New Economics Papers
on Agricultural Economics
Issue of 2010‒08‒14
seven papers chosen by

  1. Evaluation of The Necessary of Agriculture Public Expenditure for Poverty Reduction and Food Security in Benin By LABINTAN, ADENIYI CONSTANT
  2. The Adoption and Diffusion of GM Crops in USA: A Real Option Approach By Sara Savastano; Pasquale Lucio Scandizzo
  3. Agricultural Water Pricing: United States By Wichelns, Dennis
  4. Mandates, Tax Credits, and Tariffs: Does the U.S. Biofuels Industry Need Them All? By Babcock, Bruce A.
  5. Earth Tube Heat Exchangers for Environmental Control of Farm Buildings in Semi-arid Northwest India By Girja Sharan
  6. Modeling the Volatility in Global Fertilizer Prices By Ping-Yu Chen; Chia-Lin Chang; Chi-Chung Chen; Michael McAleer
  7. PDemand for Nutrients in India, 1993-2004 By Raghav Gaiha; Raghbendra Jha; Vani S. Kulkarni

    Abstract: Benin is predominantly an agricultural country which accounted for 39% of GDP with 70% economically active population in the agricultural sector, that year. Small, independent farmers produce 90% of agricultural output, but only about 17% of the total area is cultivated, much of it in the form of collective farms since 1975. Benin with subtropical climate have enough water resources and land facilities to growth and be one power agriculture country but the sector is plagued may many problem such as lack of infrastructure, poor utilization of rural credit, and inefficient and insufficient use of fertilizer, insecticides, and seeds. Those problems have a big effect on agriculture income and rural household income and the high poverty rate.This is contract between resources potentiality and poor living condition. However the manly source of those problems maybe the lack on public expenditure in this sector. The purpose of this research is to evaluate how the low public expenditure has impact on the agriculture growth and poverty rate. To evaluate that, we first made a theory approach of the impact of agriculture growth and poverty reduction by presentation the model of model elaborate by KAWALI and son in 2006 to evaluate the contribution of public expenditure to achieve MDG b agriculture grows. The application of this model on Benin agriculture show Benin need the annual Agriculture expenditure required for 2004-2015 is 356 Million USD( 8,1% agriculture growth per year) with the conservative scenario beside 301 Million USD (7,1% agriculture growth per year) with optimistic scenario. However the analysis of agriculture public expenditure in Benin is very low( lower than 10% of the GDP) and the public expenditure general is lower than 25% of GDP (lower than 25% that is recommend by best practice) and the high rate is in military not in growthing sector. This lack of sufficient public agriculture expenditure is felt at upriver and backing of the agriculture sector. This is justifying by the agriculture production surplus management problem in this year. This is du to inability of crops stocking, crops conservation system lack and crops distribution system lack due to (infrastructure lack) and insufficient investment lack. The importance of public expenditure is become more and more a crucial problem and news policies should be elaborated and focus in major parties of public expenditure in economic growth sector that is agriculture in Benin because with climate change negative effect the situation will be more degradation and rural poor population will be increase faster.
    Keywords: Keys words: Agriculture- Public Expenditure-Poverty Reduction-Benin
    JEL: Q14 E60
    Date: 2010–10
  2. By: Sara Savastano (Faculty of Economics, University of Rome "Tor Vergata"); Pasquale Lucio Scandizzo (Faculty of Economics, University of Rome "Tor Vergata")
    Abstract: The paper aims at modelling adoption and diffusion decisions of farmers towards genetically modified crops under a real option framework. Modern GM crops help farmers to resolve two main sources of uncertainty: output uncertainty and input uncertainty. Those crops represent a revolutionary form of farming compared to the technology adoption studied in the literature in the late ‘70s-early ‘80s. The paper develops a theoretical model of adoption and diffusion of new GM crops under uncertainty and irreversibility. We test our theoretical predictions using data from 2000 to 2008 of a panel dataset constructed for 13 states of USA involved into the production of 4 different GM crop. These conclusions may appear to contradict the general perception of a delayed penetration for the GM crops, whose success seems to be retarded by lack of information, mistrust and an exaggerated perception of risks. GM crops tend to be invasive, in that their short term profitability is so high as compared with the investment needed, that once the hump of uncertainty is overcome, they operate a veritable takeover of agriculture
