TY - JOUR
T1 - Can a long-term economic subsidy counteract rural depopulation? An empirical analysis from two spanish regions
AU - Serra, Pere
AU - Pallares-Barbera, Montserrat
AU - Salvati, Luca
N1 - Funding Information:
Policies facing depopulation, land abandonment, and economic decline of rural districts incorporate strategies attracting and retaining people at a given location and measures stimulating economic activity in marginal places (e.g. promoting science parks, innovation districts, handicraft development, green labelling or food quality). Indirect actions with a potentially positive effect on depopulation include urban regeneration and preservation of historical settlements, initiatives counteracting the shortage of specific skills and jobs, and migration policies (McMillan ). To contain rural depopulation, the European Union (EU) launched in 1962 the Common Agricultural Policy (CAP) with the aim at preserving rural landscapes, improving agricultural productivity and supporting farmers with subsidies that allow for reasonable living standards (European Commission, ). With a total budget of 58.85 billion euros in 2018, the CAP took actions to provide income support (direct payments to farmers, 70.9%), market support (measures to deal with difficult market conditions, 24.4%), and rural development (national and regional programmes addressing the specific needs and challenges of rural areas, 4.7%). The CAP was financed through the European Agricultural Guarantee Fund (EAGF), which provided direct (income and market) support, and the European Agricultural Fund for Rural Development (EAFRD), which financed rural development actions.
Publisher Copyright:
© 2022, The Author(s), under exclusive licence to Springer Nature B.V.
PY - 2022/8/15
Y1 - 2022/8/15
N2 - Rural depopulation in advanced economies has negative economic consequences for local communities and requires effective policies at different spatio-temporal and governance scales. Since the 1980s, an economic subsidy (Rural Employment Plan, PER-PFEA) was implemented at municipality scale in two autonomous communities of Spain (Andalusia and Extremadura) with the aim at improving the economic performances and counteracting depopulation. Within this national plan, each municipality requests and receives funds for improving the labour conditions of temporary agricultural workers. Long-term implementation of the PER-PFEA programme allows assessment of the effectiveness of this subsidy scheme in containing depopulation. The present study classifies municipalities in the two Spanish regions according to their demographic dynamics over a decade (2002 − 2012) and their capacity to attract public funds from the plan. A threshold value based on logistic probabilities was estimated to assess its success in counteracting depopulation. Results identified four municipal profiles. On the one hand, subsidy application reduced depopulation probability in 23.3% and 8.4% of Andalusia and Extremadura municipalities, respectively. On the other hand, given the low level of requested funds, the programme did not reduce depopulation in 26.3% and 61.8% of Andalusia and Extremadura municipalities with a stagnant economy based on silviculture and livestock. While requesting few funds, 36.9% and 16.7% of municipalities exhibited population growth and a dynamic economic base. Finally, despite a large provision of funds, the subsidy seemed to have not reduced depopulation probability in 13.5% and 13.1% of municipalities, representing the most problematic contexts because of population shrinkage and economic backwardness. The study finally discusses some proposals for future improvements of the subsidy provision system.
AB - Rural depopulation in advanced economies has negative economic consequences for local communities and requires effective policies at different spatio-temporal and governance scales. Since the 1980s, an economic subsidy (Rural Employment Plan, PER-PFEA) was implemented at municipality scale in two autonomous communities of Spain (Andalusia and Extremadura) with the aim at improving the economic performances and counteracting depopulation. Within this national plan, each municipality requests and receives funds for improving the labour conditions of temporary agricultural workers. Long-term implementation of the PER-PFEA programme allows assessment of the effectiveness of this subsidy scheme in containing depopulation. The present study classifies municipalities in the two Spanish regions according to their demographic dynamics over a decade (2002 − 2012) and their capacity to attract public funds from the plan. A threshold value based on logistic probabilities was estimated to assess its success in counteracting depopulation. Results identified four municipal profiles. On the one hand, subsidy application reduced depopulation probability in 23.3% and 8.4% of Andalusia and Extremadura municipalities, respectively. On the other hand, given the low level of requested funds, the programme did not reduce depopulation in 26.3% and 61.8% of Andalusia and Extremadura municipalities with a stagnant economy based on silviculture and livestock. While requesting few funds, 36.9% and 16.7% of municipalities exhibited population growth and a dynamic economic base. Finally, despite a large provision of funds, the subsidy seemed to have not reduced depopulation probability in 13.5% and 13.1% of municipalities, representing the most problematic contexts because of population shrinkage and economic backwardness. The study finally discusses some proposals for future improvements of the subsidy provision system.
KW - Disadvantaged municipalities
KW - Economic subsidy
KW - Population shrinkage
KW - Rural spanish regions
KW - Temporary job
UR - http://www.scopus.com/inward/record.url?scp=85135987125&partnerID=8YFLogxK
U2 - 10.1007/s11135-022-01505-7
DO - 10.1007/s11135-022-01505-7
M3 - Article
AN - SCOPUS:85135987125
SN - 0033-5177
JO - Quality and Quantity
JF - Quality and Quantity
ER -