New Economics Papers
on Agricultural Economics
Issue of 2008‒12‒07
24 papers chosen by

  1. Farmers' Subjective Valuation of Subsistence Crops: The Case of Traditional Maize in Mexico By Arslan, Aslıhan; Taylor, J. Edward
  2. Shadow vs. market prices in explaining land allocation: Subsistence maize cultivation in rural Mexico By Aslihan Arslan
  3. The Impact of Location on Crop Choice and Rural Livelihood: Evidences from Villages in Northern Ethiopia By Nuru, Seid; Seebens, Holger
  5. An Investigation of the Marketing of Butterfat by the Canadian Dairy Industry By Clark, J. Stephen Bettina Brown; Brown, Bettina; Dunlop, Diane; Yang, Jinbin; Prochazka, Petr
  6. The Transmission of Price Trends from Consumers to Producers and Tests of Market Power By Lkassbi, Driss; West, Gale E.; Clark, J. Stephen
  7. Modelling Reference-Dependent and Labelling Effects in Consumers€٠Functional Food Choices By Zou, Ning Ning (Helen); Hobbs, Jill E.
  8. Implications of a Doha Agreement on Agricultural Markets in Sudan By Abdel Karim, Imad Eldin Elfadil; Abler, David
  9. Welfare Changes from the U.S. Ethanol Tax Credit: The Role of Uncertainty and Interlinked Commodity Markets By Baker, Mindy
  12. "Small Is Beautiful Evidence of an Inverse Relationship between Farm Size and Yield in Turkey" By Fatma Gul Unal
  13. California and the creation of a modern wine industry: 1860-1919 By James Simpson
  15. An Experimental Investigation of the Impact of Fat Taxes: Prices Effects, Food Stigma, and Information Effects on Economics Instruments to Improve Dietary Health By Cash, Sean E.; Lacanilao, Ryan; Adamowicz, Vic; Raine, Kim
  16. Biological Carbon Sinks: Transaction Costs and Governance By G. Cornelis van Kooten
  17. Risk Ranking: Investigating Expert and Public Differences in Evaluating Food Safety Risks By Webster, Kevin D.; Jardine, Cindy G.; McMullen, Lynn; Cash, Sean B.
  18. Third party labeling and the consumer decision process By Larceneux, Fabrice; Carpenter, Marie
  19. Bioenergy and Rural Development in Developing Countries: a review of existing studies By Gerber, Nicolas
  20. Poverty, Undernutrition and Vulnerability in Rural India: Public Works versus Food Subsidy By Raghbendra Jha; Katsushi S. Imai; Raghav Gaiha
  21. The Impacts of Food- and Oil Price Shocks on the Namibian Economy: the Role of Water Scarcity By Sahlén, Linda
  22. Strategic Planning - Niche Marketing in the Agriculture Industry By Cuthbert, Ronald
  23. Label Performance and the Willingness to Pay for Fair Trade Coffee: A Cross-National Perspective By Basu, Arab K.; Hicks, Robert L.
  24. Scope and Sustainability of Cooperation in Transboundary Water Sharing of the Volta River By Bhaduri, Anik; Perez, Nicostrato; Liebe, Jens

  1. By: Arslan, Aslıhan; Taylor, J. Edward
    Abstract: Shadow prices guide farmers' resource allocations, but for subsistence farmers growing traditional crops, shadow prices may bear little relationship with market prices. We econometrically estimate shadow prices of maize using data from a nationally representative survey of rural households in Mexico. Shadow prices are significantly higher than the market price for traditional but not improved maize varieties. They are particularly high in the indigenous areas of southern and southeastern Mexico, indicating large de facto incentives to maintain traditional maize there.
