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on Agricultural Economics |
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Issue of 2010‒02‒13
eleven papers chosen by |
| By: | Saraly Andrade de Sa; Charles Palmer; Stefanie Engel |
| Abstract: | This paper investigates the direct and indirect impacts of ethanol production on land use, deforestation and food production. A partial equilibrium model of a national economy with two sectors and two regions, one of which includes a residual forest, is developed. It analyses how an exogenous increase in the ethanol price affcts input allocation (land and labor) between sectors (energy crop and food). Three potential effects are identified. First, the standard and well-documented effect of direct land competition between rival uses increases deforestation and decreases food production. Second, an indirect displacement of food production across regions, provoked by a shift in the price of food, increases deforestation and reduces the total output of the food sector. Finally, labor mobility between sectors and regions tends to decrease food production but also deforestation. The overall impact of ethanol production on forest conversion is ambiguous, providing a number of interesting pointers to further, empirical research. |
| Keywords: | Ethanol, Food Production; Land Use; Deforestation; Direct and Indirect Effects; Migration. |
| JEL: | Q11 Q24 Q42 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:lnd:wpaper:482010&r=agr |
| By: | Graham Brookes; Tun-Hsiang (Edward) Yu; Simla Tokgoz; Amani Elobeid (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)) |
| Abstract: | Biotech crops have now been grown commercially on a substantial global scale since 1996. This paper examines the production effects of the technology and impacts on cereal and oilseed markets through the use of agricultural commodity models. It analyses the impacts on global production, consumption, trade and prices in the soybean, canola and corn sectors. The analysis suggests that world prices of corn, soybeans and canola would probably be, respectively, 5.8%, 9.6% and 3.8% higher, on average, than 2007 baseline levels if this technology was no longer available to farmers. Prices of key derivatives of soybeans (meal and oil) would also be between 5% and 9% higher, with rapeseed meal and oil prices being about 4% higher than baseline levels. World prices of related cereals and oilseeds would also be expected to be higher by 3% to 4%. The effect of no longer using the current widely used biotech traits in the corn, soybean and canola sectors would probably impact negatively on both the global supply and utilization of these crops, their derivatives and related markets for grain and oilseeds. The modelling suggests that average global yields would fall for corn, soybeans and canola and despite some likely "compensating" additional plantings of these three crops, there would be a net fall in global production of the three crops of 14 million tonnes. Global trade and consumption of these crops/derivatives would also be expected to fall. The production and consumption of other grains such as wheat, barley and sorghum and oilseeds, notably sunflower, would also be affected. Overall, net production of grains and oilseeds (and derivatives) would fall by 17.7 million tonnes and global consumption would fall by 15.4 million tonnes. The cost of consumption would also increase by $20 billion (3.6%) relative to the total cost of consumption of the (higher) biotech-inclusive level of world consumption. The impacts identified in this analysis are, however, probably conservative, reflecting the limitations of the methodology used. In particular, the limited research conducted to date into the impact of the cost-reducing effect of biotechnology (notably in herbicide-tolerant soybeans) on prices suggests that the price effects identified in this paper represent only part of the total price impact of the technology. |
| Keywords: | biotechnology, cereals, crop yields, oilseeds, price effects, productivity. |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:10-wp503&r=agr |
| By: | Bruce A. Babcock (Center for Agricultural and Rural Development (CARD); Midwest Agribusiness Trade Research and Information Center (MATRIC)); Miguel Carriquiry (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)) |
| Abstract: | This report provides insight into four aspects of modeling indirect land use caused by expanded biofuels production. The report was motivated by the National Biodiesel Board's interest in better understanding how the California Air Resources Board (CARB) estimated an indirect land-use factor for soybean-based biodiesel of 66 gCO2e/MJ, which is more than three times greater than the direct emissions from the fuel. Four aspects of CARB's modeling approach were examined: (1) why CARB estimates that more U.S. forest than pasture will be converted to cropland; (2) whether CARB's predicted land-use changes are consistent with observed U.S. land-use changes in the past decade; (3) how CARB could account for double cropping; and (4) whether CARB's assumption that land brought into production has lower yields than land that was already in production. Results indicate that (1) much of the predicted U.S. forestland conversion is likely due to restrictions on cross-price elasticities imposed by use of the Constant Elasticity of Transformation supply function; (2) a stock of idled cropland could have accommodated the increase in U.S. cropland in 2007 and 2008; (3) the soybean yield elasticity with respect to price can be adjusted to account for double-cropped acres; and (4) there is no empirical support for the assumption that yields in Brazil on new land are lower than yields on old land. The analysis shows how much work needs to be done in this area if the models used to estimate indirect land use are to become widely accepted. |
| Keywords: | CET supply function, double cropping, idle cropland, indirect land use. |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:10-sr105&r=agr |
| By: | Charles L. Baum II |
| Abstract: | Poverty has historically been associated with a decrease in food consumption. This at least partially changed in 1964 when the Food Stamp Act began guaranteeing food for those in poverty. Since the Act’s passage, the prevalence of obesity has increased dramatically, particularly among those with low incomes. This paper examines the effects of the Food Stamp Program on the prevalence of obesity using 1979 National Longitudinal Survey of Youth data. Results indicate food stamps have significant positive effects on obesity and the obesity gap for females, but these effects are relatively small and such benefits, consequently, are approximated to have played a minor role in increasing obesity at the aggregate level. |
