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Abstract

This paper examines the potential impacts of the post 2013 EU Common Agricultural Policy (CAP) reform, which aims to improve the environmental performance of agriculture, called “greening” the CAP. Using the well-established CAPRI model, the economic and environmental consequences of the reform on agriculture are estimated for selected EU countries. The results indicate that ‘greening’ causes a decline in the area of the main crops, increase crop prices and slightly intensify production on the remaining areas. Farm income would increase, but due to the low intensity of agriculture - like in the Baltic countries - this increase would be rather limited.

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