    Keywords: Shadow prices, non-market values, supply response, traditional crops, onfarm conservation, Mexico, Agricultural and Food Policy, Community/Rural/Urban Development, International Development, O12, O13, Q12, Q39,
    Date: 2008–10
  2. By: Aslihan Arslan
    Abstract: Economic models of land allocation may lead to expectations for farmer response that “surprisingly" do not materialize, if market prices fail to reflect the value of farmers' product. “Shadow prices" rather than market prices explain resource allocation better for farmers who attach significant non-market values to their own crops. I extend the theoretical model in Arslan and Taylor (2008) to explain why the land allocation of such farmers may not respond to market signals even if transaction costs are not binding. I estimate the proportion of land subsistence maize farmers allocate to traditional versus modern maize varieties using nationally representative rural household data from Mexico – the center of diversity of maize. I conclude that shadow prices explain land allocation better than market prices and discuss the importance of non-market values in understanding both farmers' supply response and on-farm conservation of traditional crops with non-market values
    Keywords: Land allocation, shadow prices, non-market values, traditional crops, on-farm, conservation, Mexico
    JEL: O12 O13 Q12 Q39
    Date: 2008–12
  3. By: Nuru, Seid; Seebens, Holger
    Abstract: This paper attempts to demonstrate how location of an agricultural economic activity in relation to urban centers determines households' decision to allot their agricultural land to the production of either staple crop or a high value but risky cash crop. Analyzing household data from villages in North Eastern Ethiopia, we find that proximity to urban centers, access to road, and education along with other factors determine the crop choice in favor of the production of high value crops. Crop choices further significantly predict levels of per capita income across villages where the farthest with no access to road are the poorest.
    Keywords: Agricultural and Food Policy, Community/Rural/Urban Development, Consumer/Household Economics, Crop Production/Industries, International Development, Productivity Analysis,
    Date: 2008–07–17
  4. By: Alvaro Calzadilla; Katrin Rehdanz; Richard S.J. Tol (Economic and Social Research Institute)
    Abstract: Water problems are typically studied at the farm-level, the river–catchment-level or the country-level. About 70% of irrigation water is used for agriculture, and agricultural products are traded internationally. A full understanding of water use is impossible without understanding the international market for food and related products, such as textiles. Based on the global general equilibrium model GTAP-W, we offer a method for investigating the role of green (rain) and blue (irrigation) water resources in agriculture and within the context of international trade. Since problems related to groundwater availability are getting more severe in the future, we analyze the impact of different water use options for 2025 where data is readily available. We run two alternative scenarios. The first, called water crisis scenario, explores a deterioration of current trends and policies in the water sector. The second scenario, called sustainable water use scenario, assumes an improvement in policies and trends in the water sector and eliminates groundwater overdraft worldwide, increasing water allocation for the environment. In both scenarios, welfare gains or losses are not only associated with changes in agricultural water consumption. Under the water crisis scenario, welfare not only rises for regions where water consumption increases (China, South East Asia and the USA). Welfare gains are considerable for Japan and South Korea, Southeast Asia and Western Europe as well. These regions benefit from higher irrigated production and lower food prices. Alternatively, under the sustainable water use scenario, welfare losses not only affect regions where overdrafting is occurring. Welfare decreases in other regions as well. These results indicate that, for water use, there is a clear trade-off between economic welfare and environmental sustainability.
    Keywords: Agricultural Water Use, Computable General Equilibrium, Groundwater Use, Irrigation, Sustainable Water Use, Water Scarcity
    JEL: D58 Q17 Q25
    Date: 2008–12
  5. By: Clark, J. Stephen Bettina Brown; Brown, Bettina; Dunlop, Diane; Yang, Jinbin; Prochazka, Petr
    Abstract: This study examines the Canadian Dairy Commission€ٳ marketing of butterfat. Previous studies have concentrated on the evaluation of butterfat by using total kilograms of milk. Measuring milk as kilograms is based the assumption of fixed proportions between kilograms of milk and kilograms of butterfat. However, measuring dairy using kilograms may not be a good proxy for the underlying butterfat. In this study we argue that dairy fat maybe an inferior factor of production, whereas kilograms is a normal factor of production. This means that following kilograms within the marketing system may not track butterfat. In fact, butterfat may respond in an opposite direction to kilograms when prices and incomes change. Assuming that butterfat is an inferior factor may explain some of the marketing practices of the provincial marketing boards that on the surface seems to be neither in the interest of consumers or dairy farmers. If the objective of the supply management is to make dairy producers better off, then basing dairy quota on kilograms of butterfat seems logical since the demand for butterfat has been rising over time. In addition, controlling supply at the retail level using minimum milk price supports also benefits producers, although it may not be in the best interest of consumers due to higher dairy prices and increased butterfat consumption.
