nep-agr New Economics Papers
on Agricultural Economics
Issue of 2013‒11‒22
28 papers chosen by
Angelo Zago
University of Verona

  1. Do oil price increases cause higher food prices? By Baumeister, Christiane; Kilian, Lutz
  2. Incidences économiques des zones humides pour les exploitations : le cas du Limousin By Jean Joseph Minviel; Pierre Dupraz; Laure Latruffe
  3. Hunger in the former apartheid homelands: Determinants of converging food security 100 years after the 1913 Land Act By Louw Pienaar; Dieter von Fintel
  4. Bioenergy and Global Land Use Change. By Ciaian, Pavel; Kancs, d'Artis; Rajcaniova, Miroslava
  5. Evolutionary Changes in Land Tenure and Agricultural Intensification in Sub-Saharan Africa By Keijiro Otsuka; Frank Place
  6. Introducing water by river basin into the GTAP-BIO model: GTAP-BIO-W By Taheripour, Farzad; Thomas Hertel; Jing Liu
  7. The role of environmental and land transaction regulations on agricultural land price: The example of the French region Brittany By Laure Latruffe; Jean Joseph Minviel; Julien Salanié
  8. Impact du taux de change sur la sécurité alimentaire des pays en développement By Marilyne Huchet Bourdon; Catherine Laroche Dupraz; Anned-Linz Sénadin
  9. Girl power in agricultural production: how much does it yield? A case-study on the dairy sector in India. By Sneyers, Astrid; Vandeplas, Anneleen
  10. Unintended Consequences of Transportation Carbon Policies: Land-Use, Emissions, and Innovation By Stephen P. Holland; Jonathan E. Hughes; Christopher R. Knittel; Nathan C. Parker
  11. Investing in Food Security? Philanthrocapitalism, Biotechnology and Development By Sally Brooks
  12. Social Capital, climate change and soil conservation investment: panel data evidence from the Highlands of Ethiopia By Mintewab Bezabih; Abe Damte Beyene; Zenebe Gebreegziabher; Livousew Borga
  13. Economic and ethical challenges of "land grabs" in sub-Saharan Africa By Kleemann, Linda; Lay, Jann; Nolte, Kerstin; Ott, Konrad; Thiele, Rainer; Voget-Kleschin, Lieske
  14. A Micro-Econometric Approach to Deriving Use and Non-Use Values of in-situ Groundwater: The Vosvozis Case Study, Greece By Phoebe Koundouri; Vassilis Babalos; Mavra Stithou; Marianna Mousoulidou; Aris Mousoulides; Ioannis Anastasiou; Katerina Vasiliou
  15. What Factors Promote Peatland Fire Prevention? Evidence from Central Kalimantan, Indonesia By Yuki Yamamoto, Kenji Takeuchi, Gunnar Kohlin
  16. Possible Effects on EU Land Markets of New CAP Direct Payments. By Swinnen, Jo; Ciaian, Pavel; Kancs, d'Artis; Van Herck, Kristine; Vranken, Liesbet
  17. The economics of planting rights in wine production. By Deconinck, Koen; Swinnen, Jo
  18. Extreme wheather and civil war in Somalia: does drought fuel conflict trhough livestock price shocks?. By Maystadt, Jean-Francois; Ecker, Olivier; Mabiso, Arthur
  19. Changes of China's agri-food exports to Germany caused by its accession to WTO and the 2008 financial crisis By Zhichao Guo; Yuanhua Feng; Thomas Gries
  20. Individual Behavior as a Pathway between Early-Life Shocks and Adult Health: Evidence from Hunger Episodes in Post-War Germany By Kesternich, Iris; Siflinger, Bettina; Smith, James P.; Winter, Joachim K.
