New Economics Papers
on Agricultural Economics
Issue of 2013‒08‒31
thirty-one papers chosen by

  1. Growth and Evolution in China's Agricultural Support Policies By Gale, Fred
  2. Factor Markets in General Computable Equilibrium Models By Banse, Martin; Shutes, Lindsay; Dixon, Peter; Van Meijl, Hans; Rimmer, Maureen; Tabeau, Andrzej; Woltjer,Geert; Rothe, Andrea
  3. Will improved access to capital dampen the need for more agricultural land? A CGE analysis of agricultural capital markets and world-wide biofuel policies By Banse, Martin; Rothe, Andrea; Tabeau, Andrzej; Van Meijl, Hans; Woltjer,Geert
  4. Response of local producers to agro-food port rejection : the case of Chinese vegetable exports By Yamada, Nanae; Sui, Shuyan
  5. Agricultural Labour Market Flexibility in the EU and Candidate Countries By Loughrey, Jason; Donnellan, Trevor; Hanrahan, Kevin; Hennessy, Thia
  6. The Reallocation of Agricultural Labour across Sectors: An Empirical Strategy for Micro Data By Tocco,Barbara; Bailey, Alastair; Davidova, Sophia
  7. Non-Convergence in Domestic Commodity Futures Markets: Causes, Consequences, and Remedies By Adjemian, Michael; Garcia, Philip; Irwin, Scott
  8. Effects of the Decline in the Real Value of SNAP Benefits From 2009 to 2011 By Nord, Mark
  9. Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU By Tocco,Barbara; Bailey, Alastair; Davidova, Sophia
  10. EU Biofuel Policies in Practise - A Carbon Map for the Llanos Orientales in Colombia By Mareike Lange; César Freddy Suarez
  11. The Theoretical Framework and Methodology to Estimate the Farm Labour and Other Factor-Derived Demand and Output Supply Systems By Tocco,Barbara; Bailey, Alastair; Davidova, Sophia
  12. Modelling the Effects of Oil Prices on Global Fertilizer Prices and Volatility By Chen, P.Y.; Chang, C.L.; Chen, C.-C.; McAleer, M.J.
  13. Disquiet on the weather front : the welfare impacts of climatic variability in the rural Philippines By Safir, Abla; Piza, Sharon Faye; Skoufias, Emmanuel
  14. How market-based water allocation can improve water use efficiency in the Aral Sea basin? By Bekchanov, Maksud; Bhaduri, Anik; Ringler, Claudia
  15. Ecological-economic modelling of interactions between wild and commercial bees and pesticide use By de, Vries Frans; Ellis, Ciaran; Goulson, Dave; Hanley, Nicholas; Kleczkowski, Adam
  16. Disease Control, Demographic Change and Institutional Development in Africa By Margaret S. McMillan; William A. Masters; Harounan Kazianga
  17. Performance Indicators in Agricultural Financial Markets By Hedman Jansson, Kristina; Lagerqvist, Carl Johan
  18. Declining Labour Use in Agriculture : A Case of Rice Cultivation in Andhra Pradesh By Duvvuru, Narasimha Reddy; Motkuri, Venkatanarayana
  19. The evolution of the Dutch dairy industry and the rise of cooperatives.A research note By Koen Frenken
  20. Meat Demand Analysis: A Case Study of Akungba-Akoko Township in Ondo State By Alimi, R. Santos
  21. Environmental Bio Economic Impact in Nicaragua By Blanco Orozco, Napoleón Vicente; Zuniga Gonzalez, Carlos Alberto
  22. Analysis of Proposed Changes to SNAP Eligibility and Benefit Determination in the 2013 Farm Bill and Comparison of Cardiometabolic Health Status for SNAP Participants and Low-Income Nonparticipants. By Joshua Leftin; Allison Dodd; Kai Filion; Rebecca Wang; rew Gothro; Karen Cunnyngham
  23. Forecasting Chinese Households’ Demand from Home Production By Yabin Wang
  24. Land Use Regulation and Productivity - Land Matters: Evidence from a UK Supermarket Chain By Paul Cheshire; Christian A. L. Hilber; Ioannis Kaplanis
  25. The Impact of Information Provision on Agglomeration Bonus Performance: An Experimental Study on Local Networks By Banerjee, Simanti; de, Vries Frans; Hanley, Nicholas; van, Soest Daan
  26. Consumer Perceptions of Seafood Industries in the Wake of the Deepwater Horizon Oil Spill and Fukushima Daiichi Nuclear Disaster By McKendree, Melissa G.S.; Ortega, David L.; Widmar, Nicole Olynk; Wang, H. Holly
  27. Intra-Industry Trade in Dirty Goods and Environmental Policies By Sen, Anindita
  28. Local consumption and territorial based accounting for CO2 emissions By Kristinn Hermannsson; Stuart G McIntyre
  29. Adult Mortality, AIDS and Fertility in Rural Malawi By Durevall, Dick; Lindskog, Annika
  30. Local Economic Development, Agglomeration Economies and the Big Push: 100 Years of Evidence from the Tennessee Valley Authority By Patrick Kline; Enrico Moretti
  31. Does the structure of the fine matters? By Marcelo Caffera; Carlos Chávez; Analia Ardente

  1. By: Gale, Fred
