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on Agricultural Economics |
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Issue of 2013‒03‒16
forty papers chosen by |
| By: | Minot, Nicholas; Dewina, Reno |
| Keywords: | Food prices, maize, rice, welfare impact, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1245&r=agr |
| By: | Pohit, Sanjib |
| Abstract: | This paper makes an attempt to use GTAP model to understand the interplay between the agricultural trade liberalization and land degradation in India. Like any other developing country, soil erosion happens to be one of the principal environmental problems caused by agricultural production in India. In this paper, our attempt is to simulate the on-site productivity impacts of erosion, along with standard intersectoral and inter-regional economic effects of trade liberalization. The deeper and fuller agricultural trade liberalization opens up opportunities for India’s agriculture. Our result indicates that paddy, wheat, and other agriculture are the sectors in India where production would expand following liberalisation while there would be a fall in production in cereal grain sector and livestock sector. Overall, there is a small increase in India’s welfare to the tune of US $ 360 millions. While India’s agricultural expands due to opening up of opportunities, soil degradation increases with increased use of land. To what extent, the above result would change if we incorporate land degradation feedback mechanism in our analysis? Our results indicates that agricultural trade liberalisation reduces land productivity, but the effects are weak to negate the benefits of India’s welfare from agricultural trade liberalisation. |
| Keywords: | Land Degradation, Trade Liberalization |
| JEL: | Q32 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:44496&r=agr |
| By: | Tasso Adamopoulos; Diego Restuccia |
| Abstract: | There are striking differences in the size distribution of farms between rich and poor countries. We study the determinants of farm-size across countries and their impact on agricultural and aggregate productivity by developing a quantitative model of agriculture and non-agriculture that features a non-degenerate size distribution of farms. We find that differences in measured aggregate factors such as capital, land, and economy-wide productivity account for 1/4 of the observed differences in farm size and productivity. Farm-level policies that misallocate resources from large-productive to small less-productive farms, are prevalent in poor countries, and have the potential to account for the remaining differences. We assess the quantitative importance of misallocation in two ways. First, we construct a summary measure of farm-size distortions across countries by exploiting within-country variation in crop-specific price distortions with crop farm size. This measure and aggregate factors jointly account for more than 1/2 of the differences in size and productivity. Second, we quantify the effects of two specific policies in developing countries: (a) a land reform that imposes a ceiling on farm size and (b) a progressive land tax. We find that each individual policy generates a reduction of 3 to 7% in size and productivity. |
| Keywords: | Aggregate productivity, agriculture, farm-size distortions, misallocation. |
| JEL: | O11 O13 O4 E0 |
| Date: | 2013–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-480&r=agr |
| By: | Alem, Yonas (School of Business, Economics and Law); Broussard, Nzinga H. (The Ohio State University) |
| Abstract: | We use panel data from rural Ethiopia to investigate if participation in a safety net program enhances fertilizer adoption. Using a difference-in-difference estimator and inverse propensity score weighting we find that participation in Ethiopia’s food-for-work program increased fertilizer adoption. Results also indicate that the likelihood of adopting and the intensity of fertilizer usage increased with livestock holdings for food-for-work-participant households providing some evidence that the intervention helped asset-rich farm households more than asset-poor households. We find no significant effects of free distribution on fertilizer adoption or intensification. Our results are consistent with the hypothesis that safety nets can be viewed as mechanisms that allow households to take on more risk to pursue higher profits. The paper highlights important policy implications related to the inter-related dynamics of safety nets and extension services that aim at promoting productivity enhancing modern agricultural technologies.<p> |
| Keywords: | Safety Net; Fertilizer Use; Inverse Propensity Score Weighting |
| JEL: | O12 O33 Q12 Q16 |
| Date: | 2013–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0556&r=agr |
| By: | Ben Groom (Department of Geography and Environment, LSE, University of London, UK); Mehroosh Tak (Forum for the Future) |
| Abstract: | During the world food crisis of 2007-08, the price of staples soared rapidly. Higher food price impacts poor households more as they spend approximately three quarters of their income on food. Together rice and wheat provide more than 50% of the calorific intake in India. Apart from providing food security, millions of poor and small farmers depend on rice for their livelihoods. Using Indian Consumer Household Expenditure surveys for the years 2007-08 and 2009-10 the paper analyses the welfare generated by a ban on export of rice by the Indian government. The paper finds that the net impact of the ban on export of rice was positive, as it was able to cushion the Indian population (87% of whom are net consumers) from the adverse effects of the crisis. It also found that the poor in India aren’t homogeneous in nature. The majority of the rice-producing households that stand to gain from increased prices are relatively poor farmers. At the same time, the poor households that do not cultivate rice are most affected by price increase, as their budget share of rice is higher than richer households, who are more resilient to price rise. In particular, the wage labourers are affected significantly. |
| Keywords: | Food price shock, India, rice, nonparametric estimation, poverty, welfare analysis |
| JEL: | Q11 Q12 Q17 Q18 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:soa:wpaper:177&r=agr |
