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The CAP reform between targeting and equity: a structural policy analysis for Italy

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  • Benedetto Rocchi

Abstract

A model grounded on a social accounting matrix for Italy, adapted for an analysis of agriculture, is used to assess the distributive impacts of changes to the single payment scheme after the Common Agricultural Policy Health Check. The main goal of the analysis is to bring out how and to what extent the distributive outcomes of support are affected by the structural relations existing among production activity, factor ownership and the distribution of income from farming among households. A particular manipulation, the singular value decomposition, of the matrix of income multipliers is used to highlight the major trade-offs, implicit in the structure of the economy, between the support to different farm types and the impact on incomes of different households groups. The results outline the existence of a structural trade-off between targeting and equity in supporting Italian agriculture through payments to farms and suggest flexibility in the application of reformed payments according to different distributive features of agriculture in member countries. Oxford University Press and Foundation for the European Review of Agricultural Economics 2009; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Benedetto Rocchi, 2009. "The CAP reform between targeting and equity: a structural policy analysis for Italy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(2), pages 175-201, June.
    • Handle: RePEc:oup:erevae:v:36:y:2009:i:2:p:175-201
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    File URL: http://hdl.handle.net/10.1093/erae/jbp020
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    Cited by:

    1. Rocchi, Benedetto & Stefani, Gianluca & Romano, Donato & Landi, Chiara, 2012. "Are Italian farming households actually poorer than other non agricultural households? An empirical analysis," 2012 First Congress, June 4-5, 2012, Trento, Italy 124128, Italian Association of Agricultural and Applied Economics (AIEAA).
    2. Patricia D. Fuentes-Saguar & Alfredo J. Mainar-Causapé & Emanuele Ferrari, 2017. "The Role of Bioeconomy Sectors and Natural Resources in EU Economies: A Social Accounting Matrix-Based Analysis Approach," Sustainability, MDPI, vol. 9(12), pages 1-13, December.
    3. Rocchi, Benedetto & Romano, Donato & Hamza, Raid, 2013. "Agriculture reform and food crisis in Syria: Impacts on poverty and inequality," Food Policy, Elsevier, vol. 43(C), pages 190-203.
    4. Dimitrios Kremmydas & Konstantinos Tsiboukas, 2022. "Redistribution and the Abolishment of Historical Entitlements in the CAP Strategic Plans: The Case of Greece," Sustainability, MDPI, vol. 14(2), pages 1-14, January.
    5. Vollaro, Michele, 2010. "The impact of the Single Farm Payments on the Expenditure on Fertilizers and crop protection inputs: a comparative study of the Italian agriculture," 120th Seminar, September 2-4, 2010, Chania, Crete 109428, European Association of Agricultural Economists.
    6. Deppermann, Andre & Grethe, Harald & Offermann, Frank, 2011. "Distributional Effects of the CAP on Western German Farm Incomes and Regional Farm Income Disparity," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114442, European Association of Agricultural Economists.
    7. D'Amico, Mario & Coppola, Adele & Chinnici, Gaetano & Di Vita, Giuseppe & Pappalardo, Gioacchino, 2012. "EU Agricultural Systems in the new CAP perspectives," 126th Seminar, June 27-29, 2012, Capri, Italy 126116, European Association of Agricultural Economists.
    8. George Philippidis & Ana I. Sanjuán-López, 2018. "A Re-Examination of the Structural Diversity of Biobased Activities and Regions across the EU," Sustainability, MDPI, vol. 10(11), pages 1-13, November.
    9. George Philippidis & Ana SanJuan Lopez & Emanuele Ferrari & Robert M'Barek, 2014. "Structural Patterns of the Bioeconomy in the EU Member States a SAM approach," JRC Research Reports JRC90698, Joint Research Centre.

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