“Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities

Taking into account the evolution of the Common Agricultural Policy (CAP), it is wondered to what extent the “green” transformation of this policy and the accompanying change in the distribution of direct payments between farms contributed to the elimination of disproportions in agricultural income....

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Main Authors: Aleksandra Pawłowska, Renata Grochowska
Format: Article
Language:English
Published: MDPI AG 2021-12-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/14/24/8242
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author Aleksandra Pawłowska
Renata Grochowska
author_facet Aleksandra Pawłowska
Renata Grochowska
author_sort Aleksandra Pawłowska
collection DOAJ
description Taking into account the evolution of the Common Agricultural Policy (CAP), it is wondered to what extent the “green” transformation of this policy and the accompanying change in the distribution of direct payments between farms contributed to the elimination of disproportions in agricultural income. The aim of the study was to investigate the changes in the proclaimed concepts related to the development of the EU agricultural sector in terms of their “green” transformation, and to assess the impact of “green” CAP payments on income inequalities between farms. The research was conducted based on the data representative for Polish commercial farms for the years 2004–2019, covering three financial perspectives of the agricultural policy. The methods of counterfactual modelling and assessment of income inequality were used in the study. The analyses showed that the evolution of the CAP priorities, and hence instruments, towards the pro-environmental (or, more broadly, towards sustainability) have so far had a rather negative impact on the income of Polish farms. In its current form, the support dedicated to environmental and climate protection did not fully compensate farmers for income losses resulting from the use of pro-environmental agricultural practices. Moreover, “green” CAP payments did not play a significant role in shaping income inequalities. Therefore, we can conclude that the CAP instruments do not contribute sufficiently to sustainable development (economic, social, and environmental), because they do not support/motivate farmers to change their production standards.
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spelling doaj.art-87e76ef76f3742d9980cbe5636724e842023-11-23T08:04:31ZengMDPI AGEnergies1996-10732021-12-011424824210.3390/en14248242“Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income DisparitiesAleksandra Pawłowska0Renata Grochowska1Institute of Rural and Agricultural Development of the Polish Academy of Sciences, Nowy Świat Str. 72, 00-330 Warsaw, PolandInstitute of Agricultural and Food Economics—National Research Institute, Świętokrzyska Str. 20, 00-002 Warsaw, PolandTaking into account the evolution of the Common Agricultural Policy (CAP), it is wondered to what extent the “green” transformation of this policy and the accompanying change in the distribution of direct payments between farms contributed to the elimination of disproportions in agricultural income. The aim of the study was to investigate the changes in the proclaimed concepts related to the development of the EU agricultural sector in terms of their “green” transformation, and to assess the impact of “green” CAP payments on income inequalities between farms. The research was conducted based on the data representative for Polish commercial farms for the years 2004–2019, covering three financial perspectives of the agricultural policy. The methods of counterfactual modelling and assessment of income inequality were used in the study. The analyses showed that the evolution of the CAP priorities, and hence instruments, towards the pro-environmental (or, more broadly, towards sustainability) have so far had a rather negative impact on the income of Polish farms. In its current form, the support dedicated to environmental and climate protection did not fully compensate farmers for income losses resulting from the use of pro-environmental agricultural practices. Moreover, “green” CAP payments did not play a significant role in shaping income inequalities. Therefore, we can conclude that the CAP instruments do not contribute sufficiently to sustainable development (economic, social, and environmental), because they do not support/motivate farmers to change their production standards.https://www.mdpi.com/1996-1073/14/24/8242agricultural policysustainable developmentagri-environment-climate paymentsfarms
spellingShingle Aleksandra Pawłowska
Renata Grochowska
“Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities
Energies
agricultural policy
sustainable development
agri-environment-climate payments
farms
title “Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities
title_full “Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities
title_fullStr “Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities
title_full_unstemmed “Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities
title_short “Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities
title_sort green transformation of the common agricultural policy and its impact on farm income disparities
topic agricultural policy
sustainable development
agri-environment-climate payments
farms
url https://www.mdpi.com/1996-1073/14/24/8242
work_keys_str_mv AT aleksandrapawłowska greentransformationofthecommonagriculturalpolicyanditsimpactonfarmincomedisparities
AT renatagrochowska greentransformationofthecommonagriculturalpolicyanditsimpactonfarmincomedisparities