New Economics Papers
on Agricultural Economics
Issue of 2012‒06‒13
twenty-six papers chosen by

  1. What would farmers’ strategies be in a no-CAP situation? An illustration from France By Laure Latruffe; Aurélia Dupuy; Yann Desjeux
  2. Impacts of large-scale expansion of biofuels on global poverty and income distribution By Cororaton, Caesar B.; Timilsina, Govinda R.
  3. Financial and economic crisis: implications for agricultural sector in India By Deepak, Shah
  4. A right price for rice? Côte d’Ivoire insights into the welfare implications of the ‘global food crisis’ By Ralitza Dimova; Monnet Gbakou
  5. Crop returns, prices, credit and poverty in Lao-PDR By Samuel Annim; Raghav Gaiha
  6. EU Enlargement and Agro-Food Export Performance on EU Market Segments By Imre Fert‹; ætefan Bojnec
  7. Implementation of national food security mission for pulse crops in Maharashtra By Deepak, Shah
  8. Investment and Financial Constraints in European Agriculture: Evidence from France, Hungary and Slovenia By Imre Fert‹; Zolt n Bakucs; ætefan Bojnec; Laure Latruffe
  9. FDI as an Export-Platform: A Gravity Model for the Danish Agri-Food Industry By Luljeta Hajderllari; Kostas Karantininis; Lartey G. Lawson
  10. Provincial grain yields in Spain, 1750-2009 By Carlos Santiago-Caballero
  11. 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
  12. A structural estimation of French farmers’ risk preferences: an artefactual field experiment By Douadia Bougherara; Xavier Gassmann; Laurent Piet
  13. A macroeconomic analysis of the land market in the count of Flanders and the duchy of Brabant. (fifteenth and sixteenth century) By De Vijlder, Nicolas
  14. Does Farm and Processing Industry Structure Matter for Price Transmission? Some Evidence From Transition Countries: A Comparison of Dairy Sectors in Hungary and Poland By Zolt n Bakucs; Jan Faˆkowski; Imre Fert‹
  15. Measuring the Contribution of Modern Biotechnology to the Canadian Economy By Ricardo de Avillez
  16. Trade performance of India in livestock products: prospects and issues under WTO regime By Deepak, Shah
  17. Catastrophic risk and risk management, what do we know about livestock epidemics? State of the art and prospects By Arnaud Rault; Stéphane Krebs
  18. Measuring Economic Insecurity in Rich and Poor Nations By Lars Osberg; Andrew Sharpe
  19. Spatial competition in the French supermarket industry By Stéphane Turolla
  20. Revisiting Wal-Mart’s Impact on Iowa Small Town Retail: Twenty-Five Years Later By Stone, Kenneth E.; Artz, Georgeanne M.
  21. How substitutable are fixed factors in production? evidence from pre-industrial England By Wilde, Joshua
  22. The Disaster Risk Management - Climate Change Adaptation Nexus By Allan M. Lavell
  23. More random or more deterministic choices? The effects of information on preferences for biodiversity conservation By Mikołaj Czajkowski; Nick Hanley
  24. Stimulating Different Types of Eco-Innovation in the UK: Government Policies and Firm Motivations By Pelin Demirel; Effie Kesidou
  25. The different approach of green advertising: an empirical analysis of the Italian context By Francesco Testa; Fabio Iraldo; Sara Tessitore; Marco Frey
  26. Trade and Resources: Welfare effects of the Lake Victoria fisheries boom By Eggert, Håkan; Greaker, Mads; Kidane, Asmerom

  1. By: Laure Latruffe; Aurélia Dupuy; Yann Desjeux
    Abstract: This article investigates how French farmers could react if the Common Agricultural Policy (CAP) were fully suppressed, based on a survey of intentions of 295 farmers carried out in 2009. The farmers surveyed were beneficiaries of CAP subsidies in 2008, and were therefore mostly specialised in field cropping and grazing livestock. Respondents had to indicate their ten-year strategy in two CAP scenarios: firstly in a “CAP continuation scenario”, and secondly in a “No CAP scenario” where the CAP is fully removed from 2014 onwards. Although for the majority of respondents there would be no change in their intentions if the CAP were suppressed, about 19 percent would intend to stop their farming activity and would prefer to close their farm, while they would maintain the farm if the CAP were continued. A disappearance of the CAP would imply that off-farm employment would be more frequently sought after by farm households. Hired labour would not be the first choice to replace household labour on the farms but instead farmers would resort to outsourcing, which is a more flexible labour force. The results show the crucial role of the CAP in French farmers’ existence and highlight the importance of the CAP for the rural labour market.
