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Direct Payments and Sustainable Agricultural Development—The Example of Poland

Adrian Sadłowski (), Wioletta Wrzaszcz (), Katarzyna Smędzik-Ambroży (), Anna Matras-Bolibok (), Anna Budzyńska (), Marek Angowski () and Stefan Mann ()
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Adrian Sadłowski: Department of Economics, Institute of Economics and Finance, Faculty of Social and Economic Sciences, Cardinal Stefan Wyszyński University in Warsaw, 01938 Warsaw, Poland
Wioletta Wrzaszcz: Department of Agricultural Economy, Agricultural Policy and Rural Development, Institute of Agricultural and Food Economics—National Research Institute, 00002 Warsaw, Poland
Katarzyna Smędzik-Ambroży: Department of Macroeconomics and Agricultural Economics, Institute of Economics, Poznań University of Economics and Business, 61875 Poznań, Poland
Anna Matras-Bolibok: Department of Microeconomics and Applied Economics, Institute of Economics and Finance, Faculty of Economics, Maria Curie-Sklodowska University, 20031 Lublin, Poland
Anna Budzyńska: Department of Microeconomics and Applied Economics, Institute of Economics and Finance, Faculty of Economics, Maria Curie-Sklodowska University, 20031 Lublin, Poland
Marek Angowski: Department of Microeconomics and Applied Economics, Institute of Economics and Finance, Faculty of Economics, Maria Curie-Sklodowska University, 20031 Lublin, Poland

Sustainability, 2021, vol. 13, issue 23, 1-20

Abstract: This paper aims to explore the importance of the direct-payments scheme as a tool for supporting the sustainable development of agriculture in Poland, and to assess the effects of the 2015 Common Agricultural Policy reform in this context. In particular, the study attempts to investigate the impact of different fund-allocation criteria on the regional distribution of direct payments. The research employs a simulation method in the form of variant analysis (the “what if” model)—a mathematical method with elements of statistical description, based on the complete dataset. For the purposes of one of the variants, a multi-criteria composite indicator was constructed, including stimulants and destimulants of the level of environmental sustainability of agricultural plant production. The analysis was conducted at the NUTS 2 level (voivodeships). The timeframe of the study covered the period 2010–2019. The data published by Statistics Poland and the Agency for the Restructuring and Modernisation of Agriculture were used as the source material. The analysis indicated that the 2015 Common Agricultural Policy reform redistributed public funds away from sustainable agricultural management principles. Applying some basic sustainability criteria in order to internalise environmental externalities would lead to a radical redistribution of first-pillar Common Agricultural Policy payments. The paper concludes that a real greening of the European Union’s agricultural policy is a task still to be accomplished.

Keywords: sustainable development; Common Agricultural Policy; direct-support scheme; direct payments (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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