Distribución de bienestar económico entre Estados Miembros ante distintas opciones de desacoplamiento en el marco de la nueva PAC - Consecuencias para España

Ignacio Pérez Domínguez; Christine Wieck

doi:10.7201/earn.2006.11.05

Authors

Ignacio Pérez Domínguez European Commission
Christine Wieck Washington State University

DOI:

https://doi.org/10.7201/earn.2006.11.05

Keywords:

Common Agricultural Policy, Partial equilibrium analysis, Modelling, Decoupling, Welfare analysis

Abstract

This paper makes use of an agricultural sector model to analyse welfare effects derived from different national implementation options of the CAP Reform 2003. It shows that agricultural prices developed more favourable in a full premium decoupling scenario, since agricultural production declines more pronounced compared to a partial decoupling scenario. The use of the partial decoupling mechanism helps Member States to distribute income into less favoured areas but is not the optimal policy choice. However, if other Member States follow the same path of reform, a ‘prisoner’s dilemma’ will most likely be observed: partial decoupling appears as the preferred option for individual Member States, since high domestic production and high producer prices would be expected, but this would lead to welfare losses for consumers and taxpayers.

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Author Biographies

Ignacio Pérez Domínguez, European Commission

DG - Joint Research Center IPTS.

Christine Wieck, Washington State University

IMPACT Center and School of Economic Sciences

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