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The Distribution of CAP Payments - Redistributional Injustice or Spatially Adapted policy?

Holger Bergmann, Eva Maria Noack and Kenneth J. Thomson

No 108958, 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK from Agricultural Economics Society

Abstract: This paper analyses the distributional equality of individual Scottish Government-administered payments in 2008 under CAP Pillars One (single farm payments) and Two (rural development measures) and in total, in terms of economic, social and spatial factors. The analysis shows that 94% of all payments were paid to claimants in core rural areas (94%) while only a few (5%) claimants resided in urban areas or outside of Scotland (1%). However, in both Pillars, claims made by urban residents were often higher than those made by rural dwellers. The Ordinary Least Squares spatial analysis shows that the level of payments was extremely dependent on the geographical location and natural conditions. Spatial factors describing the economic situation in the area of the claimant were significantly related to the level of the CAP amounts paid. Overall, the level of amounts paid was positively related to the natural, economic and social structures of the area of residence. The discussion tackles the question of whether the current system of farm income support by decoupled payments should be developed into a poverty payment system.

Keywords: Pillar One; Common Agricultural Policy; Gini-Coefficient; Rural-Urban distribution; distributional justice; Land Economics/Use; Q15; R14; R11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-geo and nep-ure
Date: 2011-04
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