New Economics Papers
on Agricultural Economics
Issue of 2006‒09‒03
thirteen papers chosen by
  1. External Costs of Agricultural Production in the United States By Tegtmeier, Erin M; Duffy, Michael
  2. Pharmaceutical and Industrial Traits in Genetically Modified Crops: Co-existence with Conventional Agriculture By Moschini, GianCarlo
  3. Agricultural Production Clubs: Viability and Welfare Implications By Langinier, Corinne; Babcock, Bruce A.
  4. Chinese Agricultural Reform the WTO and FTA Negotiations By Shunli Yao
  5. Global Prospects for Dairy in Argentina and Chile: Evidence from Field Visits and Model Simulations By Fuller, Frank H.; Beghin, John C.; Boland, Michael; Babcock, Bruce A.; Foster, William
  6. Water Policy Briefing: Breaking the Cycles of Land Degradation: A case study from Ban Lak Sip, Laos By International Water Management Institute
  7. Global Prospects for Dairy in Argentina and Chile: Evidence from Field Visits and Model Simulations By Frank H. Fuller; John C. Beghin; Michael Boland; Bruce A. Babcock; William E. Foster
  8. Water Quality Modeling for the Raccoon River Watershed Using SWAT By Jha, Manoj; Arnold, Jeffrey G.; Gassman, Philip W.
  9. The Many Paths of Cotton Sector Reform in Eastern and Southern Africa: Lessons from a Decade of Experience By David Tschirley; Colin Poulton; Duncan Boughton
  10. Water Policy Briefing: Choosing Appropriate Responses to Groundwater Depletion By International Water Management Institute
  11. Water Policy Briefing: Taking a multiple-use approach to meeting the water needs of poor communities brings multiple benefits By International Water Management Institute
  12. Water Policy Briefing: Recycling Realities: Managing health risks to make wastewater an asset By International Water Management Institute
  13. Voluntary Environmental Agreements when Regulatory Capacity Is Weak By Blackman, Allen; Lyon, Thomas P.; Sisto, Nicholas
  1. By: Tegtmeier, Erin M; Duffy, Michael
    Abstract: Agricultural production affects environmental and human health. Many consequences are borne involuntarily rather than chosen because no formal market trading takes place for ecosystem functions or health attributes. These impacts, or externalities, may be quantified indirectly by assigning dollar values through a process called valuation, which informs agricultural production and policy decisions. This study estimates external costs of agricultural production in the United States in the areas of natural resources, wildlife and ecosystem biodiversity and human health. Valuation studies are reviewed and revised to compile aggregate figures. External costs are estimated at $5.7 to $16.9 billion (£3.3 to £9.7 billion) annually. Impacts due to crop production are figured to be $4969 to $16,151 million per year. Livestock production contributes $714 to $739 million to external costs. Using 168.8 million hectares of cropland in the United States, external cost per cropland hectare is calculated at $29.44 to $95.68 (£16.87 to £54.82). Further research is needed to refine these estimates and include categories not covered in this study. The societal burden of these costs calls for a restructuring of agricultural policy that shifts production towards methods that lessen external impacts.
    Keywords: adverse effects, agriculture, externalities, valuation
    Date: 2006–08–23
    URL: http://d.repec.org/n?u=RePEc:isu:genres:12659&r=agr
  2. By: Moschini, GianCarlo
    Abstract: This paper discusses the implications of using genetically modified crops to biomanufacture pharmaceuticals and industrial compounds from the perspective of their co-existence with conventional agriculture. Such plant-made pharmaceuticals and plant-made industrial products rely on exciting scientific and technological breakthroughs and promise new opportunities for the agricultural sector, but they also entail novel risks. The management of the externalities and of the possible unintended economic effects that arise in this context is critical and poses difficult questions for regulators.
    Keywords: agriculture, biopharming, co-existence, externalities, genetically modified products, liability, molecular farming, regulation.
    Date: 2006–08–25
    URL: http://d.repec.org/n?u=RePEc:isu:genres:12666&r=agr
  3. By: Langinier, Corinne; Babcock, Bruce A.
    Abstract: Consumers are in general less informed than producers about the quality of agricultural goods. To reduce he information gap, consumers can rely on standards (e.g., certification) that ensure quality and origin of the goods. These costly standards can be adopted by a group of producers of high-quality goods. We study the formation of such a group that we model as a club. We first investigate under what circumstances a club of a given size is desirable for producers, and for society. We then analyze the optimal size of the club when there exists a direct barrier to entry, and when there is no barrier. We find that for intermediate values of certification costs, the industry and a club of a given size of certified producers have divergent incentives. Furthermore, if barriers to entry are allowed, an optimal size of club exists, which allows some revelation of information. In the absence of barrier to entry, it is less likely that a club will emerge.
    Keywords: Asymmetric information, certification, clubs, quality.
    Date: 2006–08–28
    URL: http://d.repec.org/n?u=RePEc:isu:genres:12670&r=agr
  4. By: Shunli Yao (Beijing Agricultural Trade Policy Dialogue)
    Abstract: China's early industrialization created distortions.This paper identifies major distortions in the Chinese economy in the pre-reform era and brings agricultural distortions into perspective.
    Keywords: Agricultural Reform,China, Liberalization,WTO, FTA
    JEL: F1
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:esc:wpaper:1506&r=agr
  5. By: Fuller, Frank H.; Beghin, John C.; Boland, Michael; Babcock, Bruce A.; Foster, William
    Abstract: We assess the international competitiveness of the dairy industries in Argentina and Chile, combining recent market intelligence gathered from field visits with quantitative simulations of global policy reform scenarios. Both countries exhibit strong potential for export growth but face significant internal and external barriers to expanding their dairy industries. Global policy reforms would resolve some of the international obstacles to their expansion. Argentina has great potential, but it is handicapped by its current macroeconomic policies, trade policy distortions, and the uncertainty associated with policy implementation. Chile is more limited in terms of natural capacity for expansion, but it has a positive trade and investment environment.