    Keywords: farmers’ strategies, agricultural policy, intentions survey, France
    JEL: Q18 Q12
    Date: 2012
  2. By: Cororaton, Caesar B.; Timilsina, Govinda R.
    Abstract: This paper analyzes the impact of large-scale expansion of biofuels on the global income distribution and poverty. A global computable general equilibrium model is used to simulate the effects of the expansion of biofuels on resource allocation, commodity prices, factor prices and household income. A second model based on world-wide household surveys uses these results to calculate the impacts on poverty and global income inequality. The study finds that the large-scale expansion of biofuels leads to an increase in production and prices of agricultural commodities. The increased prices would cause higher food prices, especially in developing countries. Moreover, wages of unskilled rural labor would also increase, which slows down the rural to urban migration in many developing countries. The study also shows that the effects on poverty vary across regions; it increases in South Asia and Sub-Saharan Africa, whereas it decreases in Latin America. At the global level, the expansion of biofuels increases poverty slightly.
    Keywords: Rural Poverty Reduction,Food&Beverage Industry,Regional Economic Development,Economic Theory&Research,Labor Policies
    Date: 2012–06–01
  3. By: Deepak, Shah
    Abstract: In the light of the fact that the financial meltdown of September 2008 led to sharp slowdown in economic activity in the US and Europe with a massive drop in demand for goods and services from major exporting nations like China, Japan, Germany and other Asian countries, including India, this paper attempts to evaluate the implications of global meltdown on agricultural sector of India, especially with respect to commodity price, investment in agriculture and in general food security of the country. The unprecedented global economic crisis has also affected economic performance of India and most likely it will remain subdued for another couple of years. Since agricultural sector in India has somewhat different entity, the impact of global crisis in this sector is seen to have percolated in varied forms. Although the global economic downturn has resulted in large-scale job losses and mass unemployment in many export-oriented sectors, the situation in food and agricultural sector has remained stable with little job losses. However, during the period of slowdown when there stood virtual ban on foodgrain exports, the raw sugar was subjected to zero import tariff, leading to widespread protest by the sugar industry. The “free” imports of raw sugar raised concerns regarding cultivation of sugarcane in the country. Adequate control obviously needs to be exercised on the domestic prices of all essential commodities of common consumption, including sugar. Further, despite decline in income elasticity of demand for cereals in India, the low-income groups still show positive income elasticity of demand for cereals, indicating little tendency of decline in demand for cereals even if income falls marginally. This not only ensures higher demand for farm produce but also significantly high demand for labour in agriculture. Though there has not been any decline in employment of labour in agriculture sector during the period of slowdown, and, rather its demand increased due to the implementation of NREG scheme, the cause of concern is the price volatility in terms of output prices of agricultural produce, especially with respect to cash crops. While food crops have shown a rising trend in their prices, the cash crops saw a crash in the same after showing a short-lived boom from 2007 to second half of 2008, resulting in wiping out whatever gain in prices occurred. Similarly, the prices of edible oil in India declined due to crash in world prices of oilseeds, whereas the price of non-food primary products hardly changed. Although government has resorted to initiate some measures to check prices, there still stand various other measures to be initiated to safeguard Indian economy from global economic slowdown.
