Rural development and welfare implications of CAP reforms

Rizov, Marian (2004) Rural development and welfare implications of CAP reforms. Journal of Policy Modeling, 26 (2). pp. 209-222. ISSN 0161-8938

Full content URL: http://dx.doi.org/10.1016/j.jpolmod.2004.03.003

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Rural development and welfare implications of CAP reforms

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Abstract

Common Agricultural Policy (CAP) has been evolving from a sectoral policy of farm
commodity support into an integrated policy for rural development and environmental enhancement.
Rural development policy is closely linked to two concepts: diversity (multifunctionality)
and sustainability as achieving optimal diversity at community level is a key
in the rural development problem. In this paper rural development at community level and
the impact of support redistribution, resulting from recent CAP reforms, are analyzed in the
framework of privately provided public goods. It is shown that CAP support redistribution
can importantly impact rural community development and household welfare, conditional
on households’ technology (opportunity costs) of contributing to development, their current
levels of contribution, and the form of community development function.

Keywords:Common Agricultural Policy, Reform, Rural development, Diversity, Communities;
Subjects:L Social studies > L112 Agricultural Economics
L Social studies > L430 Public Policy
L Social studies > L120 Microeconomics
L Social studies > L241 European Union Politics
Divisions:Lincoln International Business School
ID Code:19052
Deposited On:16 Oct 2015 11:09

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