-output data with superior data, followed by a balancing procedure. A number of key elements facilitate the simulation of the policy scenarios: disaggregation of agricultural sector by farm size and the rural-urban disaggregation of activities and households. Policy scenarios focus on the impacts of relatively major changes in agricultural and rural policy (change in the balance between CAP pillars 1 and 2 or redistribution of funding within CAP pillar 2 – rural development policy). Models used are recursive dynamic CGE models, solved one year at a time, over the period 2006 to 2020. Policy measures are modelled on the base of RDP spending mapped for each region into investments in specific SAM sectors Economy wide effects of all scenarios remain limited, but slightly more important and significant when looking at the specifically rural economy. On the base of a limited number of case study areas, it seems that diversification policy mixes for rural development are in all cases beneficial to rural economies, while policy mixes focusing on agriculture competitiveness and public goods is only economically beneficial at short term and in rural, peripheral and agriculture-centred areas.

Suggested Citation

  • Demetrios Psaltopoulos & Euan Phimister & Tomas Ratinger & Deborah Roberts & Dimitris Skuras & Eudokia Balamou & Zuzana Bednarikova & Maria Espinosa & Sergio Gomez y Paloma & Sebastien Mary & Frantise, 2012. "Ex-ante Spatial Policy Impact Analysis of the Rural Development Policy in European Rural Areas (RURAL ECMOD)," JRC Working Papers JRC68412, Joint Research Centre (Seville site).
  • Handle: RePEc:ipt:iptwpa:jrc68412
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC68412
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    References listed on IDEAS

    as
    1. Waters, Edward C. & Weber, Bruce A. & Holland, David W., 1999. "The Role Of Agriculture In Oregon'S Economic Base: Findings From A Social Accounting Matrix," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-15, July.
    2. Edward C. Waters & David W. Holland & Bruce A. Weber, 1997. "Economic Impacts of a Property Tax Limitation: A Computable General Equilibrium Analysis of Oregon's Measure 5," Land Economics, University of Wisconsin Press, vol. 73(1), pages 72-89.
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    Cited by:

    1. Ratinger, Tomas & Kristkova, R., 2012. "Rural Economies and ahe Pillar 2 Budget Debate: A Regional Perspective," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(4), pages 1-11, December.
    2. Pei, Pei & Wu, Ziping & Longo, Alberto, 2015. "Developing a Rural-Urban Social Accounting Matrix for Northern Ireland," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204288, Agricultural Economics Society.
    3. Zawalińska, Katarzyna & Ciechomska, Anna & Jendrzejewski, Błażej, 2016. "Challenges for Modelling CAP 2014–2020 within CGE Model Framework," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 4(173).
    4. Sébastien Mary & Fabien Santini & Maria Espinosa & Alejandro Cardenete & Sergio Gomez y Paloma, 2013. "The rural-urban spillovers of EU structural policies in Cordoba, Spain," JRC Working Papers JRC85301, Joint Research Centre (Seville site).

    More about this item

    Keywords

    rural development; modelling; Common Agricultural Policy; Computable General Equilibrium; Rural-Urban linkages;

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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