nep-agr New Economics Papers
on Agricultural Economics
Issue of 2013‒08‒05
thirty-one papers chosen by
Angelo Zago
University of Verona

  1. Is Organic Farming Worth its Investment? The Adoption and Impact of Certified Pineapple Farming in Ghana By Linda Kleemann; Awudu Abdulai; Mareike Buss
  2. Mapping marginality hotspots and agricultural potentials in Bangladesh By Malek, Mohammad Abdul; Hossain, Md. Amzad; Saha, Ratnajit; Gatzweiler, Franz W.
  3. Feed and Fodder Value Chains in Bihar: Some Empirical Evidences By Singh, K.M.; Singh, R.K.P.; Jha, A.K.; Kumar, Abhay; Kumar, Anjani; Meena, M.S.
  4. Impact of Eco-Labelling on Indonesia's Smallholder Coffee Farmers By Nuva; Yusif; Nia Kurniawati H.; Hanna
  5. Core economic issues in the horticulture sector of Botswana By Moepeng, Pelotshweu
  6. Whither Dairy Policy? Evaluating Expected Government Outlays and Distributional Impacts of Alternative 2013 Farm Bill Dairy Title Proposals By Newton, John; Thraen, Cameron S.; Bozic, Marin
  7. From guesstimates to GPStimates : land area measurement and implications for agricultural analysis By Carletto, Calogero; Gourlay, Sydney; Winters, Paul
  8. New directions of trade for the agri-food industry: a disaggregated approach for different income countries, 1963-2000 By Raúl Serrano; Vicente Pinilla
  9. Análise situacional, constrangimentos e oportunidades para o crescimento agrário em Moçambique By Cunguara, Benedito; Garrett, James; Donovan, Cynthia; Cássimo, Célia
  10. The Opportunities of Made in Italy Food in Chinese Market By Antonio De Pin
  11. Economic Analysis of Rice Straw Management Alternatives and Understanding Farmers' Choices By Cheryll C. Launio; Constancio A. Asis, Jr.; Rowena G. Manalili; Evelyn F. Javier
  12. Rural development in Botswana: Experience from elsewhere and emerging issues By Moepeng, Pelotshweu
  13. Distributional Impact of Commodity Price Shocks: Australia over a Century By Sambit Bhattacharyya; Jeffrey G. Williamson
  14. Inter-sectoral Terms of Trade and Aggregate Supply Response in Gujarat and Indian Agriculture By Dholakia, Ravindra H.; Sapre, Amey
  15. Evaluating the Pilot Implementation of Payment for Forest Environmental Services in Lam Dong, Vietnam By Nguyen Thi Y Ly
  16. Integrating biophysical and economic systems in a Bayesian Network Hydro-economic framework By Kragt, Marit E.
  17. Rabbit breed characteristics, farmer objectives and preferences in Kenya: A correspondence analysis By Mailu, Stephen; Wanyoike, M; Serem, Jared
  18. Heterogeneity of the effects of health insurance on household savings: Evidence from rural China By Diana Cheung; Ysaline Padieu
  19. Innovative Regional Development Theories and Policies for Food and Nutrition Security By Stefano Marta
  20. Linking Climate Change, Rice Yield and Migration: The Philippine Experience By Flordeliza H. Bordey; Cheryll C. Launio; Eduardo Jimmy P. Quilang; Charis Mae A. Tolentino; Nimfa B. Ogena
  21. Collective action and community development : evidence from self-help groups in rural India By Desai, Raj M.; Joshi, Shareen
  22. Technology Adoption and Dissemination in Agriculture: Evidence from Sequential Intervention in Maize Production in Uganda By Tomoya Matsumoto; Takashi Yamano; Dick Sserunkuuma
  23. Association between obesity and selected morbidities: A study of BRICS By Ankita, Ankita Shukla; Kaushal, Kaushalendra Kumar; Abhishek, Abhishek Singh
  24. Impact of Improved Maize Adoption on Welfare of Farm Households in Malawi: A Panel Data Analysis By Bezu, Sosina; Kassie, Girma; Shiferaw, Bekele; Ricker-Gilbert, Jacob
  25. Banking and price containment in California\'s greenhouse gas emissions market: an experimental analysis of market design By Charles A. Holt; William M. Shobe
  26. Exploring the Forestry Carbon Finance Potential for an Indigenous Cultural Community in the Philippines By Margaret M Calderon; Nathaniel T. Bantayan
  27. An Economic Analysis of the Use of Water Hyacinth for Phytoremediation and Biogas Production in Dianchi Lake, China By Zanxin Wang; Jin Wan
  28. To Burn or not to Burn: Making the Burning of Chocolate Hills of Bohol, Philippines Carbon Neutral By Nathaniel T. Bantayan; Margaret M Calderon; Flocencia B. Pulhin; Canesio D. Predo; Rose Ann C. Baruga
  29. Are German Tourists Environmental Chameleons? A Micro-econometric Analysis of Adaptation to Climate Change By Claudia Schwirplies; Andreas Ziegler
  30. ‘A Systems Approach to Analyse the Impacts of Water Policy Reform in the Murray-Darling Basin: a conceptual and an analytical framework’ By Maheshwar Rao; Robert Tanton; Yogi Vidyattama
  31. Response of Fishermen to Fishing Control Policies in Southern Songkhla Lake, Thailand: A Field Experiment By Kunlayanee Pornpinatepong; Pathomwat Chantarasap; Jumtip Seneerattanaprayul; Wittawat Hemtanon; Papitchaya Saelim

  1. By: Linda Kleemann; Awudu Abdulai; Mareike Buss
    Abstract: Global food markets demand the adoption of food standards by small-scale farmers in developing countries when they enter international markets. While a conventional certification with GlobalGAP can be a market entry condition for conventional food, especially for horticultural products, organic certification is required for the growing organic food market that is usually associated with higher prices. This study analyzes the adoption and profitability of organic certified farming, using recently collected farm-level data of 386 Ghanaian pineapple farmers. We employ an endogenous switching regression model to examine the adoption and impact of organic certification on the return on investment (ROI). The empirical results indicate that both organic certification and GlobalGAP certification result in a positive ROI. However, organic certified farming yields a significantly higher ROI than GlobalGAP certified farmers, mainly due to the price premium on the organic market. Thus, certified organic farming is found to be the more profitable venture
    Keywords: return on investment, impact assessment, organic agriculture, GlobalGAP certification, contract farming