  21. An Equilibrium Analysis of a Collective Farm-Household Model: Policy and Welfare Simulations By Eleonora Matteazzi; Martina Menon; Federico Perali
  22. The land use changes of European biodiesel: sensitivity to crop yield evolutions By Alexandre Gohin
  23. The rise and fall of the world's largest wine exporter (and it's institutional legacy). By Meloni, Giulia; Swinnen, Jo
  24. A macroeconomic perspective on climate change mitigation: Meeting the financing challenge By Alex Bowen; Emanuele Campiglio; Massimo Tavoni
  25. When are private standards more stringent than public standards?. By Vandemoortele, Thijs; Deconinck, Koen
  26. The Economic Evaluation of Dryland Ecosystem Services in the South African Kgalagadi by the Local Communities By Johane Dikgang and Edwin Muchapondwa
  27. Left-Behind Children and Return Decisions of Rural Migrants in China By Démurger, Sylvie; Xu, Hui
  28. To fish or not to fish? Resource degradation and income diversification in Benin. By Stoop, Nik; Houssa, Romain; Verpoorten, Marijke

  1. By: Baumeister, Christiane; Kilian, Lutz
    Abstract: U.S. retail food price increases in recent years may seem large in nominal terms, but after adjusting for inflation have been quite modest even after the change in U.S. biofuel policies in 2006. In contrast, increases in the real prices of corn, soybeans, wheat and rice received by U.S. farmers have been more substantial and can be linked in part to increases in the real price of oil. That link, however, appears largely driven by common macroeconomic determinants of the prices of oil and agricultural commodities rather than the pass-through from higher oil prices. We show that there is no evidence that corn ethanol mandates have created a tight link between oil and agricultural markets. Rather increases in food commodity prices not associated with changes in global real activity appear to reflect a wide range of idiosyncratic shocks ranging from changes in biofuel policies to poor harvests. Increases in agricultural commodity prices in turn contribute little to U.S. retail food price increases, because of the small cost share of agricultural products in food prices. There is no evidence that oil price shocks have caused more than a negligible increase in retail food prices in recent years. Nor is there evidence for the prevailing wisdom that oil-price driven increases in the cost of food processing, packaging, transportation and distribution are responsible for higher retail food prices. Finally, there is no evidence that oil-market specific events or for that matter U.S. biofuel policies help explain the evolution of the real price of rice, which is perhaps the single most important food commodity for many developing countries. --
    Keywords: globalization,inflation,consumer prices,pass-through,agriculture,crop prices,corn,ethanol,biofuel,food crisis,food price volatility
    JEL: Q42 Q11 Q43 E31
    Date: 2013
  2. By: Jean Joseph Minviel; Pierre Dupraz; Laure Latruffe
    Abstract: [Paper in French] In this article, we investigate the economic impacts of agricultural wetlands for farms in the Limousin region in France. We developed a microeconomic model of farmers' behavior assuming that they maximize their profit. This theoretical model was then specified econometrically and estimated by the two-stages-least squares method, using survey and bookkeeping data from the Chamber of Agriculture of the Haute-Vienne sub-region from 2007 to 2009. Results show that farmers’ profit decreases with the percentage of wetland in the farm area. A sustainable use of these areas by farmers is then possible if compensation (through public subsidies) for the loss of profit due to their conservation were provided.
    Keywords: wetlands, agricultural profit, subsidies, Limousin region
    JEL: Q12 Q15 Q57
    Date: 2013
  3. By: Louw Pienaar (Western Cape Department of Agriculture, Elsenburg); Dieter von Fintel (Department of Economics, University of Stellenbosch)
    Abstract: One hundred years after the implementation of the 1913 Land Act, the subject of land reform and rural development are still at the forefront of public discourse within South Africa. Much of the literature suggests that post-apartheid interventions have not been successful at improving small-scale agriculture, which is seen as an important vehicle for improving rural food security. Nevertheless, data from the General Household Survey indicate that household food security has improved in the post-2000 decade. In particular, this paper demonstrates that hunger levels have declined substantially since 2002 (as other estimates of poverty have also indicated), but more importantly that they have done so faster in former homelands regions. Using linear probability models, this paper seeks to isolate which factors have led to the convergence of homeland regions’ hunger levels to the rest of the country. The historical context that is sketched here highlights the severe challenges faced by farmers in these areas; this raises the question how convergence in food security occurred, given that many agricultural interventions have not attained the success that was hoped for. In particular, the large reliance on social grants in homelands regions accounts for a part of the reduction in hunger levels. Communal gardens and connections to the agricultural market have reduced hunger within former homelands regions. The long-term sustainability of grants in bolstering food security is of concern, highlighting the need for greater market integration of small scale farmers in homeland regions.
