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Please use this identifier to cite or link to this item: http://hdl.handle.net/11019/704

Title: The 2003 CAP reform: Do decoupled payments affect agricultural production?
Authors: Howley, Peter
Hanrahan, Kevin
Donnellan, Trevor
Keywords: Decoupled payments
WTO green box
Agricultural production
Issue Date: 2009
Publisher: Teagasc, Oak Park, Carlow, Ireland
Citation: P. Howley, K. Hanrahan and T. Donnellan. (2009) The 2003 CAP reform: Do decoupled payments affect agricultural production? RERC Working Paper Series PUT 09-WP-RE-01
Series/Report no.: RERC Working Paper Series;09-WP-RE-01
Abstract: The move from coupled payment policy instruments to payments that are decoupled from production have made estimating future trends in agricultural output much more challenging. Using a dynamic multi product partial equilibrium model, the overall aim of this paper is to examine the potential supply inducing effect of decoupled payments. This issue is important in the context of WTO negotiations, and, in particular, in discussions surrounding the appropriateness of decoupled payments being included as a ‘green box’ policy. The results suggest that farm operators, to a large extent, do not treat these payments as fully decoupled and they do in fact maintain a strong supply inducing effect on agricultural production. Findings suggest, however, that this trade distorting effect is less than previously coupled payments.
Description: working paper
URI: http://hdl.handle.net/11019/704
Appears in Collections:Agricultural Economics

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