New Economics Papers
on Agricultural Economics
Issue of 2011‒06‒18
27 papers chosen by

  1. Effects of Family, Friends, and Relative Prices on Fruit and Vegetable Consumption by African American Youths By Zhylyevskyy, Oleksandr; Jensen, Helen H.; Garasky, Steven B.; Cutrona, Carolyn E.; Gibbons, Frederick X.
  2. Valuating agricultural water use and ecological services in agrarian economies: evidences from eastern India By Xenarios, Stefanos; Amarasinghe, Upali; Sharma, Bharat R.
  3. Economic effects of water use and landholding scale to farming in South Asia: evidences from Indo-Gangetic basin By Xenarios, Stefanos; Sharma, Bharat R.; Amarasinghe, Upali
  4. Research analysis on the effects of agricultural water and landholdings to rural livelihoods in Indo-Gangetic Basin: with emphasis on Bihar State By Xenarios, Stefanos; Sharma, Bharat R.; Amarasinghe, Upali; Singh, A.
  5. Curriculum Enhancement and Reform to Meet the Needs of Smallholder Farmers in Developing Countries: Survey of Literature By Maredia, Mywish K.
  6. Assessing institutional and environmental parameters of agricultural water use in South Asia: evidences from the Indo-Gangetic Basin By Xenarios, Stefanos; Sharma, Bharat R.
  8. Agricultural Productivity and Policies in Sub-Saharan Africa By Yu, Bingxin; Nin-Pratt, Alejandro
  9. Environmental services and agricultural water in South Asia: evidence from Indo-Gangetic Basin By Xenarios, Stefanos; Sharma, Bharat R.; Singh, A.
  10. The Impact of Agriculture on Waterfowl Abundance: Evidence from Panel Data By Linda Wong; G. Cornelis van Kooten; Judith A. Clarke
  12. The Effect of Climate Change on Land Use and Wetlands Conservation in Western Canada: An Application of Positive Mathematical Programming By Patrick Withey; G. Cornelis van Kooten
  13. Biofuel Economics in a Setting of Multiple Objectives & Unintended Consequences By William K. Jaeger; Thorsten M. Egelkraut
  14. Volatility of world rice prices, import tariffs and poverty in Indonesia: a CGE-microsimulation analysis By Teguh, Dartanto
  15. Labor Complementarities and Health in the Agricultural Household By Achyuta Adhvaryu; Anant Nyshadham
  17. Is there a "heat or eat" trade-off in the UK? By Timothy K.M. Beatty; Laura Blow; Thomas Crossley
  18. European Demand for Orange Juice By Brown, Mark G.
  19. Cash by any other name? Evidence on labelling from the UK Winter Fuel Payment By Timothy K.M. Beatty; Laura Blow; Thomas Crossley; Cormac O'Dea
  20. The Diffusion of Cattle Ranching and Deforestation – Prospects for a Hollow Frontier in Mexico’s Yucatán By Colin Vance; Christopher B. Busch
  21. Under what conditions does a carbon tax on fossil fuels stimulate biofuels ? By Timilsina, Govinda R.; Csordas, Stefan; Mevel, Simon
  22. Structuring national and sub-national economic incentives to reduce emissions from deforestation in Indonesia By Jonah Busch; Ruben Lubowski; Fabiano Godoy; Marc Steininger; Arief Anshory Yusuf; Kemen Austin; Jenny Hewson; Daniel Juhn; Muhammad Farid; Frederick Boltz
  23. Are Preferences for Environmental Quality Sensitive to Financial Funding Schemes? Evidence from a Marine Restoration Programme in the Black Sea By Kyriaki Remoundou; Fikret Adaman; Phoebe Koundouri; Paulo A.L.D. Nunes