    Keywords: Food Security, Subsistence Farming, Apartheid Homelands, Social Pensions
    JEL: Q18 Q12 C31 H55
    Date: 2013
  4. By: Ciaian, Pavel; Kancs, d'Artis; Rajcaniova, Miroslava
    Abstract: This is the rst paper that estimates the global land use change impact of growth of the bioenergy sector. Applying time-series analytical mechanisms to fuel, biofuel and agricultural commodity prices and production, we estimate the long-rung relationship between energy prices, bioenergy production and the global land use change. Our results suggest that rising energy prices and bioenergy production signicantly contribute to the global land use change both through the direct and indirect land use change impact. Globally, the total agricultural area yearly increases by 35578.1 thousand ha due to increasing oil price, and by 12125.1 thousand ha due to increasing biofuel production, which corresponds to 0.73% and 0.25% of the total world-wide agricultural area, respectively. Soya land use change and wheat land use change have the highest elasticities both with respect to oil price and biofuel production. In contrast, non-biomass crops (grassland and rice) have negative land use change elasticities. Region-specic results suggest that South America faces the largest yearly total land use change associated with oil price increase (+10600.7 thousand ha), whereas Asia (+8918.6 thousand ha), South America (+4024.9 thousand ha) and North America (+1311.5 thousand ha) have the largest yearly total land use change associated with increase in biofuel production.
    Keywords: Land use change; bioenergy; commodity prices; biofuel support policies;
    Date: 2013–07–26
  5. By: Keijiro Otsuka (National Graduate Institute for Policy Studies); Frank Place (World Agroforestry Centre)
    Date: 2013–11
  6. By: Taheripour, Farzad; Thomas Hertel; Jing Liu
    Abstract: This paper introduces water into the GTAP modeling framework at a river basin level. The new model: 1) distinguishes between irrigated and rainfed agriculture using different production functions; 2) takes into account heterogeneity in land quality across agro-ecological zones; 3) traces supply of water at the river basin level within each country/region; 4) fully captures competition for land among crop, livestock and forestry industries; 5) and, most importantly, offers the potential to extend the competition for managed water among agricultural and non-agricultural activities.
    Date: 2013
  7. By: Laure Latruffe; Jean Joseph Minviel; Julien Salanié
    Abstract: In this paper, we investigate how environmental and land transaction regulations influence the price of agricultural plots sold in France. We use data from individual transactions for the period 1994-2010 in the NUTS2 region Brittany. Estimations were performed both ignoring and accounting for spatial interactions (model SARAR). Regressions on three sub-samples of buyers were performed in order to assess whether different buyers have different attitudes or plans regarding the purchased farmland: a sub-sample including only farmer buyers; a sub-sample including non-farmer individual buyers and; a sub-sample including non-farmer non-individual buyers. Results indicate that the price of land is lower when buyers are farmers, that the nitrate surplus area zoning increases the price of land, even more so for farmer buyers. Regarding land transaction regulations, there is a negative effect, on land price, of the purchaser being the current tenant or being the land regulating public body SAFER. Estimating the model on different sub-samples depending on the buyers’ type sheds light on the factors which are more important for each type.
    Keywords: farmland price, individual transactions, environmental regulations, SAFER regulation, spatial econometrics, Brittany (France)
    JEL: Q24 Q15 Q28
    Date: 2013
  8. By: Marilyne Huchet Bourdon; Catherine Laroche Dupraz; Anned-Linz Sénadin
    Abstract: [Paper in French] The issue of world food security is still at the core of international concerns with the rising prices of agricultural products over the period 2006-2008. In this context, most of the least developed countries are net importers of agricultural products since the beginning of the 1990s. Moreover, recent years have also been marked by the debate on exchange rates, as evidenced by the Yuan/dollar currencies dispute. In line with the literature on the relationship between the exchange rate and trade, the objective of this article is to evaluate the relationship between the exchange rate and food security over the period 1995-2010 on a sample of 24 to 72 developing countries. In addition, we propose a theoretical framework to highlight the economic links between food security, measured by the indicator of Bonilla, the value of the currencies of the countries and the terms of trade. This theoretical analysis suggests that a depreciation of the national currency leads in the short term to a deterioration of food security (measured with Bonilla Index) due to the higher bill of food imports and the decrease in export revenues. The long term relationship depends on the price elasticities of demand for food imports, the supply of exports and of the ratio of imported food prices relative to prices of other imported products. Finally, two case studies (one on the Gambia, the other on the Côte d'Ivoire) suggest that the exchange rate is not the sole determinant of food insecurity. The level of food security may also depends on other variables such as investments, the level of customs duties, the terms of trade, the money supply and political stability.