| By: | Diao, Xinshen; Kennedy, Adam; Badiane, Ousmane; Cossar, Frances; Dorosh, Paul; Ecker, Olivier; Hagos, Hosaena Ghebru; Headey, Derek; Mabiso, Athur; Makombe, Tsitsi; Malek, Mehrab; Schmidt, Emily |
| Keywords: | Agricultural policy, CAADP, input policy, Land tenure, Nutrition policy, policy evidence, Private sector, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1242&r=agr |
| By: | Phoebe Koundouri; Osiel Davila (AUEB-RC); Yannis Anastasiou (Athens University of Economics and Business); Antonios Antypas (Department of Banking and Financial Management, University of Piraeus); Theodoros Mavrogiorgis (Athens University of Economics and Business); Aris Mousoulides; Marianna Mousoulidou; Katerina Vasiliou (Athens University of Economics and Business) |
| Abstract: | The focus of Chapter 5 is on the agricultural sector in the Asopos catchment as it has a significant impact on the status of water in the area. In particular, the aim of the chapter is to estimate the farmers valuation of groundwater s shadow price for the region of Asopos. In order to achieve that, an agricultural micro-economic data-set from the catchment has been collected through the use of a detailed agricultural questionnaire. As it will be explained in the chapter, the questionnaire focuses on collecting information regarding cultivations, production structures and use of groundwater for irrigation. The objective of the micro-econometric analysis is to uncover patterns of groundwater use and farm efficiency. The chapter presents the derived estimates that make possible the analysis of the impact of different economic policies, -which will be used for the implementation of an optimal, sustainable and integrated water policy- on farmers profits and social welfare. The chapter finishes with policy recommendations based on the principle of socio-economic sustainability that assures both economic efficiency of farms and concludes with the estimation of groundwater for irrigation shadow price and how this can be used in the design of pumping taxes to reduce pollution and to increase farms efficiency. |
| Date: | 2013–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1313&r=agr |
| By: | Philip Abbott |
| Abstract: | The share of U.S. corn production used to produce ethanol increased from 12.4% in the 2004/05 crop year to over 38.5% in the 2010/11 crop year, and remained at that high level in 2011/12. Even after accounting for return of by-products to the feed market, this is a large and persistent new demand for corn that surely has changed price dynamics. Nevertheless, the role of biofuels in determining recent high corn and other agricultural commodity prices, as well as their volatility, remains controversial. Policy measures to encourage biofuels production, including the Renewable Fuels Standard (RFS) mandates, subsidies to ethanol blenders, regulations on gasoline chemistry and import tariffs, helped to create this new, persistent demand for corn and contributed to incentives to create the capacity to produce ethanol and to use corn for fuel rather than food. Various aspects of implementing that policy and the economics of ethanol plant operation suggest very inelastic industrial demand for corn, contributing to both higher prices and greater price volatility. But turbulence in recent economic events have caused the mechanisms through which biofuels demands influence corn and other agricultural commodity prices to vary over time in ways that are observable in data. Price volatility and “subsidy incidence” also depend on which regime is in place. Simple theory along with data on supply, use and pricing are used to identify when each regime matters as policy influenced constraints bound to varying degrees. Capacity constraints appear to have dominated in the short run, allowing rents to absorb differences in variations of corn prices versus energy prices. Apparent price volatility seems due to mechanism switching and to changing trends more so than to random short run shocks under inelastic demand. |
| JEL: | Q02 Q16 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18873&r=agr |
| By: | Swenson, David A. |
| Abstract: | Agriculture is an important component of the Iowa economy. When considered in combination with Iowa's food manufacturing and Iowa's industries that specifically produce agricultural inputs, the broader agriculture and agriculture-related manufacturing sectors explain a substantial fraction of the state's jobs and labor incomes. If those industries are analyzed in terms of their contributions towards final demand sales (the preponderance of which are exports from Iowa), all of the jobs linked to those final demand sales can be quantified. By doing so, it is possible to estimate the total number of jobs in Iowa that are directly or indirectly linked to agriculture and agriculture related manufacturing. |
| Keywords: | agriculture; agriculture-related manufacturing; final demand |
| Date: | 2013–03–04 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:35967&r=agr |
| By: | Andrea Bastianin; Marzio Galeotti; Matteo Manera |
| Abstract: | We analyze the relationship between the prices of ethanol, agricultural commodities and livestock in Nebraska, the U.S. second largest ethanol producer. The paper focuses on long-run relations and Granger causality linkages between ethanol and the other commodities. The analysis takes possible structural breaks into account and uses a set of techniques that allow to draw inferences about the existence of long-run relations and of short-run in-sample Granger causality and out-ofsample predictive ability. Even after taking breaks into account, evidence that the price of ethanol drives the price dynamics of the other commodities is extremely weak. It is concluded that, on the basis of a formal, comprehensive and rigorous causality analysis we do not find evidence in favour of the Food versus Fuel debate. |
| Keywords: | Ethanol, Field Crops, Granger Causality, Forecasting, Structural Breaks |
| JEL: | C22 C53 Q13 Q42 Q47 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:239&r=agr |
| By: | Thomas Coisnon (UMR GRANEM - UMR MA 49 – Université d'Angers et Agrocampus Ouest - Université d'Angers); Walid OUESLATI (UMR GRANEM - UMR MA 49 – Université d'Angers et Agrocampus Ouest - Université d'Angers); Julien Salanié (Granem - Groupe de Recherche ANgevin en Economie et Management - Agrocampus Ouest - Institut national de la recherche agronomique (INRA) : UMR49) |
