CAP direct payments system’s linkage with environmental sustainability indicators
CAP direct payments system’s linkage with environmental sustainability indicators

Summary/Abstract: Environmental issues have been one the most important for sustainable agricultural development in recent years. The EU common agricultural policy (CAP) direct payments (DP) system, which requires the most significant financial resources, should also promote environmental sustainability in agriculture. However, there is a lack of systematic approach and instruments to assess the impact of the DP system to environmental sustainability. This paper examines the linkages between DP system and environmental sustainability indicators. The underlying research question is: how 2004-2013 CAP DP system had impacted environmental sustainability. To answer this, the article uses a comparative analysis, a statistical analysis, theoretical modelling as a basis to determine, prove and evaluate the linkages between DP system and agricultural environment sustainability indicators. The article also provides empirical results of Lithuania and Puglia region (Italy). These regions were selected because of the similarity by area size and population, however with different DP systems.

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