    Keywords: Financial Economic Crisis India Agricultural Sector
    JEL: Q18
    Date: 2012–06–04
  4. By: Ralitza Dimova; Monnet Gbakou
    Abstract: Abstract Using 2008 LSMS data for Côte d’Ivoire, we study the welfare implications of the price increase of key imported staple food – rice – and consider the consumption smoothing effect of locally produced food and cash crop varieties. While middle-income households are found to be hardest hit by a price shock, the poorest appear to be immune to it. When both cash and food crop production is taken into account, the negative impact becomes negligible. We find interesting income reallocations from richer to poorer households, which can potentially be generalised across similar African countries.
    Date: 2012
  5. By: Samuel Annim; Raghav Gaiha
    Abstract: Abstract With Lao PDR’s macroeconomic performance currently booming, we investigate the country’s poverty situation by examining the drivers of household poverty. This paper tests four major hypotheses: (1) Whether higher returns on all crops harvested per capita reduce consumption expenditure, food expenditure and the World Bank’s US$1.25/day (PPP, 2005) poverty cut-offs? (2) Whether higher returns on glutinous rice harvested per capita also reduce poverty? (3) Whether higher crop prices lower poverty? (4) Whether easier access to credit contributes to poverty reduction? Data on 5,031 households from the fourth round of the Laos Expenditure and Consumption Survey (LECS IV) are used to estimate Probit and instrumental variable Probit equations. Potential endogeneity of some of these variables (e.g. returns to crops harvested) is addressed through appropriate instrument variables. Briefly, returns on crops harvested reduce different measures of poverty (e.g. food poverty, dollar poverty), as do higher producer prices and easier access to credit. An important policy conclusion in light of Millennium Development Goal 1 is the imperative of higher returns on rice and glutinous rice, more remunerative prices for farmers and easier access to credit. These areas of policy concern assume greater importance as Laos prepares for its accession to the World Trade Organization (WTO). An accelerated market-orientation of agriculture may induce not just greater efficiency but also more equitable outcomes.
    Date: 2012
  6. By: Imre Fert‹ (Institute of Economics, Hungarian Academy of Sciences and Corvinus University of Budapest); ætefan Bojnec (University of Primorska, Faculty of Management, Slovenia)
    Abstract: This paper examines the impact of EU enlargement on agro-food export performance across 12 new EU member states and 5 newly independent states in the EU markets covering the period 1999-2007. The performance is examined by duration of export and hazard model. We find larger duration for the agro-food exports from the new EU member states. The results confirm gains from the eastward EU enlargement and governance on export increases and longer duration for exporting higher value-added specialized consumer-ready food and more competitive niche agro-food products.
    Keywords: EU enlargement, governance, agro-food export duration, hazard model, niche products
    JEL: F14 F15 Q17 P27
    Date: 2012–02
  7. By: Deepak, Shah
    Abstract: Despite several policy initiatives, projects and programmes undertaken in the past, the demand for pulses in India has always acceded supply due to stagnant or sluggish growth in pulse production. Since the programme initiatives in the past hardly led to any improvement in pulses production of India, the National Development Council (NDC) launched the ‘National Food Security Mission (NFSM)’ in 2007-08 as a Centrally Sponsored Scheme. The NFSM comprises of three components viz. rice, wheat and pulses. The NFSM-pulses is being implemented in majority of the pulse growing states of the country and Maharashtra is not an exception. The present study, therefore, attempts to assess the effectiveness of the implementation of NFSM programme for pulses crops in Maharashtra. The study showed positive impact of NFSM programme on pulses crops cultivation in the state of Maharashtra since the element of profit involved in the cultivation of pulses crops turned out to be much higher in the NFSM district as against the non-NFSM district. Not only this, the net profit margins in the cultivation of pulses crops in NFSM district were substantially high in 2008-09 as against 2006-07 and 2007-08. The plausible reasons for rise in profit margins in the cultivation of pulses crops could be traced in rise in yield levels, higher prices on offer for pulses, adoption of improved varieties of seeds in pulses crops cultivation, area under improved varieties, higher adoption of recommended practices such as sowing, seed and other practices, including application of organic manure, chemical fertilizers, etc., assistance received under NFSM-pulses programme viz. improved varieties of seeds like breeder/foundation/certified seeds, assistance on Integrated Nutrient Management (INM) - micronutrients/line/gypsum, etc., assistance on Integrated Pest Management (IPM) - micronutrients/line/gypsum IPM, provision of equipment like seed drills, pumpsets, sprinklers, conoweeder, Knapp-sack sprayers, participation of farmers in various training programmes, and reasonably assured market for the pulses produce.