    JEL: O13 Q13 Q17 Q56
    Date: 2013–07
  2. By: Malek, Mohammad Abdul; Hossain, Md. Amzad; Saha, Ratnajit; Gatzweiler, Franz W.
    Abstract: Although Bangladesh made some remarkable achievements in reducing poverty and in improving social and economic outcomes in recent decades, about one-third of the rural population still lives below the upper poverty line most of whom depend on agriculture as their primary source of income. One of the reasons for their poverty is the low productivity that results from sub-optimal use of inputs and other technology. To foster agricultural productivity and rural growth, technology innovations have to reach all strata of the poor among small farming communities in rural Bangladesh. For that purpose, technology opportunities need to be brought together with systematic and location-specific actions related to technology needs, agricultural systems, ecological resources and poverty characteristics to overcome the barriers that economic, social, ecological and cultural conditions can create. The first step towards this is to identify underperforming areas, i.e. rural areas in which the prevalence of poverty and other dimensions of marginality are high and agricultural potential is also high since in such areas yield gaps (potential minus actual yields) are high and productivity gains (of main staple crops) are likely to be achieved. The marginality mapping presented in this paper has attempted to identify areas with high prevalence of societal and spatial marginality-– based on proxies for marginality dimensions representing different spheres of life-–and high (un/der utilized) agricultural (cereal) potentials. The overlap between the marginality hotspots and the high (un/der utilized) agricultural potentials shows that Rajibpur (Kurigram), Dowarabazar (Sunamgonj), Porsha (Naogaon), Damurhuda (Chuadanga), Hizla (Barisal), Mehendigonj (Barisal), Bauphal (Patuakhali) and Bhandaria (Pirojpur) are the marginal areas where most productivity gains could be achieved.
    Keywords: Marginality, agricultural potentials, marginality hotspot mapping, agricultural potential mapping, crop suitability mapping, marginality and potential overlap mapping, Agricultural and Food Policy, Community/Rural/Urban Development, Crop Production/Industries, Food Security and Poverty, Land Economics/Use,
    Date: 2013–06
  3. By: Singh, K.M.; Singh, R.K.P.; Jha, A.K.; Kumar, Abhay; Kumar, Anjani; Meena, M.S.
    Abstract: Livestock production, especially dairy, has long been an important activity for smallholder and resource-poor farmers in India, both for household nutrition and income. Most of the livestock are kept in mixed farming systems, where crop residues, mainly cereal straws have been an important feed resource. India is deficient in the supply of fodder, resulting in very low levels of productivity that limit marketable surplus of milk. In Bihar State, over 50% of the land area is planted to rice, and rice straw along with wheat straw and some pulse residues form the main animal feeds. Recent studies in the Indo-Gangetic Plain have highlighted the problem of insufficient fodder and the poor nutritive value of fodder, a problem which becomes more acute in the more eastern parts of the region where agricultural resources–particularly arable land and water–become scarcer. Fodder scarcity affects most farmers but is particularly acute for landless and those with access to only small area of land. Chronic feed deficit is the major constraint to animal production in Bihar. Most of the dairy farmers are smallholders having one or two local-breed milch animals, which are raised on crop residues and natural pastures with under-employed family labour. Feeding grains, oil cakes and green nutritious fodder are generally restricted to some crossbred cattle. The feed and fodder deficiencies, in fact, have been the main limiting factors in raising livestock productivity. The present study is an attempt to look into various issues of feed and fodder markets and the role of various stakeholders in fodder value chains.
    Keywords: Feed, Fodder, Marketing, Feed Quality, Value chains, Bihar, India
    JEL: M31 O13 O17 Q1 Q13
    Date: 2013–07–02
  4. By: Nuva (Department of Resource and Environmental Economics (ESL), Bogor Agricultural University); Yusif (Department of Resource and Environmental Economics (ESL), Bogor Agricultural University); Nia Kurniawati H. (Department of Resource and Environmental Economics (ESL), Bogor Agricultural University); Hanna (Department of Resource and Environmental Economics (ESL), Bogor Agricultural University)
    Abstract: In terms of value, coffee which is mostly grown on smallholder farms, ranked fourth in the exports of food and agricultural commodities of Indonesia in 2008. Together with state-owned and private plantations, they add up to 969,082 ha of area harvested – the second largest in the world. Nevertheless, Indonesia ranked only seventh in the world in terms of yield per hectare. In addition, the coffee sector is facing many problems related to environment and its sustainability. Eco-labelling can be a solution to indirectly increase productivity and solve environmental problems brought about by coffee cultivation through better farming techniques imposed by eco-labelling organizations. This research studies the impact of eco-labelling implementation by Indonesia’s smallholder coffee farmers using financial analysis. Financial analysis was used to compare the profitability of eco-labelling and non-eco-labelling smallholder coffee farms. Descriptive statistical analysis was also used to present the stakeholders’ and farmers’ perceptions of eco-labels in the coffee sector. To get the primary data, survey and personal in-depth interviews were conducted. Findings show that eco-labelling in the coffee sector is profitable as evidenced by the results of cash flow analysis for both eco-labelled and non-eco-labelled Arabica and Robusta coffee farms. Nevertheless, problems still exist in the implementation of coffee certification i.e., limited support from government, quite difficult to implement due to low educational level of farmers and lack of awareness of advantages of eco-labels, the differences of certification scheme required by different coffee-importing countries, and financing problem for the certification fee.
