nep-agr New Economics Papers
on Agricultural Economics
Issue of 2011‒04‒02
23 papers chosen by
Angelo Zago
University of Verona

  1. Innovations and Sustainability Strategies in the Upland Agriculture of Northern Vietnam: An Agent-Based Modeling Approach By Dang Viet Quang
  2. Food insecurity and public agricultural spending in Bolivia : putting money where your mouth is ? By Cuesta, Jose; Edmeades, Svetlana; Madrigal, Lucia
  3. The Sustainability Of Agricultural Innovations - A Case Study From North Vietnam By Dang Viet Quang
  4. Food Prices and Political Instability By Rabah Arezki; Markus Bruckner
  5. African Regional Integration: Implications for Food Security By Van Dijk, Michiel
  6. Combating chronic poverty in Uganda: towards a new strategy By Ssewanyana, Sarah
  7. Understanding Adoption of Soil and Water Conservation Techniques: The role of new owners By Remco H. Oostendorp; Fred Zaal
  8. Economic Growth, Size of the Agricultural Sector, and Urbanization By Markus Bruckner
  9. Farm Modelling for Interactive Multidisciplinary Planning of Small Grain Production Systems in the Western Cape, South Africa By Hoffman, Willem; Kleynhans, Theo
  10. Food and Energy Prices, Government Subsidies and Fiscal Balances in South Mediterranean Countries By Ronald Albers; Marga Peeters
  11. Impatience, Incentives, and Obesity By Courtemanche, Charles; McAlvanah, Patrick
  12. Would freeing up world trade reduce poverty and inequality ? the vexed role of agricultural distortions By Anderson, Kym; Cockburn, John; Martin, Will
  13. Reviving the Competitive Storage Model: A Holistic Approach to Food Commodity Prices By Norbert Funke; Yanliang Miao; Weifeng Wu
  14. An Equilibrium Model of Habitat Conservation under Uncertainty and Irreversibility By Luca Di Corato; Michele Moretto; Sergio Vergalli
  15. Is Biodiesel an Effective Environmental Solution - A Case Study from China By Zanxin Wang; Yin Lu; Siguang Li
  16. Envy and agricultural innovation: An Experimental Case Study from Ethiopia By Bereket Kebede; Daniel John Zizzo
  17. Commodity prices, commodity currencies, and global economic developments By Paolo A. Pesenti; Jan J.J. Groen
  18. Producing Biodiesel from Jatropha curcas L. in Yunnan, China: Lifecycle Environmental, Economic and Energy Performance By Zanxin Wang; Yin Lu; Siguang Li
  19. Public Preferences for Climate Change Policies: Evidence from Spain By Michael Hanemann; Xavier Labandeira; María L. Loureiro
  20. How Much Do People Value Clean Air? - A Case Study From Jakarta By Mia Amalia
  21. Carbon Pricing that Builds Consensus and Reduces Australia's Emissions: Managing Uncertainties Using a Rising Fixed Price Evolving to Emissions Trading By Frank Jotzo
  22. Subsidies for Renewable Energies in the Presence of Learning Effects and Market Power By Johanna Reichenbach; Till Requate
  23. Voluntary Environmental Programs in Developing Countries: An Examination of the ISO 14001 Environmental Management System in Thailand By Kanittha Tambunlertchai

  1. By: Dang Viet Quang (Department of Land Use Economcs in the Tropics and Subtropics, University of Hohenheim)
    Abstract: Vietnam, like most developing countries across Southeast Asia, has boosted farm outputs by introducing new crops, production methods and other agricultural innovations. Unfortunately, this process has increased soil erosion and water pollution and caused many other environmental problems. This study looks at the environmental trade-offs that are involved in upgrading people's livelihoods through agricultural improvement. It also investigates how the negative impacts of such changes can be mitigated. The study provides details of how agricultural innovations have harmed the environment. It shows that a land tax policy could be used to reduce these environmental problems. Such a tax, however, will have a negative impact on farmers' livelihoods. Hence, this policy will be strongly resisted given that the North West Region has the highest poverty rate in Vietnam. The study therefore recommends that farmers should be helped to implement sustainable animal husbandry innovations so that their standard of living is not unduly affected.