    Keywords: National Food Security Mission Pulse
    JEL: Q18
    Date: 2012–04–20
  8. By: Imre Fert‹ (Institute of Economics Research Centre for Economic and Regional Studies Hungarian Academy of Sciences); Zolt n Bakucs (Institute of Economics Research Centre for Economic and Regional Studies Hungarian Academy of Sciences); ætefan Bojnec (University of Primorska, Faculty of Management, Slovenia); Laure Latruffe (L'Institut national de la recherche agronomique (Inra) France Economics Unit "SMART" Unit‚ Structures et March‚s Agricoles, Ressources et Territoires)
    Abstract: The article investigates the investment and financial constraints for French, Hungarian and Slovenian farms using FADN panel data with different econometric estimation approaches. Farm gross investment is positively associated with real sales growth and cash flow implying the absence of soft budget constraint. Gross farm investment is positively associated with investment subsidies. Specific results by country are found depending on farm indebtedness. Investment subsidies can mitigate some capital market imperfections in short-term, while on long-term what is crucial is farm sale ability to successfully compete in the output market gaining sufficient cash flow for farm competitive survival and investment.
    Keywords: farm investment, soft budget constraint, investment subsidy, panel data analysis
    JEL: D81 D92 O12 Q12 C23
    Date: 2012–03
  9. By: Luljeta Hajderllari (Institute of Food and Resource Economics, University of Copenhagen); Kostas Karantininis (Institute of Food and Resource Economics, University of Copenhagen; Swedish University of Agricultural Sciences (SLU)); Lartey G. Lawson (Department of Business and Management, University of Aalborg)
    Abstract: We investigate factors affecting Foreign Direct Investment (FDI) outflow from Danish agri-food firms to the rest of the world. We develop a conceptual model and subsequently use a gravity model based on data from 127 countries receiving Danish FDI in agri-food in 2004-2008. We find higher Danish FDI towards countries with large exports of agri-food, thereby supporting the hypothesis that FDI is used as an export-platform. FDI is coupled with high exports from Denmark, probably of raw or semi-processed food products for further processing and exports. We also find that FDI is higher in countries with stable political regimes.
    Keywords: FDI, export-platform, Danish Agri-Food, gravity model
    JEL: F14 F23 Q17 Q13
    Date: 2012–05
  10. By: Carlos Santiago-Caballero
    Abstract: This paper estimates the yields for five grains in 33 provinces of Spain in the mid-18th century. The results show that yields were higher in the north of the country, and that the most fertile provinces of Spain were not far behind the most advanced agricultural regions of the world. Average wheat yields in Spain remained stagnant between 1750 and the late 19th century when they doubled, only to remain stagnant again until the modernisation of the primary sector in the 1960s. Our results show that, in the very long run, yields between provinces tended to converge, and this was the case until the 1960s when the traditional differences in provincial yields began to disappear. The use of artificial fertilisers or new wheat strains were key improvements that helped low yield provinces to break with severe natural constraints such as lack of rainfall or low-quality soils.
    Keywords: Yields, Agriculture, Grain, Convergence
    JEL: N33 N34 N53 N54
    Date: 2012–02
  11. By: Timothy K.M. Beatty (University of Minnesota); Laura Blow (Institute for Fiscal Studies); Thomas Crossley (Institute for Fiscal Studies, University of Cambridge, and Koç University); Cormac O’Dea (Institute for Fiscal Studies)
    Abstract: 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.
    Keywords: labelling, benefits, expenditure.