  24. Impacts of a Ban on the Sales of Florida Honey Tangerines in California Due to Citrus Black Spot By Brown, Mark G.
  25. Tenure Insecurity, Adverse Selection, and Liquidity in Rural Land Markets By Derek Stacey
  26. Towards the Optimal Management of the Northeast Arctic Cod Fishery By Andries Richter; Paulo A.L.D. Nunes
  27. Cointegration with multiple structural breaks: an application to the Spanish environmental Kuznets curve, 1857-2007 By Vicente Esteve; Cecilio Tamarit

  1. By: Zhylyevskyy, Oleksandr; Jensen, Helen H.; Garasky, Steven B.; Cutrona, Carolyn E.; Gibbons, Frederick X.
    Abstract: Paper for presentation at the Northeastern Agricultural & Resource Economics Associationâs Workshop on Economics and Child Nutrition Programs, AAEA & NAREA Joint Annual Meeting, Pittsburgh, Pennsylvania, July 23, 2011.
    Keywords: fruit and vegetable consumption, healthy food choices, social interactions, Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Institutional and Behavioral Economics, Research Methods/ Statistical Methods, I12, J15, C35, Q18,
    Date: 2011–06–01
  2. By: Xenarios, Stefanos; Amarasinghe, Upali; Sharma, Bharat R.
    Keywords: Irrigation water / Water use / Economic aspects / Valuation / Land ownership / India
    Date: 2011
  3. By: Xenarios, Stefanos; Sharma, Bharat R.; Amarasinghe, Upali
    Keywords: Agricultural development / Irrigation water / Water use / Water allocation / Land ownership / Economic aspects / River basins / Models / South Asia / Indo-Gangetic Basin
    Date: 2011
  4. By: Xenarios, Stefanos; Sharma, Bharat R.; Amarasinghe, Upali; Singh, A.
    Keywords: Agricultural development / River basins / Water use / Irrigation water / Economic aspects / Land ownership / Water allocation / Models / Case studies / Policy / South Asia / India / Indo-Gangetic Basin
    Date: 2011
  5. By: Maredia, Mywish K.
    Abstract: The agricultural education system plays an important role in developing knowledge resources and preparing well-trained individuals and the next generation of labor force that becomes part of the public sector (government), the private sector (entrepreneurs, farm producers, agri-business entities) and the NGOs. An education system that is innovative and responsive to the complex and rapidly changing work environment is critical to ensure the effectiveness of all the institutions that contribute to agricultural development agenda. To make the education system responsive requires developing and implementing curriculum and teaching programs that are relevant to the production needs and employment demands of the agricultural sector. This paper reviews the literature on experiences gained in the development of innovative and demand-driven curriculum to make the postsecondary agricultural education system serve the needs of smallholder farmers in developing countries. The paper reviews the desired characteristics of the formal post-secondary educational system to be effective in fulfilling its role in supplying well-trained and productive work force for the agricultural economy. The current general state of agricultural curriculum in developing countries is reviewed with respect to these desired characteristics. The paper also presents a review of experiences gained in implementing different approaches to develop, enhance and reform agricultural curriculum, identifies constraints, challenges and successful examples of such approaches, and derives recommendations for ways forward.
    Keywords: Tertiary education, Curriculum reform, Training, Capacity building, Agricultural development, Developing countries, Agricultural and Food Policy, International Development, Labor and Human Capital, Research and Development/Tech Change/Emerging Technologies, Teaching/Communication/Extension/Profession, O15:Human Resources-Human Development-Income Distribution-Migration, M53:Training, I23: Higher Education and Research Institutions, Q16:R&D-Agricultural Technology-Biofuels-Agricultural Extension Services,