    Abstract: China is perhaps the most prominent example of a developing country that has transitioned from taxing to supporting agriculture. In recent years, Chinese price supports and subsidies have risen at an accelerating pace after they were linked to rising production costs. Per-acre subsidy payments to grain producers now equal 7 to 15 percent of those producers’ gross income, but grain payments appear to have little influence on production decisions. Chinese authorities began raising price supports annually to bolster incentives and Chinese prices for major farm commodities are rising above world prices, helping to attract a surge of agricultural imports. U.S. agricultural exports to China tripled in value during the period when China’s agricultural support was accelerating. Overall, China’s expansion of support is loosely constrained by World Trade Organization (WTO) commitments, but the country’s price-support programs could exceed WTO limits in coming years. Chinese officials promise to continue increasing domestic policy support for agriculture, but the mix of policies may evolve as the Chinese agricultural sector becomes more commercialized and faces competitive pressures.
    Keywords: China, agricultural subsidies, price supports, direct payments, grain, World Trade Organization, Agricultural and Food Policy, International Development, International Relations/Trade,
    Date: 2013–08
  2. By: Banse, Martin; Shutes, Lindsay; Dixon, Peter; Van Meijl, Hans; Rimmer, Maureen; Tabeau, Andrzej; Woltjer,Geert; Rothe, Andrea
    Abstract: One objective of Computable general equilibrium (CGE) models is the analysis of economywide effects of policy measures. The focus of the Factor Markets project is to analyse the functioning of factor markets for agriculture in the EU-27, including the Candidate Countries. While agricultural and food markets are fully integrated in a European single market, subject to an EU-wide common policy, the Common Agricultural Policy (CAP), this is not the case for the agricultural factor markets capital, labour and land. There are partly serious differences with regard to member state regulations and institutions affecting land, labour and capital markets. The presentation of this heterogeneity of factor markets amongst EU Member States have been implemented in the CGE models to improve model-based analyses of the CAP and other policy measures affecting agricultural production. This final report comprises the outcome of a systematic extension and improvement of the Modular Applied GeNeral Equilibrium Tool (MAGNET) model starting from an overview of the current state of the art to represent factor markets in CGE models to a description of work on labour, land and capital in MAGNET.
    Date: 2013–06
  3. By: Banse, Martin; Rothe, Andrea; Tabeau, Andrzej; Van Meijl, Hans; Woltjer,Geert
    Abstract: This paper analyses the consequences of enhanced biofuel production in regions and countries of the world that have announced plans to implement or expand on biofuel policies. The analysis considers biofuel policies implemented as binding blending targets for transportation fuels. The chosen quantitative modelling approach is two-fold: it combines the analysis of biofuel policies in a multisectoral economic model (MAGNET) with systematic variation of the functioning of capital and labour markets. This paper adds to existing research by considering biofuel policies in the EU, the US and various other countries with considerable agricultural production and trade, such as Brazil, India and China. Moreover, the application multi-sectoral modelling system with different assumptions on the mobility of factor markets allows for the observation of changes in economic indicators under different conditions of how factor markets work. Systematic variation of factor mobility indicates that the ‘burden’ of global biofuel policies is not equally distributed across different factors within agricultural production. Agricultural land, as the pre-dominant and sector-specific factor, is, regardless of different degrees of inter-sectoral or intrasectoral factor mobility, the most important factor limiting the expansion of agricultural production. More capital and higher employment in agriculture will ease the pressure on additional land use – but only partly. To expand agricultural production at global scale requires both land and mobile factors adapted to increase total factor productivity in agriculture in the most efficient way.
    Date: 2013–06
  4. By: Yamada, Nanae; Sui, Shuyan
    Abstract: This paper analyzes the factors associated with the rejection of products at ports of importer countries and remedial actions taken by producers in China by taking as an example one of the most competitive agro-food products of China: frozen vegetables. This paper provides an overview of the vegetable production and distribution system in China and the way in which China has been participating in exports of these products. Later sections will examine in detail the frozen vegetable sector in China, identify the causes of port rejections, and the actions taken by the Chinese government and by producers, processors and exporters to improve the quality of frozen vegetable exports.