| Abstract: | Widespread public support exists for the provision of natural amenities, such as lakes, rivers or wetlands, and for efforts to preserve these from agricultural pollution. Agri-environmental policies contribute to these efforts by encouraging farmers to adopt environmentally friendly practices within the vicinity of these ecosystems. A spatially targeted agri-environmental policy promotes natural amenities and may thereby affect household location decisions. The purpose of this paper is to investigate the extent of these impacts on the spatial urban structure. We extend a monocentric city model to include farmers' responses to an agri-environmental policy. Our main findings are that the implementation of a spatially targeted agri-environmental policy may lead to some additional urban development, which could conflict with the aim of the policy. |
| Keywords: | Land development; Urban sprawl; Leapfrog; Land rent; Monocentric model; Farming; Agri-environmental policy; Spatial targeting; Agricultural pollution. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00795815&r=agr |
| By: | Carlo Cafiero |
| Abstract: | Many discussions following the 2007/08 food price crisis have revolved around the magnitude of the negative impacts that it may have had on food security worldwide. Analysts have been asked to provide timely assessments, often based on partial data and information. The variety of opinions and the ranges of reported estimated impacts that have followed have revealed how shaky the informational ground on which they move is. This paper deals with two issues related to the way in which the state of food insecurity in the world can be assessed from the perspectives of the availability of and the access to food, dimensions for which the economic lenses conceivably are the most adequate. The two issues are: the quality and coverage of available data and the methods through which the relevant information is filtered from the data to draw inference on food security. The conclusion we reach is that, for policies to be informed by solid evidence and to be sure that monitoring and evaluation is based on firm empirical grounds, much remains to be achieved, both in terms of data quality and coverage and regarding methods, standards and tools for assessment. However, we do not have to start from zero. A wealth of data has accumulated in the past that, if properly analyzed, may allow shading light on the way in which food markets work and how households behave with respect to food consumption. The combination of the two should allow better understanding the determinants and impacts of food price volatility on food security. Once key data conveying information on those determinants have been identified, a comprehensive food security information system can be devised based on a key set of core indicators. Such a system would require the use of common standards in the collection, validation and dissemination of data on agricultural prices, production, trade and uses, and on food consumption patterns. |
| JEL: | C19 O11 O12 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18861&r=agr |
| By: | Otsuka, Keijiro; Liu, Yanyan; Yamauchi, Futoshi |
| Keywords: | cereal self-sufficient ration, Economic transformation, farm size, machine use, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1246&r=agr |
| By: | Frank Ackerman; Elizabeth A. Stanton |
| Abstract: | Recent research paints an ominous picture of climate impacts on agriculture, in contrast to the relative optimism of research from the 1990s. Continued use of the earlier research findings, in economic models and policy analyses, contributes to an unwarranted complacency about the urgency of climate policy. Earlier research concluded that the initial stages of climate change would bring net benefits to global agriculture, thanks to carbon fertilization and longer growing seasons in high-latitude regions. This conclusion has been challenged in at least three respects. First, newer experimental studies have sharply reduced older estimates of carbon fertilization effects. Second, the effect of temperature on many crops has been found to involve thresholds, above which yields rapidly decline; the number of hours above the threshold is typically more important than the average temperature. Third, climate change will bring significant changes in precipitation; in a number of important areas, decreases in precipitation may cause declines in agricultural production. Simple, aggregated economic analyses of climate change have often omitted these crucial effects of precipitation. Adaptation to warmer and often drier conditions is necessary but not sufficient for agriculture. Within a few decades, business-as-usual climate change would reach levels at which adaptation is no longer possible. Emission reduction and climate stabilization are essential to any long-run solution for global agriculture. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:dae:daepap:13-01&r=agr |
| By: | M.Ataman Aksoy (World Bank); Francis Ng (World Bank) |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:tek:wpaper:2013/2&r=agr |
| By: | Jonathan M. Harris |
| Abstract: | Herman Daly pioneered the concept of environmental macroeconomics. He famously argued that we have moved from an “empty world” of resource abundance to a “full world” of energy and resource limits. His insights, however, have generally been rejected or ignored by most mainstream economic analysts, who argue that resource shortages are remediable through market flexibility and substitution, posing no threat to long-term exponential economic growth. In the absence of immediate crisis, standard economics has been able to maintain this “optimistic” stance, dismissing population, resource, and energy limits. But developments during the first decade of the twenty-first century indicate that it will be Daly’s view, rather than that of the mainstream, that will be most important in shaping economic development in the coming century. As Daly foresaw, an energy economy based on high efficiency and renewable fuels cannot pursue the exponential growth path characteristic of the fossil-fuel dependent economy of the twentieth century. The