Analysis of the Socio-Economic Impact of the Tobacco CMO Reform on Italian Tobacco Sector

The Tobacco CMO (Common Market Organization) is involved in a intense debate between the European tobacco industry and those who are against to a crop whose transformed product is dangerous to the health. European institutions have shown a strong interest in this complex issue introducing two Reforms (1992 and 1998) and one revision in 2004. This paper aims to analyse and investigate the socio-economic impact of the tobacco CMO Reform of 2004 in Italy, across the scenarios proposed by the EC Commission (2004), both on the tobacco production and processing sector. The considered socio-economic indicators are harvested surfaces, farm income and overall employment, while the sample of farms used in this research belong to the FADNItaly sample.