    Keywords: crops, Vietnam
    Date: 2010–11
    URL: http://d.repec.org/n?u=RePEc:eep:report:rr2010112&r=agr
  2. By: Cuesta, Jose; Edmeades, Svetlana; Madrigal, Lucia
    Abstract: This paper explores the reduction of food insecurity in Bolivia, adopting a supply side approach that analyzes the role of agricultural spending on vulnerability. Vulnerability to food insecurity is captured by a municipal level composite -- developed locally within the framework of World Food Program food security analysis -- that combines welfare outcomes, weather conditions and agricultural potential for all 327 municipalities in 2003, 2006 and 2007. Our econometric results indicate that levels of public agricultural spending are positively associated with high or very high vulnerability. The authors interpret this to indicate that agricultural spending allocation decisions are driven by high or very high vulnerability levels. In other words, more agricultural spending appears to be destined to where it is more needed in line with previous findings in other sectors in Bolivia. This is confirmed through a number of specifications, including contemporaneous and lagged relationships between spending and vulnerability. They also find evidence of public spending on infrastructure and research and extension services having a significant (but very small) effect towards reducing high vulnerability. This indicates the importance of the composition of public agricultural spending in shaping its relationship with vulnerability to food insecurity.
    Keywords: Food&Beverage Industry,Rural Poverty Reduction,Public Sector Economics,Population Policies,Agricultural Knowledge&Information Systems
    Date: 2011–03–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5604&r=agr
  3. By: Dang Viet Quang (Department of Land Use Economcs in the Tropics and Subtropics, University of Hohenheim)
    Abstract: Vietnam, like most developing countries across Southeast Asia, has boosted farm outputs by introducing new crops, production methods and other agricultural innovations. Unfortunately, this process has increased soil erosion and water pollution and caused may other environmental problems. This study has assessed this situation. It looks at the environmental trade off that are involved in upgrading people's livelihoods through agricultural improvement. It also investigates how the negative impacts of such changes can be mitigated. This study provides details of how agricultural innovations have harmed the environment. It shows that a land tax policy could be used to reduce these environmental problems. Such a tax, however, will have a negative impact on farmers' livelihoods. Hence, this policy will be strongly resisted given that the North West Region has the highest poverty rate in Vietnam. The study therefore recommends that farmers should be helped to implement sustainable animal husbandry innovations so that their standard of living is not unduly affected.
    Keywords: crops, Vietnam
    Date: 2010–11
    URL: http://d.repec.org/n?u=RePEc:eep:pbrief:pb2010112&r=agr
  4. By: Rabah Arezki; Markus Bruckner
    Abstract: We examine the effects that variations in the international food prices have on democracy and intra-state conflict using panel data for over 120 countries during the period 1970-2007. Our main finding is that in Low Income Countries increases in the international food prices lead to a significant deterioration of democratic institutions and a significant increase in the incidence of anti-government demonstrations, riots, and civil conflict. In the High Income Countries variations in the international food prices have no significant effects on democratic institutions and measures of intra-state conflict. Our empirical results point to a significant externality of variations in international food prices on Low Income Countries' social and political stability.
    Keywords: Agricultural prices , Cross country analysis , Economic models , Food production , Low-income developing countries , Political economy ,
    Date: 2011–03–22
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:11/62&r=agr
  5. By: Van Dijk, Michiel
    Abstract: This report looks at the African regional trade, regional integration agreements (RIAs) and the implications for food security.An overview is presented on the present state of African regional integration and the determinants of regional trade in agriculture and food commodities. In particular the study focuses on eight target countries, related RIAs and a set of strategic food commodities. The evidence presented in this study shows that African countries have made progress in opening up agriculture and food trade with partner countries. With, the exception of Ghana, Tanzania and Mozambique, the effective applied tariff rates for regional trade partners are substantially lower than the (MFN) rates applied to world trade partners. Nonetheless, regional trade in agriculture and food only increased marginally between 1990 and 2009, and is relatively low in comparison with other developing regions. The weak state of soft and hard infrastructure, rather than high trade tariffs, seem to be the cause of this.