issues involved go well beyond the energy sector of the economy. Population growth and food supply also become critical. There are many interactions between the agricultural and energy systems; in addition to energy intensification in agriculture, demands for biofuels put pressure on the limited supply of agricultural land. Recent price spikes in food, fuels, and minerals indicate the tremendous stresses placed on the global ecosystem by the combination of population and economic growth in China, India, and elsewhere. They also raise major issues of equity, as high prices for energy and food impact the poor disproportionately. Similar problems affect ecological systems such as forests and fisheries on a global scale. It will not be possible to adjust to such stresses simply through market flexibility. It is already evident that large-scale government intervention will be needed to respond to climate change. In this context, an activist environmental macroeconomics will be required to balance the requirements of equity and ecosystem sustainability. Either through planned adjustment or through crisis, it will be necessary to shift away from a macroeconomics of indefinite growth towards stabilization of population and reduction of resource throughput, as Daly has long advocated. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:dae:daepap:13-03&r=agr |
| By: | Attila Jambor |
| Abstract: | The article analyses patterns and country-specific determinants of Visegrad Countries’ (VC) agri-food trade with the European Union. Literature focusing on the country-specific determinants of vertical and horizontal intra-industry trade is rather limited and those analysing agricultural (or agri-food) trade are extremely rare. Therefore, the paper seeks to contribute to the literature by covering latest theory and data available on the topic to provide up to date results and suggestions. Moreover, it seeks to identify the determinants of horizontal and vertical intra-industry trade of the Visegrad Countries after EU accession. Results suggest that agri-food trade of the Visegrad Countries is mainly inter-industry in nature but intra-industry trade is dominated by vertical elements. Results verify that determinants of horizontal and vertical IIT differ and suggest that economic size is positively, while distance is negatively related to both sides of IIT. However, the relationship between vertical IIT and differences in factor endowments as well as FDI is ambiguous. |
| Keywords: | Visegrad Countries, intra-industry trade, determinants |
| JEL: | F14 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2013:i:104&r=agr |
| By: | Antoine Leblois (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - AgroParisTech, Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X); Philippe Quirion (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - AgroParisTech); Benjamin Sultan (LOCEAN - Laboratoire d'Océanographie et du Climat : Expérimentations et Approches Numériques - IRD - INSU - CNRS : UMR7159 - Université Paris VI - Pierre et Marie Curie - Muséum National d'Histoire Naturelle (MNHN)) |
| Abstract: | In the Sudano-sahelian zone, which includes Northern Cameroon, the inter-annual variability of the rainy season is high and irrigation is scarce. As a conse- quence, bad rainy seasons have a detrimental impact on crop yield. In this paper, we assess the risk mitigation capacity of weather index-based insurance for cotton farmers. We compare the ability of various indices, mainly based on daily rainfall, to increase the expected utility of a representative risk-averse farmer. We first give a tractable definition of basis risk and use it to show that weather index-based insurance is associated with a large basis risk. It has thus limited potential for income smoothing, whatever the index or the utility function. Second, in accordance with the existing agronomical literature we find that the length of the cotton growing cycle, in days, is the best performing index considered. Third, we show that using observed cotton sowing dates to define the length of the grow- ing cycle significantly decreases the basis risk, compared to using simulated sowing dates. Finally we found that the gain of the weather-index based insurance is lower than that of hedging against cotton price fluctuations which is provided by the national cotton company. This casts doubts on the strategy of international institutions, which support weather-index insurances in cash crop sectors while pushing to liberalisation without recommending any price stabilization schemes. |
| Keywords: | Agriculture, weather, index-based insurance. |
| Date: | 2013–03–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00796528&r=agr |
| By: | Yu, Bingxin; Liao, Xiyuan; Shen, Hongfang |
| Keywords: | Agriculture, bias, Malmquist index, output distance function, scale efficiency, translog, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1244&r=agr |
| By: | Ruiqing Miao; David A. Hennessy (Center for Agricultural and Rural Development (CARD)); Hongli Feng |
| Abstract: | We develop a real option model of the irreversible native grassland conversion decision. Upon plowing, native grassland can be followed by either a permanent cropping system or a system in which land is put under cropping (respectively, grazing) whenever crop prices are high (respectively, low). Switching costs are incurred upon alternating between cropping and grazing. The effects of risk intervention in the form of crop insurance subsidies are studied, as are the effects of cropping innovations that reduce switching costs. We calibrate the model by using cropping return data for South Central North Dakota from 1989 to 2012. Simulations show that a risk intervention that offsets 20% of a cropping return shortfall increases the sod-busting cost threshold, below which native sod will be busted, by 41% (or $43.7/acre). Omitting cropping return risk across time underestimates this sod-busting cost threshold by 23% (or $24.35/acre), and hence underestimates the native sod conversion caused by crop production. JEL Classification: Q18, Q38, H23 |
| Keywords: | conservation tillage, crop insurance policy, irreversibility, native grassland, sod busting. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:13-wp536&r=agr |
| By: | Kilic, Talip; Palacios-Lopez, Amparo; Goldstein, Markus |