    Date: 2011–05
  6. By: Xenarios, Stefanos; Sharma, Bharat R.
    Keywords: River basins / Irrigation water / Water use / Economic aspects / Environmental effects / Corporate culture / Valuation / Case studies / Water market / Wells / South Asia
    Date: 2011
  7. By: Baker, Justin; Murray, Brian; McCarl, Bruce
    Abstract: Biofuel expansion efforts and climate mitigation policy could fundamentally alter land management trends in U.S. agriculture and forestry (AF) by mandating biofuel feedstock production and providing incentives for greenhouse gas (GHG) emissions reduction and carbon sequestration from terrestrial sources. Research has shown that biofuel expansion can alter commodity markets, induce agricultural land expansion, and intensify production. Meanwhile, GHG mitigation efforts could limit agricultural expansion, reduce current cultivation, and lower management intensity by incentivizing GHG emissions reduction and carbon sequestration within AF. To date, little work has attempted to quantify biofuel and climate policy-induced shifts together along the extensive and intensive agricultural production margins within a systems-based framework, though such shifts could have resounding implications on agricultural water consumption and quality. This study uses a comprehensive and detailed economic model of the U.S. AF sectors to simulate land management responses to biofuel expansion and GHG policies. While bioenergy production and altered AF management practices are found to significantly reduce GHG emissions, additional water consumption and nutrient use are possible policy outcomes. Specifically, we find that policies that influence shifts to the extensive margin will increase aggregate water use and nutrient application, but lead to lower intensity per-unit area. Conversely, when combined with biofuel mandates climate mitigation incentives lower agricultural land expansion, but lead to higher levels of management intensity. Somewhat contrary to expectations, GHG mitigation incentives cause water and nutrient use intensity to grow at an increasing rate due to the greater level of land use competition. Additionally, important regional trends emerge, as water use and quality concerns grow with the CO2 price in areas with limited GHG mitigation possibilities. This suggests that âwater leakageâ is possible whereby emissions reduction activities decrease output in one region and stimulate management intensity elsewhere. The potential indirect consequences of combined biofuel and climate mitigation incentives on water resource systems warrant further attention in policy design and future research.
    Keywords: Greenhouse gas mitigation, biofuels, water resource management, Environmental Economics and Policy, Production Economics, Resource /Energy Economics and Policy,
    Date: 2011
  8. By: Yu, Bingxin; Nin-Pratt, Alejandro
    Abstract: We analyze the evolution of Sub-Saharan Africaâs agricultural total factor productivity (TFP) over the past 45 years, looking for evidence of recent changes in growth patterns using an improved nonparametric Malmquist index. Our TFP estimates show a remarkable recovery in the performance of Sub-Saharan Africaâs agriculture between 1984 and 2006 after a long period of poor performance and decline. That recovery is the consequence of improved efficiency in production resulting from changes in the output structure and an adjustment in the use of inputs. Policy interventions, including fiscal, trade and sector specific policies, appear to have played an important role in improving agricultureâs performance. Despite the improved agricultural performance, SSA economies face serious challenges to sustain growth. Among these are the small contribution of technical change to TFP growth in the past, the large tax burden imposed by remaining distortions, and the challenge of population growth.
    Keywords: agriculture, efficiency, Malmquist index, total factor productivity, technical change, Sub-Saharan Africa, policy, Agricultural and Food Policy, International Development, Productivity Analysis,
    Date: 2011–06–01
  9. By: Xenarios, Stefanos; Sharma, Bharat R.; Singh, A.
    Keywords: Irrigation water / Water use / River basins / Environmental effects / Models / South Asia / India / Pakistan / Nepal / Indo-Gangetic Basin
    Date: 2011
  10. By: Linda Wong; G. Cornelis van Kooten; Judith A. Clarke
    Abstract: Agricultural expansion and intensification in Canada’s Prairie Pothole Region (PPR) have contributed to declining waterfowl populations since the 1970s. Although this region represents a mere 10% of North America’s waterfowl breeding habitat, it produces over 50% of the continent’s duck population and roughly 60% of Canada’s agricultural output. Thus, intense competition exists between private economic interests and public benefits in the PPR. To better understand the conflict between agricultural and wildlife uses of land, panel methods are used to examine the spatiotemporal variation of waterfowl populations and agricultural land use intensity in the PPR from 1961-2006. For the main static model, we find that a one percent increase in cropland or pasture decreases duck density by 6%, while a similar increase in summerfallow area decreases duck density by 7%. Estimates based on a dynamic specification are more conservative. For the lagged dependent variable model, a 1% increase in cropland and pasture decreases duck density by 4.6%, while a decline of 4.7% is predicted for increases in summerfallow area. The spatial autoregressive model allows the derivation of measures for assessing direct and indirect impacts. The estimated direct impacts fall between those obtained from the standard and dynamic models, but, when spillover effects are included, the impacts exceed those predicted by the standard model. It would appear that conserving wetlands in one location has the added benefit of increasing productivity of wetlands at other locations.