    Keywords: China, Vegetables, Food industry, Exports, Quality control, Frozen vegetables, Agro-food trade, Food safety, Port rejection
    JEL: F23 L66 Q13 Q17 Q18
    Date: 2013–02
  5. By: Loughrey, Jason; Donnellan, Trevor; Hanrahan, Kevin; Hennessy, Thia
    Abstract: Factor markets that function well are a crucial condition for the competitiveness and growth of agriculture. Institutions and regulation may give rise to agricultural labour market heterogeneity, which could have important effects on the functioning of the labour market and other agricultural factor markets in EU member states. This paper first defines the institutional framework for the labour market, and then presents a brief literature review of previous studies of labour market institutional frameworks. Based on the literature, a survey to characterise agricultural labour markets was undertaken, which was implemented for a selection of EU27 and EU candidate countries, with responses based on expert opinion. The survey data were then used to construct indices of labour market flexibility/rigidity for the countries examined. These indices were used to make inter-country labour market comparisons and to draw inferences about the institutions and functioning of the agricultural labour market.
    Date: 2013–06
  6. By: Tocco,Barbara; Bailey, Alastair; Davidova, Sophia
    Abstract: This paper presents an empirical methodology for studying the reallocation of agricultural labour across sectors from micro data. Whereas different approaches have been employed in the literature to better understand the mobility of labour, looking at the determinants to exit farm employment and enter off-farm activities, the initial decision of individuals to work in agriculture, as opposed to other sectors, has often been neglected. The proposed methodology controls for the selectivity bias, which may arise in the presence of a non-random sample of the population, in this context those in agricultural employment, which would lead to biased and inconsistent estimates. A 3-step multivariate probit with two selection and one outcome equations constitutes the selected empirical approach to explore the determinants of farm labour to exit agriculture and switch occupational sector. The model can be used to take into account the different market and production structures across European member states on the allocation of agricultural labour and its adjustments.
    Date: 2013–06
  7. By: Adjemian, Michael; Garcia, Philip; Irwin, Scott
    Abstract: During most of 2005-10, the price of expiring U.S. corn, soybeans, and wheat futures contracts settled much higher than corresponding delivery market cash prices. Because futures contracts at expiration are commonly thought to be equivalent to cash grain, this commodity price non-convergence appeared inconsistent with the law of one price. In addition, sustained non-convergence concerns market participants, exchanges, and policymakers because it can make hedging less effective, send confusing signals to the market, threaten the viability of a contract, and ultimately lead to a misallocation of agricultural resources. This report summarizes prominent theories that have been offered to explain non-convergence, including a new model that explains how the structure of a competitive delivery market can generate a positive expiring basis. The data support this delivery market theory over alternative explanations. Finally, we discuss various policy levers that have been offered to address non-convergence, as well as their likely impacts.
    Keywords: commodity futures, index funds, grains, non-convergence, price discovery, risk management, speculation, storage, Crop Production/Industries, Farm Management, Resource /Energy Economics and Policy,
    Date: 2013–08
  8. By: Nord, Mark
    Abstract: The value of Supplemental Nutrition Assistance Program (SNAP) benefits has declined due to inflation since the increase in benefit size in April 2009 mandated by the American Recovery and Reinvestment Act (ARRA). Earlier Economic Research Service (ERS) research documented improvements in food spending and food security from 2008 to 2009 that may have resulted from the ARRA SNAP-benefit increase. This report estimates the extent to which those gains may have been eroded from 2009 to 2011 as a result of the reduction in real value of SNAP benefits due to inflation in food prices. Changes in food spending and food security from 2009 to 2011 were compared between households that did and did not receive SNAP using Current Population Survey Food Security Supplement data. The difference-in-difference analyses, which also adjusted for differences in households’ income, employment, and other characteristics, suggest that the decline in value of SNAP benefits may have resulted in an increase of 16.5 percent in the number of SNAP-recipient households with very low food security and a decline of 4.4 percent in median food spending by SNAP households. The size of these changes relative to the size of the reduction in the inflation-adjusted value of SNAP benefits was consistent with findings from the earlier ERS research on effects of the ARRA SNAP-benefit increase. Taken together, the two studies provide estimates of the effects that may be expected from potential future increases or decreases in SNAP benefits.