    JEL: D12 H24
    Date: 2012–06
  12. By: Douadia Bougherara; Xavier Gassmann; Laurent Piet
    Abstract: We designed an artefactual field experiment involving real payments to elicit French farmers’ risk preferences. We test for two descriptions of farmers’ behaviour: expected utility and cumulative prospect theory and for preference stability across context (price risk and yield risk). We use multiple price lists where farmers make series of choices between two lotteries with varying probabilities and outcomes in the gain and loss domains. We estimate parameters describing farmers’ risk preferences derived from structural models. We find farmers are slightly risk averse in the expected utility framework. In the cumulative prospect theory frame, we find farmers display either loss aversion or probability weighting, tending to overweight small probabilities and to underweight high probabilities. We also estimate the reference point and find it not significantly different from zero. Cumulative prospect theory is a better description of farmers’ risk attitudes. We find risk preferences vary across context.
    Keywords: risk attitudes, field experiment, farmer
    JEL: C93 D81 Q10
    Date: 2011
  13. By: De Vijlder, Nicolas
    Abstract: The rise of factor markets during the transition from the middle ages into the early modern was of crucial importance for long term economic growth. The transmission of property through the market however remains understudied, especially in the Southern Low Countries. In this paper we construct a formal model to analyse the land market both at the regional and interregional level. We found that regional variations in land prices within Brabant and Flanders can for a large part be explained by differences in future net revenues. A similar economic rationality determined land prices at the local level. Further more, evidence showed that while short-term inter-temporal price fluctuations could occur, overall price levels in the fifteenth century were stable. During the sixteenth century however, deflated land prices rose markedly. While the former fluctuations were due to short-term shock, the persistent price rise in the latter period was caused by structural changes. Overall, our research yields two conclusions. First, economic rationality seemed to drive price formation on both the regional and interregional level. Second, the increased availability of credit from the late fifteenth century onwards consistently drove real prices upwards. Further research is necessary to find out whether credit was a push of pull factor in this respect.
    Keywords: land markets; Flanders; Brabant; macroeconomic analysis; early modern history; property distribution; agriculture
    JEL: N0 N13 N93
    Date: 2012–06–06
  14. By: Zolt n Bakucs (Institute of Economics Research Centre for Economic and Regional Studies Hungarian Academy of Sciences); Jan Faˆkowski (Faculty of Economic Sciences University of Warsaw, Poland); Imre Fert‹ (Institute of Economics Research Centre for Economic and Regional Studies Hungarian Academy of Sciences)
    Abstract: Rapid and thorough changes have recently taken place in dairy supply chain in the whole Central and Eastern Europe. Growing concerns have been expressed that these changes may negatively affect farmers' relative position towards downstream industry, due to market power exercised by the latter. In response to this, the present paper aims to investigate the price transmission mechanism in two countries from the region, namely Poland and Hungary and contrast the results with dairy market organisations specific for these countries. Using cointegrated vector autoregression and controlling for potential structural breaks, it is shown that Polish milk prices, as opposed to Hungarian ones, are characterised by short- and long-term asymmetries. We discuss a number of potential explanations supporting the empirical results. We consider, among others, differences between the dairy chain structures and the role of FDI.
    Keywords: price transmission, dairy sector, Hungary, Poland
    JEL: Q13 D12 D4
    Date: 2012–03
  15. By: Ricardo de Avillez
    Abstract: The role of modern biotechnology in agriculture, medicine, and industry has increased dramatically since the 1970s. Despite its growing importance, few efforts have been made so far to estimate the economic contribution of modern biotechnology to the Canadian economy. This report provides an overview of biotechnology activities in Canada, and, using an income-based approach, estimates that biotechnology activities accounted for approximately $15 billion in 2005, equivalent to 1.19 per cent of Canada’s GDP in that year. The report also forecasts that the role of biotechnology in the economy will increase substantially in the next twenty years, representing between 2.6 per cent and 6.0 per cent of Canada’s GDP in 2030.