    Keywords: pollution, Eco-labelling, Indonesia
    Date: 2013–03
  5. By: Moepeng, Pelotshweu
    Abstract: Poverty and unemployment in Botswana are the major problems that the government is focusing its effort and attention on. The overall government aim is to eradicate poverty and diversify the economy away from diamond mining to create sustainable jobs. Agriculture is traditionally thought to be a primary sector that can help the country’s disadvantaged community to escape from poverty and problems of unemployment. However, Botswana has experienced falling agricultural productivity and a fall in its GDP share from 40 per cent in 1966 at independence from Britain to 2.1 per cent 2001. This article demonstrates that although overall performance in the agricultural sector of Botswana has been falling and remains generally very low, in the sub-sector of horticultural production, production has doubled in the last decade and productivity has improved. This has led to improved achievement towards food self sufficiency at the national level in terms of availability of food from the nation’s producers. However, this article argues that such improved productivity in horticulture only benefits a few rich companies and individuals who have the capacity to invest in the very high capital investment required in this sector and in the necessary transport (including refrigerated transport) that is needed to move horticultural goods from one place to the other. One of the major issues raised in this study is that the agricultural policy excludes the horticultural sector from its major priorities. Hence, most activities in the sector are influenced by geographical location and transport or logistics concerns, the market structure, and well intended government interventions that are sometimes used to crowd out the small-scale farmers and stakeholders. Government is also encouraged to re-look at the opportunities for marketing horticulture and take an active lead to create structures that can promote creation of sustainable jobs and participation of small-scale producers in this sector.
    Keywords: Botswana, Botswana’s horticulture market, employment creation, food self-sufficiency, horticulture, poverty alleviation., Community/Rural/Urban Development, Crop Production/Industries, Q13, Q18, O13,
    Date: 2013–05
  6. By: Newton, John; Thraen, Cameron S.; Bozic, Marin
    Abstract: In this analysis we compare the total expected government outlays and distribution of benefits under newly proposed dairy margin insurance programs to those under existing counter-cyclical payment programs. We combine simulation and structural modeling techniques to forecast milk price and dairy income-over-feed-cost margins. Using the price forecasts we employ Monte-Carlo experiments to evaluate the total expected government outlays for a sample of 5000 representative farms given a constant relative risk aversion utility framework. We find that expected outlays favor large farm operations and are an order of magnitude higher than those under existing programs. Under the current policy framework (MILC), farms with less than 100 cows (76% of farms) account for 42% of net payments and farms over 1000 cows (2% of farms) account for 6% of net payments. Under the new policy regime farms with fewer than 100 cows will get 17-21% of net program benefits, and farms over 1000 cows will get 36-43% of benefits.
    Keywords: dairy, margin insurance, farm bill, supply-management, dairy security act, dairy freedom act, Gini coefficient, farm payments, Agribusiness, Agricultural and Food Policy, Demand and Price Analysis, Farm Management, Livestock Production/Industries, Risk and Uncertainty,
    Date: 2013
  7. By: Carletto, Calogero; Gourlay, Sydney; Winters, Paul
    Abstract: Land area measurement is a fundamental component of agricultural statistics and analysis. Yet, commonly employed self-reported land area measures used in most analysis are not only potentially measured with error, but these errors may be correlated with agricultural outcomes. Measures employing Global Positioning Systems, on the other hand, while not perfect especially on smaller plots, are likely to provide more precise measures and errors less correlated with agricultural outcomes. This paper uses data from four African countries to compare the use of self-reported and Global Positioning Systems land measures to (1) examine the differences between the measures, (2) identify the sources of the differences, and (3) assess the implications of the different measures on agricultural analysis focusing on the inverse productivity relationship. The results indicate that self-reported land areas systematically differ from Global Positioning Systems land measures and that this difference leads to potentially biased estimates of the relationship between land and productivity.
    Keywords: E-Business,Rural Development Knowledge&Information Systems,Economic Theory&Research,Roads&Highways,Science Education
    Date: 2013–07–01
  8. By: Raúl Serrano (Department of Business Administration, Faculty of Economics and Business Studies, Universidad de Zaragoza); Vicente Pinilla (Department of Applied Economics and Economic History, Faculty of Economics and Business Studies, Universidad de Zaragoza)
    Abstract: The objective of the present study is to explain the fundamental changes experienced by agricultural trade in the second half of the XX century. The first of these was a progressive concentration of this trade among developed countries, while the second was a significant boom in agricultural trade among developing countries, since the final decade of the last century.Our gravity model underlines that, the agricultural products exported by the Southern countries to any destination had a demand elasticity which was negative and statistically signficant. Furthermore, this model has also permitted verification that Regional Trade Agreements have significantly encouraged agricultural trade among developed countries. In contrast, the developing countries were faced with highly protected markets and a relative initial failure in their attempts to liberalize their regional markets. The boom from the final decade of the XX century in South-South agricultural trade can be explained, by the stimulus provided by the new RTAs among developing countries.
    Keywords: Agri-food trade, gravity equation, regional trade agreements, agri-food industry
    JEL: F14 N50 N70 Q17
    Date: 2013–02
  9. By: Cunguara, Benedito; Garrett, James; Donovan, Cynthia; Cássimo, Célia
    Keywords: Agricultural and Food Policy, International Development,
    Date: 2013–07
  10. By: Antonio De Pin (Department of Economics, University Of Venice Cà Foscari)
    Abstract: Chinese food habits are currently experiencing rapid changes. The increased buying power of the consumers has led to the adoption of a new lifestyle which affects also their diet - both in quantity and quality. Consumption rates have grown particularly high for meat, dairy, fish, oil, pasta and confectionery products. This trend has caused a sudden boom in food imports, with China becoming the world’s largest market and an essential opportunity for Italian business. The present study aims to outline the market potentiality of the Italian agro-food sectors which enjoy higher competitiveness. We also focus on some issues concerning the positioning of such food products in Chinese market. Their success is likely to foment Italian sounding phenomena - unfair competition set out to evoke an Italian image, in the absence of proper requirements. Company strategies are heavily influenced by such imitation activity: not only food safety is at stake, but the very transparency of international trade. Markets end up rewarding opportunistic behaviors - due to high transaction costs and manifest information asymmetries - and might lead to specific kinds of market failure.
