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Assessing the redistributive impact of the 2013 CAP reforms: an EU-wide panel study

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  • Aaron Hanson

Abstract

This paper analyses the effects of the 2013 Common Agricultural Policy reforms on the distribution of direct payments across the European Union (EU) member states. The differential implementation of two key redistributive policies across countries from 2014 onwards enables the use of a generalised difference-in-differences strategy to estimate their distributional effects. Using data on EU-wide direct payment recipients reveals a substantial negative impact on the largest payment recipients and significant redistribution towards smaller farmers. A disaggregated analysis suggests that of the two instruments, capping, though still an attractive option for policymakers, is less effective at redistributing subsidies towards smaller farmers than the Redistributive Payment Scheme.

Suggested Citation

  • Aaron Hanson, 2021. "Assessing the redistributive impact of the 2013 CAP reforms: an EU-wide panel study," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(2), pages 338-361.
    • Handle: RePEc:oup:erevae:v:48:y:2021:i:2:p:338-361.
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    File URL: http://hdl.handle.net/10.1093/erae/jbab006
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    Citations

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    Cited by:

    1. Robert Finger & Nadja El Benni, 2021. "Farm income in European agriculture: new perspectives on measurement and implications for policy evaluation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(2), pages 253-265.
    2. Ollier, Maxime & De Cara, Stéphane, 2024. "Give and take: An analysis of the distributional consequences of emission tax-and-rebate schemes with an application to greenhouse gas emissions from European agriculture," Ecological Economics, Elsevier, vol. 219(C).
    3. Kostov, Philip & Davidova, Sophia & Gjokaj, Ekrem, 2021. "Does Policy Support Really Help Farmers’ Incomes: The Case of Kosovo," 2021 Conference, August 17-31, 2021, Virtual 315278, International Association of Agricultural Economists.
    4. Ollier, Maxime & Jayet, Pierre-Alain & Humblot, Pierre, 2024. "An assessment of the distributional impacts of autonomous adaptation to climate change from European agriculture," Ecological Economics, Elsevier, vol. 222(C).
    5. Vincent Chatellier & Hervé Guyomard, 2023. "Supporting European farmers’ incomes through Common Agricultural Policy direct aids: facts and questions," Review of Agricultural, Food and Environmental Studies, Springer, vol. 104(1), pages 87-99, March.
    6. Miguel Viegas & Jan Wolf & Francisco Cordovil, 2023. "Assessment of inequality in the Common Agricultural Policy in Portugal," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-15, December.

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