| Abstract: | In targeting poverty gains, sub-Saharan African governments have emphasized the alleviation of gender differences in agricultural productivity. The empirical studies on the gender gap, however, have frequently used data that were limited regarding geographic and topical coverage, and/or details on intra-household dynamics. The study provides a nationally-representative analysis of the gender gap in Malawi, and decomposes it, for the first time, at the mean and at selected points of the agricultural productivity distribution into (i) a portion driven by gender differences in levels of observable attributes (the endowment effect), and (ii) a portion driven by gender differences in returns to the same set of observables (the structure effect). Sequentially, the authors unpack the relative contributions of different factors towards the gender gap, and suggest future research priorities to inform policy interventions. The authors find that while female-managed plots are, on average, 25 percent less productive, 82 percent of this differential is explained by differences in endowments, mainly due to high-value crop cultivation and levels of household adult male labor inputs. The factors driving the structure effect include child dependency ratio and effectiveness of household adult male labor and inorganic fertilizer. The gender gap increases across the productivity distribution, ranging from 22 percent at the 10th percentile to 37 percent at the 90th percentile. While it is explained predominantly by the endowment effect in the first half of the distribution, the contribution of the structure effect towards the gender gap increases steadily above the median, standing at 34 percent at the 90th percentile. |
| Keywords: | Gender and Development,Housing&Human Habitats,Gender and Health,Rural Development Knowledge&Information Systems,Gender and Law |
| Date: | 2013–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6381&r=agr |
| By: | Sato, Chizuko |
| Abstract: | This paper explores the extent and forms of black economic empowerment (BEE) in the South African agricultural sector through a case study of the wine industry in the Western Cape. Compared to the mining and fisheries sectors, the progress of BEE in the agricultural sector is still in the early stage. However, various forms of black entry into the wine industry, not limited to BEE deals by large corporations, began to emerge, especially since the enactment of the Broad-based Black Economic Empowerment Act (BBBEE Act), Act 53 of 2003. This paper identifies two types of BEE wineries as unique forms of black entry into the wine industry and investigates in detail their features, backgrounds and challenges by referring to several prominent examples of each type of BEE winery. |
| Keywords: | South Africa, Brewing industry, Liquor, Economic policy, Agricultural policy, Black economic empowerment(BEE), Wine industry |
| JEL: | L66 Q18 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper384&r=agr |
| By: | Maystadt, Jean-Francois; Ecker, Olivier; Mabiso, Athur |
| Keywords: | civil war, Climate change, Conflict, drought, livestock, Prices, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1243&r=agr |
| By: | Phoebe Koundouri; Mavra Stithou; Philippos Melissourgos |
| Abstract: | This chapter aims to simulate residential water demand in order to explore the importance of water for residential use. In addition, data on the water cost of supplying water in the residents of Asopos area from local distributors were collected. In order to capture the importance of water use specific parameters are examined and are used as indexes of water use. Some of these indexes are the population of the catchment, the number of households connected to the public water distribution system, m3 of water consumption per year to cover household needs etc. The chapter closes with recommendations for designing and applying a program of measures for the efficient water resources management as described by Article 11 of Water Framework Directive (WFD). |
| Date: | 2013–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1312&r=agr |
| By: | Ahlheim, Michael; Schneider, Friedrich |
| Abstract: | In many empirical Contingent Valuation studies one finds that household size, i. e. the number auf household members, is negatively correlated with stated household willingness to pay for the realization of environmental projects. This observation is rather puzzling because in larger households more people can benefit from an environmental improvement than in small households. Therefore, the overall benefit should be greater for larger households. A plausible explanation could be that household budgets are tighter for large families than for smaller families with the same overall family income. The fact that larger families can afford only smaller willingness to pay statements in Contingent Valuation surveys than smaller families with the same income and the same preferences might have consequences for the allocation of public funds whenever the realization of an environmental project is made dependent on the outcome of a Contingent Valuation study. In this paper we show how the use of household equivalence scales for the assessment of environmental projects with the Contingent Valuation Method can serve to reduce the discrimination of members of large families. -- |
| JEL: | D61 H43 Q51 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:682013&r=agr |
| By: | Matsuda, Ayako; Kurosaki, Takashi; Sawada, Yasuyuki |
| Abstract: | As an empirical research on weather index insurance in developing countries, we conducted surveys on rainfall and temperature index insurance products in Madhya Pradesh, India. The rainfall insurance covers drought and excess rain during the monsoon season, while the temperature insurance covers against excess heat during the dry season. This paper documents the details of surveys implemented under this project and describes the key variables collected from them. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:hit:primdp:34&r=agr |
| By: | M.Fatih Oztek (Department of Economics, METU); Nadir Ocal (Department of Economics, METU) |