    Keywords: Food security, food insecurity, food spending, SNAP, Supplemental Nutrition Assistance Program, ARRA, American Recovery and Reinvestment Act, inflation, food price inflation, Agricultural and Food Policy, Food Security and Poverty,
    Date: 2013–08
  9. By: Tocco,Barbara; Bailey, Alastair; Davidova, Sophia
    Abstract: The objective of this paper is to explore the determinants to leave agriculture and change occupational sector. We adopt a 3-step multivariate probit where we control for selection bias at two stages in the decisions to work and, at a later stage, exit agriculture. The analysis is based on the European Union Labour Force Survey data expanded with additional regional indicators. The main results suggest that younger individuals are more likely to leave farming activities, although the largest outflows of agricultural labour are mainly associated with the retirement of people. Self-employed and family workers are generally less likely to leave agriculture and those with low levels of educations are found to be significantly constrained in entering the non-farm economy. Moreover, labour market conditions at the regional level do matter for switching occupational sector. Differences in the results among the selected NMS and the EU-15 can be explained by the diverse production structures, suggesting different capacities to release and absorb labour.
    Date: 2013–06
  10. By: Mareike Lange; César Freddy Suarez
    Abstract: It is still difficult for biofuel producers to prove the contribution of their biofuels to reducing carbon emissions because the production of biofuel feedstocks can cause land use change (LUC), which in turn causes carbon emissions. A carbon map can serve as a basis to proof such contribution. We show how to calculate a carbon map according to the sustainability requirements for biofuel production adopted by the European Commission (EU-RED) for the Llanos Orientales in Colombia. Based on the carbon map and the carbon balance of the production process we derive maps showing the possible emission savings that would be generated by biofuels based on palm, soy and sugar cane if an area were to be converted to produce feedstock for these biofuel options. We evaluate these maps according to the criterion contained in the EU-RED of 35% minimum emission savings for each biofuel option compared to its fossil alternative. In addition, to avoid indirect LUC effects of the EURED that might offset any contribution of biofuels to reducing carbon emissions, we argue that all agricultural production should be subject to sustainability assessments. In this effort, our carbon map can be the basis for a sustainable land use planning that is binding for all agricultural production in the coun
    Keywords: biofuels, carbon emissions, Renewable Energy Directive, carbon map, land use change, Colombia
    JEL: Q42 Q58 Q56 Q16
    Date: 2013–08
  11. By: Tocco,Barbara; Bailey, Alastair; Davidova, Sophia
    Abstract: This paper provides a conceptual framework for the estimation of the farm labour and other factorderived demand and output supply systems. In order to analyse the drivers of labour demand in agriculture and account for the impact of policies on those decisions, it is necessary to acknowledge the interaction between the different factor markets. For this purpose, we present a review of the theoretical background to primal and dual representations of production and some empirical literature that has made use of derived demand systems. The main focus of the empirical work is to study the effect of market distortions in one market, through inefficient pricing, on the demand for other inputs. Therefore, own-price and cross-price elasticities of demand become key variables in the analysis. The dual cost function is selected as the most appropriate approach, where input prices are assumed to be exogenous. A commonly employed specification – and one that is particularly convenient due to its flexible form – is the translog cost function. The analysis consists of estimating the system of costshare equations, in order to obtain the derived demand functions for inputs. Thus, the elasticities of factor substitution can be used to examine the complementarity/substitutability between inputs.
    Date: 2013–06
  12. By: Chen, P.Y.; Chang, C.L.; Chen, C.-C.; McAleer, M.J.
    Abstract: The main purpose of this paper is to evaluate the effect of crude oil price on global fertilizer prices in both the mean and volatility. The endogenous structural breakpoint unit root test, ARDL model, and alternative volatility models, including GARCH, EGARCH, and GJR models, are used to investigate the relationship between crude oil price and six global fertilizer prices. The empirical results from ARDL show that most fertilizer prices are significantly affected by the crude oil price while the volatility of global fertilizer prices and crude oil price from March to December 2008 are higher than in other periods.
  13. By: Safir, Abla; Piza, Sharon Faye; Skoufias, Emmanuel
    Abstract: Three recent rounds (2003, 2006, and 2009) of the Family Income and Expenditure Survey are matched to rainfall data from 43 rainfall stations in the Philippines to quantify the extent to which unusual weather has any negative effects on the consumption of Filipino households. It is found that negative rainfall shocks decrease consumption, in particular food consumption. Rainfall below one standard deviation of its long-run average causes food consumption to decrease by about 4 percent, when compared with rainfall within one standard deviation. Positive deviations above one standard deviation have a limited impact. Moreover, for households close to a highway or to a fixed-line phone, consumption appears to be fully protected from the impact of negative rainfall shocks.
