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The economic effects of common agricultural policy on Mediterraneanmontado/dehesa ecosystem

Authors
Journal
Journal of Policy Modeling
0161-8938
Publisher
Elsevier
Publication Date
Volume
33
Issue
2
Identifiers
DOI: 10.1016/j.jpolmod.2010.12.007
Keywords
  • Common Agricultural Policy
  • Positive Mathematical Programming
  • Montado Ecosystem
  • Decoupling
Disciplines
  • Agricultural Science
  • Biology
  • Ecology
  • Economics
  • Mathematics

Abstract

Abstract The decoupling of CAP payments leads production decisions and resources allocation to be more dependent on market prices and competitive advantages. The objective of this paper is to assess the effects of CAP trends on the montado/dehesa traditional ecosystem of Mediterranean regions in terms of farm income, land, labour and capital. A positive mathematical supply model disaggregated by the montado agro-forestry production systems of the Alentejo region in southern Portugal is developed. The results show that decoupling payments of CAP have negative economic effects on agricultural activities and resource use. Agricultural income increases with single farm payments but the foreseen increases in prices do not compensate the loss of the Agenda 2000 area payments in terms of competitiveness. These results reinforce the need to promote alternative agricultural and non-agricultural activities and policies in Mediterranean rural European areas and regions.

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