    Keywords: Regional integration agreements, Africa, Food security., Agricultural and Food Policy, Food Security and Poverty, International Development, International Relations/Trade,
    Date: 2011–03–08
    URL: http://d.repec.org/n?u=RePEc:ags:aerips:101645&r=agr
  6. By: Ssewanyana, Sarah
    Abstract: Using a panel of 3,572 households in the Northern Uganda Social Action Fund (NUSAF) region interviewed in 2004 and in 2008, the paper provides new evidence on chronic poverty in Uganda. While progress in reducing poverty rates has been impressive from 64.6 percent to 52.2 percent, the levels remain high with a significant number of persistently poor households. Four in every ten households are chronically poor of which 44.9 percent are living in extreme chronic poverty. About 37.8 percent of the households are living in transient poverty of which 67.4 percent escaped poverty during the panel period. The substantial movements out of poverty can perhaps be explained largely by the relative return of peace in the region that enabled households to engage in agricultural activities. While at the aggregate level chronic poverty is significantly more prevalent than transient poverty, a mixed picture is observed at disaggregated level. The picture at aggregate level mirrors itself in the sub-regions of West Nile and Karamoja; but the reverse is observed in Lango sub-region. Chronic poverty is as equally prevalent as transient poverty in Acholi and Teso sub-regions. Overall, chronic poverty is disproportionately high among the Karamajongs. This calls for different kinds of anti-poverty interventions and public support. The paper further demonstrates that the characteristics and determinants of chronic and transient poverty are not always the same. The chronically poor households suffer from multidimensional deprivation including low incomes, low human capital development, inadequate access to infrastructure (especially input markets, trunk roads etc), and inability to access non-agricultural employment. On the other hand, the findings have demonstrated that ensuring peace in this part of the country is necessary for sustainable poverty reduction. The key policy messages: first, the on-going anti-poverty interventions such the Peace, Recovery and Development Plan (PRDP) and NUSAF II, among others, need to be refocused and targeted to ensure that the dynamic nature of poverty in this part of the country is taken into account. This will go a long way in improving the effectiveness of these interventions. Second, agriculture, whose productivity is low, remains the main source of income and employment to the households especially the chronically poor households. With the return of peace in the region, addressing the low agricultural productivity is likely to play a key role in the fight against chronic poverty. On the other hand, creation of employment outside the agricultural sector should be supported. There should be a deliberate strategy for investment in the poorest through asset accumulation â e.g. livestock re-stocking programme. The paper makes a case that chronic poverty should be recognized as a distinct dimension of poverty in governmentâs strategy against poverty if Uganda is to achieve MDG 1 by 2015.
    Keywords: chronic poverty, poverty dynamics, panel data, Uganda, Northern Uganda, EPRC, Community/Rural/Urban Development, Consumer/Household Economics, Crop Production/Industries, Food Security and Poverty,
    Date: 2010–06
    URL: http://d.repec.org/n?u=RePEc:ags:eprcrs:101713&r=agr
  7. By: Remco H. Oostendorp; Fred Zaal
    Abstract: This paper analyzes the adoption behavior of small holder farmers using comparable plot-level duration data for Kenya and The Philippines. We find that adoption behavior is strongly linked to the process of land ownership transfer. This relationship is found both for data from Kenya and The Philippines and is robust to the inclusion of unobserved village, household, plot and time effects. While previous studies on adoption using duration or panel data have focused on the role of various changing village- and household-level factors, no previous adoption study has emphasized the crucial role of land ownership changes.
    Keywords: Soil and water conservation; Land ownership; Duration analysis; Kenya; Philippines
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:csa:wpaper:2011-05&r=agr
  8. By: Markus Bruckner (School of Economics, University of Adelaide)
    Abstract: This paper exploits the significant positive response of the share of agricultural value added and GDP per capita growth to variations in the international prices for agricultural commodities and rainfall to construct instrumental variables estimates of the causal effect that changes in the size of the agricultural sector and GDP per capita growth have on the urbanization rate for a panel of 41 African countries during the period 1960-2007. The paper's two main findings are that: (i) decreases in the share of agricultural value added lead to a significant increase in the urbanization rate; (ii) conditional on changes in the share of agricultural value added GDP per capita growth does not significantly affect the urbanization rate. The empirical results confirm the predictions of theoretical models that economic shocks which differentially affect the return across sectors matter for the rural-urban migration decision, and that economic growth mostly affects the urbanization rate through a sector shift out of agriculture.