    Keywords: wetlands protection; spatial econometrics; GIS; land use conflict; migratory waterfowl
    JEL: Q57 C33 Q15 Q24
    Date: 2011–01
  11. By: Mercedes Beltrán-Esteve (Departamento de Economía Aplicada II. Universidad de Valencia); José A. Gómez-Limón (Departamento de Economía Agraria. Instituto Andaluz de Investigación y Formación Agraria y Pesquera. Córdoba); Andrés J. Picazo-Tadeo (Departamento de Economía Aplicada II. Universidad de Valencia)
    Abstract: This paper analyses the impact of the Agri-environmental Extensification Scheme for the Protection of Flora and Fauna (F&F Scheme) on the eco-efficiency of a sample of dryland farms in the Spanish region of Castile and Leon. We explore whether or not the production technology of the farms included in the F&F Scheme is more eco-efficient than the technology used by farms that are not included in the Scheme, employing Data Envelopment Analysis (DEA) and the program decomposition proposed by Charnes et al. (1981) to do so. The results obtained confirm the foregoing hypothesis, providing evidence that environmental pressures could be reduced if all farms adopted the F&F Scheme technology. Furthermore, shadow prices are used to assess the monetary value of the potential reduction in environmental pressures that farms could achieve by adopting the F&F Scheme. The results show that the average opportunity cost of the decrease in environmental pressures (€55.65/ha) is similar to the compensation received by farms included in the F&F Scheme. Nevertheless, bearing in mind the great diversity of farms, we recommend agricultural policymakers to use an auction system to award such environmental contracts.
    Keywords: Data Envelopment Analysis; economic-ecological efficiency; shadow prices; agri-environmental policy
    JEL: C61 D21 Q18 Q57
    Date: 2011–06
  12. By: Patrick Withey; G. Cornelis van Kooten
    Abstract: This study examines the impact of climate change on land use in the Prairie Pothole Region of Western Canada, with particular emphasis on how climate change will impact wetlands. A multi-region Positive Mathematical Programming model calibrates land use in the area to observed acreage in 2006. Policy simulations for both climate effects as well as the effects of biofuel policies determine how climate change will affect land use and wetlands. Given that the model calibrates to observed acreage, the policies provide a realistic view of how land use might change from current levels, given the effects of climate change. Results indicate that climate change could decrease wetlands in this area by as much as 50 percent. The effect will be very different depending on whether or not the social benefits of wetlands are considered, and the effects of climate change on wetlands are heterogeneous across the Prairie Provinces.
    Keywords: Positive mathematical programming; wetlands conservation; land use change; climate change; biofuels; Prairie pothole region
    JEL: C02 C63 Q15 Q54 Q57 Q24 Q25
    Date: 2011–04
  13. By: William K. Jaeger (Oregon State University); Thorsten M. Egelkraut (Oregon State University)
    Abstract: This paper examines biofuels from an economic perspective and evaluates the merits of promoting biofuel production in the context of the policies’ multiple objectives, life-cycle implications, pecuniary externalities, and other unintended consequences. The policy goals most often cited are to reduce fossil fuel use and to lower greenhouse gas emissions. But the presence of multiple objectives and various indirect effects complicates normative evaluation. To address some of these complicating factors, we look at several combinations of policy alternatives that achieve the same set of incremental gains along the two primary targeted policy dimensions, making it possible to compare the costs and cost-effectiveness of each combination of policies. For example, when this approach is applied to U.S.-produced biofuels, they are found to be 14 to 31 times as costly as alternatives like raising the gas tax or promoting energy efficiency improvements. The analysis also finds the scale of the potential contributions of biofuels to be extremely small in both the U.S. and EU. Mandated U.S. corn ethanol production for 2025 reduces U.S. petroleum input use by 1.75%, and would have negligible net effects on CO2 emissions; and although EU imports of Brazilian ethanol may look better given the high costs of other alternatives, this option is equivalent, at most, to a 1.20% reduction in EU gasoline consumption.
