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Alternatives to Present Price Policies for the CAP

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  • Harvey, David

Abstract

The costs and benefits of the CAP, as conventionally measured, suggest that the CAP is seriously inefficient. However, the per-head net benefits for affected groups, the non-uniformity of their incidence among countries, and the particular effects of the common principles all provide reasons for the policy's persistence in the face of apparently growing pressures. The CAP demonstrates a logical and historical profession from unlimited support through price prudence and thresholds to quantitative controls on supplies. Associated with this progression, the relative weights of the various policy pressures can be identified, which in turn define a range of future policy options. A qualitative assessment of these options suggests that recurring crises will continue and that the chances of achieving a more liberal international trading attitude are less than 20 percent. Copyright 1989 by Oxford University Press.

Suggested Citation

  • Harvey, David, 1989. "Alternatives to Present Price Policies for the CAP," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 16(1), pages 83-111.
    • Handle: RePEc:oup:erevae:v:16:y:1989:i:1:p:83-111
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    Cited by:

    1. Harvey, David R., 1995. "European Union Cereals Policy - an Evolution or a New Australian Era?," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 148801, Australian Agricultural and Resource Economics Society.
    2. Harvey, David R., 1995. "European Union Cereals Policy: An Evolutionary Interpretation," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-25, December.

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