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Economic and household impacts of policy interventions in the Irish agri-food sector until 2020

Author

Listed:
  • Ole Boysen

    (Agricultural and Food Policy, University of Hohenheim
    Institute for International Integration Studies, Trinity College Dublin)

  • Ana Corina Miller

    (Department of Agriculture and Food Economics, Agri-Food and Bioscience Institute, Belfast
    Institute for International Integration Studies, Trinity College Dublin)

  • Alan Matthews

    (Professor Emeritus of European Agricultural Policy, Trinity College Dublin)

Abstract
Over the period 2005-2020, the Irish agri-food sector is confronted with three major policy changes: the decoupling of the single farm payment, the elimination of the dairy quota and potential multilateral trade liberalisation as part of an agreement in the Doha Development Round. This paper studies these reforms and their impacts on the economy and income distribution using a CGE model particularly rich in detail on agri-food sectors, differentiated household groups, and agricultural policy instruments including their links to productive factors and households. This allows customising the model to appropriately represent the specific policy instruments and their actual or potential changes. The results suggest that the past and projected changes in the policy environment have, in sum, a small positive impact on GDP and household income. But, the gains and losses are unequally distributed across sectors and household groups due to the highly differentiated distribution of support and protection. While all households generally gain from the sequence of policy reforms in the long run, some experience strong adverse effects from particular reforms and in the medium run.

Suggested Citation

  • Ole Boysen & Ana Corina Miller & Alan Matthews, 2014. "Economic and household impacts of policy interventions in the Irish agri-food sector until 2020," The Institute for International Integration Studies Discussion Paper Series iiisdp445, IIIS.
    • Handle: RePEc:iis:dispap:iiisdp445
    as

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    File URL: https://www.tcd.ie/triss/assets/PDFs/iiis/iiisdp445.pdf
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    References listed on IDEAS

    as
    1. François Bourguignon & Maurizio Bussolo & Luiz A. Pereira da Silva, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution : Macro-Micro Evaluation Techniques and Tools," World Bank Publications - Books, The World Bank Group, number 6586.
    2. Ole Boysen & Alan Matthews, 2008. "The Impact of Developed Country Agricultural Trade Liberalization on Poverty: A Survey," Working Papers hal-03416399, HAL.
    3. Hertel, Thomas & Hummels, David & Ivanic, Maros & Keeney, Roman, 2007. "How confident can we be of CGE-based assessments of Free Trade Agreements?," Economic Modelling, Elsevier, vol. 24(4), pages 611-635, July.
    4. Fabienne Femenia & Alexandre Gohin & Alain Carpentier, 2010. "The Decoupling of Farm Programs: Revisiting the Wealth Effect," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 836-848.
    5. François Bourguignon & Maurizio Bussolo & Luis Pereira, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution," PSE-Ecole d'économie de Paris (Postprint) halshs-00754864, HAL.
    6. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Single Farm Payment; Doha Round; milk quota; Ireland; income distribution; computable general equilibrium;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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