    Keywords: Biofuel, Biodiesel, Cost-Effectiveness, Indirect Land Use Change Effects, Net Energy, Multiple Objectives, Ethanol, Ghg
    JEL: Q42 Q48 Q54
    Date: 2011–05
  14. By: Teguh, Dartanto
    Abstract: This study aims at measuring the impact of world price volatility and import tariffs on rice on poverty in Indonesia. Applying a Computable General Equilibrium-Microsimulation approach and the endogenous poverty line, this study found that the volatility of world rice prices during 2007 to 2010 had a large effect on the poverty incidence in Indonesia. The simulation result showed that a 60 per cent increase in world rice price raises the head count index by 0.81 per cent which is equivalent to an increase in the number of poor by 1,687,270. However, both the 40 per cent decrease in the effective import tariffs on rice enacted by regulation No.93/PMK.011/2007 and the zero import tariffs implemented by regulation No. 241/PMK.011/2010 in response to high world rice prices could not perfectly absorb the negative impact of increasing world rice prices on poverty. The 40 per cent decrease in the effective import tariffs on rice reduced the head count index by 0.08 per cent equal to 161,546 people while the zero import tariffs on rice reduced the head count index by 0.19 per cent equal to 390,160 people. These policies might not be enough to absorb the negative impact of an increase in world rice prices from 2007-2010, because, during this period, the world rice prices increased on average by almost 71 per cent, which have impoverished approximately two million people. Moreover, protection in the agricultural sector, such as raising import tariffs, intended to help agricultural producers will have the reverse effect of raising the head count index.
    Keywords: Rice Policy; Import Tariffs; Poverty; CGE; Microsimulation.
    JEL: D12 D58 I32 Q18
    Date: 2010–12
  15. By: Achyuta Adhvaryu (MEPH Health Policy and Administration, Yale University); Anant Nyshadham (Department of Economics, Yale University)
    Abstract: Models of the agricultural household have traditionally relied on assumptions regarding the complementarity or substitutability of family labor inputs. We show how data on time allocations, health shocks and corresponding treatment choices can be used to test these assumptions. Data from Tanzania provide evidence that complementarities exist and can explain the pattern of labor supply adjustments across household members and productive activities following acute sickness. In particular, we find that sick and healthy household members both shift labor away from self-employment and into farming when the sick recover more quickly. Infra-marginal adjustments within farming activity types provide further evidence of farm-specific complementarities.
    Keywords: intra-household allocation, health shocks, complementarity
    JEL: I10 J22 J43 O12
    Date: 2011–03
  16. By: Elsadig Musa Ahmed (Faculty of Business and Law, Multimedia University (MMU), Melaka, Malaysia)
    Abstract: This study attempts to fill the gap of extensive growth theory model by providing statistical analysis in a parametric form that removed the doubts in the results generated. Using this model, the factors affecting the output growth in the food industries were identified in this study to be the individual contributions of capital, labour, material as well as the combined contributions of the quality of these inputs, which were expressed as the total factor productivity (TFP) growth
    Keywords: Malaysian food industry, productivity performance, total factor productivity
    JEL: O12
    Date: 2011–03
  17. By: Timothy K.M. Beatty; Laura Blow (Institute for Fiscal Studies); Thomas Crossley (Institute for Fiscal Studies and University of Cambridge)
    Abstract: <p><p><p><p><p>In this research, funded by the Nuffield Foundation, we merge detailed household level expenditure data from older households with historical local weather information. We then test for a heat or eat trade off: do households cut back on food spending to finance the additional cost of keeping warm during cold shocks? We find evidence that the poorest of older households are unable to smooth spending over the worst temperature shocks. Statistically significant reductions in food spending are observed in response to temperatures two or more standard deviations colder than expected (which occur about one winter month in forty) and reductions in food expenditure are considerably larger in poorer households. </p><p></p><p></p><p></p><p></p><p></p>< /p></p></p></p>