    Keywords: Adoption, Diffusion, Uncertainty, Irreversibility, Real Option
    Date: 2010–07–20
  3. By: Wichelns, Dennis
    Abstract: In summary, irrigation costs and prices are rising in most regions of the United States, due to a combination of increasing scarcity, changes in public preferences regarding water allocation among competing uses, increasing budget scrutiny in the national and state legislatures, rising energy prices, and increasing awareness of climate change and the potential implications for rainfall and the availability of surface water resources. These issues likely will continue encouraging public officials to utilize water pricing and other market-based incentives to motivate further improvements in water use efficiency in agriculture and other sectors.
    Keywords: Environment
    Date: 2010–01
  4. By: Babcock, Bruce A.
    Abstract: Expanded mandates under the Renewable Fuel Standard provide ethanol and biodiesel producers a guaranteed future market at volumes that exceed what they have produced in the past. Despite having these mandates in place, biofuel producers continue to support tax credits and ethanol import tariffs. An examination of how the new mandates will be implemented shows that biofuel producers will receive little or no additional benefit from tax credits. Ethanol import tariffs will continue to provide U.S. corn ethanol producers a cost advantage over imported Brazilian sugarcane ethanol until at least 2013 when the demand for sugarcane ethanol to meet the noncellulosic advanced biofuel mandate starts to increase.
    Date: 2010–03
  5. By: Girja Sharan
    Abstract: This paper presents the experience of using systems such as Earth Tube Heat Exchangers for environmental control in dwellings of zoo animals, and greenhouse in arid area of Kutch. Mention has also been made of the ongoing work to install more such systems in the dairy cattle housing. [W.P. No.2008-01-02]
    Keywords: Earth Tube Heat Exchangers, environmental control, dwellings, zoo animals, greenhouse, Kutch
    Date: 2010
  6. By: Ping-Yu Chen (Department of Applied Economics, National Chung Hsing University); Chia-Lin Chang (Department of Applied Economics, National Chung Hsing University); Chi-Chung Chen (Department of Applied Economics, National Chung Hsing University); Michael McAleer (Erasmus University Rotterdam, Tinbergen Institute, The Netherlands, and Institute of Economic Research, Kyoto University)
    Abstract: The main purpose of this paper is to estimate the volatility in global fertilizer prices. The endogenous structural breakpoint unit root test and alternative volatility models, including the generalized autoregressive conditional heteroskedasticity (GARCH) model, Exponential GARCH (EGARCH) model, and GJR model are estimated for six global fertilizer prices and the crude oil price. Weekly data for 2003-2008 for the seven price series are analysed. The empirical results suggest that the volatility of global fertilizer prices and crude oil price from March to December 2008 are higher than in other periods, and that the peak crude oil price caused greater volatility in the crude oil price and global fertilizer prices.
    Keywords: Volatility, Global fertilizer price, Crude oil price, Non-renewable fertilizers, Structural breakpoint unit root test
    Date: 2010–07
  7. By: Raghav Gaiha; Raghbendra Jha; Vani S. Kulkarni
    Abstract: In response to the Deaton–Dreze (2009) explanation of a downward shift in the calorie Engel curve in terms of lower requirements due to health improvements and lower activity levels, we have developed an alternative explanation of changes in the consumption of calories, protein and fats over the period 1993–2004. This explanation is embedded in a standard demand theory framework, with food prices and expenditure (as a proxy for income) cast in a pivotal role. Based on different experiments, robust demand functions are estimated for each of three nutrients viz. calories, protein and fats, separately for rural and urban areas. Our results show consistently robust food price and expenditure effects. Besides, shifts in food price elasticities over time are captured. Over and above these effects, there are shifts in demands due to factors other than those specified in the demand equation. In the context of calories, for example, it is plausible that part of the reduction in their consumption was due to health improvements and less strenuous activity levels — especially but not necessarily confined to rural areas. So, while the Deaton–Dreze (2009) explanation is not rejected, it is arguable that it is complementary to the demand-based explanations
    Keywords: nutrients, prices, expenditure, .demand, rural, urban, India.
    JEL: C21 D12 I31 I32
    Date: 2010

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.