| Abstract: | This paper tests and models time varying correlations among agricultural commodity, precious metal and S&P500 indices to uncover whether rising trend among these markets is a result of financialization of commodity markets and/or financial crisis. We particularly investigate the roles of market news, global and market volatility on the nature and dynamics of the correlation. Empirical results show that high volatility during financial crisis is the main source of high correlation of agricultural commodity index with S&P500 and precious metal index, and plays crucial role in correlation between precious metal index and S&P500, possibly due to increasing engagement of financial market investors in commodity markets during financial crisis. Hence, heterogeneous structure of commodity markets delivers better portfolio diversification opportunities during calm periods compared to turmoil periods of financial crisis. |
| Keywords: | Multivariate GARCH, Smooth Transition Conditional Correlation, Portfolio Diversification, Financialization of Commodity Markets, Index Investment and Equity-Commodity Co-movements. |
| JEL: | C32 C58 F36 G15 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:met:wpaper:1302&r=agr |
| By: | E. Anthon Eff |
| Abstract: | Some land uses are considered incompatible. When a parcel is bordered by parcels with incompatible land uses, external costs will impact the property owner. Collective action by property owners then results in land use regulations designed to restrict neighboring parcels from incompatible uses. The pattern of observed land use contiguities thus testifies to cultural notions regarding incompatible land uses. Using urban planning data, a GIS, and methods from social network analysis, this paper attempts to uncover the tacit rules of spatial proximity among land uses in a United States city. The most salient patterns are a separation between places of residence and places of work, a separation of single family homes from other residential land uses, a separation of rural land uses from everything else, and a separation of condominiums from everything else. The paper then attempts to tie these observed spatial patterns to ideas from Thorstein Veblen, Georg Simmel, and Mancur Olson. It is suggested that the United States urban landscape has been shaped by the ethos of the middle class under capitalism, especially the cult of the family and the need to display status. |
| Keywords: | built environment; symbolism; land use patterns |
| JEL: | R14 Z13 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:mts:wpaper:201301&r=agr |
| By: | Phoebe Koundouri; Riccardo Scarpa; Mavra Stithou |
| Abstract: | The valuation method of Choice Experiments (CEs) is often used for the economic valuation of natural areas with several nonmarket features that are either degraded or under-degradation. This method can be used to obtain estimates of Willingness-to-Pay (WTP) for the sustainability of several features of natural ecosystems. In particular, the CE method is a survey-based nonmarket valuation technique which can be used to estimate the total economic value of an environmental good in the form of a stock or a service flow as well as the value of its component attributes. Particularly, the bundle of improvements that have been valued in the Asopos water catchment and presented in this chapter is a mixture of use and non-use values. These include: (a) environmental conditions described in terms of ecological status in all water bodies of the catchment, (b) impact on the local economy in terms of tourism/recreation, demand for local production and cost of living for households and (c) impact on human health described as availability of water with a quality and quantity sufficient for satisfying different local uses. It should be also noted that the survey has been administered in samples of respondents from both the Asopos catchment area (more rural) and the Athens area (more urban), since there is the belief that residents of the Asopos River Basin (RB) are not the only ones who would benefit from the environmental improvements taking place in Asopos area. From a broader policy perspective the goal is to derive estimates of values to inform a cost-effectiveness analysis for the determination of the optimal program of measures as suggested in the content of Article 11 of Water Framework Directive (WFD). |
| Date: | 2013–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1314&r=agr |
| By: | Janet Currie; Joshua S. Graff Zivin; Katherine Meckel; Matthew J. Neidell; Wolfram Schlenker |
| Abstract: | This paper provides estimates of the effects of in utero exposure to contaminated drinking water on fetal health. We examine the universe of birth records and drinking water testing results for the state of New Jersey from 1997 to 2007. Our data enable us to compare outcomes across siblings who were potentially exposed to differing levels of harmful contaminants from drinking water while in utero. We find small effects of drinking water contamination on all children, but large and statistically significant effects on birth weight and gestation of infants born to less educated mothers. We also show that those mothers who were most affected by contaminants were the least likely to move between births in response to contamination. |
| JEL: | I12 Q51 Q53 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18876&r=agr |
| By: | Prasenjit Banerjee; Jason F. Shogren |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:man:sespap:1303&r=agr |
| By: | Yoshito Takasaki |
| Abstract: | This paper empirically examines whether and how experiencing climate-related disasters can improve the rural poorfs adaptation to climate change through community-based resource management. Original household survey data in Fiji capture the unique sequence of a tropical cyclone and the establishment of community-based marine protected areas as a natural experiment. The analysis reveals that household disaster victimization increases its support for establishing marine protected areas for future safety nets. Under Fijian traditional consensual institutions, social learning from disaster experience among community members facilitates their collective decision-making for conservation to enhance community resilience to climate shocks. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:tsu:tewpjp:2013-001&r=agr |
| By: | Alice Favero (Yale University, FEEM and CMCC); Emanuele Massetti (Yale University, FEEM and CMCC) |