    Date: 2011–06
  18. By: Brown, Mark G.
    Abstract: The demand for OJ in Europe, and in particular the own-price elasticity of demand, has been difficult to estimate due to lack of good data. Europe, however, is the largest OJ market in the world (USDA, Foreign Agricultural Service), and cannot be ignored in analyzing the U.S. and Florida OJ situations, given OJ is an internationally traded commodity. Thus, estimates of the impacts of factors such as own-price on Europeâs OJ demand are critical for understanding the market. The estimates in this study, although rough, provide some guidance for the magnitude of the price response in Europe, but to keep them in perspective, they are based on a relatively small number of observations and a proxy variable, suggesting that, as more and hopefully better data become available, further research on this topic are needed.
    Keywords: demand, orange juice, Europe, Agribusiness,
    Date: 2010–07–01
  19. By: Timothy K.M. Beatty; Laura Blow (Institute for Fiscal Studies); Thomas Crossley (Institute for Fiscal Studies and University of Cambridge); Cormac O'Dea (Institute for Fiscal Studies)
    Abstract: <p><p>Standard economic theory implies that the labelling of cash transfers or cash-equivalents (e.g. child benefits, food stamps) should have no effect on spending patterns. The empirical literature to date does not contradict this proposition. We study the UK Winter Fuel Payment (WFP), a cash transfer to older households. Exploiting sharp eligibility criteria in a regression discontinuity design, we find robust evidence of a behavioural effect of the labelling. On average households spend 41% of the WFP on fuel. If the payment was treated as cash, we would expect households to spend approximately 3% of the payment on fuel.</p></p>
    Date: 2011–06
  20. By: Colin Vance; Christopher B. Busch
    Abstract: This article investigates the behavioral drivers of pasture creation and associated implications for deforestation in a 22,000 km2 agricultural frontier spanning the base of Mexico‘s southern Yucatán. After developing a theoretical model that highlights the role of social networks and information spillovers with respect to the decision to begin cattle ranching, we use household data to estimate an econometric duration model of the determinants of pasture creation. Although pasture fi ts well with the typical household‘s resource constraints, its continued expansion contributes to a hollow frontier dynamic in which the spread of low-value cattle ranching coincides with decreasing population.
    Keywords: Pasture creation; information spillovers; duration analysis; farm households; Mexico
    JEL: Q15 R22
    Date: 2011–02
  21. By: Timilsina, Govinda R.; Csordas, Stefan; Mevel, Simon
    Abstract: A carbon tax is an efficient economic instrument to reduce emissions of carbon dioxide released from fossil fuel burning. Its impacts on production of renewable energy depend on how it is designed -- particularly in the context of the penetration of biofuels into the energy supply mix for road transportation. Using a multi-sector, multi-country computable general equilibrium model, this study shows first that a carbon tax with the entire tax revenue recycled to households through a lump-sum transfer does not stimulate biofuel production significantly, even at relatively high tax rates. This reflects the high cost of carbon dioxide abatement through biofuels substitution, relative to other energy substitution alternatives; in addition, the carbon tax will have negative economy-wide consequences that reduce total demand for all fuels. A combined carbon tax and biofuel subsidy policy, where part of the carbon tax revenue is used to finance a biofuel subsidy, would significantly stimulate market penetration of biofuels. Although the carbon tax and biofuel subsidy policy would cause higher loss in global economic output compared with the carbon tax with lump sum revenue redistribution, the incremental output loss is relatively small.
