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on Agricultural Economics |
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Issue of 2008‒04‒15
fourteen papers chosen by |
| By: | Burja , Camelia; Burja, Vasile |
| Abstract: | One of the major objectives of the Common Agricultural Policy is the sustainable development of the agricultural sector and of the rural area. Romania, as a country recent integrated in the European Union, has to pass an adapting process to the CAP, in order to achieve sustainable farming development. The analysis presented in the paper refers to the actual development stage of the sustainable agriculture in Romania and demonstrates the important efforts made on this line, also the very necessary actions for implementing the sustainable development strategy of the rural economy. Realizing this objective is a real chance for Romanian agriculture in order to increase the competitiveness on the EU market, valorizing in this manner its agricultural potential. |
| Keywords: | rural economy; sustainable development; European agricultural policy; efficiency; farming strategy |
| JEL: | O11 Q1 O1 Q0 O13 Q01 Q18 |
| Date: | 2008–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:7989&r=agr |
| By: | Jonasson, Erik (Department of Economics, Lund University) |
| Abstract: | Several paths out of rural poverty have been discussed in the literature on rural development. One of these is rural non-agricultural employment (RNAE), which is receiving growing attention due to its increasing share of rural household income and its seemingly better earnings potential than agriculture. A household model with a dualistic rural labour market is proposed in this paper to account for potential earnings differentials between agricultural and non-agricultural employment and assessed empirically for the case of Peru. Based on the Peruvian Living Standard Measurement Survey of 1994, the empirical findings suggest that there is an earnings premium ranging between 30 and 50 per cent of rural non-agricultural employment compared to agricultural employment. Lack of education does not seem to constitute an entry barrier to the RNA labour market. For positive returns to education, however, non-agricultural employment appears to be a prerequisite in rural Peru. Labour market segmentation combined with unobserved characteristics is likely to explain the earnings differential. |
| Keywords: | non-agricultural employment; income diversification; wage differentials; Peru; Latin America |
| JEL: | J24 J31 J43 O12 R23 |
| Date: | 2008–02–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2008_007&r=agr |
| By: | Fabiosa, Jacinto F. |
| Abstract: | Highlighted in the “battle in Seattle” in 1999, anti-trade sentiments still persist, even with development considerations placed at the core of reform negotiations at the World Trade Organization, in which two-thirds of the members are developing countries. In this paper, the impact of agricultural trade liberalization on food consumption through changes in income and prices is considered. First, agricultural trade liberalization is estimated to raise economic growth by 0.43% and 0.46% in developing and industrialized countries, respectively. Since food consumption of households with lower income are more responsive to changes in income, their food consumption increases more under a trade liberalization regime. Second, trade liberalization is expected to raise world commodity prices in the range of 3% to 34%. Since, in general, border protection is much higher in developing countries and the level of their tariff rates are likely to exceed the rate of price increases, 87% to 99% of the 83 to 98 countries examined would have lower domestic prices under liberalization. Again, given that low-income countries are more responsive to changes in prices, food consumption in these countries would increase more. Finally, empirical evidence shows that if there is any harm on small net selling producers in a net importing country, it is neither large in scale nor widespread because the substitution effect dominates the net income effect from the lower domestic prices. |
| Keywords: | agricultural trade liberalization, income and price elasticity, income distribution, developing countries. |
| Date: | 2008–04–04 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:12894&r=agr |
| By: | Mohamed Abdelbasset Chemingui; Chokri Thabet |
| Abstract: | The study tries to answer the following questions: Will exposure to world agricultural prices generate more poverty or less? To what extent will households be affected by changes in agricultural trade polices? Do multilateral agricultural liberalization matter more than bilateral changes? Results of simulations using a computable general equilibrium (CGE) model linked to household survey data suggest that trade liberalization has only modest effects on the level of GDP, but it has a substantial effect in reducing poverty. Moreover, the combined effects of global and domestic liberalization are more pro-poor thant the effect of domestic liberalization alone. As a net importer of agricultural commodities, Tunisia may be expected to experience terms-of-trade losses from higher world agricultural prices. However, given Tunisia's significant agricultural import protection policies, it is expected that the agricultural sector will lose from trade liberalization that removes this protection. |
