Subsidies linked to production have been classified to be environmentally harmful by OECD. A core element of the EU 2003 Common Agricultural Policy (CAP) reform is to decouple income support from production. This paper estimates the environmental consequences of this policy reform. An...

In January 2003, the EU Commission published details of the proposed reform of the Common Agricultural Policy. Core elements of this reform are the reduction of intervention prices (for grain and milk) and the decoupling of direct payments from production. Several countries (including Austria)...

Subsidies linked to production have been classified to be environmentally harmful by OECD. A core element of the EU 2003 Common Agricultural Policy (CAP) reform is to decouple income support from production. This paper estimates the environmental consequences of this policy reform. An...