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The Economic Effects of Common Agricultural Policy Trends on Montado Ecosystem in Southern Portugal

Author

Listed:
  • Rui Manuel de Sousa Fragoso

    (CEFAGE)

  • Maria de Belém Ferreira da Silva Costa Freitas

    (University of Algarve, Sciences and Technology Faculty, CEFAGE-UÉ)

  • Maria Raquel David Pereira Ventura Lucas

    (CEFAGE)

  • Carlos Alberto Falcão Marques

    (University of Évora, Department of Management, CEFAGE-UÉ)

Abstract

The decoupling of CAP payments leads production decisions and resources allocation to be dependent only on market prices and competitive advantages. The objective of this paper is to assess the effects of CAP trends on the montado ecosystem in southern Portugal in terms of land, labour and capital allocation and farm income. A positive mathematical supply model disaggregated by the main montado agro-forestry production system in the Alentejo region is developed. The results show that decoupling payments of CAP have important economic effects and the foreseen increases in prices do not compensate the loss of the Agenda 2000 area payments.

Suggested Citation

  • Rui Manuel de Sousa Fragoso & Maria de Belém Ferreira da Silva Costa Freitas & Maria Raquel David Pereira Ventura Lucas & Carlos Alberto Falcão Marques, 2009. "The Economic Effects of Common Agricultural Policy Trends on Montado Ecosystem in Southern Portugal," CEFAGE-UE Working Papers 2009_12, University of Evora, CEFAGE-UE (Portugal).
    • Handle: RePEc:cfe:wpcefa:2009_12
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    References listed on IDEAS

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    More about this item

    Keywords

    Common agricultural policy; Positive mathematical programming; Montado ecosystem; Decoupling.;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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