Environmental Engineering Reference
In-Depth Information
The market module for young animals links aggregates of the regional programming
models at EU Member State level to determine market clearing prices for the
different young animal categories such as calves and piglets. Additional constraints
ensure consistency between young animal inputs and outputs of the differentiated
animal production activities.
The policy module calculates activity specific subsidies − originating from pillar
one of the CAP relating to market support, − subject to regional and national ceilings
in values or physical units, thereby assuring that regional programming models do
not violate these policy characteristics. At the same time, the module defines
additional domestic market support measures and derives a CAP budget.
The overall economic core modelling system is solved by iterating between the
different modules. A typical iteration starts with the regional supply models.
The results obtained are passed on to the market module by re-calibrating the
supply and feed demand functions for the countries covered by regional supply
modules. Solving the global market module returns market clearing prices along
with supply, demand and trade flow quantities. If ceilings on subsidies are violated,
premiums are adjusted. The resulting prices and premiums are passed back and
drive the next iteration of the regional supply models. The iterative solution process
converges rapidly towards a comparative-static equilibrium characterised by
cleared markets and conformity of prices and quantities in both the supply and the
market modules.
Major outputs of the global market model include trade flows, market balance
positions and producer/consumer prices by product and country/country aggregates,
whereas the supply module delivers crop acreages and herd sizes with their associated
revenues, costs and income, as well as information about feeding and nutrient
management practices for each NUTS 2 region. CAPRI is thus unique in its ability
to show the regional impact of global changes in agricultural markets and policies
on EU agriculture consistently representing mutual feedback between the two.
Developed since 1996 and operational since 1999, CAPRI has been gradually
expanded and enhanced in many projects and applications, and is regularly applied
for policy impact assessment until today.
The combination of regionalised supply models and a global multi-commodity
model allowed for the impact assessment of various reforms of the first pillar of the
CAP, such as the Agenda 2000 policy reform (Britz and Heckelei
2000b)
, the
mid-term review policy reform (Britz et al.
2006)
and the sugar market reform
(Adenaeuer
2005)
. In these applications, policy reforms were analysed which
changed both market and farm policy instruments such as the introduction of
coupled payments while reducing administrative prices. At the same time, pure
agricultural trade liberalization proposals could be analysed as well (Junker et al.
2005
; Britz and Jacquet
2006)
.
The solution taken up by SEAMLESS-IF was to include a technically modified
core CAPRI simulation engine (SEAMCAP) covering the supply-market model
interaction as a 'single' model component in its model chain with input data coming
from EXPAMOD (Pérez Domínguez et al.
2009)
and model outputs delivered to the
SEAMLESS-IF indicator calculators and in the future also to multi-sectoral models