    Keywords: Agricultural trade, Chinese market, Made in Italy food, Italian Sounding
    JEL: Q13 Q17
    Date: 2013
  11. By: Cheryll C. Launio (Socioeconomics Division, Philippine Rice Research Institute); Constancio A. Asis, Jr. (Socioeconomics Division, Philippine Rice Research Institute); Rowena G. Manalili (Socioeconomics Division, Philippine Rice Research Institute); Evelyn F. Javier (Socioeconomics Division, Philippine Rice Research Institute)
    Abstract: The negative effects of open-field rice straw burning on the environment and human health are well documented in local and international literature. Farmers have thus been encouraged to refrain from burning rice straw and adopt more environment- and human-friendly rice straw management practices. This research project aimed at assessing the environmental consequences of rice straw burning and other straw management practices in terms of greenhouse gas (GHG) emissions, and evaluating the cost-effectiveness and adoption of selected rice straw management alternatives. The study evaluated emissions of methane (CH4) and nitrous oxide (N2O) gases only since carbon dioxide (CO2) emissions from rice cultivation and associated practices are assumed to be reabsorbed during the next growing season. Given the average yield and total rice area of the country by season and ecosystem, and the current use of rice straw based on our survey of farmers, rice stubble and straw contribution to CH4 and N2O emissions in paddy fields is around 16 M tons carbon dioxide equivalent 1 (CO2-eq) in the base year. Incorporating stubble less than 30 days before crop establishment appears to be the largest contributor, accounting only for the current year. On a per hectare-basis and considering a time horizon of five years with associated assumptions on cost savings and secondary benefits, incorporating stubble more than 30 days before crop establishment, and incorporating composted rice straw in the field yielded the lowest cumulative CH4 and N2O emissions. The most cost-effective option for farmers is to incorporate stubble and straw in the soil more than 30 days before crop establishment. Rapid straw composting and incorporation of rice straw compost entails much higher additional cost but it also significantly mitigates GHG emission, hence it is the next most cost-effective option. Incorporating rice stubble and straw less than a month before crop establishment, on the other hand, appears to result in a net increase in ton CO2-eq given the assumed time horizon. Literature points to the potential of rice straw as raw material for power generation and bioethanol production and the corresponding reduction in GHG emissions, but this study has not evaluated the cost-effectiveness of these options, hence, this is recommended for further study. The estimated GHG emissions are generally indicative and the economic analysis must be interpreted in relative terms. Further study on water management and tillage options as mitigation options is recommended for a broader perspective useful for farmers, policy-makers and other rice stakeholders. A mix of socio-economic, farm, and awareness and attitude variables determine why farmers choose to burn, incorporate, or remove rice straw. Training on rice production for farmers, increasing the demand for rice straw for other uses, developing options for reducing the cost of collection and transportation of rice straw, and intensifying information campaigns and drives regarding environmental regulations and policies are recommended.
    Keywords: pollution, waste, Philippines
    Date: 2013–03
  12. By: Moepeng, Pelotshweu
    Abstract: Poverty incidence is one of the most critical concerns in Botswana and the government has resolved to eradicate this problem and ensure that every citizen live in a dignified and acceptable condition consistent with the national aspirations as set out in the National Vision 2016. Currently, rural areas are persistently experiencing the highest poverty incidence compared to any other place in the country. This has been the case ever since we have measured the extent of the poverty problem in 1985/86. Rural development in Botswana has been a central policy and strategy of government effort to improve the welfare and standard of living since independence. Since the 1970s, a rural development council that was traditionally chaired by a Vice President demonstrates the importance that government takes about rural development. The membership of this council involves all permanent secretaries and key non-government stakeholders. The Council has made tremendous success in transforming Botswana from a primarily rural based population to a country where the majority of its residents live in urban areas. Initial rural development efforts that provided basic infrastructure countrywide contributed to Botswana’s urbanization as part of this process involved a reclassification of many former rural villages into urban villages, particularly after the 1991 Population Census. Rural population is now a minority but the problems of poverty and vulnerability remains higher than in other areas. The nature and outlook of rural areas have changed dramatically and so have the needs of the rural people. There is a need to review our definition of a rural area, and re-visit the policies and processes of facilitating rural development to make them more relevant to emerging issues and challenges. This papers proposes that the country should choose its programmes and projects for development based on their ability and past record to perform, target government support more efficiently and effectively, acknowledge emerging challenges and respond accordingly by improving the operations of a market system, even if it requires government intervention.
    Keywords: agriculture, credit, cooperatives, globalization, indigenous knowledge land markets, poverty, property rights, rural development, sustainable employment, wildlife tourism, Agricultural and Food Policy, Community/Rural/Urban Development, Labor and Human Capital, O13, O15, 018,
    Date: 2013–06
  13. By: Sambit Bhattacharyya; Jeffrey G. Williamson
    Abstract: This paper studies the distributional impact of commodity price shocks over the both the short and very long run. Using a GARCH model, we find that Australia experienced more volatility than many commodity exporting developing countries over the periods 1865-1940 and 1960-2007. A single equation error correction model suggests that commodity price shocks increase the income share of the top 1, 0.05, and 0.01 percents in the short run. The very top end of the income distribution benefits from commodity booms disproportionately more than the rest of the society. The short run effect is mainly driven by wool and mining and not agricultural commodities. A sustained increase in the price of renewables (wool) reduces inequality whreas the same for non-renewable resources (minerals) increases inequality. We expect that the initial distribution of land and mineral resources explains the asymmetric result.
    Keywords: commodity price shocks; commodity exporters; top incomes; inequality
    JEL: F14 F43 N17 O13
    Date: 2013
  14. By: Dholakia, Ravindra H.; Sapre, Amey
    Abstract: In this paper we empirically investigate the role of inter-sectoral terms of trade in determining the growth performance of agriculture in Gujarat and All India during the period 1960-2011. Terms of trade reflects price signals and economic incentives for producers and hence could be a determinant of supply response and growth performance of agriculture and the whole economy. We identify structural breaks endogenously in inter-sectoral terms of trade and analyse phase wise growth performance in distinct periods in both Gujarat and all India. Empirical analysis supports the hypothesis that favourable terms of trade for agriculture lead to a higher growth in agriculture and the whole economy. The results show a strong evidence for positive price elasticities of supply in agriculture and almost rules out the possibility of backward bending supply curve. Favourable terms of trade for agriculture are an additional factor for the high growth trajectory of Gujarat agriculture not emphasized in the literature.