    Keywords: Inferior factors, dairy fat, health policy, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, I18, Q18,
    Date: 2008–07
  6. By: Lkassbi, Driss; West, Gale E.; Clark, J. Stephen
    Abstract: This study examines the competitiveness of four Canadian agricultural industries (eggs, milk, chicken and turkey) using a general equilibrium farm to retail pricing model developed by Wohlgenant (1989). The model generates retail and farm pricing equations that are estimated using maximum likelihood developed by Johansen (1992). The results indicate that in all cases, long-run constant returns is rejected, indicating market power within the Canadian retail to farm marketing sector. The model also finds more cointegrating vectors than predicted by theory, also inconsistent with competitive markets. Results are based on commercial disappearance as a proxy for consumer demand and therefore confounding between uncompetitive markets and quality differences may be indicated. Less ambiguous results would be obtained if consumer expenditures rather than commercial disappearance data were available. Still, results are rather emphatic in rejection of competitive markets in food markets in Canada. More competitive markets are indicated in the United States using similar methods.
    Keywords: Market power, food processing, cointegration, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, D41, L66, Q13,
    Date: 2008–01
  7. By: Zou, Ning Ning (Helen); Hobbs, Jill E.
    Abstract: This paper examines the reference-dependent and labelling effects when consumers make choices about functional foods, and explores how changes in reference points could alter individuals€٠preferences. Functional food (probiotic yogurt) and regular food (regular yogurt) are used as examples to explore the potential reference-dependent effects and labelling effects. A consumer utility model with reference point effects is developed. The paper also explores how to model the effects of different labelling (health claim) policies, which could influence consumer preferences by changing consumers€٠reference points.
    Keywords: consumer utility, functional food, labelling policy, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, D11, D12,
    Date: 2008–01
  8. By: Abdel Karim, Imad Eldin Elfadil; Abler, David
    Abstract: The latest round of multilateral trade negotiations was launched at the ministerial meeting of the World Trade Organization in Doha, Qatar, in November 2001. Agriculture is a major item on the agenda for the Doha Round. The primary focus is on the three €ܰillars€ݠof the Uruguay Round agreement€Ԥomestic support, market access, and export competition. The framework for a final agreement was finalized at a Ministerial meeting in Geneva in July 2004, but contains few details on modalities (e.g., the formula to be used for reductions in tariffs/increases in tariff-rate quotas, quantitative limitations on domestic support, and the schedule for the elimination of export subsidies). Detailed proposals on a number of these issues were put forward in October 2005 by the European Union and the United States, in addition to the G10 and G20 groups of countries. The Doha Round negotiations have since run into several major hurdles, and it is unclear at this time if, or when, an agreement might be reached. Nevertheless, the range of alternatives for key parameters is becoming increasingly clear. In this paper we analyze empirically the implications of the provisions of a Doha agreement for agricultural markets in Sudan. The analysis is based on the PEATSim model (Partial Equilibrium Agricultural Trade Simulator) developed by the Penn State University in collaboration with the Economic Research Service of the U.S. Department of Agriculture. This dynamic, multi-country, multi-commodity model covers 35 of the major traded agricultural commodities and contains a detailed representation of markets and policies in twelve countries/regions that are particularly significant for world agricultural trade. The model is used to analyze the US, EU, and G20 negotiating proposals from October 2005. The PEATSim model has previously been used to analyze a number of agricultural trade and policy reform scenarios, including global agricultural trade liberalization in all commodities, trade liberalization in global dairy markets, and trade liberalization in coarse grain markets. Sudan is not a currently member of the WTO although it has been in the accession process since 1994. Assuming that Sudan continues outside of WTO membership, its trade policies will not be directly affected by a Doha agreement. But Sudan could be affected significantly by changes in global agricultural markets. Preliminary results using PEATSim indicate an increase in Sudanese production and exports of course grains, peanuts, cotton, sunflowers, and beef due to increases in world prices. Imports of several products increase, especially wheat, rice, and poultry meat. On the whole the preliminary results suggest that Sudanese agriculture should benefit from a Doha agreement.
