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Romania’s accession to the EU: Short-term welfare effects on food consumers

2006; Elsevier BV; Volume: 32; Issue: 1 Linguagem: Inglês

10.1016/j.foodpol.2006.03.012

1873-5657

Carmen Hubbard, Kenneth J. Thomson,

Economic theories and models

This paper focuses on estimation of the welfare effects on different Romanian households of assumed food price changes as a result of EU accession. Using the Slutsky compensating variation approach, results suggest that these changes affect welfare differently for various categories of households. Although on average the welfare loss is 2.6%, a higher impact is estimated for low-income groups. However, the relatively high share of home-produced consumption of food diminishes these impacts, in particular for rural households, and somewhat smaller monetary amounts would be required if compensation is paid.