  15. By: Nguyen Thi Y Ly (Faculty of Economics, University of Agriculture and Forestry (UAF), Vietnam)
    Abstract: This study aims to assess the performance and the short-term impacts of the payment for forest environmental services (PFES) policy in Lam Dong Province, Vietnam. After a two-year pilot implementation (2009-2010), the Vietnam government plans to establish a national legal PFES framework. The paper describes the PFES pilot policy and how this pilot project is being implemented. The study focuses on the economic and environmental impacts of the pilot PFES. Economic effectiveness is estimated in terms of household annual income contribution, improved access to financial resources, and employment improvement. The environmental impact is assessed by proxy variables such as time spent conducting forest protection and conservation, amount of illegal logging, forest removed or burned, and farmers’ and local authorities’ awareness of environmental improvement. By applying the propensity score matching and difference in difference methods, the research found that PFES has contributed to increasing annual household income by about VND 3.9 million/ household per year. It has also generated positive effects on forest environmental services as well as improved the awareness of local farmers and authorities of the value of forests and the need for their protection. However, some problems remain and are associated with the following: forest environmental services have not been fully defined; participation is not completely voluntary; payment relies on a top-down mechanism; and the sustainability of the system is not assured.
    Keywords: forest, Vietnam
    Date: 2013–02
  16. By: Kragt, Marit E.
    Abstract: Management of water resources needs to jointly consider the multiple, interdependent, uses of water. Decision support tools that aim to assist efficient integrated water resources management should integrate the environmental and socio-economic systems affected by changes in resource allocation. There exist, however, few models that assess the trade-offs between environmental and economic impacts of water management changes in an integrated framework. This paper presents a hydro-economic model that integrates hydrological and ecological systems with economic costs and nonmarket benefits in a Bayesian Network modelling framework. A suite of different modelling tools were used to assess the biophysical and economic impacts of catchment management scenarios, for a case study in Tasmania, Australia. The Bayesian Network provides a flexible modelling approach to incorporate different types of data and had the advantage of explicitly accounting for accumulated uncertainty in information.
    Keywords: Integrated Modelling, Uncertainty, Nonmarket Valuation, Choice Experiments, Integrated Water Resource Management, Hydrological Modelling, Hydro-ecological modelling, Environmental Economics and Policy, Land Economics/Use, C69, Q20, Q51, Q57,
    Date: 2013–07–19
  17. By: Mailu, Stephen; Wanyoike, M; Serem, Jared
    Abstract: Rabbit production is becoming important in Kenya not by young boys but as an economic undertaking. This may be due to decreasing per capita landholdings due to increasing human population density. However, there is little published information on requirements for successful rabbit production. A study was designed done to characterize the rabbit production systems to allow identification of constraints and opportunities along this particular value chain. Respondents in a survey were purposively selected from four regions of the country where there is significant rabbit farming activity according to the Ministry of Livestock Development. These included Rift Valley, Central, Eastern and Coastal region. Structured questions were asked, several rabbit breeds and their crosses were identified and the study sought to couple farmer stated objectives with these breeds. The coupling of breeds to the stated farmer assessment of their traits and benefits was also attempted. This was implemented through the application of correspondence analysis on these frequency data. Results indicated that there was considerable rhyme between farmer stated objectives and the rabbit breeds while this correspondence also stretched to breed and the farmers' stated qualities of the breeds. These results therefore showed that stated inherent qualities of the breed also might direct farmer choices. Whereas slightly over half (52.3%) of the farmers kept rabbits with a commercial intention, the findings from the analysis indicate that some heavy breeds such as French Ear Lop and the Flemish Giant score highly for their carcass weight. That these breeds have a poor bone-meat ratio unlike the more popular New Zealand White and Californian White indicate that farmers do not consider the true value of the product such as bone:meat ratios. In a commercial enterprise, these results are perplexing and serve to show that farmers may require more capacity to appreciate the inherent breed characteristics rather than just the overtly recognizable breed characters.
    Keywords: Correspondence analysis, farmer preference, rabbit characteristics
    JEL: C10 Q12
    Date: 2013–07–20
  18. By: Diana Cheung (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne); Ysaline Padieu (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)
    Abstract: This paper estimates the impact of the New Cooperative Medical Scheme (NCMS) on household saving across income quartiles in rural China. We use data from the China Health and Nutrition Survey for the 2006 wave and we run an ordinary least squares regression. We control for the endogeneity of NCMS participation by using an instrumental variable strategy. We find evidence that NCMS has a negative impact on savings of lower-middle-income participants, while it does not affect the poorest households. The negative effect of NCMS on savings of middle-income participants holds when we use propensity score matching estimations as a robustness check.
    Keywords: Rural China; New Cooperative Medical Scheme; health insurance; Chinese savings and consumption; propensity score matching
    Date: 2013–07
  19. By: Stefano Marta (DISCE, Università Cattolica)
    Abstract: The pressing nature of the issue of hunger and food insecurity, the first United Nations Millennium Development Goal, the fact that this MDG is far to be achieved by 2015 and the growing consensus around the inadequacy and ineffectiveness of the traditional approaches to tackle it, suggest that new approaches to food and nutrition security (FNS) policies and strategies should be explored, developed and implemented. In particular, the inadequacy of past policies suggests that there is a need to shift from one-size-fits-all, entirely top-down and sectoral-based approaches to integrated, context-specific and place-based approaches which would allow to capture and include the complexity of development, the importance of territorial endogenous development potential, the key role of both national and sub-national actors and stakeholders through the principle of multi-level governance in the policy-making process. The place-based approach to development policies, which the OECD defines as the new regional development paradigm, is built and developed on the basis of these key principles and concepts. This paper tries to explore and analyze the extent to which a place-based approach, which so far has been applied and implemented mainly in developed countries and in few cases in developing countries (eg. Cambodia) to address more generally the issue of development, could represent an effective and beneficial policy approach to tackle the issue of food insecurity. This research question is addressed both through a comprehensive literature review on food and nutrition security and on the innovative regional development approaches and paradigms, and by interviewing some of the main experts in terms of food security, place-based/territorial approach and its critique, namely the spatially-blind approach. The result of the research is a conceptual and policy framework for the place-based approach to food and nutrition security, which highlights the rationale, potential effectiveness and key concepts characterizing this innovative approach and tries to identify its potential limitations and ways to strengthen it. It is finally suggested that this territorial dimension should be more reflected in food and nutrition security policies and strategies.
