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The aim of this study is to present the social meaning and funding opportunities of public goods on grounds of selected examples applied by Common Agricultural Policy (CAP) by the EU. The study includes data characterizing expenditure connected with agricultural policy of the EU in accordance with OECD measuring methodology. Considered issues start with the public goods conception and their role in bio-economy. Changes in agriculture financial support structure in the EU between 2004-2012 were considered with respect to the assessment of particular tools that serve public goods funding. It was indicated that these tools contribute to their formation as well. Restrictions in financial support of public goods were presented. It was proved that in the formation of CAP in the EU features specific for certain localizations connected with public goods formation are being taken into consideration increasingly.
The paper reviews the concept of public goods, indicating its various dimensions. The fundamental objective of the paper is conceptualizing public goods and answering a question whether a public goods delivered by agricultural land is valorized in land prices. The aim of the study was also to identify the mechanism that makes intrinsic land utility transformed into productivity in monetary units. A conducted research consists in deriving a land rent capitalized in land prices and estimating its share in land value in comparison with the share of lease fees in the different regions of Poland in years 2000–2009. In the authors opinion since accession of Poland to the UE a market has valorized intrinsic utilities of land, whereas the new role of capital and labour is distribution of those utilities in favour of consumers. Given the fact that there is a lack of Polish scientifi c studies on agricultural areas as a provider of public goods fi ndings of foreign scientists were also used in the research. Since the beginning of human civilization, the land has been creating certain utilities which satisfy human needs. When the dangerous side effects of industrial agriculture have occurred intrinsic land utilities are being discovered anew. They have a nature of public goods and constitute a hard core of the sustainable agriculture paradigm. Despite irreversible accumulation of capital in the anthropogenic environment many new utilities of the land come into existence without additional capital and labour inputs. Since they are public goods, they are paid from taxes in great measure. This way an intrinsic land utility takes a form of a paid product and can be called “intrinsic productivity” of land.
In this paper the problem of poverty in the new countries of the EU is investigated. The issue of poverty before and after social transfers is discussed. Also presented are some of the social exclusion indicators pertinent to this analysis. The analysis has shown, that poverty results in social exclusion, as it impedes the performance of social roles and the use of public goods and social infrastructure. Average monetary poverty threat indicators for Poland are similar to values for the EU; but the median level of income in the European Union is three times higher than it is in Poland and product baskets vary considerably at the poverty threshold.
Common Agricultural Policy of the European Union, on the eve of the new financial framework 2014-2020, is significantly focusing on qualitative factors related to: the quality of life in rural areas, the quality of the natural environment, animal welfare, food safety and the preservation of cultural habits. In other words, agriculture has to provide benefits (specific public goods and externalities) to all members of society for which the government or other political institutions will pay. The objective of this article is to review the literature on the theory of externalities, with particular emphasis on the criticism of the current shape and applicability of the theory. It seems that the theory of externalities will play a main role in the development of recommendations for EU agricultural policy instruments, which take into account the importance of externalities provided by agriculture. Yet, there is no consensus on the applicability of this theory in practice, especially in its current form.
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