    Keywords: exchange rate, food security, Bonilla Index, developing countries
    JEL: Q17 Q18 F13 E42
    Date: 2013
  9. By: Sneyers, Astrid; Vandeplas, Anneleen
    Abstract: It is often argued that women have an important role to play in fostering sustainable and inclusive development. Several empirical studies indeed find a correlation between intra-household bargaining power and spending on children’s nutrition, health and education. The general perception of the impact of gender on agricultural productivity is far less favorable. As a result of constrained access to input markets, output markets, and land markets, female-headed households are usually found to be less productive in agriculture than male-headed households. This paper provides empirical evidence of the impact of female intra-household decision-making power on dairy productivity in India, based on evidence from a household-level dataset which was collected in 2008 in 50 villages spread over 5 districts in Andhra Pradesh, a state in the South of India. The results of our analysis suggest that equal, if not higher, productivity is achieved in households where a woman, rather than a man, is the primary decision-maker over production-related decisions. While caution is due in drawing overly strong conclusions, and more research is needed to corroborate these findings, our results provide a more nuanced view on the impact of gender on agricultural productivity than the one which is usually put forward in the literature.
    Keywords: agricultural productivity; dairy sector; gender; female decision-making power;
    Date: 2013–09
  10. By: Stephen P. Holland; Jonathan E. Hughes; Christopher R. Knittel; Nathan C. Parker
    Abstract: Renewable fuel standards, low carbon fuel standards, and ethanol subsidies are popular policies to incentivize ethanol production and reduce emissions from transportation. Compared to carbon trading, these policies lead to large shifts in agricultural activity and unexpected social costs. We simulate the 2022 Federal Renewable Fuel Standard (RFS) and find that energy crop production increases by 39 million acres. Land- use costs from erosion and habitat loss are between $277 and $693 million. A low carbon fuel standard (LCFS) and ethanol subsidies have similar effects while costs under an equivalent cap and trade (CAT) system are essentially zero. In addition, the alternatives to CAT magnify errors in assigning emissions rates to fuels and can over or under-incentivize innovation. These results highlight the potential negative efficiency effects of the RFS, LCFS and subsidies, effects that would be less severe under a CAT policy.
    JEL: H4 Q2 Q4 Q5
    Date: 2013–11
  11. By: Sally Brooks (Social policy and social work, University of York, UK)
  12. By: Mintewab Bezabih; Abe Damte Beyene; Zenebe Gebreegziabher; Livousew Borga
    Abstract: The paper analyses the impact of climate change and local social networks on farmers’ soil conservation behaviour in the Central Highlands of Ethiopia. Farm household level panel data with multiple plots combined with climate data from the adjacent meteorological stations, interpolated at a household level, are employed in the analysis. The extent to which local social networks contribute to soil conservation investment in the presence of climate change is assessed using multivariate probit and poison estimation methods. In light of similar previous studies, the major contributions of the paper are: 1) the use of wide ranging social capital measures, and 2) the availability of different soil conservation structures in multiple plots within the same household. The results show that climate change is a significant determinant of soil conservation investment. In addition, the relationship between local social networks and soil conservation is context specific.