    Keywords: Food and Nutrition Security; Place-Based Approach; Regional Development Policies
    JEL: R10 R11 R58
    Date: 2013–05
  20. By: Flordeliza H. Bordey (Philippine Rice Research Institute, Maligaya, Philippines); Cheryll C. Launio (Socioeconomics Division, Philippine Rice Research Institute); Eduardo Jimmy P. Quilang (Philippine Rice Research Institute, Maligaya, Philippines); Charis Mae A. Tolentino (Philippine Rice Research Institute, Maligaya, Philippines); Nimfa B. Ogena (Philippine Rice Research Institute, Maligaya, Philippines)
    Abstract: This study tests the hypothesis that climate change, through its rice productivity impacts, induces out-migration in the Philippines. Results show that climate change effects such as increasing night time temperature and extreme rainfall pattern, by way of reduction in rice yield and farm revenues, significantly increases the number of Overseas Filipino Workers. Findings also show that overseas migration of female workers is more sensitive to climate and rice productivity changes compared to male overseas migration. However, unlike overseas migration, the reduction in yield and farm revenues act as a constraint to domestic migration.
    Keywords: climate change, rice yield, migration, Philippines
    Date: 2013–03
  21. By: Desai, Raj M.; Joshi, Shareen
    Abstract: In response to the problems of high coordination costs among the poor, efforts are underway in many countries to organize the poor through"self-help groups"(SHGs) -- membership-based organizations that aim to promote social cohesion through a mixture of education, access to finance, and linkages to wider development programs. The authors randomly selected 32 of 80 villages in one of the poorest districts in rural India in which to establish SHGs for women. Two years of exposure to these programs increased women's participation in group savings programs as well as the non-agricultural labor force. Compared to women in control villages, treated women were also more likely to participate in household decisions and engage in civic activities. The authors find no evidence however, that participation increased income or had a disproportionate impact by women's socio-economic status. These results are important in light of the recent effort to expand official support to SHGs under the National Rural Livelihood Mission.
    Keywords: Access to Finance,Primary Education,Housing&Human Habitats,Population Policies,Social Accountability
    Date: 2013–07–01
  22. By: Tomoya Matsumoto (National Graduate Institute for Policy Studies); Takashi Yamano (National Graduate Institute for Policy Studies); Dick Sserunkuuma (Makerere University)
    Abstract: We use a randomized control trial to measure how the free distribution of modern inputs for maize production affects their adoption in the subsequent season. Information collected through sales meetings where modern inputs were sold revealed that the average purchase quantity of free-input recipients was much higher than that of non-recipients; that of the neighbors of recipients fell in-between. Also, credit sales had a large impact on purchase quantity, and the yield performance of plots where the free inputs had been applied positively affected the purchase quantities of both recipients and the neighbors with whom they shared information on farming.
    Date: 2013–07
  23. By: Ankita, Ankita Shukla; Kaushal, Kaushalendra Kumar; Abhishek, Abhishek Singh
    Abstract: Context: Over the past few decades, obesity has reached epidemic proportions, and is a major contributor to the global burden of chronic diseases and disability. There is little evidence on obesity related co-morbidities in BRICS countries. Objectives: The first objective is to examine the factors associated with overweight and obesity in four of the five BRICS countries (China, India, Russia and South Africa). The second is to examine the linkage of obesity with selected morbidities. Methods: We used data from the Study on Global Ageing and Adult Health (SAGE) survey conducted in China, India, Russia and South Africa during 2007-10. Respondents with a body mass index (BMI)>= 25 but <30 were coded as overweight, and those with BMI>= 30 as obese. Bivariate analysis, binary logistic regression and multinomial logistic regression are used in the analysis. The morbidities included in the analysis are Hypertension, Diabetes, Angina, Stroke, Arthritis and Depression. Results: The prevalence of obesity was highest in South Africa (35%) followed by Russia (27%), China (5%) and India (3%). The prevalence of obesity was significantly higher in females as compared to males in all the countries. While the wealth quintile was significantly associated with obesity in India, Russia and South Africa, engaging in work requiring physical activity was significantly associated with obesity in China and South Africa. Overweight/obesity was significantly associated with morbidities such as Hypertension, Angina, Diabetes and Arthritis in all the four countries. In comparison, overweight/obesity was not associated with Stroke and Depression in any of the four countries included in the analysis. Conclusion: The data demonstrates a high prevalence of obesity in South Africa and Russia. Overweight/obesity was significantly associated with Hypertension, Angina, Diabetes and Arthritis.
    Keywords: overweight, obesity, hypertension, diabetes, angina, stroke, arthritis, depression, BRICS
    JEL: I1 I12
    Date: 2013–07–19
  24. By: Bezu, Sosina; Kassie, Girma; Shiferaw, Bekele; Ricker-Gilbert, Jacob
    Abstract: This paper assesses improved maize adoption in Malawi and examines the link between adoption and household welfare using a three-year household panel data. The distributional effect of maize technology adoption is also investigated by looking at impacts across wealth and gender groups. We applied control function approach and IV regression to control for endogeneity of input subsidy and improved maize adoption. We found that modern maize variety adoption is positively correlated with the household’s own maize consumption, income and asset holdings. We found evidence that improved maize adoption has stronger impact on welfare of female-headed households and poorer households.