    Keywords: Science of Climate Change,Climate Change Mitigation and Green House Gases,Water Conservation,Regional Economic Development,Climate Change Economics
    Date: 2013–08–01
  14. By: Bekchanov, Maksud; Bhaduri, Anik; Ringler, Claudia
    Abstract: Increasing water demand due to population growth, irrigation expansion, industrial development, and the need for ecosystem improvements under mounting investment costs for developing new water sources calls for the efficient, equitable and sustainable management of water resources. This is particularly essential in the Aral Sea Basin (ASB) where ineffective institutions are the primary reason of intersectoral and inter-state water sharing conflicts and lack of sufficient investments for improving water use efficiency. This study examined market-based water allocation as an alternative option to the traditional administrative allocation to deal with water scarcity issues in the ASB. Potential economic gains of tradable water use rights were analyzed based on a newly constructed integrated hydro-economic river basin management model. The analysis differentiates between inter-catchment and intra-catchment water trading. The former does not consider any restrictions on water trading whereas the latter is based on the assumption that water trading is more likely to happen between neighboring water users located within the same catchment area. The analyses show that compared to fixed water allocation, inter-catchment water trading can improve basin-wide benefits by US$ 373 and US$ 476 million depending on water availability. Similarly, additional gains of US$ 259 to US$ 339 million are estimated under intra-catchment water trading depending on relative water availability. Trading gains are higher under drier conditions. However, water trading carries a series of transaction costs. We find that transaction costs exceeding US$0.05 per m3 of water traded wipe out the economic potential for water trading. Enforcement of the rule of law, infrastructural improvements, participation of representatives of all water stakeholders in decision making processes, and friendly relationships among the riparian countries are suggested as means for reducing transaction costs of water trading contracts.
    Keywords: inter-catchment and intra-catchment water trading, transaction costs, hydro-economic model, Agribusiness, International Development, International Relations/Trade, Land Economics/Use, Resource /Energy Economics and Policy,
    Date: 2013–05
  15. By: de, Vries Frans; Ellis, Ciaran; Goulson, Dave; Hanley, Nicholas; Kleczkowski, Adam
    Abstract: The decline in extent of wild pollinators in recent years has been partly associated with changing farm practices and in particular with increase of pesticide use. In this paper we combine ecological modelling with economic analysis of a single farm output under the assumption that both pollination and pest control are essential inputs. We show that the drive to increase farm output can lead to a local decline in the wild bee population. Commercial bees are often considered an alternative to wild pollinators, but we show that their introduction can lead to further decline and finally local extinction of wild bees. The transitions between different outcomes are characterised by threshold behaviour and are potentially difficult to predict and detect in advance. Small changes in economic (input prices) and ecological (wild bees carrying capacity and effect of pesticides on bees) can move the economic-ecological system beyond the extinction threshold. We also show that increasing the pesticide price or decreasing the commercial bee price might lead to reestablishment of wild bees following their local extinction. Thus, we demonstrate the importance of combining ecological modelling with economics to study the provision of ecosystem services and to inform sustainable management of ecosystem service providers.
    Keywords: Ecology; Bioeconomic modelling; Food security; Pollination; Ecosystem services
    Date: 2013–08
  16. By: Margaret S. McMillan (Tufts University, IFPRI and NBER); William A. Masters (Tufts University); Harounan Kazianga (Oklahoma State University)
    Abstract: This paper addresses the role of tropical disease in rural demography and land use rights, using data from Onchocerciasis (river blindness) control in Burkina Faso. We combine a new survey of village elders with historical census data for 1975-2006 and geocoded maps of treatment under the regional Onchocerciasis Control Program (OCP). The OCP ran from 1975 to 2002, first spraying rivers to stop transmission and then distributing medicine to help those already infected. Controlling for time and village fixed effects, we find that villages in treated areas acquired larger populations and also had more cropland transactions, fewer permits required for cropland transactions, and more regulation of common property pasture and forest. These effects are robust to numerous controls and tests for heterogeneity across the sample, including time-varying region fixed effects. Descriptive statistics suggest that treated villages also acquired closer access to electricity and telephone service, markets, wells and primary schools, with no difference in several other variables. These results are consistent with both changes in productivity and effects of population size on public institutions.
    Keywords: West Africa, Burkina Faso, Public Health, Land Rights, Rural Infrastructure.
