The impacts of agricultural subsidies of Common Agricultural Policy on agricultural emissions: The case of the European Union

Abstract

Agriculture is one of the main contributors to carbon emissions and is also significantly affected by changing climate. This article investigates the impacts of agricultural support on greenhouse gas emissions (GHG) from agriculture in the European Union. Panel regression models were used to examine the influence of subsidies in the Common Agricultural Policy (CAP) on reducing GHGs from agriculture. First, estimates show that direct agricultural subsidies encouraged agricultural-related carbon emissions. Second, the study concludes that the expansion of organic agriculture and the rural development expenditures contributed to emissions reduction in the member states. Finally, the CAP Health Check reform decreased while the Ciolos reform stimulated GHG emissions.

Keywords

• agricultural payments
• agricultural policy reforms
• climate change
• environmental pollution
• sustainable agriculture