| Keywords: | Tunisia, agriculture, trade liberalization, general equilibrium model, micro-simulation, poverty |
| JEL: | F1 I3 Q1 C68 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:mpiacr:2008-03&r=agr |
| By: | Jacinto F. Fabiosa (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)) |
| Abstract: | Highlighted in the "battle in Seattle" in 1999, anti-trade sentiments still persist, even with development considerations placed at the core of reform negotiations at the World Trade Organization, in which two-thirds of the members are developing countries. In this paper, the impact of agricultural trade liberalization on food consumption through changes in income and prices is considered. First, agricultural trade liberalization is estimated to raise economic growth by 0.43% and 0.46% in developing and industrialized countries, respectively. Since food consumption of households with lower income are more responsive to changes in income, their food consumption increases more under a trade liberalization regime. Second, trade liberalization is expected to raise world commodity prices in the range of 3% to 34%. Since, in general, border protection is much higher in developing countries and the level of their tariff rates are likely to exceed the rate of price increases, 87% to 99% of the 83 to 98 countries examined would have lower domestic prices under liberalization. Again, given that low-income countries are more responsive to changes in prices, food consumption in these countries would increase more. Finally, empirical evidence shows that if there is any harm on small net selling producers in a net importing country, it is neither large in scale nor widespread because the substitution effect dominates the net income effect from the lower domestic prices. |
| Keywords: | agricultural trade liberalization, income and price elasticity, income distribution, developing countries. |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:08-wp466&r=agr |
| By: | Jörgensen, Hans (Umeå University) |
| Abstract: | Previous studies of Post-War Sweden’s agricultural development have e.g. focused on the effects of structural change, agricultural price policies, or the peculiarities of the regulative environment. While these studies have been most valuable here, this study cannot provide any such in-dept account. This paper will instead explain how the Swedish agricultural policy — in the light of the Cold War’s specific environment up to the mid 1970s — can be related to the concepts of warfare and welfare. Even though Sweden was not a belligerent country, the adaptation and reconstruction policies necessitated profound state actions. Both the objectives of maintaining a high level of national preparedness in case of a war or crisis and the focus on scientific and technological renewal relate to warfare. With regards to the post-war welfare development in most parts of the Western world, welfare was also to a high degree linked with experiences from the depression and World War II. In Swedish agriculture the ambition was to achieve income parity between farmers and industry workers. Thus, in the context of the Post-War period’s scientific and expert technological development, the regulations and planning ambitions can be seen as means for applying rationality and efficiency in a time when state intervention was regarded as social engineering. |
| Keywords: | Agricultural policy; scientific credence |
| JEL: | N00 |
| Date: | 2008–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0118&r=agr |
| By: | Giulia LISTORTI (Universita' Politecnica delle Marche, Dipartimento di Economia) |
| Abstract: | This work focuses on soft wheat price transmission mechanisms between the United States and the European Union. In particular, by performing a cointegration analysis, it aims at analyzing if and to which extent the prices in the two countries were related in the years from 1978 to 2003, provided that the market of this commodity was deeply influenced by the Common Agricultural Policy. The issue of how domestic and international policy regime changes affected price transmission elasticities is also explored. |
| Keywords: | cointegration, common agricultural policy, international price trasmission, law of one price |
| JEL: | Q11 Q17 Q18 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:318&r=agr |
| By: | Shombe, Nicolaus Herman |