    Date: 2013–06
  13. By: Kleemann, Linda; Lay, Jann; Nolte, Kerstin; Ott, Konrad; Thiele, Rainer; Voget-Kleschin, Lieske
    Abstract: For local people in sub-Saharan Africa, large land investment projects currently imply many risks and few benefits. Drawing on own ethical and economic research and using evidence from the authors' case studies in Kenya, Mali and Zambia and a new database of large-scale land acquisitions worldwide, this brief offers policy recommendations for host governments, investors and the international community so as to achieve a more favourable balance of risks and benefits in land investment projects. Our research suggests that the land governance systems of sub-Saharan African countries, comprising a multitude of sometimes contradictory laws derived from colonial and customary systems, privilege powerful actors and lead to violation of human rights. Legal uncertainty and an acquisition process that gives no voice to local land users can lead to displacements of farmers without compensation. Poorly enforced formal laws, neglect of built-in checks and balances, and power and information asymmetries between investors and local people can give rise to coalitions of investors and powerful rent-seekers. Displaced farmers and those unable to find jobs on the land investment projects migrate to other rural areas or the cities, and few and only low-skilled jobs are available to those who remain. We found limited evidence of positive spillovers from improved infrastructure and knowledge and technology transfer. Local food prices are likely to rise, as most of the production on investment farms is for export. Overall, when many farmers are displaced and investment projects are capital intensive the net welfare effect for the local population can be expected to be negative. Against this background, we propose a set of policy changes for promoting benefits for the local population and avoiding human rights violations. In contrast to proposals made by international guidelines and codes of conduct, we emphasize in particular the responsibilities of host country governments. --
    Date: 2013
  14. By: Phoebe Koundouri; Vassilis Babalos; Mavra Stithou; Marianna Mousoulidou; Aris Mousoulides; Ioannis Anastasiou; Katerina Vasiliou
    Abstract: The present study attempts to estimate the shadow price of unextracted groundwater in the Vozvozi aquifer. In the context of this study, we model the production function of vertically integrated agricultural firms in termsof an input-oriented distance function with multiple inputs. Duality theory is employed in order to extract information regarding the in situ shadow price of groundwater. This shadow price is of vital importance to the implementation of the EU Water Framework Directive and EU groundwater Directive, because it allows per farm estimation of the value of groundwater. It also allows the investigation of the level of cost recovery when resource’s environmental and resource costs are also considered. In this context, groundwater dependent ecosystems are of great relevance. In our case study, groundwater level decline induces recharge from Vosvozis River and Ismarida Lake, diminishing thus an important source for the life of the wetland ecosystem. Another threat due to groundwater level decline is the intrusion of seawater in the wetland area, causing thus a serious alteration in the initial character of this protected ecosystem. This study offers the opportunity to reveal individual farmer’s valuation of the marginal unit of groundwater in the aquifer and provide policy recommendations for water pricing that provides adequate incentives for users to use groundwater resource efficiently considering groundwater dependent ecosystems.
    Date: 2013–09
  15. By: Yuki Yamamoto, Kenji Takeuchi, Gunnar Kohlin (Graduate School of Economics, Kobe University; Graduate School of Economics, Kobe University; Department of Economics, the University of Gothenburg)
    Abstract: This study investigates the factors that promote peatland fire prevention in Central Kalimantan, Indonesia. We focus on Kalimantan Forests and Climate Partnership (KFCP) as one of the earliest pilot projects to reduce emissions from deforestation and degradation (REDD). We estimate an agricultural labor allocation model by combining household survey data and satellite information. The results suggest that the impact of KFCP on household decision making concerning fire prevention at agricultural plots is statistically insignificant. This can be attributed to the fact that the KFCP has not changed the incentives for household fire prevention at individual plots. Economic factors such as the value of labor allocation for rubber production and exogenous income as well as non-economic factors such as traditional mutual assistance, called Goton-royong, are statistically significant. These results suggest that an appropriate design for intervention would be a combination of economic and non-economic incentives to achieve effective REDD policy.
    Date: 2013–11
  16. By: Swinnen, Jo; Ciaian, Pavel; Kancs, d'Artis; Van Herck, Kristine; Vranken, Liesbet
    Abstract: Direct payments (DP) in the EU-27 were introduced as the central element of the 2003 CAP reform and are implemented in different models. The 2013 CAP reform will change both the implementation of the DP and their budget. This study assesses the possible effects of the DP reform proposals on EU land markets and the extent to which the DP are capitalized in land prices.