    Keywords: Improved maize, hybrid maize, technology adoption, subsidy, Malawi, Africa
    JEL: I39 O1 O12 O33 Q16 Q18
    Date: 2013–07–31
  25. By: Charles A. Holt (University of Virginia); William M. Shobe (University of Virginia)
    Abstract: We use a set of economic experiments to test the effects of two key features of California\'s new program for limiting greenhouse gas emissions. The cap & trade scheme included in the program includes two novel features, limits on allowance ownership (or \'holding limits\') and a tiered price containment reserve sale. These program features are linked by their potential to affect liquidity in the market for emission allowances. We examine the effects of these features on liquidity and on measures of market performance including efficiency, price discovery, and price variability. We find that tight holding limits have the effect of substantially lowering the number of banked allowances available for trade, hence lowering liquidity. This impairs the ability of traders to smooth prices over time resulting in lower efficiency, less effective price discovery, and higher variability in price. The price containment reserve, while increasing the supply of allowances available to traders, does not appear to mitigate the effects of tight holding limits on market outcomes. As a result, the imposition of holding limits in the allowance market may have the consequence of increasing the likelihood of the market manipulation that they were intended to prevent.
    Keywords: Emission markets; climate change; cap and trade
    JEL: Q54 Q58 H
    Date: 2013–07–30
  26. By: Margaret M Calderon (College of Forestry and Natural Resources, University of The Philippines, Los Banos); Nathaniel T. Bantayan (College of Forestry and Natural Resources, University of The Philippines, Los Banos; College of Forestry and Natural Resources, University of The Philippines, Los Banos; College of Forestry and Natural Resources, University of The Philippines, Los Banos)
    Abstract: The project explored the potentials of a forestry carbon project for an indigenous cultural community in the Philippines. Specifically, it assessed the global potential of forestry carbon finance; reviewed the legal and policy environments of forestry carbon projects in the Philippines; and evaluated the feasibility of a forestry carbon project in an Ayta community. The literature indicates the great potential of forestry carbon projects in both the global and local markets. In the Philippines, two such projects have passed the voluntary carbon market standard, and there are efforts to develop projects under the National REDD+ Strategy. The Philippines is committed to addressing climate change, as evidenced by its signing the ratification of the United Nations Framework Convention on Climate Change and the Kyoto Protocol, and the enactment of Republic Act 9729, otherwise known as the Climate Change Act of 2009. The results of the feasibility analysis reveal that developing a forestry carbon project for the Magbukún Ayta of Kanawan, Morong, Bataan is technically and financially feasible. The projected carbon loss in the ancestral domain due to possible deforestation in the old growth forest is a lot higher than expanding second growth forests and brushlands, thus creating an excellent opportunity for the community to be engaged in a forestry carbon project. The net present value (NPV) and internal rate of return (IRR) at the most conservative conditions (i.e., high scenario, price of USD 5/ton CO2, and 20% discount rate) are PhP 170.271 million and 40 %, respectively, which show that the forestry carbon project is financially viable. The Magbukún Ayta have also expressed in a resolution that they are amenable to the possibility of being involved in a payment for ecosystem services (PES) project, specifically on the carbon sequestration potential of their forests, making the forestry carbon project socially acceptable. It is therefore recommended that the potential of developing a forestry carbon project for the Magbukún Ayta be pursued.
    Keywords: forest, Philippines
    Date: 2013–01
  27. By: Zanxin Wang (School of Development Studies, Yunnan University); Jin Wan (School of Development Studies, Yunnan University)
    Abstract: The excessive growth of water hyacinth is a common environmental problem in tropical regions. The use of water hyacinth to remove nutrients from bodies of water and to produce biogas is a technically feasible way of controlling water hyacinth, but its environmental and economic performance are not well understood. This study collected data from an experimental biogas plant to develop a lifecycle analysis and a cost benefit analysis for the control of water hyacinth in Dianchi Lake, a eutrophic lake in China. A comparison was made between the proposed project and the current approach at Dianchi Lake of disposing of water hyacinth via collection and landfill. The results revealed that the proposed project is economically feasible with a desirable energy gain. The results also showed that the project is not financially feasible but, compared to the current landfill practice, the government would be able to spend less on controlling water hyacinth if they implemented the proposed project. The removal of water hyacinth to produce biogas can also contribute to water quality improvement and GHG emission reduction; however, these values depend on the scale of processing undertaken by the biogas plant. Since both the current approach and the proposed project can remove nutrients from bodies of water, the additional value resulting from the proposed project of an improvement in water quality only becomes possible when the processing scale of the biogas plant is greater than the amount of water hyacinth disposed of by landfill. The proposed project can avoid methane emissions when the processing scale is greater than the amount of water hyacinth currently disposed of via landfill. The internalization of GHG emission reduction alone is not sufficient to make the project financially feasible and therefore other sources of compensation are needed in order to promote the production of biogas from water hyacinth. The proposed project could be a potential microeconomic option, which could respond to China’s macro water pollution control policies, renewable energy development, and energy saving and emissions reduction. However, institutional arrangements are required to coordinate these diverse policies when they are applied to the proposed project.
