Next Article in Journal
Policy Reforms and Productivity Change in the Dutch Drinking Water Industry: A Time Series Analysis 1980–2015
Next Article in Special Issue
Evaluating Public Policy Support for Agricultural Cooperatives
Previous Article in Journal
Sulfation–Roasting–Leaching–Precipitation Processes for Selective Recovery of Erbium from Bottom Ash
Previous Article in Special Issue
The Effects of Greenhouse Gas Emissions on Cereal Production in the European Union
Article Menu
Issue 12 (June-2) cover image

Export Article

Open AccessArticle

In a Search for Equity: Do Direct Payments under the Common Agricultural Policy Induce Convergence in the European Union?

1
Division of Farms and Enterprises Economics, Lithuanian Institute of Agrarian Economics, Kudirkos 18–2, LT-03105 Vilnius, Lithuania
2
Faculty of Economics and Business, Mykolas Romeris University, Ateities 20, LT-08303 Vilnius, Lithuania
*
Author to whom correspondence should be addressed.
Sustainability 2019, 11(12), 3462; https://doi.org/10.3390/su11123462
Received: 30 May 2019 / Revised: 16 June 2019 / Accepted: 20 June 2019 / Published: 24 June 2019
  |  
PDF [1055 KB, uploaded 26 June 2019]
  |  

Abstract

The European Union (EU) is an integrated alliance of equally treated Member States sharing mutual values, legal principles and markets. Close cooperation, deep integration and convergence are the major priorities for the EU. Anyway, these principles are not always reflected in the EU-wide policies which are implemented through financial support mechanisms. The direct payments financial support mechanism under the Common Agricultural Policy, the main instrument for promoting convergence in development of Member States’ agricultural sectors and rural sustainability, faces critique for failing to meet its objectives. One of the major deficiencies of the direct payments scheme is that it allocates more resources to already developed agricultural sectors of the older Member States and less resources to developing ones thus increasing the divergence among the Member States. The aim of this paper is to suggest new mechanisms for direct payment funds redistribution across the EU Member States which are based on the methodological principles that would more precisely correspond to the aims of convergence, transparency and fair redistribution. The results show that, regardless of the method chosen (to support more or less effective agricultural sectors of EU Member States), the proposed methodology lowers differences in direct payment rates among the EU Member States by two-fold. This ensures correspondence to the goal of convergence within the EU. View Full-Text
Keywords: direct payments; Common Agricultural Policy; convergence; production costs; European Union direct payments; Common Agricultural Policy; convergence; production costs; European Union
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Volkov, A.; Balezentis, T.; Morkunas, M.; Streimikiene, D. In a Search for Equity: Do Direct Payments under the Common Agricultural Policy Induce Convergence in the European Union? Sustainability 2019, 11, 3462.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top