    Date: 2013
  17. By: Deconinck, Koen; Swinnen, Jo
    Abstract: Almost half of the world’s vineyards are in the EU and the EU produces around 60% of the world’s wine. The EU is also the world’s most regulated wine market. In 2007, the European Union decided on a major reform of its wine policy, the so-called Common Market Organization (CMO) for wine. A crucial element was the abolishment of a system of planting rights to regulate planting of vineyards in the EU. However, before its implementation opponents of the liberalization of planting rights are lobbying EU governments to reverse the decision. Our paper provides the first theoretical analysis of the economic effects and the welfare implications of planting rights. Our model integrates the markets for land, planting rights and wine to analyze the efficiency and distributional effects. We analyze the impact of enforcement problems, trade restrictions, and the use of government reserves in the planting rights system.
    Keywords: planting rights; wine; Common Agricultural Policy; Common Market Organization; policy anlysis;
    Date: 2013–01–17
  18. By: Maystadt, Jean-Francois; Ecker, Olivier; Mabiso, Arthur
    Abstract: Climate change leads to more frequent and more intense droughts in Somalia. In a global context, weather shocks have been found to perpetuate poverty and fuel civil conflict. By relating regional and temporal variations in violent conflict outbreaks with drought incidence and severity, we show that this causality is valid also for Somalia at the local level. We find that livestock price shocks drive drought-induced conflicts through reducing the opportunity costs of conflict participation. Our estimation results indicate that a temperature rise of around 3.2 degrees Celsius—corresponding to the median Intergovernmental Panel on Climate Change scenario for eastern Africa by the end of the century—would lower cattle prices by about 4 percent and, in turn, increase the incidence of violent conflict by about 58 percent. Hence climate change will further aggravate Somalia’s security challenges and calls for decisive action to strengthen both drought and conflict resilience, especially in pastoralist and agropastoralist livelihoods.
    Keywords: drought; conflict; civil war; livestock; prices; Somalia; Horn of Africa;
    Date: 2013
  19. By: Zhichao Guo (Beijing Technology and Business University); Yuanhua Feng (University of Paderborn); Thomas Gries (University of Paderborn)
    Abstract: The purpose of this paper is to investigate changes of China's agri-food exports to Germany caused by China's accession to WTO and the global financial crisis in a quantitative way. The paper aims to detect structural breaks and compare differences before and after the change points. The structural breaks detection procedures in this paper can be applied to find out two different types of change points, i.e. in the middle and at the end of one time series. Then time series and regression models are used to compare differences of trade relationship before and after the detected change points. The methods can be employed in any economic series and work well in practice. The results indicate that structural breaks in 2002 and 2009 are caused by China's accession to WTO and the financial crisis. Time series and regression models show that the development of China's exports to Germany in agri-food products has different features in different sub-periods. Before 1999, there is no significant relationship between China's exports to Germany and Germany's imports from the world. Between 2002 and 2008 the former depends on the latter very strongly, and China's exports to Germany developed quickly and stably. It decreased however suddenly in 2009, caused by the great reduction of Germany's imports from the world in that year. But China's market share in Germany still had a small gain. Analysis of two categories in agri-food trade also leads to similar conclusions.
    Keywords: Agri-food trade, structural breaks, China's accession to WTO, financial crisis, change of trade relationship financial crisis of 2008, growth causes, structural breaks
    Date: 2013–11
  20. By: Kesternich, Iris (University of Munich); Siflinger, Bettina (University of Mannheim); Smith, James P. (RAND); Winter, Joachim K. (University of Munich)
    Abstract: We investigate long-run effects of episodes of hunger experienced as a child on health status and behavioral outcomes in later life. We combine self-reported data on hunger experiences from SHARELIFE, a retrospective survey conducted as part of SHARE in Europe in 2009, with administrative data on food supply (caloric rations) in post-war Germany. The data suggest that individual behavior is a pathway between early life shocks and adult health: We find that those who experienced hunger spend a larger fraction of income on food. Taken together, our results confirm that in addition to the well-documented biological channel from early life circumstances to adult health, there is also a behavioral pathway.
    Keywords: war, health, income
    JEL: I10
    Date: 2013–11
  21. By: Eleonora Matteazzi (Department of Economics (University of Verona)); Martina Menon (Department of Economics (University of Verona)); Federico Perali (Department of Economics (University of Verona))
    Abstract: This study develops a household enterprise model extended to encompass recent advances in collective theory. We use a simulation model, in which production and consumption-leisure choices are represented along with the rule governing intra-household resource allocation, to analyze the income and wage responses of each family member. The household is treated as an equilibrium model whose accounts are based on a household social accounting matrix, and the social classes are the wife/husband classes. The simulation analysis illustrates the policy relevance of the collective approach to household behavior for inferring the impact of economic policies on individual welfare levels.