    Keywords: Doha Agreement, Sudan, agricultural markets, trade policy, Agricultural and Food Policy, International Development, International Relations/Trade, Political Economy,
    Date: 2008–06
  9. By: Baker, Mindy
    Abstract: A model of the corn, soybean, and wheat markets calculates welfare effects of the U.S. ethanol tax credit. Crop yields are uncertain, and demand consists of feed, food, energy, and exports. Modeling uncertainty in crop yields allows the valuation of deficiency payments as options. Disaggregating demand records who benefits from the tax credit and by how much; incorporating linked crop markets captures indirect effects important for determining the transfer from consumers to producers. There is $600 million in net welfare loss, increased taxpayer liability, and a large transfer from consumers to farmers. A brief comparison of recent literature is included.
    Keywords: biofuel, commodity, ethanol, tax credit, uncertainty, welfare.
    Date: 2008–12–02
  10. By: HM, Seema; MG, Chandrakanth; N, Nagaraj
    Abstract: In this study, economic impact of water harvesting and groundwater recharging was analyzed in the context of Sujala watershed equity and efficiency in the distribution of benefits in Chitradurga district, Karnataka. Field data for 2004-05 (drought year) and 2005-06 (normal year) from 30 sample farmers in Sujala watershed form the data base for the study. Another sample of 30 farmers from Non-Sujala (or DPAP) watershed, and 30 from outside watershed area form the control. Farmers were further classified as: (i) those who had bore well irrigation; and (ii) those who had no borewell irrigation in order to assess the impact of watershed. It was found that the amortized cost per functioning well and cost per acre inch of groundwater in Sujala watershed is lower than that in non-Sujala watershed and non-watershed area. The economic contribution in terms of incremental net returns per acre in (i) Sujala over non-watershed area (in drought year, normal year) as the contribution of Sujala watershed are Rs. 1726 and Rs. 3650; (ii) Sujala over Non-Sujala (DPAP) watershed (as the contribution of Sujala watershed institutions) is Rs. 1067 and Rs. 898); (iii) Non Sujala (DPAP) over non-watershed area (equal to contribution to Non-Sujala or DPAP watershed) is Rs. 133 and Rs. 2226. These indicate economic supremacy of Sujala watershed program. The incremental net returns of Sujala over non-watershed area in drought year and in normal year for farmers possessing irrigation wells were Rs. 614 and Rs. 5056 respectively; for farmers not possessing irrigation wells is Rs. 7354 and Rs. 5326; for all classes of farmers is Rs. 3066 and Rs. 4967 are the prima facie indicators of economic contributions of Sujala watershed program. The negative externality per well per year in Sujala was Rs 2652, in Non-Sujala watershed was Rs. 2735, and in non-watershed area was Rs. 4285. It shows that the negative externality in groundwater irrigation has reduced by 38% in Sujala over non-watershed area. Sujala watershed program had a higher expenditure as compared to non-sujala watershed. Still the B-C ratios were higher in Sujala watershed during both drought and normal year.