| Abstract: | This paper, investigates causal relationships among agriculture, manufacturing and export in Tanzania by using time series data for the period between 1970 and 2005. The empirical results show in both sectors there is Granger causality where agriculture causes both exports and manufacturing. Exports also cause both agricultural GDP and manufacturing GDP and any two variables out of three jointly cause the third one. There is also some evidence that manufacturing does not cause export and agriculture. Regarding cointegration, pairwise agricultural GDP and export are cointegrated, export and manufacture are cointegrated. Agriculture and manufacture are cointegrated but they are lag sensitive. However, three variables, manufacturing, export and agriculture both together are cointegrated showing that they share long run relation and this has important economic implications. |
| Keywords: | Causality, Agricultural and manufacturing GDP, Export, Tanzania, Gross domestic product, Agriculture, Manufacturing industries |
| JEL: | C12 C32 C5 F14 F40 |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper136&r=agr |
| By: | Jörg Peters; Sascha Thielmann |
| Abstract: | Interest in biofuels is growing worldwide as concerns about the security of energy supply and climate change are moving into the focus of policy makers. With the exception of bioethanol from Brazil, however, production costs of biofuels are typically much higher than those of fossil fuels.As a result,promotion measures such as tax exemptions or blending quotas are indispensable for ascertaining substantial biofuel demand.With particular focus on developing countries, this paper discusses the economic justification of biofuel promotion instruments and investigates their implications. Based on data from India and Tanzania, we find that substantial biofuel usage induces significant financial costs. Furthermore, acreage availability is a binding natural limitation that could also lead to conflicts with food production.Yet, if carefully implemented under the appropriate conditions, biofuel programs might present opportunities for certain developing countries. |
| Keywords: | Renewable energy, environmental policy, government policy, economic development |
| JEL: | O38 Q42 Q56 |
| Date: | 2008–01 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0038&r=agr |
| By: | Glyn Wittwer |
| Abstract: | Australia's 2007 vintage was smaller than the previous few vintages as a consequence of drought and frost in 2006. Then the worst happened in the following year with an unprecedented second year of drought that resulted in severe cuts to water allocations for irrigators in the southern Murray-Darling Basin. This paper examines the medium-term prospects for the Australian wine industry using global projections to 2016 with the World Wine Model. The international growth prospects of commercial-premium wine matter to growers in irrigated regions of Australia. Overall, demand for commercial-premium wine is set to grow. This is despite a slowing of growth in Australia's number one market, the United Kingdom. |
| Keywords: | CGE modelling, wine consumption |
| JEL: | C68 Q13 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:cop:wpaper:g-173&r=agr |
| By: | Brännlund, Runar (Department of Economics, Umeå University); Kriström, Bengt (Department of Forest Economics); Lundgren, Tommy (Umeå School of Business); Marklund, Per-Olov (Department of Economics, Umeå University) |
| Abstract: | Biofuels are increasingly being regarded as an energy source with potential to address problems in several areas, such as those found in the areas of climate change, environmental degradation, energy supply and energy security. We take a look at biofuels through the lens of modern resource economics and begin our survey by asking the question: Why biofuels? We delimit ourselves to biofuels for transportation (e.g. ethanol and biodiesel). We then review some of the literature in the field and put forward a framework for analysis drawn mainly from the green accounting literature. The literature review indicates that the effects of policies promoting conversion from fossil fuels to biofuels are not necessarily welfare improving. Our theoretical framework provided sheds some light on why this might be the case. We propose policies that not only penalize emissions of CO2 from all sources, but also stimulate biomass growth. We end by identifying issues for further research. |
| Keywords: | Biofuels; ethanol; green accounting; energy demand |
| JEL: | Q42 Q54 |
| Date: | 2008–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0736&r=agr |
| By: | Manuel Couret Branco (Universidade de Évora,Departamento de Economia); Pedro Damião Henriques (Universidade de Évora,Departamento de Economia) |
