European Union land markets and the Common Agricultural Policy

This chapter analyses the impact of the Common Agricultural Policy (CAP) direct payments on land markets in the European Union. It starts with a theoretical model, followed by an overview of the empirical findings. Next is presented the empirical evidence of a natural experiment, i.e. the accession of several countries to the European Union where as a result of accession CAP measures have been introduced, and of the impact of the Single Payment Scheme (SPS) reform in the old EU member states (EU15). The results provide preliminary evidence and are mainly based on theoretical analysis and expert interviews. The main limitations are the scarcity of the data on land values and the short time span since the implementation of decoupled CAP subsidies in the European Union.

CIAIAN Pavel;  KANCS D'Artis;  SWINNEN Johan;  VRANKEN Liesbet; 

2011-11-29

Organisation for Economic Co-operation and Development (OECD)

JRC66435

http://dx.doi.org/10.1787/9789264097070-en,    https://publications.jrc.ec.europa.eu/repository/handle/JRC66435,