    Keywords: Climate Change Mitigation and Green House Gases,Transport Economics Policy&Planning,Taxation&Subsidies,Environment and Energy Efficiency,Energy and Environment
    Date: 2011–06–01
  22. By: Jonah Busch (Conservation International, Arlington, VA); Ruben Lubowski (Environmental Defense Fund, Washington, DC); Fabiano Godoy (Conservation International, Arlington, VA); Marc Steininger (Conservation International, Arlington, VA); Arief Anshory Yusuf (Department of Economics, Padjadjaran University); Kemen Austin (World Resources Institute, Washington, DC); Jenny Hewson (Conservation International, Arlington, VA); Daniel Juhn (Conservation International, Arlington, VA); Muhammad Farid (Conservation International, Jakarta, Indonesia); Frederick Boltz (Conservation International, Arlington, VA)
    Abstract: We estimate the impacts that alternative national and sub-national economic incentive structures for reducing emissions from deforestation (REDD+) in Indonesia would have had on greenhouse gas emissions and national and local revenue if they had been in place from 2000-2005. The impact of carbon payments on deforestation is calibrated econometrically from the pattern of observed deforestation and spatial variation in the benefits and costs of converting land to agriculture over that time period. We estimate that at an international carbon price of $10/tCO2e, a “basic voluntary incentive structure” modeled after a traditional payment-for-ecosystem-services (PES) program would have reduced emissions nationally by 62 MtCO2e/yr, or 8% below the without-REDD+ reference scenario (95% CI: 45-76 MtCO2e/yr; 6-9%), while generating a programmatic budget shortfall. By making four policy improvements—paying for net emission reductions at the scale of an entire district rather than site-by-site, paying for reductions relative to estimated business-as-usual levels rather than historical levels, sharing a portion of district-level revenues with the national government, and sharing a portion of the national government’s responsibility for costs with districts—an “improved voluntary incentive structure” would have reduced emissions by 175 MtCO2e/yr, or 22% below the reference scenario (95% CI: 136-207 MtCO2e/yr; 17-26%), while generating a programmatic budget surplus. A “regulatory incentive structure” such as a cap-and-trade or symmetric tax-and-subsidy program would have reduced emissions by 211/yr, or 26% below the reference scenario (95% CI: 163-247 MtCO2e/yr; 20-31%), and would not have required accurate predictions of business-as-usual emissions to guarantee a programmatic budget surplus.
    Keywords: Climate change, land-use change, REDD+, reference levels, economic incentives
    JEL: Q20 Q23 Q50 Q54
    Date: 2011–06
  23. By: Kyriaki Remoundou (Department of International and European Economic Studies, Athens University of Economics and Business); Fikret Adaman (Bogaziçi University); Phoebe Koundouri (Department of International and European Economic Studies, Athens University of Economics and Business); Paulo A.L.D. Nunes (The Mediterranean Science Commission – CIESM, and Department of Agriculture and Natural Resources Economics – TESAF, University of Padova)
    Abstract: This paper uses a non-market valuation study to elicit consumers’ preferences for a marine restoration programme in the Black Sea aiming to reduce the level of public health risk from bathing and improve water quality and the overall level of marine biodiversity. In this context, we administer a stated choice experiment in coastal settlements in Ukraine and Turkey and employ two tax revenue reallocation schemes as payment vehicles. One proposes the financing of the marine restoration programme by the reduction of the public budget for renewable energy and the second by the reduction of the public budget on training for civil servants. We examine the stated preferences and the subsequently derived economic value estimates in the two treatments with the aim to investigate whether the trade-off implied by the funding scheme has implications for the valuation outcome. Results reveal that preferences and marginal rates of substitution between the non-price attributes under consideration differ significantly. In the civil servants’ budget reallocation scheme, the reallocation coefficient is positive, implying that ceteris paribus redistribution of public financial resources from this source is utility-enhancing. The magnitude of the results differs in the two considered countries mirroring their heterogeneity in political and cultural dimensions.
