Is the Greening Instrument a Valid Precedent for the New Green Architecture of the CAP? The Case of Spain

Carmelo Díaz-Poblete, María Carmen García-Cortijo and Juan Sebastián Castillo-Valero
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Carmelo Díaz-Poblete: Escuela Técnica Superior de Ingenieros Agrónomos y de Montes, Campus Universitario s/n, Universidad de Castilla-La Mancha, 02071 Albacete, Spain
María Carmen García-Cortijo: Instituto de Desarrollo Regional, Campus Universitario s/n, Universidad de Castilla-La Mancha, 02071 Albacete, Spain
Juan Sebastián Castillo-Valero: Instituto de Desarrollo Regional, Campus Universitario s/n, Universidad de Castilla-La Mancha, 02071 Albacete, Spain

Sustainability, 2021, vol. 13, issue 10, 1-11

Abstract: The Common Agricultural Policy 2014–2020, set up in 2015 and extended until 31 December 2022, introduced a payment instrument called Greening. The aim of Greening was to encourage agricultural practices that are beneficial for the environment while also contributing to economic and territorial dynamism. The purpose of this article is to study the effect that Greening has had in Spain. We consider five difference-in-difference models, one for each of the variables proposed: ecological focus areas, permanent grasslands over utilised agricultural area, CO 2 emissions stemming from agricultural land use changes and the presence of woody crops, agricultural income, and affiliates of the special agricultural regime. The data used come from the Spanish Ministry of Agriculture, Fisheries, and Food, the Ministry for Inclusion, Social Security, and Migrations, and the Spanish Emissions Inventory System. For the diff-in diff estimations, we use Spain’s regions as control and treatment units from 2011 to 2018, the aim being to provide observations ex ante Greening (2011–2014) and ex post (2015–2018). The results show that Greening had a limited impact, questioning its efficiency for meeting its goal, and that it is not a sound precedent for building the new green architecture of the CAP.

Keywords: greening; Spain; effects of greening; diff-in-diff (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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