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Sujala watershed program, externalities, drought, ANOVA,
    Date: 2008–04
  11. By: Russo, Carlo; Green, Richard; Howitt, Richard
    Abstract: The primary purpose of this paper is to provide updated estimates of domestic own-price, cross-price and income elasticities of demand and estimated price elasticities of supply for various California commodities. Flexible functional forms including the Box-Cox specification and the nonlinear almost ideal demand system are estimated and bootstrap standard errors obtained. Partial adjustment models are used to model the supply side. These models provide good approximations in which to obtain elasticity estimates. The six commodities selected represent some of the highest valued crops in California. The commodities are: almonds, walnuts, alfalfa, cotton, rice, and tomatoes (fresh and processed). All of the estimated own-price demand elasticities are inelastic and, in general, the income elasticities are all less than one. On the supply side, all the short-run price elasticities are inelastic. The long-run price elasticities are all greater than their short-run counterparts. The long-run price supply elasticities for cotton, almonds, and alfalfa are elastic, i.e., greater than one. Policy makers can use these estimates to measure the changes in welfare of consumers and producers with respect to changes in policies and economic variables.
    Keywords: Consumer Economics: Empirical Analysis, Agricultural Markets and Marketing, Agriculture: Aggregate Supply and Demand Analysis, Prices, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Crop Production/Industries, Demand and Price Analysis, Marketing, D120, Q130, Q110,
    Date: 2008–06–26
  12. By: Fatma Gul Unal
    Abstract: This paper examines the relationship between farm size and yield per acre in Turkey using heretofore untapped data from a 2002 farm-level survey of 5,003 rural households. After controlling for village, household, and agroclimatic heterogeneity, a strong inverse relationship between farm size and yield is found to be prevalent in all regions of Turkey. The paper also investigates the impact of land fragmentation on productivity and labor input per acre, and finds a positive relationship. These results favor labor-centered theories that point to higher labor input per decare as the source of the inverse size-yield relationship.
    Date: 2008–12
  13. By: James Simpson
    Abstract: The very different factor endowments of the New World to those found in Europe implied that the wine industry developed its own style and characteristics. In California production was located at a considerable distance from the main markets on the East Coast, and trade was initially controlled by the East Coast merchants, who imported wines from Europe and purchased California wine in bulk, selling it under their own brands. The problems of marketing and the fight against fraud and adulteration, produced a struggle between the wine-makers and San Francisco’s merchants for the control of the industry, and the creation of the world’s largest, vertically integrated wine company, the California Wine Association.
    Keywords: Wine history, Agricultural commodity chains, Farm organization, California agriculture
    JEL: L14 N51 Q13
    Date: 2008–11
  14. By: Verghese, Shalet; MG, Chandrakanth
    Abstract: Conceptual development in the theory of externalities have opened up several policy options for their internalization including payment towards environmental services. Hence as externalities are social costs, accountability is crucial in increasing environmental awareness and for collective action through education and extension more so in developing countries. Here a modest attempt has been made to estimate externalities in water, forests and environment with field data from peninsular India to refl ect on the economic perception of externalities by farmers and users of environment for the consideration of policy makers to devise institutions for payment towards environmental services. The methodology largely used here in estimation / valuation of externalities is by considering €طith €Ӡwithout€٠situations (including €آefore €Ӡafter€٠in some cases) akin to €ذroject valuation€ٮ Studies cover empirical estimation of externalities inter alia due to over extraction of groundwater , sand mining, watershed development, conservation of forests, sacred groves, cultivation of organic coffee, use of medicinal plants as alternate medicines and the annual values presented are in 2008 prices. The negative externality due to sand mining 24 ‚̠per acre, that due to distillery effluent pollution is 34 ‚̠per acre. The positive externality due to watershed program is around 51 ‚̠per acre, and that due to rehabilitation of irrigation tanks is 26 ‚̠per acre. The positive externality due to cultivation of shade coffee is 9 ‚̠per acre and that due to forest conservation 27 ‚̠per acre. The positive externality due to sacred grove conservation was 12 ‚̠per family. The impact of forest conservation on Non timber forest products was 88 ‚̠/ per tribal household. The positive externality due to use of medicinal plants as alternate medicine is equal to 35 ‚̠per patient suffering from osteo-arthritis and 19 ‚̠per patient suffering from peptic-ulcer. While these estimates are not sacro sanct as the methodologies for valuation of externalities are subject to further review and improvement, they however serve as initial indicators of spillovers. And they signal possibilities for consideration of policy makers for devising alternate institutions for potential payment towards environmental services.