| Abstract: | Bio-energy has the potential to be a key mitigation option if combined with carbon capture and sequestration (BECCS) because it generates electricity and absorbs emissions at the same time. However, biomass is not distributed evenly across the globe, and regions with a potentially high demand might be constrained by limited domestic supply. Therefore, climate mitigation policies might create the incentive to trade biomass internationally. This paper uses scenarios generated by the integrated assessment model WITCH to study trade of woody biomass from multiple perspectives: the volume of biomass traded, its value, the impact on other power generation technologies and on marginal abatement costs. The policy scenarios consist of three representative carbon tax policies (4.8 W/m2, 3.8 W/m2 and 3.2 W/m2 radiative forcing in 2100) and a cap-and-trade scheme (3.8 W/m2 in 2100). Results show that the incentive to trade biomass is high: at least 50% of biomass consumed globally is from the international market. Regions trade 13-69 EJ/yr of woody biomass in 2050 and 55-81 EJ/yr in 2100. In 2100 the value of biomass traded is equal to US$ 0.7-7.2 Trillion. Trade of woody biomass sensibly reduces marginal abatement costs. In the tax scenarios, abatement increases by 120-323 Gt CO2 over the century. In the cap-and-trade scenario biomass trade reduces the price of emission allowances by 34% in 2100 and cumulative discounted policy costs by 14%. |
| Keywords: | BECCS, Woody Biomass Trade, IAM, Negative Emissions, Carbon Market |
| JEL: | Q23 Q56 F18 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.13&r=agr |
| By: | Yoon, Jung-Hyun; Lim, Song Soo |
| Abstract: | The paper analyzes the potential trade distortion effects of state trading enterprises (STEs) on soybean imports to Korea. Traditionally, STEs have exercised exclusive rights to import the so-called strategic products, to ensure food security, domestic price stabilization, and import mark-ups. However, STE imports have been criticized on the grounds that industries using soybeans as a raw material are unable to obtain a diverse mix of quality material and cannot exercise the right to choose their own ingredients. Under a theoretical framework, a tariff equivalent of the STE is postulated to equate imports by private firms with imports by the STE. An empirical model is constructed and estimated using annual data spanning 1980-2009. The estimated results show that providing exclusive rights to imports has a negative effect on market access. When the STE pursues consumer welfare, the import-reducing effect turns out to be smaller than that in the producer welfare maximization case. -- |
| Keywords: | state trading enterprises,tariff-rate quotas,tariff equivalents,soybeans,sensitive products |
| JEL: | F11 F13 Q17 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201322&r=agr |
| By: | Andersen, Thomas Barnebeck (Department of Business and Economics); Jensen, Peter Sandholt (Department of Business and Economics); Skovsgaard, Christian Stejner (Department of Business and Economics) |
| Abstract: | This research tests the long-standing hypothesis, put forth by Lynn White, Jr. (1962), that the adoption of the heavy plough in northern Europe led to increased population density and urbanization. White argued that it was impossible to take proper advantage of the fertile clay soils of northern Europe before the invention and widespread adoption of the heavy plough. We implement the test in a difference-in-difference set-up by exploiting regional variation in the presence of fertile clay soils. Consistent with the hypothesis, we find that regions with relatively more fertile clay soil experienced increased urbanization and population after the plough had its breakthrough, which was approximately around the closing of the first millennium AD. We find that the heavy plough accounts for more than 10% of the increase in population density and urbanization during the high middle ages. |
| Keywords: | Heavy plough; medieval technology; agricultural productivity |
| JEL: | J10 N10 N93 O10 O33 |
| Date: | 2013–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:sdueko:2013_006&r=agr |
| By: | Raheel Anjum (Pakistan Institute of Development Economics (PIDE) Islamabad.) |
| Abstract: | Solid waste management remains a serious problem in most of the developing world, although it consumes a larger portion of municipal budgets. In the current project, a number of solid waste management studies were conducted for Islamabad city mostly focusing on the generation, collection and disposal of waste. Moreover, a contingent valuation survey approach was applied for the project. A stratified random sampling technique was applied for sample size selection of five hundred respondents. A double bounded dichotomous choice questions followed by an open ended question format was used to elicit willingness to pay and maximum willingness of the respondents. The logistic regression estimation reveals that 65.4 percent of the total respondents are willing to pay, while multiple regression reveals a monthly mean willingness to pay of Rs 289.15 which is greatly affected by age, household income, education and environmental awareness i.e. respondents with higher levels of education and income show higher willingness to pay. These collected data can specifically help in formulating the solid waste management services while in general can add up its role for the improvement of environmental quality. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pid:ceeccp:2013:03&r=agr |
| By: | MATSUBARA, Hideto |
