Impact assessment of CAP policies on social sustainability in rural areas: an application in Northern Greece

This study aims to assess the multiple impacts of the Common Agricultural Policies (CAP) on social sustainability in rural areas. Social sustainability is related to social capital, social inclusion, social exclusion and social cohesion in rural economies, terms that are described in this paper and measured by relevant social indicators. A multicriteria model was formulated in order to study the social impacts of the CAP reform (‘decoupling’) and Water Framework Directive. The model estimates the farmers’ utility function taking in account various conflicting criteria that can explain the farmers’ behavior (e.g. maximisation of farm income, risk minimisation, minimization of labour, etc.). The model is further used to simulate the impacts on social sustainability by estimating the social indicators mentioned above. The model is applied in a region of Northern Greece. There is a major reduction in family and external labour in the study region as a result of the implementation of EU policies. These effects cause many social problems particularly in the ageing of population because of the internal migration. There are also social problems for the seasonal workers of agricultural labour market who are mainly foreign immigrants. In addition, there are changes in the profile of gender issues since the decrease in women employment is much higher than in men. These changes have a negative effect on the social sustainability. The paper provides a future path for research taking suitable methodology and policy for social sustainability in rural areas.