    Date: 2013–06
  17. By: Hedman Jansson, Kristina; Lagerqvist, Carl Johan
    Abstract: This study attempts to develop performance indicators for the financial markets based on the findings in an earlier Factor Markets Working Paper (No. 33, “Agricultural credit market institutions: A comparison of selected European countries”) and on FADN (Farm Accountancy Data Network) data. Two indicators were developed. One measured the long-term economic sustainability of agriculturalfirms since the financial characteristics of the firms were perceived as important factors when rejecting a loan applicant. If the indicator works, it should show that a low value in this indicator is related to the performance in the financial markets. The second indicator was the loan-to-value (LTV), or debtto-asset ratio, the reasoning behind this indicator is that low values can point to credit constraints, and in WP 33 we saw that the interviewed experts expected LTVs to be much higher than what is actually the case. We find that the first indicator can’t be used to measure the performance of the financial institutions, since we can’t show any relationship between the indicator and activities in the financial markets. However, the indicator is valuable for its measurement of the long-term financial sustainability of the agricultural sector, or of the firms. The loan-to-value indicator does imply that most countries would have room to increase the credit.
    Date: 2013–06
  18. By: Duvvuru, Narasimha Reddy; Motkuri, Venkatanarayana
    Abstract: The present paper examines the changing nature of labour use in rice cultivation in Andhra Pradesh. The study observed that there is a fast decline in labour use in respect of rice cultivation in Andhra Pradesh. All three forms of labour (family, casual and attached) have followed the same trend. But the share of casual labour in the total labour used in rice cultivation is increasing with a corresponding decline in the share of family labour. By gender, although both male and female labour use in rice cultivation has been declining, it is faster for female labour. Also, a noticeable decline in the share of harvesting and threshing/winnowing which are increasingly mechanized, in total labour used per hectare of rice cultivation. Between wage rate and labour inputs, it is observed that there are relatively higher female labour inputs per hectare in areas (Zones) where male wages are lower and vice versa.
    Keywords: Labour Use, Employment, Agriculture, Rice Cultivation, India, Andhra Pradesh
    JEL: J22 J23 J31 Q12
    Date: 2013–08
  19. By: Koen Frenken
    Abstract: Economic historians tend to explain the rise of the cooperative form in agriculture from the advantage of cooperative over private factories in reducing transaction costs with suppliers. This study provides a first test of this thesis using data on 1130 dairy factories in The Netherlands. Indeed, we find that cooperative factories performed significantly better than private factories. The persistence of private factories in certain regions can be explained by first-mover advantages.
    Keywords: cooperatives, first mover advantage, transaction costs, survival analysis, industry lifecycle, dairy industry
    Date: 2013–08
  20. By: Alimi, R. Santos
    Abstract: This study examined the preference for and consumption pattern of meat types by individual households - Specifically, the study investigated the extent to which household income, household size and other socio-economic factors predicted monthly expenditure on meat. Three Hundred household heads were selected from the area using the simple random sampling technique. Results indicated that beef was the most preferred meat (60.14%), followed by chicken (29.72%) and turkey (26.92%). The proportion of household’s total expenditure on meat was high for low income households (on average 18%) while on average of 9% for middle/high income households. The percentage of household food expenditure expended on meat was high for both low income households and high income households relative to middle income households. The most important factor considered by households while purchasing meat was the taste and habits, followed by nutritional value and prices. Other factors observed were freshness, tenderness and religious sentiments.
    Keywords: Expenditure Pattern, Meat Consumption, Households
    JEL: B21 D12
    Date: 2013–08–20
  21. By: Blanco Orozco, Napoleón Vicente; Zuniga Gonzalez, Carlos Alberto
    Abstract: In this article the Bio economy of power plants connected to the national interconnected system of Nicaragua is analyzed, through the study of environmental effects of greenhouse gases emissions from the use of solid biomass from sugarcane bagasse and oil to generate electricity. In addition, an analysis of Cost - Benefit of investments to the electricity generation using fossil fuel and bagasse is done. The Methodology EX-Ante Carbon-balance Tool (EX-ACT) was used; this methodology was proposed by the United Nations Organization for Food and Agriculture (FAO) to determine the overall greenhouse gases (GHG) emission balance. Additionally, the WinDASI program, also developed by FAO, was used for the Cost - Benefit Analysis of investment in power plants. Furthermore, we performed marginal costing GHG reduction. The results show, that all plants are sources of GHG emissions, however the impact of sugar mills is partially positive by reforestation components and annual crops. However, the component inputs had negative environmental and socially impact. In the case of thermal power generation plants based on petroleum connected to the national grid, they were found to be sources of greenhouse gases. The analysis of the Benefit Cost in their investment indicates that there is a positive financially impact except in ALBANISA power plant and sugar Mills power plants.
