Abstract
The paper contrasts the rural-urban effects of a reduction in CAP support in two remote regions of the EU: The East Highlands (Scotland) and Archanes-Heraklion (Greece). Analysis is based on bi-regional CGE models calibrated using Social Accounting Matrices (SAMs) for the study areas. The models are adapted to show the range of linkages that exist between farm households and the regional economy and how these spread across rural–urban boundaries. Findings suggest that a reduction of coupled farm support will lead to a (small) net negative impact on both region’s real GDP but there are qualitative differences in the spatial distribution of effects in both regions. They also suggest that coupled support may be constraining economic activity within some rural and urban sectors. Based on the results, it is argued that there is a case for region-specific targeted compensation to alleviate the negative effects of CAP reform while nurturing the positive effects of a move towards a less distorting policy environment.
| Original language | English |
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| Title of host publication | AES Annual Conference proceedings |
| Pages | 1-18 |
| Number of pages | 18 |
| Publication status | Published - Jan 2009 |
| Event | 83rd Annual Conference of the Agricultural Economics Society - Dublin, Ireland Duration: 30 Mar 2009 → 2 Apr 2009 |
Conference
| Conference | 83rd Annual Conference of the Agricultural Economics Society |
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| Country/Territory | Ireland |
| City | Dublin |
| Period | 30/03/09 → 2/04/09 |
Keywords
- CGE
- linkages
- farm support
- rural-urban