    Date: 2011–12
  16. By: Deepak, Shah
    Abstract: Though India does not want to leave any stone unturned insofar as her presence in international trade of milk and milk products is concerned, the liberalization of markets within the WTO framework, especially due to the export subsidies indulged in by OECD countries, now seen to be threatening the Indian dairy sector. The study shows that in spite of India’s dependence on import trade of butter, ghee from cow milk, cheese and curd animal fats, etc. has come down sharply over the past two decades in the face of rise in export trade in the same, the trade balance of India in these products remains negative due to higher value associated with imports as against export. India, therefore, faces significant threat in the case of import trade of some of the dairy products like butter, ghee, cheese and curd, animal fats and some other livestock based products like hides and skins. Further, consequent upon cheap imports and absence of adequate protection measures, safeguarding income and livelihood of poor farmers have emerged issues that need to be addressed by policy makers. As for scope for the expansion of Indian dairy industry in new liberalized trade regime is concerned, Indian dairy sector would be competitive only if the export subsidies on dairy products are abolished. In more relaxed market environment, the real challenge posed before Indian livestock sector would be in terms of Sanitary and Phytosanitary Measures (SPS), Agreement on Technical Barriers to Trade (TBT) and animal welfare related issues. With a view to meet these requirements - both domestically and in the world markets - modernization of supply chain encompassing producer as well as consumer is the need of the hour. India is already price competitive in the world market and when subsidies from competitive producers like USA and EU countries are removed, the situation will make India more price competitive. In case India is not able to capture the world market in the event of removal of subsidies from the modern bloc countries, the other competitors like Australia and New Zealand would capture this market and enter in a big way to flood markets with their dairy products, making us loosing our competitiveness and a great opportunity in the new trade regime.
    Keywords: Trade India Livestock Products
    JEL: Q18
    Date: 2012–05–10
  17. By: Arnaud Rault; Stéphane Krebs
    Abstract: The economic consequences of livestock epidemics have been long studied for purposes of estimating the costs of preventive and curative veterinary measures. In this paper, we show that this catastrophic risk may have wide market consequences, and that the risk management systems are quite limited to compensate long term impacts in the European context of growing trade. Through a detailed literature review, we present the main developments of the economic research aiming at highlighting the economic consequences of animal epidemics such as Foot and Mouth Disease. We acknowledge that a very few studies have focused on the economic dynamics and on the long-run effects occurring after an epidemic disease outbreak. We discuss the relevance of a dynamic approach to reveal that the de-structuring of livestock markets affects the production dynamics as well as the whole agricultural sector. Financial implications and market constraints remain poorly studied in the livestock epidemics literature. We emphasize the growing interest of a dynamic Computable General Equilibrium approach to reveal the overall effects of epidemic outbreaks on the whole economy. This innovative research raises important challenges for the assessment and implementation of risk management policies.
    Keywords: animal epidemic outbreaks, catastrophic risk, risk management
    JEL: G32 Q17 Q18
    Date: 2011
  18. By: Lars Osberg; Andrew Sharpe
    Abstract: In both rich and poor nations, worrying about future economic dangers subtracts from the present well-being of individuals, which is why affluent societies have complex systems of private insurance and public social protection to reduce the costs of economic hazards. However, the citizens of poor nations (i.e. most of humanity) typically find both private insurance and public social protection to be largely unavailable – their lives are both poorer and riskier. How can one measure economic insecurity in these very different contexts? Because rich nations have better, more easily available data, Section 2 illustrates the measurement of economic insecurity and its importance to trends in relative economic wellbeing in four affluent OECD countries between 1980 and 2009. Section 3 then uses available data to estimate the level of economic security in approximately 2008 in a comparable way in a broader sample of countries. To reflect better the reality of developing countries, it: (1) includes the volatility of food production in the risk of loss of livelihood; (2) adjusts the risks of health care costs to consider the proportion of household spending on food (which is non-discretionary, and large in poor countries) and (3) adds adult male mortality to the risk of divorce in calculation of the risk of single parent poverty. Section 4 discusses some implications and concludes.