| Abstract: | Water being essential to human survival, a political economy directed to satisfying human basic needs, should be especially concerned with the issue of water availability and distribution. Why is there such inequality in its distribution? This inequality represents a serious violation of a human right, as it will be developed in the paper and therefore should not be tolerated. The issue this paper wishes to address concerns the role played by economics in the unequal assertion of every people’s human right to clean water.First of all, what are we talking about when we talk about economics? A rapid overview can identify at least twenty schools of economic thought, from neoclassic to evolutionary, from Marxist to post-Keynesian. If one had to be accurate, a paper on the impact of economics on the human right to water human rights would then have to be divided in at least twenty chapters. The sort of economics we will be referring to in this paper results from a considerably narrower point of view: economics, here, will be mainstream economics, the school of thought which dominates not only within the academia, but also within the political cabinets and the media. More specifically, this paper will examine how mainstream economics discourse can be conflictive with human rights in general and the right to water in particular.First, within mainstream economic analysis satisfying wants implies the use of concepts like prices, supply and demand, or cost and benefit, and therefore, the issue is ability to pay, in other words purchasing power. With rights, on the other hand, the issue is quite different; the heart of the matter here concerns entitlement, the criteria according to which an individual should qualify to enjoy rights, purchasing power being obviously excluded as well as the consequences of the use of such criteria. Therefore it is perfectly admissible for economics to exclude from access to water those that do not have the capability to pay violating the basic principles of human rights. Second, by putting emphasis on the market as the default regulation institution, mainstream economics also hinders the human right to water because on one hand market is inefficient in reaching universal coverage of water supply and on the other hand it is an unaccountable institution and human rights purveyors need by principle to be submitted to democratic control. |
| Keywords: | Human Rights, Right to Water, Economic Theory, Market. |
| JEL: | A13 B40 I30 Q25 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:cfe:wpcefa:2008_03&r=agr |
| By: | José Cadima Ribeiro (Universidade do Minho - NIPE); José de Freitas Santos (ISCAP - IPP and NIPE-UM) |
| Abstract: | This study investigates the relative importance of region of origin associated with extrinsic (price, brand, promotion) and intrinsic (grape, type of wine, colour, age, special references) cues in the decisions of final consumers and small retailers to buy Portuguese quality wine. In order to attain this goal we conducted a survey through face-to-face interviews in the Minho region. The results show that the dominant factor of influence in the acquisition of wine is the region of origin, both for final consumers and small retailers. Despite its importance, brand was not the principal variable to influence consumers’ wine choice, while price has been regarded as a less important extrinsic quality cue. One interesting result is the type of wine (“maduro” or “verde”) which seems to be the most preferred intrinsic cue for final consumers and small retailers. The findings also indicate that the regions of Alentejo, Douro and Verde are clearly the leaders in terms of customer acceptance. |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:11/2008&r=agr |
| By: | Parry, Ian W.H. (Resources for the Future); Goulder, Lawrence H. |
| Abstract: | We examine the extent to which various environmental policy instruments meet major evaluation criteria, including cost-effectiveness, distributional equity, minimization of risk in the presence of uncertainty, and political feasibility. Instruments considered include emissions taxes, tradable emissions allowances, subsidies for emissions reductions, performance standards, technology mandates, and research and development subsidies. Several themes emerge. First, no single instrument is clearly superior along all the criteria. Second, significant trade-offs arise in the choice of instrument; for example, assuring a reasonable degree of distributional equity often will require a sacrifice of cost-effectiveness. Third, it is possible and sometimes desirable to design hybrid instruments that combine features of various instruments in their “pure” form. Fourth, for many pollution problems, more than one market failure may be involved, which may justify (on efficiency grounds, at least) employing more than one instrument. Finally, potential overlaps and undesirable interactions among environmental policy instruments are sometimes a matter of concern. |
| Keywords: | emissions control instruments, cost-effectiveness, distributional burden, induced innovation |
| JEL: | Q58 H23 Q54 |
| Date: | 2008–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-08-07&r=agr |