    Keywords: Non-Market Valuation; Stated Choice Experiment, Payment Vehicle, Tax Revenues Reallocation, Marine Resources, Black Sea, Marine Biodiversity, Developing Countries
    JEL: Q22 Q28
    Date: 2011–05
  24. By: Brown, Mark G.
    Abstract: Citrus black spot (CBS) was discovered in March of 2010 near Immokalee in Collier County. CBS may adversely impact citrus growers both through demand and supply impacts. This paper has focused on the demand side of the equation. The analysis has also focused on Florida honey tangerines and the market in California. This market accounts for about 17.7% of Florida honey tangerine sales. If Florida product were banned from California in fear of CBS spreading there, the FOB price for Florida honey tangerines is estimated to decline by $3.48 to $4.40 per box, all else constant. The on-tree price would be expected to decline by the same amounts. However, with respect to production costs, all else would not be constant. Growers would be expected to bear increased grove care costs to control CBS. Thus, with higher grove care costs and the same production next season, the grower price for Florida honey tangerines net of grove care costs would decline by more than the $3.48 to $4.40 per box levels.
    Keywords: citrus black spot, honey tangerine, California, Agribusiness,
    Date: 2010–09–11
  25. By: Derek Stacey (Queen's University)
    Abstract: A theory of land market activity is developed for settings where there is uncertainty and private information about the security of land tenure. Land sellers match with buyers in a competitive search environment, and an illiquid land market emerges as a screening mechanism. As a consequence, adverse selection and an insecure system of property rights stifle land market transactions. The implications of the theory are tested using household level data from Indonesia. As predicted, formally titled land is more liquid than untitled land in the sense that ownership rights are more readily transferable. Additional implications of the theory are verified empirically by constructing a proxy variable for land tenure security and studying the differences between markets for unregistered land across Indonesian provinces. Regional land market activity is appropriately linked to the distribution of the proxy variable.
    Keywords: Competitive Search, Land Markets, Tenure Security, Liquidity
    JEL: D83 Q15 D23 R23
    Date: 2011–04
  26. By: Andries Richter (Wageningen University); Paulo A.L.D. Nunes (Marine Economics Research Programme, The Mediterranean Science Commission – CIESM, Principauté de Monaco, and Department of Agriculture and Natural Resources Economics – TESAF, University of Padova)
    Abstract: The objectives pursued by governments managing fisheries may include maximizing profits, minimizing the impact on the marine ecosystem, or securing employment, which all require adjusting the composition of the fishing fleet. We develop a management plan that can be adapted to those objectives and allows the regulator to compare the long-run profits between the various management options. We apply the model to the case of Northeast Arctic cod, and estimate the cost and harvesting functions of various vessel types, the demand function, and a biological model to provide key insights regarding the optimal management of this valuable fish species.
    Keywords: Built Coastal Environment, Natural Coastal Environment, Ecosystem Service Valuation, Geographic Information Systems, Mapping Ecosystem Values, Marine Biodiversity, Scaling up, Spatial Analysis, Spatial Economic Valuation, Value Transfer
    JEL: C53 Q26 Q57 R12
    Date: 2011–05
  27. By: Vicente Esteve (Universidad de Valencia and Universidad de La Laguna, Spain); Cecilio Tamarit (Universidad de Valencia, Spain)
    Abstract: In this paper we consider the possibility that a linear cointegrated regression model with multiples structural changes would provide a better empirical description of the Spanish environmental Kuznets curve during the period 1857-2007. Our methodology is based on instability tests recently proposed in Kejriwal and Perron (2008, 2010) as well as the cointegration test in Arai and Kurozumi (2007) and Kejriwal (2008) developed to allow for a single or multiple breaks under the null hypothesis of cointegration, respectively. Overall, the results of the Kejriwal-Perron tests suggest a model with two breaks estimated at 1941 and 1967 and three regimes. The coefficient estimated between per capita CO2 and per-capita income (or long-run elasticity) in a two breaks model show a tendency to decrease over time. This implies that even if per capita CO2 consumption is monotonically rising in income, the "income elasticity" is less than one.
    Keywords: Environmental Kuznets curve; CO2 emissions; Cointegration; Multiple Structural Breaks
    JEL: C32 Q43 Q53
    Date: 2011–06

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