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Swedish Agriculture without European Agricultural Subsidies: Welfare effects in the Swedish agricultural sector after abolishing direct payments (subsidies) to farmers - the case of Swedish table potatoes
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2014 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

The purpose of this study is to investigate the welfare effects in the market of one agricultural product in Sweden after a hypothetical abolishment of the Common Agricultural Policy (CAP) direct payments (subsidies). In this study, the market for table potatoes is analysed. The results of the analysis are then used to draw possible conclusions about the effects of an abolishment of direct payments in the Swedish agricultural sector in general. A simple demand and supply model is used to analyse the effects. Three possible outcomes are investigated in which either consumers, retailers or producers (farmers) bear the burden of an abolishment. In monetary values, retailers incur the biggest loss if they would have to bear the burden of an abolishment. Still, it is more probable that either consumers and/or producers bear the burden of an abolishment. The abolishment of direct payments would lead to a smaller amount of farm holdings which results in higher social security and environmental costs. In general, the study shows that the abolishment of direct payments incurs costs for the Swedish table potato market and agricultural sector.

Place, publisher, year, edition, pages
2014. , 41 p.
Keyword [en]
Direct payments, market for table potatoes, Swedish agricultural sector, demand and supply
National Category
URN: urn:nbn:se:uu:diva-219576OAI: oai:DiVA.org:uu-219576DiVA: diva2:700633
Subject / course
Available from: 2014-03-04 Created: 2014-03-04 Last updated: 2014-03-06Bibliographically approved

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