    Keywords: economic growth, sectoral shocks, urbanization
    JEL: O0 R0
    Date: 2011–03
    URL: http://d.repec.org/n?u=RePEc:adl:wpaper:2011-16&r=agr
  9. By: Hoffman, Willem; Kleynhans, Theo
    Abstract: Subject matter research has made many contributions to small grain production in the Western Cape province of South Africa, but much of this focuses on single commodities and is undertaken within conventional disciplinary boundaries (e.g. soil science, genetics, economics). The result is that the solutions offered often have knock-on effects that are not properly accounted for by researchers. Expert group discussions, as a research method, are suitable, firstly, for gathering information in a meaningful manner and, secondly, to stimulate individual creativity by presenting alternative perspectives provided by various participating experts. In support of expert group discussions, multi-period wholefarm simulation models were developed. This type of modelling supports the accurate financial simulation of farms, while the user-friendliness and adaptability thereof can accurately accommodate typical farm interrelationships, and quickly measure the financial impact of suggested changes to parameters. Suggestions made by experts during the group discussions can thus be quickly introduced into the model. The financial implications are instantly available to prevent further exploration of nonviable plans and to fine-tune the viable plans. In this study, for each relatively homogeneous production area of the Western Cape, a typical farm budget model was developed, which served as the basis for the group discussions. The budget models measure profitability in terms of IRR (internal rate of return on capital investment) and affordability in terms of expected cash flow. The homogeneous areas identified were Koeberg/Wellington, the Middle Swartland and the Rooi Karoo, the Goue Rûens, Middle Rûens and Heidelberg Vlakte. For each area, the expected impact of climate change, fluctuating product and input prices, and the possible impact of partial conversion to bio-fuel production were evaluated in terms of expected impact on profitability. Various area-specific strategies were identified that could enhance the profitability of grain production: most of the strategies focused on optimising machinery usage and expanding or intensifying the livestock enterprise.
    Keywords: whole-farm modelling, expert group discussions, Farm Management,
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:ags:aare11:101640&r=agr
  10. By: Ronald Albers; Marga Peeters
    Abstract: Working paper, focusing on the impact of soaring commodity prices, notably for food and energy on the economy and public finances of Mediterranean neighbour countries of the EU. Just before the global crisis soaring commodity prices pushed up inflation significantly, not least in EU neighbour countries at the Mediterranean. These price shocks affected public finances in the southern Mediterranean region, notably via government subsidies. Partly due to lags in the transmission of commodity prices into prices for final users the subsidies burden continued to be felt, despite the price falls registered in the wake of the credit crisis. We show that downward price rigidities play a role. Recently, commodity price pressures have re-emerged. We focus on food prices and analyse recent developments in food inflation in Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the occupied Palestinian territories, Syria and Tunisia in comparison with other middle income economies. Subsidies on food and fuel are quantified per country for the period 2002-2010. The incremental government subsidies entail an estimated deterioration of the government balances of up to more than 2% of GDP in 2008 and, for most countries only slight improvements in the global recession year 2009. Ensuing longer-term challenges for public finances remain as inflation rises on the back of higher global economic growth. As recent events in Tunisia illustrate, these can have important political implications. Finally, the paper discusses some options that can lead to more efficient government spending, even in the event of sharp swings in prices of basic necessities.
    Date: 2011–02
    URL: http://d.repec.org/n?u=RePEc:euf:ecopap:0437&r=agr
  11. By: Courtemanche, Charles (University of North Carolina at Greensboro, Department of Economics); McAlvanah, Patrick (Federal Trade Commission)
    Abstract: This paper explores the relationship between time preference, food prices, and body mass index (BMI). We present a model predicting that impatient individuals should both weigh more than patient individuals and experience sharper increases in weight in response to falling food prices. We then provide evidence to support these predictions using data from the National Longitudinal Survey of Youth matched with local food prices from the Council for Community and Economic Research. Our findings suggest that the interaction of changing economic incentives with impatience can help to explain the shift to the right and thickening of the tails of the BMI distribution. Interestingly, we find no evidence of a relationship between time preference and weight loss attempts, suggesting that the observed effect on BMI represents rational intertemporal substitution rather than self-control problems.
