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Economic and environmental impacts of milk quota reform in Europe

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The year 2008 ¿Health Check¿ decisions on the Common Agricultural Policy (CAP) included the expiry of the milk quota system. This paper presents an impact analysis using the CAPRI model, which has been updated with econometric estimates of milk quota rents at the level of ca. 230 European regions. Production may increase by 5% while the price drop is about 10%. Regions are identified where economic or environmental changes substantially exceed those at the Member State level. Regional nitrate leaching problems could be exacerbated. But there is only weak evidence of an increased risk of land abandonment.
2011-03-30
ELSEVIER SCIENCE INC
JRC60359
0161-8938,   
www.elsevier.com/locate/jpm,    https://publications.jrc.ec.europa.eu/repository/handle/JRC60359,   
10.1016/j.jpolmod.2010.10.007,   
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