    Date: 2012–05
  19. By: Stéphane Turolla
    Abstract: This paper challenges the conventional wisdom on the competitive grocery retail sector in France. To that end, I develop a structural model of spatial competition that accounts for (i) market geography on consumers' preferences, and (ii) differences in their shopping list. The demand estimates are used to recover stores' price-cost margin under alternative pricing strategies. I select the best pricing model by applying non-nested tests and show that retailers noticeably distort their offer in highly concentrated markets. Finally, I perform counterfactual experiments to quantify the expected gain of an additional store on consumer welfare and retail prices.
    Keywords: spatial competition, structural model, discrete choice model, differentiated products, supermarket industry
    JEL: C35 L13 L81
    Date: 2012
  20. By: Stone, Kenneth E.; Artz, Georgeanne M.
    Abstract: Stone conducted the first study of Wal-Mart stores economic impact in Iowa in 1988.  Since then, research on Wal-Mart’s impacts has exploded. Recent studies employ sophisticated statistical techniques to more accurately measure the size and direction of effects. Many reach conclusions similar to Stone’s original work.  This paper updates the original Stone study with additional years of data.  It draws on recent methodological advances to help account for Wal-Mart’s strategic location decisions on estimated retail sales impacts in Iowa.  Consistent with previous studies, we find that Wal-Mart’s entry into smaller trade centers in Iowa had a big initial impact on host town retail sales, with some categories experiencing large significant increases while others saw declines in sales per capita.  Wal-Mart’s presence helped to stabilize or even expand the local retail sector of most rural Iowa host communities.  To conclude, policy implications for local economic development officials are discussed.
    Keywords: Wal-Mart; retail trade; Iowa
    JEL: L81 R
    Date: 2012–05–31
  21. By: Wilde, Joshua
    Abstract: Whether fixed factors such as land constrain per-capita income growth depends crucially on two variables: the substitutability of fixed factors in production, and the extent to which innovation is biased towards land-saving technologies. This paper attempts to quantify both. Using the timing of plague epidemics as an instrument for labor supply, I estimate the elasticity of substitution between fixed and non-fixed factors in pre-industrial England to be significantly less than one. In addition, I find evidence that denser populations – and hence higher land scarcity – induced innovation towards land-saving technologies.
    Keywords: Land; Industrial Revolution; Induced Innovation; Fixed Factors; Substitutability; Population; England; Plagues
    JEL: J13 N13 Q24 N53 E10 N33 Q15 O31 O4
    Date: 2012–06
  22. By: Allan M. Lavell
    Abstract: This presentation was commissioned by the Regional Policy Dialogue and presented in the meeting Disaster Risk Reduction: Best Practices for Climate-Resilient Coastal Development held in Bridgetown, Barbados on 20 and 21 of October 2011. It discusses the disaster nexus between risk management, climate change and its adaptation in the Caribbean.
    Keywords: Environment & Natural Resources :: Climate Change, Environment & Natural Resources :: Disasters
    Date: 2011–10
  23. By: Mikołaj Czajkowski (University of Warsaw, Faculty of Economic Sciences); Nick Hanley (University of Stirling, Economics Division)
    Abstract: For many years, stated preference researchers have been interested in the effects of information on willingness to pay for environmental goods. Within the random utility model, information about an environmental good might impact on preferences and on scale (error variance), both between and within samples of choices. In this paper, we extend the G-MNL model to investigate the effects of different information sets on choices over the management of biodiversity in the UK, looking specifically at moorlands managed for red grouse shooting. Specifically, we make the individual scale parameter a function of observable (dataset-specific) characteristics. Our results show that changing information sets results in significant differences in the mean scale between datasets, and in the variance of scale. Respondents are more deterministic in their choices and show lower within-sample scale heterogeneity in the alternative information treatment. Changes in information provision also effect willingness to pay estimates, reducing the value people place on the conservation of two iconic birds of prey. The methods used will also be of interest to researchers who need to combine choice experiment data sets.