    Keywords: Consumer/Household Economics, Demand and Price Analysis, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, Externalities, Environmental services, Sustainable development,
    Date: 2008–08–25
  15. By: Cash, Sean E.; Lacanilao, Ryan; Adamowicz, Vic; Raine, Kim
    Abstract: There is currently no published research on how food taxes may affect consumer behaviour when the imposition of the tax itself may be considered a source of consumer information. The work undertaken here seeks to address this gap in the literature by using experimental methods to enhance understanding on the joint effects of price changes induced by a fat tax and the stigma associated with the application of the tax. First, we conduct an interdisciplinary literature review (drawing from economics, psychology, and health promotion) and theoretical investigation of the impact of stigma on economic choice behaviours. We then employ Attribute-Based Stated Choice Methods (ABSCM) to elicit consumer response to fat tax scenarios that rely only on price changes, and to those that involve both price changes and stigma effects. The study is still ongoing, and will use a computer-assisted field data collection approach to collect data from participants at grocery stores and/or other food purchase venues. Econometric analysis of the resulting data will allow us to investigate the price response, stigma effect, and price-stigma interaction elicited by various taxation and labelling schemes. Preliminary results from pre-test samples are discussed here.
    Keywords: obesity, health policy, fat taxes, warning labels, choice experiments, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, I18, Q18,
    Date: 2008–07
  16. By: G. Cornelis van Kooten
    Abstract: Activities that remove CO2 from the atmosphere and store it in forest and agricultural ecosystems can generate CO2-offset credits that can thus substitute for CO2 emissions reduction. Are biological CO2-uptake activities competitive with CO2 offsets from reduced fossil fuel use? In this paper, it is argued that transaction costs impose a formidable obstacle to direct substitution of carbon uptake offsets for emissions reduction in trading schemes, and that separate caps should be set for emissions reduction and sink-related activities. While a tax/subsidy scheme is preferred to emissions trading for incorporating biologically-generated CO2 offsets, contracts that focus on the activity and not the amount of carbon sequestered are most likely to lead to the lowest transaction costs.
    Keywords: carbon sequestration; transaction costs; climate change
    JEL: Q54 Q23 Q42 H23 D23
    Date: 2008–11
  17. By: Webster, Kevin D.; Jardine, Cindy G.; McMullen, Lynn; Cash, Sean B.
    Abstract: The allocation of resources with respect to food safety issues requires that decision-makers prioritize these issues, which may conflict with the public€ٳ opinions on these matters. These differences between the experts€٠perception of risk and that of the public were examined. A modified Carnegie Mellon risk ranking model was used to rank six food safety issues. The six food safety issues used in the discussions were: Bovine Spongiform Encephalopathy (BSE), Escherichia coli O157:H7, Salmonella, botulism, Paralytic Shellfish Poisoning (PSP), and acrylamide. Focus groups were conducted using public (n=29) and expert (n=21) participants, and a public survey was commissioned to further explore the focus group results. Key themes were identified from the focus groups as reasons why risks were rated high or low. Explanations for why choices were made included availability, affect, numeracy and optimistic bias. The effect of attribute framing seemed to be the most influential in a participant€ٳ choices.