    Keywords: Argentina, agricultural trade policy, Chile, comparative advantage, competitiveness, dairy processing, exports, milk production.
    Date: 2006–08–23
    URL: http://d.repec.org/n?u=RePEc:isu:genres:12658&r=agr
  6. By: International Water Management Institute (International Water Management Institute)
    Keywords: water resource management / water policy / water resources development / land development / land management / land degradation /
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:iwt:polbrs:p04&r=agr
  7. By: Frank H. Fuller (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI); Midwest Agribusiness Trade Research and Information Center (MATRIC)); John C. Beghin (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)); Michael Boland; Bruce A. Babcock (Center for Agricultural and Rural Development (CARD); Midwest Agribusiness Trade Research and Information Center (MATRIC)); William E. Foster
    Abstract: We assess the international competitiveness of the dairy industries in Argentina and Chile, combining recent market intelligence gathered from field visits with quantitative simulations of global policy reform scenarios. Both countries exhibit strong potential for export growth but face significant internal and external barriers to expanding their dairy industries. Global policy reforms would resolve some of the international obstacles to their expansion. Argentina has great potential, but it is handicapped by its current macroeconomic policies, trade policy distortions, and the uncertainty associated with policy implementation. Chile is more limited in terms of natural capacity for expansion, but it has a positive trade and investment environment.
    Keywords: Argentina, agricultural trade policy, Chile, comparative advantage, competitiveness, dairy processing, exports, milk production.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:ias:cpaper:06-mbp11&r=agr
  8. By: Jha, Manoj; Arnold, Jeffrey G.; Gassman, Philip W.
    Abstract: The Raccoon River Watershed (RRW) in West-Central Iowa has been recognized as exporting some of the highest nitrate-nitrogen loadings in the United States and is a major source of sediment and other nutrient loadings. An integrated modeling framework has been constructed for the RRW that consists of the Soil and Water Assessment Tool (SWAT) model, the interactive SWAT (i_SWAT) software package, Load Estimator (LOADEST) computer program, and other supporting software and databases. The simulation framework includes detailed land use and management data such as different crop rotations and an array of nutrient and tillage management schemes, derived from the U.S. Department of Agriculture’s National Resources Inventory databases and other sources. This paper presents the calibration and validation of SWAT for the streamflow, sediment losses, and nutrient loadings in the watershed and an assessment of land use and management practice shifts in controlling pollution. Streamflow, sediment yield, and nitrate loadings were calibrated for the 1981-1992 period and validated for the 1993-2003 period. Limited field data on organic nitrogen, organic phosphorus, and mineral phosphorus allowed model validation for the 2001-2003 period. Model predictions generally performed very well on both an annual and monthly basis during the calibration and validation periods, as indicated by coefficient of determination (R2) and Nash-Sutcliffe simulation efficiency (E) values that exceeded 0.7 in most cases. A set of land use change scenarios based on taking cropland out of production indicated a significant benefit in reducing sediment yield at the watershed outlet. A second scenario set found that relatively small reductions in nutrient applications resulted in significant reductions in nitrate loadings at the watershed outlet, without affecting crop yields significantly.
    Keywords: calibration, management practices, Raccoon River Watershed, SWAT.
    Date: 2006–08–22
    URL: http://d.repec.org/n?u=RePEc:isu:genres:12656&r=agr
  9. By: David Tschirley (Department of Agricultural Economics, Michigan State University); Colin Poulton; Duncan Boughton
    Abstract: This paper assesses the record of five countries in southern and eastern Africa: Tanzania, Uganda, Zimbabwe, Zambia, and Mozambique. The paper focuses on the course of reform in each – initial conditions, key elements of the reform, and institutional response to it – and draws lessons for policy makers, donors, and researchers.
    Keywords: food security, food policy, cotton reform
    JEL: Q18
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:msu:idpwrk:088&r=agr
  10. By: International Water Management Institute (International Water Management Institute)
    Keywords: water resource management / groundwater / institutional development / water policy / water resources development / case studies / water shortage / river basins / water conservation / irrigation management / water law / drinking water / cost recovery / water pollution / national planning / Asia / China/ Indonesia / Philippines / Sri Lanka / Thailand /
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:iwt:polbrs:p01&r=agr
  11. By: International Water Management Institute (International Water Management Institute)
    Keywords: water resource management / groundwater / institutional development / water policy / water resources development / case studies / water shortage / river basins / water conservation / irrigation management / water law / drinking water
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:iwt:polbrs:p02&r=agr
  12. By: International Water Management Institute (International Water Management Institute)
    Keywords: water resource management / water policy / water resources development / case studies / water shortage / irrigation management / water law / drinking water / wastewater/water pollution
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:iwt:polbrs:p03&r=agr
  13. By: Blackman, Allen (Resources for the Future); Lyon, Thomas P.; Sisto, Nicholas
    Abstract: Voluntary agreements (VAs) negotiated between environmental regulators and industry are increasingly popular. However, little is known about whether they are likely to be effective in developing and transition countries, where local and federal environmental regulatory capacity is typically weak. We develop a dynamic theoretical model to examine the effect of VAs on investment in regulatory infrastructure and pollution abatement in such countries. We find that under certain conditions, VAs can improve welfare by generating more private-sector investment in pollution control and more public-sector investment in regulatory capacity than the status quo.
    Keywords: voluntary environmental regulation, developing country
    JEL: Q28 O13 C72
    Date: 2006–07–03
    URL: http://d.repec.org/n?u=RePEc:rff:dpaper:dp-06-30&r=agr
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