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The Common Agricultural Policy and Farming in Protected Ecosystems

Ernest Reig Martínez () and Vicent Estruch Guitart ()
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Ernest Reig Martínez: UNIVERSIDAD DE VALENCIA INSTITUTO VALENCIANO DE INVESTIGACIONES ECONÓMICAS (Ivie)
Vicent Estruch Guitart: INSTITUTO VALENCIANO DE INVESTIGACIONES ECONÓMICAS (Ivie) UNIVERSITY O F VALENCIA POLYTECHNIC UNIVERSITY O F VALENCIA

Authors registered in the RePEc Author Service: Ernest Reig-Martínez ()

No 201044, Working Papers from Fundacion BBVA / BBVA Foundation

Abstract: The Common Agricultural Policy (CAP) of the European Union is currently in a state of evolution, where non-productive functions of agriculture are being increasingly recognised. The growing concern for the environmental consequences of farming activity has led European countries to the development of diverse agro-environmental schemes. This paper reflects on the effect of different policy scenarios, corresponding to old and new regulations of the European Common Agricultural Policy, on the private and social profitability of farming in protected ecosystems. We use as an empirical illustration the case of rice cultivation in the Albufera of Valencia. We use the Policy Analysis Matrix (PAM) to compute private and social profitability indicators, as well as to foresee the effects on rice farms profitability of the recent CAP reform, which will come into force by 2005-2006. The ability of PAM to integrate environmental aspects into the conventional efficiency analysis of farming systems is also emphasised.

Keywords: Environmental effects; sustainability; multifunctionality; Common Agricultural Policy; Policy Analysis Matrix; rice. (search for similar items in EconPapers)
Pages: 37
Date: 2006-08
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