Staff Publications

Staff Publications

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    'Staff publications' is the digital repository of Wageningen University & Research

    'Staff publications' contains references to publications authored by Wageningen University staff from 1976 onward.

    Publications authored by the staff of the Research Institutes are available from 1995 onwards.

    Full text documents are added when available. The database is updated daily and currently holds about 240,000 items, of which 72,000 in open access.

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Record number 512703
Title The economic, environmental and agricultural land use effects in the European Union of agricultural labour subsidies under the Common Agricultural Policy
Author(s) Helming, John; Tabeau, Andrzej
Source Regional Environmental Change 18 (2018)3. - ISSN 1436-3798 - p. 763 - 773.
DOI https://doi.org/10.1007/s10113-016-1095-z
Department(s) International Policy
Publication type Refereed Article in a scientific journal
Publication year 2018
Keyword(s) Agriculture - Common Agricultural Policy - Economic models - Employment - European Union
Abstract In this study, we assessed the economic, environmental and agricultural land use impacts in the EU of a 20% reduction in the Pillar I budget of the Common Agricultural Policy (CAP) of the European Union (EU) and spending the saved money via a subsidy on labour in primary agriculture. The impact of such a policy has been assessed with a computable general equilibrium (CGE) model and a partial equilibrium (PE) model. It is concluded that reallocation of Pillar I budgets to a coupled agricultural labour subsidy increased employment in agriculture, especially in agricultural sectors and regions that are relatively labour intensive. Average employment in agriculture in the EU increased with 1.6% in the CGE model and with 0.6% in the PE model. Agricultural production and environmental emissions from agriculture increased as well. At the same time, prices of agricultural outputs decreased. Value added including subsidies increased for agricultural labour, but total value added in agriculture decreased. The latter was especially explained by decreased land prices and land-related value added. Measured in terms of equivalent variation, total welfare in the EU decreased. Welfare costs equalled about 1400 € per full-time work equivalent in agriculture extra. These results show that policy makers should weigh carefully the pros and cons of the direct and indirect overall economic, environmental and land use impacts of a subsidy on agricultural labour at the expense of the Pillar I budget of the EU CAP.
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