    Keywords: pollution, waste, China
    Date: 2013–02
  28. By: Nathaniel T. Bantayan (College of Forestry and Natural Resources, University of The Philippines, Los Banos); Margaret M Calderon (College of Forestry and Natural Resources, University of The Philippines, Los Banos); Flocencia B. Pulhin (College of Forestry and Natural Resources, University of The Philippines, Los Banos); Canesio D. Predo (University of the Philippines Los Banos, Philippines); Rose Ann C. Baruga (College of Forestry and Natural Resources, University of The Philippines, Los Banos)
    Abstract: This study was conducted to evaluate the current management regime of burning vis-à-vis burning with carbon offsets for the Chocolate Hills Natural Monument (CHNM) in Bohol, Philippines. The current scheme of burning to maintain the grass-covered (tree-less) and brown hills to sustain tourist arrivals is seen as environmentally unsound and inconsistent with existing environmental laws. The study estimated the carbon loss from burning and compared the carbon loss value with the tourism income of the Chocolate Hills under the status quo with the end view of evaluating a carbon offset project as an alternative management scheme. A comparison of the benefits and costs of the status quo and the proposed management regime was conducted. Based on these assessments, policy recommendations were drawn up for consideration by the CHNM management. Historically, the hills of CHNM were burned for the grazing of animals. This made the hills’ landscape visually appealing and consequently attractive to tourists. However, when it was declared as a protected area (PA), burning of the hills was discouraged. Tree species, mostly indigenous, were allowed to grow in the hills characteristic of natural regeneration. This resulted to the loss of the unique hill landscape preferred by tourists. Such situation created a divide between the tourism office and the Protected Area Management Board (PAMB). The tourism office, managed by the local government of Carmen, wanted to maintain the hills bare for tourism, while the PAMB of CHNM is mandated to ensure compliance to environmental laws such as the ban on burning. This study evaluated the establishment of a carbon offset project to make up for the carbon loss if a certain number of hills were burned to maintain their tourism value. The vegetation and biomass analysis and the carbon study showed that an estimated 153 ha of forest should be established to offset the carbon emission due to the clearing of such hills. This means that the carbon offset project will require the establishment of one hectare of forest for every two hills cleared. The cost of forestation could be supported by income from tourism in a form and manner that directly involve the community. The study found that the present value of tourism income was very much higher than the cost of carbon emission due to burning. The study recommends that the PAMB consider establishing a carbon offset project to make the current management practice carbon neutral.
    Keywords: forest, Philippines
    Date: 2013–02
  29. By: Claudia Schwirplies (University of Kassel); Andreas Ziegler (University of Kassel)
    Abstract: SThis paper empirically analyzes the determinants of individual tourism-related adaptation to climate change, i.e. the stated choice of alternative travel destina-tions due to increasing temperatures in the future. By examining the tourism sector, our study investigates an industry which was not extensively considered in economic analyses of climate change so far in spite of its worldwide huge eco-nomic relevance and strong sensitivity to global warming. Our empirical analysis on the basis of unique representative data from 5370 German tourists first re-veals a non-negligible extent of tourism-related adaptation to climate change in the amount of more than 22% of the respondents. Our micro-econometric analysis with binary probit models implies strong positive effects of a high awareness of climate change effects, increasing age as indicator for vulnerability of climate change, as well as a high adaptive capacity (measured by disposable financial resources) on this type of adaptation. The estimation results suggest no single significant effect of a high educational level or a high level of information on ad-aptation to climate change, but a positive interaction effect (which was, in con-trast to former studies, estimated according to Ai and Norton 2003 and Norton et al. 2004). Our empirical results underline several challenges for the tourism in-dustry and policy makers in order to transform the tourism infrastructure and to diversify holiday offers. They additionally reveal important focus groups of tour-ists such as (the increasing group of) elderly persons who are crucial for the de-velopment of successful future product strategies in the tourism sector.
    Keywords: Climate change, adaptation, tourism, micro-econometric analysis
    JEL: Q54 Q58
    Date: 2013
  30. By: Maheshwar Rao (NATSEM, University of Canberra); Robert Tanton (NATSEM, University of Canberra); Yogi Vidyattama (NATSEM, University of Canberra)
    Abstract: The water policy reform under the Murray-Darling Basin (MDB) Plan will have a range of implications for the ecology, the economy and the community of the Basin – given the interdependent nature of the three systems. In this paper, an integrative or a systems approach is proposed to analyse the impacts of water policy reform in the MDB. The first part of the paper focuses on developing a conceptual framework, which identifies the main interdependencies and interactions among the three systems in the MDB. The second part of the paper attempts to operationalize the conceptual framework by identifying the suitable analytical tools or models that link the three systems. The ecology is linked to the economy via the water policy reform, that is, the change in the quantity of water that flows from the ecology to the economy (ecology-economic nexus). The economy is linked to the social system via computable general equilibrium (CGE) and microsimulation models (economy-social/community nexus). Finally, social/community is linked to the ecological system via agent-based models to investigate emergent socio-ecological phenomena. The third part of the paper shows how all the models can be linked in a top down fashion to develop a operational analytical framework, as a starting to point to analyse the macro, sectoral and distributional impacts of the water policy reform in the MDB.
    Keywords: Murray-Darling Basin plan, water policy reform, systems approach, distributional analyses, computable general equilibrium, spatial microsimulation, microsimulation
    JEL: J16 J24 O15 I20 D13
    Date: 2013–07
  31. By: Kunlayanee Pornpinatepong (Department of Economics, Prince of Songkla University, Hat Yai, Songkhla); Pathomwat Chantarasap (Department of Economics, Prince of Songkla University, Hat Yai, Songkhla); Jumtip Seneerattanaprayul (Department of Economics, Prince of Songkla University, Hat Yai, Songkhla); Wittawat Hemtanon (Department of Economics, Prince of Songkla University, Hat Yai, Songkhla); Papitchaya Saelim (Department of Economics, Prince of Songkla University, Hat Yai, Songkhla)
    Abstract: Game theory was used to analyze the extraction behavior of fishermen around the Southern Sonkhla Lake in Southern Thailand. The field experiments were designed based on the concept of non-cooperative game theory for investigating fishermen’s behavior in response to four management policy options: external regulations with individual transferable quotas (ITQs) and with individual quotas (IQ), and co-management with ITQs and with IQ. The analysis examined fishermen’s responses under high and low fish stocks that arose due to seasonal salinity in the Lake. Higher fish stocks encouraged fishermen to increase their extraction. A co-management policy led to better results than imposed external regulation in terms of reducing extraction and ensuring resource sustainability. There were no significant differences between ‘with ITQ’ and ‘without ITQ’ in terms of reduction of extraction and sustainability of resource use. However, there were significantly less violation behaviors when ITQs were used rather than with IQ. The ITQs provided more flexibility for fishermen who wanted to increase their extraction while still following conservation guidelines. Therefore, implementation of ITQ is recommended but with appropriate penalties.
    Keywords: game theory, Thailand
    Date: 2013–02

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