CAPRI Modelling System (Common Agricultural Policy Regionalised Impact)
CAPRI is a partial equilibrium model for the agricultural sector developed for policy impact assessment of the Common Agricultural Policy and trade policies from global to regional scale with a focus on the European Union (Britz and Witzke, 2008).
CAPRI depicts agricultural commodity markets worldwide, whilst also providing a detailed representation of the diversity of EU agricultural and trade policy instruments. It is a comparative-static, spatial equilibrium model, solved by iterating supply and market modules:
The supply module consists of a set of regional agricultural supply models, covering all EU regions (NUTS 2 level), Norway, Western Balkans and Turkey. The regional programming models capture in detail farming decisions for all the activities covered by the Economic Accounts for Agriculture (EAA) as well as the interactions between production activities and the environment. The mathematical programming approach allows a high degree of flexibility to model the diverse CAP measures. Major outputs of the supply module include crop and livestock activity levels, yields, input use, farm income, nutrient balances and GHG emissions.
The market module is a global spatial multi-commodity model, where about 50 commodities (primary and secondary agricultural products) and 60 countries (grouped into 28 trade blocks) are modelled as a constrained equation system. The parameters of the behavioural equations for supply, feed demand, processing industry and final demand are taken from other studies and modelling systems, and calibrated to projected quantities and prices in the simulation year. Major outputs of the market module include bilateral trade flows, market balances and producer and consumer prices for the agricultural commodities and world country aggregates.