Economic and Ecological Effects of the Green Deal in the Agricultural Sector -
A simulation study of the effects of the Farm-to-Fork strategy on production, trade, income and environment with the CAPRI model (F2F)
Funding
Members of the Grain Club
Duration
2/2021 - 11/2021
Organisation
Overview
According to the EU Commission, the Green Deal should be implemented based on the Farm to Fork Strategy (F2F), which was published in May 2020, as well as the EU's biodiversity and climate strategy. Therefore, the Grain Club has commissioned a study to analyze the effects of the F2F strategy on the production, consumption and trade of relevant agricultural products within the EU as a whole with particular focus on Germany. The analysis was conducted based on the CAPRI-model, which is a regionalized partial equilibrium model focused on the agricultural sector including environmental and land use effects induced by farm production. To include international trade flows and corresponding agricultural price effects the CAPRI sector model is linked with an international trading model. Based on new trade theory the trading model assumes that traded agricultural commodities are no perfectly homogeneous goods, but rather imperfect substitutes. Therefore, agricultural trade involves non-linear transaction cost and trade flows respond only limited to changed terms of trade (TOT), i.e. changed price relation on domestic and international markets. The F2F strategy will initially focus on the implementation of the Green Deal's agricultural main goals, which are defined as the following technical production restrictions and target values:
Documents
Ökonomische und Ökologische Auswirkungen des Green Deals in der Agrarwirtschaft Eine Simulationstudie der Effekte der F2F-Strategie auf Produktion, Handel, Einkommen und Umwelt mit dem CAPRI Model - Final REPORT15.8.2021
