Regional income effects of producer support under the CAP

Sven Anders, Johannes Harsche, Roland Herrmann and Klaus Salhofer
Additional contact information
Roland Herrmann: Institute of Agricultural Policy and Market Research, Justus-Liebig- niversity Giessen, Senckenbergstr. 3, D-35390 Giessen, Germany

Cahiers d'Economie et Sociologie Rurales, 2004, vol. 73, 103-121

Abstract: The Common Agricultural Policy (CAP) of the European Union (EU) is characterized by a wide array of individual policy measures, which differ by the category of instruments, across commodities and over time. Consequently, the net impact of the policy mix on price incentives for producers and consumers had been intransparent for years. This study utilizes a regionalized concept of producer support estimates (PSEs) to elaborate the primary effects of the CAP on producers at a disaggregate level of NUTS III regions. 26 regions in the federal state of Hesse, Germany, in the years 1986-1999 are utilized as a case study. One important result is that a uniform CAP does affect the regions very differently. Recent reforms of the CAP have not reduced significantly the average level of agricultural support in the region studied. Statistically significant downward trends in absolute producer support due to price support were associated with significant upward trends due to direct payments. Interestingly, absolute and relative PSE measures due to the CAP and price support are fully uncorrelated with each other. If transfers under the CAP are targeted in terms of absolute support, e.g., this may induce an arbitrary interregional distribution of PSEs in relation to farm revenues.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://ageconsearch.umn.edu/bitstream/202430/2/73-103-121.pdf (application/pdf)

Related works:
Journal Article: Regional income effects of producer support under the CAP (2004)
Working Paper: Regional income effects of producer support under the CAP (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rae:jouces:v:73:y:2004:p:103-121

Access Statistics for this article

Cahiers d'Economie et Sociologie Rurales is currently edited by Julien Salanié

More articles in Cahiers d'Economie et Sociologie Rurales from INRA Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Nathalie Saux-Nogues ().