    Keywords: Risk ranking, Food safety, Experts, Public, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Risk and Uncertainty, D81, Q18, I18,
    Date: 2008
  18. By: Larceneux, Fabrice; Carpenter, Marie
    Abstract: The objective of this research is to explore the decision-making process of consumers when faced with food products that have values-based labels.
    Keywords: Food labels; Protected Geograhic Indication (PGI) labels; label equity; consumer decision process
    JEL: D11 D12
    Date: 2008–09–01
  19. By: Gerber, Nicolas
    Abstract: Four broad types of studies on rural development and bioenergy technologies are identified. Within these four types, this discussion paper presents a number of existing studies which are most relevant in the context of developing a research focus on the role, feasibility and issues associated with bioenergy, and in particular biofuels, as engine for rural development in developing countries. The results and recommendations of the referenced studies, reflecting the global trends of the current literature, highlight the importance of bioenergy technologies in the development process of poor rural communities. The surge of biofuels and in particular of their feedstocks on the international agricultural markets has recently commended a lot of attention. However, whilst biofuels hold a huge economic potential as internationally traded commodities, the various issues and challenges facing biofuel production systems could indicate that in the context of developing economies, they are better suited for the domestic energy markets. In any case, the analysis necessary to formulate policy recommendations on how, where and when to implement which bioenergy technology calls for a differentiated €Ӡper region and/or technology €Ӡand integrated €Ӡwithin and alongside other rural production systems €Ӡapproach. In this context, this review of existing studies exposes some unanswered questions and research gaps.
    Keywords: International Development, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy,
    Date: 2008–06–30
  20. By: Raghbendra Jha; Katsushi S. Imai; Raghav Gaiha
    Abstract: This paper analyses the effects of access to Rural Public Works (RPW) and Public Distribution System (PDS), a public food subsidy programme, on consumption poverty, vulnerability and undernutrition in India drawing upon the large household data sets constructed by National Sample Survey (NSS) data, 50th round in 1993-1994 and 61st round in 2004-2005. Treatment-effects model and Propensity Score Matching (PSM) model are used to take account of the sample selection bias in evaluating the effects of RPW or PDS on poverty. We have found significant and negative effects of the household participation in RPW and Food for Work Programmes on poverty, undernutrition (e.g. protein) and vulnerability in 1993 and 2004. On the contrary, poverty and undernutrition are significantly higher for the households with access to PDS than those without, whilst PDS has significant effects on reducing vulnerability of households in 1993 and 2004. We also applied the pseudo panel model which confirms that PDS decreased the vulnerability based on 80% of the poverty threshold. However, state-wise results of treatment effects model show considerable diversity of policy effects among different states.
    Keywords: Poverty, Undernutrition, Vulnerability, Rural Public Works (RPW), Public Distribution System (PDS), Poverty Reduction Policy, Treatment Effects Model, Propensity Score Matching (PSM) Model, India
    JEL: C21 C23 C31 I32 I38 O15 O22
    Date: 2008
  21. By: Sahlén, Linda (Department of Economics, Umeå University)
    Abstract: The recent increases in international food and oil prices have raised concerns about how these exogenous shocks will affect the economic activity as well as poverty in developing countries. In this paper, the effects of international food and oil price increases on the Namibian economy are studied by means of a Computable General Equilibrium model. As a corn and oil importing Sub-Saharan African country, Namibia is among the countries considered to be particularly vulnerable to these price shocks. Besides, since Namibia is also one of the driest Sub-Saharan countries, the role of water scarcity is explicitly addressed in this particular context. The results show that the Namibian economy will be negatively affected by the food and oil price increases. In the case where the supply of water is assumed to be constant, it is shown that there will be even less ability to adapt for the economy, thus resulting in a more significant decrease in GDP than in the case where additional water sources are assumed to be available.