    Keywords: Obesity; weight; body mass index; discount factor; discount rate; time preference; food prices
    JEL: D90 I10
    Date: 2011–03–24
    URL: http://d.repec.org/n?u=RePEc:ris:uncgec:2011_009&r=agr
  12. By: Anderson, Kym; Cockburn, John; Martin, Will
    Abstract: Trade policy reforms in recent decades have sharply reduced the distortions that were harming agriculture in developing countries, yet global trade in farm products continues to be far more distorted than trade in nonfarm goods. Those distortions reduce some forms of poverty and inequality but worsen others, so the net effects are unclear without empirical modeling. This paper summarizes a series of new economy-wide global and national empirical studies that focus on the net effects of the remaining distortions to world merchandise trade on poverty and inequality globally and in various developing countries. The global LINKAGE model results suggest that removing those remaining distortions would reduce international inequality, largely by boosting net farm incomes and raising real wages for unskilled workers in developing countries, and would reduce the number of poor people worldwide by 3 percent. The analysis based on the Global Trade Analysis Project model for a sample of 15 countries, and nine stand-alone national case studies, all point to larger reductions in poverty, especially if only the non-poor are subjected to increased income taxation to compensate for the loss of trade tax revenue.
    Keywords: Rural Poverty Reduction,Economic Theory&Research,Emerging Markets,Trade Policy,Achieving Shared Growth
    Date: 2011–03–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5603&r=agr
  13. By: Norbert Funke; Yanliang Miao; Weifeng Wu
    Abstract: We revive in this paper the empirical relevance of the competitive storage model by taking a holistic approach to food commodity prices. We augment the seminal Deaton and Laroque (1992, 1996) model by incorporating more comprehensive and realistic supply and demand factors: output and demand trends, shocks to the yield, and time-varying interest rates. While the computational burden increases exponentially, the augmented model succeeds in replicating all four key patterns of food commodity prices. Our simulation and comparative statics also show that (i) the long-run declining trend of food prices may come to a halt or even reverse due to the shifting balance between supply and demand; (ii) short-run price fluctuations are mainly attributable to sizeable, though low-probability, shocks to output such as inclement weather; and (iii) the impact of monetary policy, though small in normal times, is nonlinear and asymmetric, and can become large if the real rate passes a certain threshold.
    Date: 2011–03–23
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:11/64&r=agr
  14. By: Luca Di Corato (Swedish University of Agricultural Sciences); Michele Moretto (Università di Padova); Sergio Vergalli (Università di Brescia)
    Abstract: In this paper stochastic dynamic programming is used to investigate habitat conservation by a multitude of landholders under uncertainty about the value of environmental services and irreversible development. We study land conversion under competition on the market for agricultural products when voluntary and mandatory measures are combined by the Government to induce adequate participation in a conservation plan. We analytically determine the impact of uncertainty and optimal policy conversion dynamics and discuss different policy scenarios on the basis of the relative long-run expected rate of deforestation. Finally, some numerical simulations are provided to illustrate our findings.
    Keywords: optimal stopping, deforestation, payments for environmental services, Natural Resources Management.
    JEL: C61 D81 Q24 Q58
    Date: 2010–12
    URL: http://d.repec.org/n?u=RePEc:pad:wpaper:0122&r=agr
  15. By: Zanxin Wang (Institute of Population, Resource and Environmental Economics, Yunnan University); Yin Lu (Institute of Population, Resource and Environmental Economics, Yunnan University); Siguang Li (Institute of Population, Resource and Environmental Economics, Yunnan University)
    Abstract: As in many countries, policy makers in China see biofuel as a potentially important part of the move to a sustainable, post-oil economy. To contribute to this important energy debate, this study looks at the economics and environmental performance of one potential bio-fuel crop: Jatropha curcas L (JCL). This study shows that given current technology levels and management practices, the production of JCL biodiesel is not economically feasible. However, it also shows that JCL biodiesel has excellent performance from both an environmental and energy production point of view. Moreover, it is clear that, if JCL seed yields can be improved, then biodiesel made from the plant would be economically feasible to produce.
    Keywords: biodiesel, China
    Date: 2010–06
    URL: http://d.repec.org/n?u=RePEc:eep:pbrief:pb2010061&r=agr
  16. By: Bereket Kebede; Daniel John Zizzo
    Abstract: The underlying motivations for envy or related social preferences and their impact on agricultural innovations are examined by combining data from money burning experimental game and household survey from Ethiopia. In the first stage of the money burning experimental game, income inequality is induced by providing different endowments and playing a lottery. In the second, people are allowed to decrease (‘burn’) other players’ money at their own expense. Conditional on individual behaviour, experimentally measured envious preferences from others have a negative effect on real life agricultural innovation.