    Keywords: WinDASI program, Biomass, Bio Economy, Oil fuel, Energy
    JEL: L23 L65 Q16 Q43 Q51
    Date: 2013–05–29
  22. By: Joshua Leftin; Allison Dodd; Kai Filion; Rebecca Wang; rew Gothro; Karen Cunnyngham
    Keywords: SNAP Eligibility, Benefit Determination, Farm Bill, Cardiometabolic Health Status; Low-Income Nonparticipants
    JEL: I0 I1
    Date: 2013–08–02
  23. By: Yabin Wang (University of California, Santa Cruz)
    Abstract: As the Chinese market economy expands and market institutions become stronger, there will be more incentives for Chinese households to substitute market activity for home production.The goal of this paper is to provide a quantitative analysis of the potential Chinese consumer demand for household services. Using dataset from the American Time Use Survey and the China Health and Nutrition Survey, I compare households’ demand for services and home production between US and China. A standard choice-theoretic model of the household is used to estimate the structural parameters and to quantitatively forecast Chinese households’ service demand.
    Date: 2013–06
  24. By: Paul Cheshire; Christian A. L. Hilber; Ioannis Kaplanis
    Abstract: We use store-specific data for a UK supermarket chain to estimate the impact of planning on store output. Exploiting the variation in policies between England and other UK countries, we isolate the impact of Town Centre First (TCF) policies introduced in England. We find they directly reduced output by forcing stores onto less productive sites. We estimate TCF policies imposed a loss of output of 32 percent on a representative store opening after their rigorous implementation in 1996. Additionally, we show that, household numbers constant, more restrictive local authorities have fewer stores and lower chain sales within their areas.
    Keywords: retail productivity, land use regulation, Town Centre First, local regulatoryconstraints
    JEL: D2 L51 L81 R32
    Date: 2013–08
  25. By: Banerjee, Simanti; de, Vries Frans; Hanley, Nicholas; van, Soest Daan
    Abstract: The Agglomeration Bonus (AB) is a mechanism to induce adjacent landowners to spatially coordinate their land use for the delivery of ecosystem services from farmland. This paper uses laboratory experiments to explore the performance of the AB in achieving the socially optimal land management configuration in a local network environment where the information available to subjects varies. The AB poses a coordination problem between two Nash equilibria: a Pareto dominant and a risk dominant equilibrium. The experiments indicate that if subjects are informed about both their direct and indirect neighbors' actions, they are more likely to coordinate on the Pareto dominant equilibrium relative to the case where subjects have information about their direct neighbors' action only. However, the extra information can only delay - and not prevent - the transition to the socially inferior risk dominant Nash equilibrium. In the long run, the AB mechanism may only be partially effective in enhancing delivery of ecosystem services on farming landscapes featuring local networks.
    Keywords: Agglomeration bonus, agri-environment schemes, biodiversity conservation, ecosystem services, information spillovers, Payments for Ecosystem Services, spatial coordination
    Date: 2013–08
  26. By: McKendree, Melissa G.S.; Ortega, David L.; Widmar, Nicole Olynk; Wang, H. Holly
    Abstract: The impact of environmental disasters on consumers’ perceptions and preferences for specific food items has seldom been studied in the applied economics literature. Recent aquatic disasters, namely the Deepwater Horizon Oil Spill and Fukushima Daiichi Nuclear Disaster, have had profound impacts on fisheries serving US consumers and on agribusinesses within the aquaculture industry. This study explores consumer preferences using a nation-wide representative sample, and finds that twenty-nine percent of US consumers sought to reduce their seafood consumption due to the Deepwater Horizon Oil Spill and one-third of respondents indicated they sought to reduce their seafood consumption in the wake of the Daiichi nuclear disaster Additionally, over 50% believed that Asian seafood poses a consumer health risk because of the Japanese nuclear disaster. Understanding key factors that influence consumer behavior in the wake of environmental disasters can make fisheries, seafood industries and agribusiness more resilient when facing such catastrophic events. Our results find that key socio-demographic variables affect consumer behavior including gender, age, food safety concerns, value for country of origin labeling, and geographic location. Careful and efficient response by the seafood supply chain will enable effective communication with consumers and allow for optimal policy decision-making.
    Keywords: Seafood, Consumer perceptions, Deepwater Horizon, Fukushima Daiichi, Aquatic disaster, Agribusiness, Environmental Economics and Policy, Livestock Production/Industries, Marketing, Q00, Q18, Q22,
    Date: 2013–08
  27. By: Sen, Anindita
    Abstract: In this paper we study the effect of intra-industry trade in an environmental-quality differentiated good on the pollution level in a two-country framework when there are strategic interactions between the firms in the two countries. The pro-competitive effect of intra-industry trade expands the scale of production and, therefore, increases pollution in both the countries. Effect on the strategic choice of environmental qualities of the good is, on the other hand, asymmetric for the two producers. Impact of environmental policies like pollution content production tax and tariff on trade and pollution levels are also studied. .