    Keywords: computable general equilibrium model; food prices; oil prices; water scarcity
    JEL: D58 Q18 Q25
    Date: 2008–11–27
  22. By: Cuthbert, Ronald
    Abstract: The purpose of the research is to improve our understanding of the adaptation process in agriculture at the farm level and the influence through the value chain. The research identified critical managerial decision areas in the strategic planning process of blackcurrant growers in Alberta and the South Island of New Zealand. The work was a comparative study of growers that attempted to determine the correspondence between the results of case study observations and a set of theoretical propositions that were developed from a review of the relevant literature. Results indicate that growers understand their own firm€ٳ core competencies, plan strategically and contingently to maintain flexibility and retain niche advantages. Data gathered on the blackcurrant sectors in Canada and New Zealand provided the contextual basis for the selection and analysis of the grower case studies. The sector analysis reached across the value chain. Among the findings reported was the interesting observation that although niche marketing is an accepted strategy in the marketing literature as a means to adaptive change, and although the flexibility inherent in this approach is critical to the success of traditionally resource-starved small firms, it is not clear that the firms reported on in this study engaged in niche marketing as a planned strategy but rather came upon the opportunity through serendipity. In terms of country comparison, results indicate that there may be some specific factors that contribute to the success of the blackcurrant industry in New Zealand. Closer examination of these factors may be beneficial to assisting the Canadian sector. Keywords: Niche marketing, strategic planning, adaptation flexibility JEL Codes: D81, L1, M31, O13, Q13
    Keywords: Niche marketing, strategic planning, adaptation flexibility, Farm Management, Marketing, D81, L1, M31, O13, Q13,
    Date: 2008
  23. By: Basu, Arab K.; Hicks, Robert L.
    Abstract: In this paper we investigate how label information detailing the performance of the Fair Trade labeling program with respect to coffee affect consumers€٠willingness to pay in the United States and in Germany. We provide respondents (University students in the U.S and Germany) information regarding hypothetical benefits of the Fair Trade Coffee program on its intended beneficiaries on the production side (the revenue gains to participating marginal farmers (scope of the program)), and using stated preference conjoint methods test how this performance criterion relates to the willingness to pay for Fair Trade Coffee. Our empirical results identify a €ܴhreshold'' property of performance-based labels. In effect, the willingness-to-pay for performance-based Fair Trade labeled coffee exhibits an inverted-U shape in the sense that the willingness to pay is positively related to the scope of the program, but only up to a critical level. Thereafter, the willingness to pay declines as the income gains to participating growers increases further. Interestingly, this inverted-U property is exhibited by both the U.S. and German respondents with different critical thresholds.
    Keywords: Fair Trade, labeling program, consumer, Consumer/Household Economics, International Relations/Trade, F13, E21,
    Date: 2008–10–23
  24. By: Bhaduri, Anik; Perez, Nicostrato; Liebe, Jens
    Abstract: The paper explores the scope and sustainability of a self-enforcing cooperative agreement in the framework of a game theoretic model, where the upstream and downstream country, Burkina Faso and Ghana respectively in the Volta River Basin, bargain over the level of water abstraction in the upstream. In the model we consider the case where the downstream country, Ghana, offers a discounted price for energy export to the upstream country, Burkina Faso, to restrict its water abstraction rate in the upstream. The paper examines the benefits and sustainability of such self-enforcing cooperative arrangements between Ghana and Burkina Faso given stochastic uncertainty in the river flow. The findings of the paper suggest that at the present condition, the marginal benefit of Burkina Faso from increasing the water abstraction is much higher than that of Ghana€ٳ marginal loss. However, the paper finds that if both countries€٠water abstraction rates are at a much higher level, then the marginal loss of Ghana increases phenomenally from similar increase in water abstraction rate by Burkina Faso. Under such circumstances, there is an opportunity for Ghana to provide side payments in terms of discounted export price of power in order to motivate Burkina Faso to restrict water abstraction.
    Keywords: Bargaining, Cooperation, Transboundary, Uncertainty, Volta River Basin, Demand and Price Analysis, Environmental Economics and Policy, Risk and Uncertainty,
    Date: 2008–09–19

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