Market organization and propagation of shocks: the furniture industry in Germany and Italy

In this paper we study the furniture industry in two European countries, Germany and Italy. Although the two industries are characterized by very similar output and technology, they differ widely in terms of market organization, most notably the distribution of firms by size, and the organization of retail. We find some evidences that these differences have an influence on the dynamic behavior of industry output, prices and exports in the two countries

Simulation Results on the Impact of Changes in the Main EU Policy Tools on Farm Investment Behaviour. Factor Markets Working Document No. 56, June 2013

This paper completes the comparative analysis of the investment demand behaviour, of a sample of specialised arable crop farms, for farm buildings and machinery and equipment, as a function of the different types and levels of Common Agricultural Policy support, in selected European Union Member States. This contribution focuses on their quantitative interdependence calculating the relevant elasticity measures. In turn, they constitute the methodological tool to simulate the percentage expected change in average net investment levels associated to the implementation of the, recently proposed and currently under discussion, reductions in the Pillar I Direct Payments disbursed under the Common Agricultural Policy. Evidence suggests a statistically significant elastic and inelastic relationship between both types of subsidies and the investment levels for both asset classes in Germany and Italy, respectively. An elastic dependence of investment in farm buildings on decoupled subsidies exists in Hungary while changes in the level of coupled payments appear to translate into less than proportional changes in the demand for both farm buildings and machinery and equipment in France. Coupled payments appear to influence the UK demand for both asset classes in an elastic manner while decoupled support seems to induce a similar effect on investment in machinery and equipment. Since the currently discussed Common Agricultural Policy reform options imply, almost exclusively, a reduction in the level of support granted through Direct Payments, simulated effects were expected to reveal a worsening of the farm investment prospects for both asset types (i.e., a larger negative investment or a smaller positive one). The actual evidence largely respects this expectation with the sole exception of investment in machinery and equipment in France and Italy reaching smaller negative or larger positive levels irrespectively of the magnitude of the implemented cuts in Direct Payments

Simulating the impact of a carbon tax on food in four European countries

Since agriculture is responsible for a considerable share of anthropogenic greenhouse gas emissions (GHGE), this paper examines the impact of various carbon taxes designed to incentivize environmentally friendly food consumption patterns in four European countries: Finland, Italy, Sweden, and the UK. As the proposed fiscal policies are likely to affect food consumption patterns, the study also assesses the consequent changes in diet quality and welfare. The results from this analysis reveal considerable variations in the reduction of GHGE across countries and tax schemes. While most taxation schemes have only a modest impact on dietary quality, these effects differ among nations. Additionally, the welfare cost of the compensated scheme is relatively small but not insignificant. These findings raise questions about the efficacy of a common European fiscal policy for climate mitigation compared to a more flexible approach where each member state calibrates the tax according to its unique circumstances

Key policy questions for ex-ante impact assessment of European agricultural and rural policies

Policies in the agricultural and rural sectors are of key importance in shaping their sustainable development. These policies are changing from market-based policies to policies that aim to influence farmers' decision-making. Thus, the scientific literature supporting evidence-based policy-making must develop models that simulate individual decision-making (IDM) by farmers. This study aims to understand key policy objectives, related policy questions and benchmark scenarios relevant to the European agricultural sector to define the research agenda for a suite of IDM models. This research goal has been addressed following a five-step process that involved different research tools and heterogeneous actors, including key stakeholders. Results suggest that environmental policy objectives are the most relevant for European agriculture in the coming decades. Thus, the scenario modelling exercise should focus mainly on the agri-environmental policies' impacts while properly considering the potential trade-offs between economic and environmental objectives

Sustainable agricultural sector: A key component of EU economic prosperity and security – An economic modellers’ perspective.

The EU is facing a convergence of strategic challenges — geopolitical uncertainty, climate crisis, economic stagnation, and social inequality. The 2024–2029 Strategic Agenda underscores the urgency to ensure Europe remains free, democratic, secure, competitive, and prosperous. Agriculture, as a cornerstone of the EU’s economy, food system, and environmental landscape, is central to this transformation. Business as usual is no longer an option. Despite its strengths, the agri-food sector is showing signs of vulnerability: stagnating yields, slow innovation uptake, critical import dependencies (e.g., fertilisers), environmental degradation, and a growing gap between large and small farms. At the same time, this sector holds untapped potential to support the green transition, economic growth, and food security. The Common Agricultural Policy (CAP), representing nearly one-third of the EU budget, is the primary instrument for shaping this transformation. Ensuring its effectiveness in the post-2027 era requires renewed vision, evidence-based guidance, and systems thinking across economic, environmental, and social domains. This joint paper synthesises the insights of leading agri-economic modelling teams to guide future CAP development. It identifies five Priority Action Areas (PAAs) — income & resilience, nutrient autonomy, trade, innovation in the bioeconomy, and digitalisation — and proposes future directions for modelling tools to better assess complex policy trade-offs. Drawing on decades of experience in model-based policy analysis, the paper not only offers strategic advice to policymakers but also outlines a forward-looking modelling agenda. This includes greater integration of environmental and economic data, better representation of innovation and consumer shifts, and enhanced systems-level understanding of the agri-food bioeconomy. The paper serves as a contribution to current and upcoming discussions on CAP post-2027, European food system transformation, and strategic autonomy. It is intended as a tool for dialogue with policymakers, researchers, and stakeholders aiming to co-create a sustainable and prosperous agricultural future for Europe

Static and Dynamic Distributional Effects of Decoupled Payments: Single Farm Payments in the European Union

This paper analyses the distributional effects of decoupled Single firm Payments (SFP) in the European Union. In a static world the SFP benefit only firmers, irrespective of the implemented SFP model and irrespective of whether entitlements are tradable or not, except when the size of the allocated entitlements is larger than the eligible area and/or if entrants are eligible for the SFP. Then the SFP gets either partially or fully capitalized into land values and landowners benefit. In a dynamic world the effects depend on the nature of structural change, on the tradability of entitlements, and on the implementation model

Porre fine alla fame, raggiungere la sicurezza alimentare, migliorare la nutrizione e promuovere un’agricoltura sostenibile

Sostenibilità e innovazione nel sistema agro-alimentare lombard

Goal 2 Porre fine alla fame, raggiungere la sicurezza alimentare, migliorare la nutrizione e promuovere un’agricoltura sostenibile

Sustainable Development Goals nell'agricoltura lombard