    Keywords: envy; social preferences; money burning games; agricultural innovations; Ethiopia
    JEL: C93 O12 O55
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:csa:wpaper:2011-06&r=agr
  17. By: Paolo A. Pesenti; Jan J.J. Groen
    Abstract: In this paper we seek to produce forecasts of commodity price movements that can systematically improve on naive statistical benchmarks, and revisit the forecasting performance of changes in commodity currencies as efficient predictors of commodity prices, a view emphasized in the recent literature. In addition, we consider different types of factor-augmented models that use information from a large data set containing a variety of indicators of supply and demand conditions across major developed and developing countries. These factor-augmented models use either standard principal components or partial least squares (PLS) regression to extract dynamic factors from the data set. Our forecasting analysis considers ten alternative indices and sub-indices of spot prices for three different commodity classes across different periods. We .find that the exchange rate-based model and especially the PLS factor-augmented model are more prone to outperform the naive statistical benchmarks. However, across our range of commodity price indices we are not able to generate out-of-sample forecasts that, on average, are systematically more accurate than predictions based on a random walk or autoregressive specifications.
    JEL: E24 E62 J45
    Date: 2011–03
    URL: http://d.repec.org/n?u=RePEc:euf:ecopap:0440&r=agr
  18. By: Zanxin Wang (Institute of Population, Resource and Environmental Economics, Yunnan University); Yin Lu (Institute of Population, Resource and Environmental Economics, Yunnan University); Siguang Li (Institute of Population, Resource and Environmental Economics, Yunnan University)
    Abstract: As in many countries, policy makers in China see biofuel as a potentially important part of the move to a sustainable, post-oil economy. To contribute to this important energy debate, this study looks at the economic and environmental performance of one potential bio-fuel crop: Jatropha curcas L (JCL). The study shows that, given current technology levels and management practices, the production of JCL biodiesel is not economically feasible. However, it also shows that JCL biodiesel has excellent performance from both an environmental and energy production point of view. Moreover, it is clear that, if JCL seed yields can be improved, then biodiesel made from the plant would be economically feasible to produce. With this in mind, the report outlines a number of initiatives that could be pursued to make JCL biodiesel an effective part of China's overall energy policy. These include providing grants and other funding to optimise the JCL biodiesel production process.
    Keywords: biodiesel, China
    Date: 2010–06
    URL: http://d.repec.org/n?u=RePEc:eep:report:rr2010061&r=agr
  19. By: Michael Hanemann; Xavier Labandeira; María L. Loureiro
    Abstract: Spain faces a complex situation regarding its climate change policies. Since 1990, Spain’s greenhouse gas (GHG) emissions have increased far beyond the Kyoto commitments. Moreover, Spain is likely to suffer significant adverse impacts from climate change. However, there has been little action to reduce GHG emissions, particularly in the area of energy prices. Although the Spanish public generally shows great concern about climate change, it has traditionally opposed price increases for energy. In this paper we offer an explanation of this paradox, and we provide a possible strategy for policy design. We find that Spanish households favor reducing GHG emissions from electricity production and would be willing to pay for this if it promotes new, greener technologies and if it eventually lowers the cost of those technologies in the future. This finding emerges from a contingent valuation survey which also provides a rich set of information on households’ attitudes regarding various policy options for reducing GHG gases.
    Date: 2011–03
    URL: http://d.repec.org/n?u=RePEc:fda:fdaddt:2011-06&r=agr
  20. By: Mia Amalia (Environmental Management and Development Program, Crawford School of Economics and Government, Australian National University)
    Abstract: Poor air quality in Indonesia's capital city is having a significant impact on residents' health and there is an urgent need to introduce new initiatives to deal with the problem. To help justify investment in such new strategies, this study has looked at the value that citizens in the Jakarta Metropolitan Area (JMA) place on pollution reduction policies for the transportation sector. The study shows that, although many residents are mistrustful of the government's ability to clean up the city's air, the do place a significant value on clean air. Households in the JMA are, on average, willing to pay up to USD 66.51 per annum over three-year period for the implementation of three new environmentally-beneficial transportation policies. These policies would make a significant positive improvement to both Jakarta's air quality and to the health of its citizens. The study uses the choice modeling approach in its assessment. The study carefully crafted the questionnaire to suit local conditions (a population with low literacy and have high dependency on oral than written communication) which are typical in developing countries.
