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Hybrid linear programming to estimate CAP impacts of flatter rates and environmental top-ups

Author

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  • Stelios Rozakis

    (Agricultural Economics and Rural Development Department, Agricultural University of Athens)

Abstract

This paper examines evolutions of the Common Agricultural Policy (CAP) decoupling regime and their impacts on Greek arable agriculture. Policy analysis is performed by using mathematical programming tools. Taking into account increasing uncertainty, we assume that farmers perceive gross margin in intervals rather than as expected crisp values. A bottom-up hybrid model accommodates both profit maximizing and risk prudent attitudes in order to accurately assess farmers’ response. Marginal changes to crop plans are expected so that flatter single payment rates cause significant changes in incomes and subsidies. Nitrogen reduction incentives result in moderate changes putting their effectiveness in question.

Suggested Citation

  • Stelios Rozakis, 2010. "Hybrid linear programming to estimate CAP impacts of flatter rates and environmental top-ups," Working Papers 2010-03, Agricultural University of Athens, Department Of Agricultural Economics.
    • Handle: RePEc:aua:wpaper:2010-03
    as

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    File URL: http://aoatools.aua.gr/RePEc/aua/wpaper/files/2010_3_rozakis.pdf
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    References listed on IDEAS

    as
    1. A O Kazakçi & S Rozakis & D Vanderpooten, 2007. "Energy crop supply in France: a min-max regret approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(11), pages 1470-1479, November.
    2. Gabriel R. Bitran, 1980. "Linear Multiple Objective Problems with Interval Coefficients," Management Science, INFORMS, vol. 26(7), pages 694-706, July.
    3. ,, 2004. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 20(2), pages 427-429, April.
    4. ,, 2004. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 20(1), pages 223-229, February.
    5. Guindé, Loïc & Millet, Guy & Rozakis, Stelios & Sourie, Jean-Claude & Tréguer, David, 2005. "The CAP Mid-Term Reform Impacts to French Cereal-Oriented Farms," 89th Seminar, February 2-5, 2005, Parma, Italy 232607, European Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Interval Linear Programming; Min-Max Regret; Common Agricultural Policy; Arable cropping; Greece;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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