| Keywords: | Food stamps; weight; obesity; BMI |
| JEL: | I18 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:mts:wpaper:201003&r=agr |
| By: | URATA Shujiro; OKABE Misa |
| Abstract: | This paper examines the impacts of regional trade agreements (RTAs) on commodity trade, with a particular focus on trade creation and diversion effects. Based on the estimation of the gravity equation for commodity trade, dealing with zero-trade flow and endogeneity problems, we analyze the impacts of various types of RTAs involving 67 countries for 20 commodities during 1980-2006. We identify that partial scope (PS) RTAs and RTAs among developing countries tend to cause trade diversion. Taking tariff rates into consideration explicitly, our results suggest that trade diversion is likely to be caused by the remaining tariffs on imports from non-members, while trade creation would be caused by various factors besides the reduction in tariff rates. As for specific RTAs, the EU is shown to have a trade creation effect in trade of agricultural commodities, while the AFTA and the NAFTA have trade creation effects in all types of machinery trade. These results seem to indicate that regional production and distribution networks in machinery have been formulated thanks to the reduction of tariffs under RTAs. |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:10007&r=agr |
| By: | Lundberg, Johan (Department of Economics, Umeå University); Lundberg, Sofia (Department of Economics, Umeå University) |
| Abstract: | From economic theory, it is known that consumer loyalty schemes can have lock-in effects resulting in entry barriers and higher prices. This paper concerns consumer loyalty schemes where the main issue is to test the hypothesis that loyalty scheme membership affects the choice of food retailer. This choice is modeled as a random utility maximization problem estimated with maximum likelihood. Based on a data set covering 1,551 Swedish households, we find evidence supporting this hypothesis. Further, according to the results, store characteristics and geographical distance matter for the choice of retailer while household characteristics are not found to have a significant effect. |
| Keywords: | Bonus card; Conditional logit; Consumer choice; Distance; Food retailer; Loyalty scheme |
| JEL: | D12 L49 L66 L81 R10 |
| Date: | 2010–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0034&r=agr |
| By: | de Haan, Jan; Diewert, Erwin; Hendriks, Rens |
| Abstract: | The paper uses hedonic regression techniques in order to decompose the price of a house into land and structure components using readily available real estate sales data for a Dutch city. In order to get sensible results, it proved necessary to use a nonlinear regression model using data that covered multiple time periods. It also proved to be necessary to impose some monotonicity restrictions on the price of land and structures. The results of the additive model were compared with the results of a traditional logarithmic hedonic regression model. |
| Keywords: | Property price indexes, hedonic regressions, repeat sales method, rolling year indexes, Fisher ideal indexes. |
| JEL: | C2 C23 C43 D12 E31 R21 |
| Date: | 2010–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:ubc:bricol:erwin_diewert-2010-1&r=agr |
| By: | Charles L. Baum II |
| Abstract: | With over 66 % of Americans overweight, expectant mothers are unusual because they are encouraged to gain weight while pregnant. Food stamp receipt (FSR) may facilitate recommended weight gain for pregnant women by providing additional resources for food and nutrition. I examine the effects of FSR on the amount of weight gained by low-income expectant mothers using NLSY79 data. Results indicate FSR decreases the probability gaining an insufficient amount of weight but does not exacerbate the probability of gaining too much weight. Examining the effects of FSR on pregnancy weight gain is important because low birth weight is more likely when expectant mothers gain an insufficient amount of weight. |
| Keywords: | Food stamps, weight, weight gain |
| JEL: | J1 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:mts:wpaper:201002&r=agr |
| By: | Asheim, Geir B. (Dept. of Economics, University of Oslo) |
| Abstract: | Strategic use of environmental information may have as consequence that a benevolent environmental agency will choose not to disclose information leading to reduced moral motivation. Thus, decision makers will not have access to such information, implying that they will not be able to adjust their decisions to available information on the state of the environment. In contrast, if the benevolent environmental agency instead bases its regulation on standard economic instruments, these instruments will incorporate all available information. Keywords and Phrases: Environmental regulation, voluntary contributions, moral motivation, hard information. |
| Keywords: | environmental regulation; voluntary contributions; moral motivation; hard iformation |
| JEL: | D11 H41 |
| Date: | 2009–09–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:osloec:2009_021&r=agr |
| By: | Eugenio Brentari; Rosella Levaggi |
| Abstract: | We use a unique dataset to estimate the hedonic price function for the Italian red wine sold on the Italian market in the period 2006-2008. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ubs:wpaper:1001&r=agr |
| By: | Juan Camilo Cárdenas; Luz Ángela Rodríguez; Nancy Johnson |
| Abstract: | The dilemma of collective action around water use and management involves solving both the problems of provision and appropriation. Cooperation in the provision can be affected by the rival nature of the appropriation and the asymmetries in the access. We report two field experiments conducted in Colombia and Kenya. The Irrigation Game was used to explore the provision and appropriation decisions under asymmetric or sequential appropriation, complemented with a Voluntary Contribution Mechanism experiment which looks at provision decisions under symmetric appropriation. The overall results were consistent with the patterns of previous studies: the zero contribution hypotheses is rejected whereas the most effective institution to increase cooperation was face-to-face communication, and above external regulations, although we find that communication works much more effectively in Colombia. We also find that the asymmetric appropriation did reduce cooperation, though the magnitude of the social loss and the effectiveness of alternative institutional options varied across sites. |
| Date: | 2009–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:col:000089:006649&r=agr |