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Abstract

This paper analyses the income and structural effects of the Single Payment Scheme (SPS). In particular, we analyze how the income distributional effects and farm restructuring are impacted by the SPS by accounting for entitlement tradability, cross-compliance and CAP 'greening' requirements, different SPS implementation models, and the entitlement stock. Our results suggest that the SPS implication details are highly important: farmers’ benefits can range from 100% of the SPS value to a negative policy incidence, and farm structural change may be hindered by the SPS.

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