    Keywords: Intra-Industry trade, environmental pollution, environmental standard
    JEL: F18 Q00
    Date: 2013–06–15
  28. By: Kristinn Hermannsson (Department of Economics, University of Strathclyde); Stuart G McIntyre
    Abstract: We examine the complications involved in attributing emissions at a sub-regional or local level. Specifically, we look at how functional specialisation embedded within the metropolitan area can, via trade between sub-regions, create intra- metropolitan emissions interdependencies; and how this complicates environmental policy implementation in an analogous manner to international trade at the national level. For this purpose we use a 3-region emissions extended input-output model of the Glasgow metropolitan area (2 regions: city and surrounding suburban area) and the rest of Scotland. The model utilises data on commuter flows and household consumption to capture income and consumption flows across sub-regions. This enables a carbon attribution analysis at the sub-regional level, allowing us to shed light on the signficant emissions interdependencies that can exist within metropolitan area.
    Keywords: CO2 emissions, environmental accounting, regional interdependencies, metropolitan areas, commuting
    JEL: H73 Q56 R12 R15
    Date: 2013–08
  29. By: Durevall, Dick (Department of Economics, School of Business, Economics and Law, Göteborg University); Lindskog, Annika (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: The impact of HIV/AIDS on fertility in sub-Saharan Africa has received attention recently, since changes in population structure can impact on future economic development. We analyze the effect of AIDS on actual and desired fertility in rural Malawi, using data from Malawi 2004 Demographic and Health Survey and population censuses. Since AIDS was the dominating cause of death during the 1990s and early 2000s, we use prime-age adult mortality as the key explanatory variable. The focus is on heterogeneity in the response of gender-specific mortality rates. By estimating ordered probit models we show that actual fertility responds positively to male mortality but negatively to female mortality, and that the overall fertility response is positive but small. One interpretation of the findings is that the effects of female and male mortality differ because of an old-age security motive for having children. When a woman risks death before her children grow up, she is less likely to need support of children and demand should be low, but when the risk of husband’s death is high, the woman should expect to rely more on children’s support.
    Keywords: AIDS; demand for children; fertility; HIV; adult mortality; old age security
    JEL: I10 J13 O12
    Date: 2013–08–15
  30. By: Patrick Kline (Department of Economics, University of California, Berkeley, USA); Enrico Moretti (Department of Economics, University of California, Berkeley, USA)
    Abstract: We study the long run effects of one of the most ambitious regional development programs in U.S. history: the Tennessee Valley Authority (TVA). Using as controls authorities that were proposed but never approved by Congress, we find that the TVA led to large gains in agricultural employment that were eventually reversed when the program’s subsidies ended. Gains in manufacturing employment, by contrast, continued to intensify well after federal transfers had lapsed – a pattern consistent with the presence of agglomeration economies in manufacturing. Because manufacturing paid higher wages than agriculture, this shift raised aggregate income in the TVA region for an extended period of time. Economists have long cautioned that the local gains created by place based policies may be offset by losses elsewhere. We develop a structured approach to assessing the TVA’s aggregate consequences that is applicable to other place based policies. In our model, the TVA affects the national economy both directly through infrastructure improvements and indirectly through agglomeration economies. The model’s estimates suggest that the TVA’s direct investments yielded a significant increase in national manufacturing productivity, with benefits exceeding the program’s costs. However, the program’s indirect effects appear to have been limited: agglomeration gains in the TVA region were offset by losses in the rest of the country. Spillovers in manufacturing appear to be the rare example of a localized market failure that cancels out in the aggregate.
    JEL: R11 J20 N92 O40
    Date: 2013–07
  31. By: Marcelo Caffera; Carlos Chávez; Analia Ardente
    Abstract: We study individual compliance behavior with respect to a legal norm in an experimental setting under two different regulatory instruments: emission standards and tradable pollution permits. Compliance to the same set of standards and expected permit holdings was induced with different structures of the fine schedule, namely: a linear and a strictly convex penalty function. Even though our design induces perfect compliance, we find that there are violations in both emissions standards and tradable permits systems, regardless of the penalty structure. Nevertheless, the extent of violations is affected by the penalty parameters under emissions standards, but not under a tradable pollution permits. Notwithstanding, we find that the penalty design has an effect on the average price of permits traded, its dispersion and the number of trades.
    Keywords: Environmental policy, enforcement, penalty structure, emissions standards, emissions trading, laboratory experiments
    JEL: C91 L51 Q58 K42
    Date: 2013

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.