A levy on nitrogen fertilizer is evaluated, using real life experiences in Austria, Finland and Sweden until 1995. In these countries such a levy system was introduced in 1986, 1976 and 1985, respectively. Rates varied from between 10% and 72% of the price of fertilizer. Price elasticity in...

Direct payments are the most important expenditure of the Common Agricultural Policy (CAP). They are mostly spent on decoupled direct payments which are intended to be allocatively neutral. Increasing volumes of such transfers imply that distributive aspects of CAP expenditures become more...

A core element of the recent Common Agricultural Policy reform is to decouple payments that are merely linked to production from 2005 on. These subsidies are classified as environmentally harmful by OECD. An agricultural sector model, using a modified version of the positive mathematical...