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Coupled Agricultural Subsidies in the EU Undermine Climate Efforts

Jansson, Torbjörn ; Nordin, Ida ; Wilhelmsson, Fredrik LU ; Witzke, Peter ; Manevska-Tasevska, Gordana LU ; Weiss, Franz and Gocht, Alexander (2020) In Applied Economic Perspectives and Policy
Abstract

Subsidizing polluting industries generally leads to increased pollution locally. However, given the diversity of production technologies across countries and international trade, the global impact of unilateral policies is not a priori clear. We use the agricultural sector model CAPRI to simulate the impact of removing the voluntary coupled support for ruminants, presently permitted under the EU Common Agricultural Policy. We find that this reduces greenhouse gas emissions in the EU. However, emissions leakage significantly diminishes the global mitigation effect since about 3/4 of the reduction in the EU is offset by increased emissions in the rest of the world.

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author
; ; ; ; ; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Agricultural Policy, Climate Change, Coupled Support, Emissions Leakage, EU, Q17, Q18, Q54
in
Applied Economic Perspectives and Policy
publisher
Wiley
external identifiers
  • scopus:85092131290
ISSN
2040-5790
DOI
10.1002/aepp.13092
language
English
LU publication?
yes
id
20d6792a-d6c0-4fcc-aca0-1db408e6e02e
date added to LUP
2020-10-22 15:22:36
date last changed
2022-07-13 04:30:19
@article{20d6792a-d6c0-4fcc-aca0-1db408e6e02e,
  abstract     = {{<p>Subsidizing polluting industries generally leads to increased pollution locally. However, given the diversity of production technologies across countries and international trade, the global impact of unilateral policies is not a priori clear. We use the agricultural sector model CAPRI to simulate the impact of removing the voluntary coupled support for ruminants, presently permitted under the EU Common Agricultural Policy. We find that this reduces greenhouse gas emissions in the EU. However, emissions leakage significantly diminishes the global mitigation effect since about 3/4 of the reduction in the EU is offset by increased emissions in the rest of the world.</p>}},
  author       = {{Jansson, Torbjörn and Nordin, Ida and Wilhelmsson, Fredrik and Witzke, Peter and Manevska-Tasevska, Gordana and Weiss, Franz and Gocht, Alexander}},
  issn         = {{2040-5790}},
  keywords     = {{Agricultural Policy; Climate Change; Coupled Support; Emissions Leakage; EU; Q17; Q18; Q54}},
  language     = {{eng}},
  month        = {{10}},
  publisher    = {{Wiley}},
  series       = {{Applied Economic Perspectives and Policy}},
  title        = {{Coupled Agricultural Subsidies in the EU Undermine Climate Efforts}},
  url          = {{http://dx.doi.org/10.1002/aepp.13092}},
  doi          = {{10.1002/aepp.13092}},
  year         = {{2020}},
}