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Economic analysis of scenarios for the sustainability of extensive livestock farming in Spain under the CAP

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  • Franco, Juan Agustín
  • Gaspar, Paula
  • Mesias, Francisco Javier

Abstract

This paper proposes a change in the conditions of cross-compliance of CAP payments. Specifically, the eligibility criterion considered is compliance with minimal requirements of long-term economic and agroenvironmental sustainability. To this end, 69 range farms were surveyed in Extremadura (SW Spain). In these farms, sustainability was studied using the MESMIS framework. MESMIS is based on the evaluation of basic attributes of sustainability (adaptability, self-reliance, equity, stability, and productivity) formed from different indicators. The original indicators are then synthesized by means of qualitative, quantitative, or mixed techniques into a single value measuring the sustainability of the system (sustainability index). Alternative scenarios were then defined in which the perception of CAP subsidies was to a greater or lesser extent linked to levels of sustainability. For each of these scenarios, the economic indicators of the farms were compared with those of the baseline (present) situation. The analysis was completed using a logistic model classification to study the relationship between the maximum levels attainable by the economic indicators in terms of the sustainability indices. The results showed that including sustainability as a condition for receiving aid under the CAP can contribute to improving the economic results of traditional extensive farms.

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  • Franco, Juan Agustín & Gaspar, Paula & Mesias, Francisco Javier, 2012. "Economic analysis of scenarios for the sustainability of extensive livestock farming in Spain under the CAP," Ecological Economics, Elsevier, vol. 74(C), pages 120-129.
    • Handle: RePEc:eee:ecolec:v:74:y:2012:i:c:p:120-129
    DOI: 10.1016/j.ecolecon.2011.12.004
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