    Keywords: choice modelling, information effects, scale, scale heterogeneity, G-MNL, heather moorland management, raptor conservation, combined SP-RP
    JEL: C59 C81 Q51 Q57 Q15 D12
    Date: 2012
  24. By: Pelin Demirel (Nottingham University Business School, Nothingham University); Effie Kesidou (Nottingham University Business School, Nothingham University)
    Abstract: In this paper, we adopt a recent OECD framework and examine the role of external policy tools and internal firm specific factors for stimulating three different types of eco-innovations that range on a spectrum of lower to higher technological and environmental impact: End-of-Pipeline Pollution Control Technologies, Integrated Cleaner Production Technologies and Environmental R&D. Using a novel firm-level dataset from a DEFRA survey, we estimate a Tobit model, which provides empirical evidence showing that these eco-innovations are motivated by different external policy tools and internal firm specific factors. Our findings indicate that End of Pipeline Technologies and Integrated Cleaner Production Technologies are mainly driven by equipment upgrade motives with a view of improving efficiency while environmental regulations are effective in stimulating the End-of-Pipeline technologies and Environmental R&D. Interestingly, alongside government induced regulations, we find that market factors, mainly motivated by cost savings, are effective in driving Environmental R&D. Finally, ISO14001 certification is effective in strengthening the positive impact of environmental management systems on both End-of-Pipeline technologies and Environmental R&D while CSR policies have no significant impact on motivating any of the eco-innovations.
    Keywords: Cleaner Production, Environmental Regulation, Environmental Taxes, Environmental Management Systems, Eco-R&D, ISO14001
    Date: 2012–05
  25. By: Francesco Testa (Istituto di Management - Scuola Superiore Sant’Anna, Pisa); Fabio Iraldo (Istituto di Management - Scuola Superiore Sant’Anna, Pisa); Sara Tessitore (Istituto di Management - Scuola Superiore Sant’Anna, Pisa); Marco Frey (Istituto di Management - Scuola Superiore Sant’Anna, Pisa)
    Abstract: Advertising is an important means of communication and can guide consumer choices by relying on their priorities. The aim of this study is to analyse the dissemination and characteristics of green advertisings in Italian newspapers between 2007 and the first half of 2008. The article aims to quantify the existence of references to environmental issues in advertisement in newspapers and magazines and to identify the prevailing elements and characteristics of the green message, such as the subject, the content and the completeness of the message or other elements such as certificates, sponsorship used to improve the effectiveness of the message. In addition, a “cluster analysis” was applied on the collected data, classifying messages into four ecological categories that are associated with a different communication strategy for the “green component” of their message.
    Keywords: environmental advertising, green marketing, green communication.
    JEL: M10
    Date: 2012–01–01
  26. By: Eggert, Håkan (Department of Economics, School of Business, Economics and Law, Göteborg University); Greaker, Mads (Statistics Norway); Kidane, Asmerom (University of Dar-es-Salaam)
    Abstract: In this paper we examine the welfare implications of the Tanzanian fisheries boom following from the increase in quantities and prices of the Lake Victoria Nile perch export during 1993-2008. We use the theoretical model by Brander and Taylor (1997) that we try to test empirically. We have a micro level perspective using data from a 1993 World Bank household survey and our own study from 2008, both containing data from about 520 households in the two regions Mwanza and Mara by the lake. Our results indicate that average income has increased in both rural and urban areas. For the poorest part of the population, rural areas experienced only modestly and non-significantly reductions in the fraction below basic needs, while urban areas had a substantial reduction. However, growth was modest and inequality seems to have increased during the period. Concerning human capital measured as education for the household head we found substantial improvements in educational level and a simple regression model confirmed the significant impact of education on household income. We also found that households on average are better off when situated close to the lake.
    Keywords: international fish trade; Lake Victoria; Nile perch; poverty reduction; Tanzania
    JEL: F18 Q02 Q22 Q56
    Date: 2012–06–04

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.