    Keywords: pollution, Indonesia
    Date: 2010–11
    URL: http://d.repec.org/n?u=RePEc:eep:pbrief:pb2010111&r=agr
  21. By: Frank Jotzo (Crawford School of Economics and Government, The Australian National University)
    Abstract: This paper identifies principles for carbon pricing that could attract a broad based and durable societal consensus in Australia. It applies these principles to a phased carbon pricing architecture as put forward by Australia's Multi-Party Committee on Climate Change, namely a government determined (fixed) carbon price transitioning to emissions trading. Linking to international carbon markets decouples Australia's domestic carbon price from its national emissions target, allowing significant net national emissions reductions with manageable transitional impacts. A fixed price in the near term can end costly delays to carbon pricing while dealing with uncertainties about Australia's target and international markets. A strategy is outlined to manage international uncertainties and to accommodate the multiple goals of domestic constituencies, while achieving efficiency and effectiveness. First, ensure the medium term carbon price is high enough to for emissions to begin to trend down in the next few years, recognising that investment decisions are shaped by current expectations about future prices. Second, set the initial price at a level that gives confidence that short run impacts will be manageable, given other transitional assistance. Third, ensure that wider policy settings do not compromise incentives for reducing emissions, and make the scheme robust in the face of competing claims for carbon revenue and lobbying efforts. For Australian carbon pricing policy, these principles suggest the carbon price may need to rise rapidly over the course of the decade, to double or more compared to starting prices that are currently in the Australian discussion. Payments of carbon pricing revenue to industry may need to be limited to create more room for income tax cuts, possibly by means of an overall cap and accelerated phase-out of industry assistance. Forestry and agricultural offsets can be supported through the scheme, but at the cost of fiscal revenue.
    Keywords: Q54, Q58, D72, A13, Q01
    JEL: Q54
    Date: 2011–03
    URL: http://d.repec.org/n?u=RePEc:een:ccepwp:1104&r=agr
  22. By: Johanna Reichenbach; Till Requate
    Abstract: We study the impact of learning by doing, learning spill-overs, and imperfect competition in a model with two types of electricity producers, an oligopolistic sector of polluting fossil-fuel utilities and a competitive fringe of non-polluting generators of electricity from renewable energy sources (RES-E). Furthermore we consider an upstream industry of RES-E equipment producers engaged in learning by doing. We show that a first-best policy requires two instruments, a tax in the fossil-fuel sector and an output subsidy for RES-E equipment producers. We then study second-best-optimal feed-in tariffs that are paid to the generators of RES-E. By means of simulations we calculate the welfare loss of a second-best-optimal feed-in-tariff policy and analyze how market structure impacts on second-best-optimal feed-in tariffs
    Keywords: feed-in tariffs; environmental subsidies; learning by doing; spill-overs; market structure
    JEL: Q42 L13 O38
    Date: 2011–03
    URL: http://d.repec.org/n?u=RePEc:kie:kieliw:1689&r=agr
  23. By: Kanittha Tambunlertchai (Department of Land Economy, University of Cambridge)
    Abstract: Thailand, like many developing nations, is facing a wide range of environmental challenges, many of which are caused by industrial pollution. The country has found that traditional command and control legislation is not effectively tackling this problem. It is therefore promoting various voluntary environmental programmes as a way for businesses to improve their environmental performance. To provide more information on the effectiveness of this approach, and to see how to maximize its impact, this study has assessed the implementation of one of the most popular voluntary environmental schemes, ISO 14001. This study finds that firms sign up to ISO 14001 for a number of reasons, the most important being the impetus provided by their management policies, the need to boost corporate image and the desire to socially responsible. The study proposes a number of policies to help firms to adopt the voluntary scheme. These include providing financial incentives and helping firms with training and provision of information and technical advice.
    Keywords: pollution, ISO 14001, Thailand
    Date: 2010–07
    URL: http://d.repec.org/n?u=RePEc:eep:report:rr2010071&r=agr

This nep-agr issue is ©2011 by Angelo Zago. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. 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.