| Abstract: | The purpose of this study is to identify and explore the determinants of success in the context of an industry crisis. To do so, we used the Japanese orange industry as an illustrative case, from which valuable information was obtained. Between 1968 and 1989, the Japanese orange industry underwent a period of crisis that was characterized by low levels of profitability, stunted growth, and limited development. This economic downturn compelled the production sector of the orange industry to develop innovative solutions for dealing with the crisis, as the shipping associations’ failure to respond to the crisis would damage their market position in the long term. Despite the pervasive economic crisis, those associations that were able to maintain internal contradictions became industry leaders. These events raise several questions. First, what factors incited aggressive associations to employ such counterintuitive strategies? Second, in a period of economic crisis, how could a successful shipping association realize favorable strategies? Based on our analysis, we drew the following conclusions. First, although some shipping associations in the orange industry dealt with the economic crisis through the elimination of internal contradictions (which were impediments to success), it led to a reduced ability to respond to changes in the supply chain. Related to this, although other associations were rife with internal contradictions in the short run, they could achieve desirable outcomes by positively utilizing issues that were perceived as problems. Finally, we found that organizational leadership played a critical role in transforming problems into key factors for success. |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hjbswp:165&r=agr |
| By: | Phoebe Koundouri; Nikos Papandreou; Mavra Stithou; Osiel Davila (AUEB-RC) |
| Abstract: | In order to make possible an economic estimation of industrial pollution, which is one of the main polluters in the Asopos River Basin (RB), another method that of Benefit Transfer (BT) was applied and is presented in this chapter. The fact that gathering primary site-specific data is costly and time-consuming has made BT a more and more popular alternative for the valuation of ecosystem goods and services and it offers a considerable potential in the light of the EU Water Framework Directive (WFD) implementation. In a broad sense, BT method uses existing economic value estimates from one location to another similar site in another location. In this context, the objective of this chapter is to present an empirical application of the methodology of transfer value. A number of valuation studies in the European territory that have explored the impact of industry on water degradation are reviewed in order for a suitable �match� to be made between the Asopos RB and a suitable existing valuation study from which to source economic value information and hence perform the valuation exercise. The chapter closes with conclusions and recommendations for policy design. |
| Date: | 2013–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:1315&r=agr |
| By: | Lorenza Campagnolo (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change and Advanced School of Economics); Carlo Carraro (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change and Ca’ Foscari University of Venice); Marinella Davide (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change); Fabio Eboli (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change); Elisa Lanzi (Fondazione Eni Enrico Mattei and Advanced School of Economics); Ramiro Parrado (Fondazione Eni Enrico Mattei, Euro-Mediterranean Center on Climate Change) |
| Abstract: | Implementing an effective climate policy is one of the main challenges for our future. Even though ambitious mitigation targets are necessarily costly, curbing GHG emissions can prevent future irreversible impacts of climate change on human kind and the environment. Climate policy is therefore crucial for present and future generations. Nonetheless, one may wonder whether the economic and social dimensions of future global development could be harmed by climate policy. This paper addresses this question by examining some recent developments in international climate policy and considering different levels of cooperation that may arise in light of the outcomes of the Conference of the Parties recently held in Doha. Then it explores whether the implementation of various climate policy scenarios would help enhancing sustainability or rather whether there is a trade-off between climate policy and economic development and/or social cohesion. This is done by using a new comprehensive indicator, the FEEM Sustainability Index (FEEM SI), which aggregates several economic, social, and environmental indicators. The FEEM SI index is built into a recursive-dynamic Computable General Equilibrium (CGE) model of the world economy, thus offering the possibility of projecting all indicators into the future, and therefore delivering a perspective assessment of sustainability under different future climate policy scenarios. We find that the environmental component of sustainability improves at the regional and world level thanks to the GHG emission reductions achieved through climate policy. However, the economic and social components are affected negatively yet marginally. Hence, overall sustainability increases in all scenarios. If the USA, Canada, Japan and Russia would not contribute to mitigating future GHG emissions, as envisioned in one of our scenarios, sustainability in these countries would decrease and the overall effectiveness of climate policy in enhancing global sustainability would be offset. |
| Keywords: | Climate policy, Computable General Equilibrium (CGE) Models, Sustainability, Indicators |
| JEL: | Q54 Q56 C68 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2013.10&r=agr |
| By: | Neil J. Buckley; Stuart Mestelman; R. Andrew Muller; Stephan Schott; Jingjing Zhang |
| Abstract: | We study cheap-talk communication in common pool resource environments with and without output-sharing groups. Communication in groups of 12 does not improve efficiency over the non-cooperative Nash outcome without communication. Organizing subjects into output-sharing groups of four players introduces sufficient free-riding incentives to achieve full efficiency. Within-group communication decreases efficiency by countervailing the free-riding incentives induced by output sharing and enhancing between-group competition. The effects are stronger when output-sharing groups have repeated fixed membership. Adding public communication reduces the efficiency-reducing effects of within-group communication. Restricting private communication within social groups that do not share output increases efficiency to almost 100%. |
| Keywords: | Common pool resources, communication, competition, group behavior, partners and strangers, experiments |
| JEL: | Q20 C92 C72 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:deptwp:2013-06&r=agr |