    Keywords: Collective household enterprise model, sharing rule, household production, household social accounting matrix, simulation analysis
    JEL: D11 D12 D13 C61
    Date: 2013–11
  22. By: Alexandre Gohin
    Abstract: The European public policy in favor of the biodiesel consumption is highly debated. Available estimates of the induced land use changes conclude that this policy is inefficient to reduce emissions of GreenHouse Gas. We show that the crop yield evolutions in these estimates are significantly lower than the observed and expected evolutions. This difference is directly related to biased calibration choice of behavioral parameters. We show using the GTAP-BIO framework that a consistent calibration of these parameters leads to a strong reduction (by around 80% in the long run) of the land use changes and induced emissions.
    Keywords: Biofuel, Europe, land use changes
    JEL: Q11 Q15 Q48
    Date: 2013
  23. By: Meloni, Giulia; Swinnen, Jo
    Abstract: It is hard to imagine in the 21st global wine economy, but until 50 years ago Algeria was the largest exporter of wine in the world – and by a wide margin. Between 1880 and 1930 Algerian wine production grew dramatically. Equally spectacular is the decline of Algerian wine production: today, Algeria produces and exports little wine. This paper analyzes the causes of the rise and the fall of the Algerian wine industry. There was an important bi-directional impact between developments of the Algerian wine sector and French regulations. French regulations had a major impact on the Algerian wine industry. Vice versa, the growth of the Algerian wine industry triggered the introduction of important wine regulations in France at the beginning of the 20th century and during the 1930s. Important elements of these regulations are still present in the European Wine Policy today.
    Keywords: European agriculture; wine history; regulation; appelations; institutions;
    Date: 2013
  24. By: Alex Bowen; Emanuele Campiglio; Massimo Tavoni
    Abstract: Transitioning to a low-carbon economy will require significant investment to transform energy systems, alter the built environment and adapt infrastructure. A strategy to finance this investment is needed if the limit of a 2°C increase in global mean temperatures is to be respected. Also, high-income countries have pledged to pay the “agreed full incremental costs” of climate-change mitigation by developing countries, which are not necessarily the same as incremental investment costs. Building on simulations using Integrated Assessment Models and historical evidence, this paper explores some of the issues posed by this dual financing challenge. We discuss the fiscal self-reliance of the energy sector, finding that carbon pricing would generate sufficient fiscal revenues within each region to finance total energy investment. Even when allowing for trade in emission permits regional carbon fiscal revenues should still suffice to cover both their own energy sector investment and permit purchases from abroad. We show that incremental investment (and saving) needs are well within the range of past variation, and argue that the challenge is rather to ensure that the revenues are complemented by investment in the appropriate sectors. But fairness and equity are likely to warrant transfers from advanced industrial countries to developing nations.
    Date: 2013–08
  25. By: Vandemoortele, Thijs; Deconinck, Koen
    Abstract: Retailers’ private standards are increasingly important in addressing consumer concerns about safety, quality and social and environmental issues. Empirical evidence shows that these private standards are frequently more stringent than their public counterparts. This article develops a political economy model that may contribute to explaining this stylized fact. We show that if producers exercise their political power to persuade the government to impose a lower public standard, retailers may apply their market power to install a private standard at a higher level than the public one, depending on several factors.
    Keywords: private standards; public standards; politicaal economy;
    Date: 2013–03–25
  26. By: Johane Dikgang and Edwin Muchapondwa
    Abstract: This study seeks to value ecosystem services in the Kgalagadi area by applying the Choice Experiment technique. The values placed on dryland ecosystem services by indigenous communities are estimated using a Conditional Logit model, Random Parameter Logit model and a Random Parameter Logit model with interactions. The results show that local communities would prefer getting increased grazing firewood collection, hunting opportunities and harvesting of medicinal plants.
    Keywords: choice experiment, conditional logit, ecosystem services, local communities, random parameter logit
    Date: 2013
  27. By: Démurger, Sylvie (CNRS, GATE); Xu, Hui (Beijing Normal University)
    Abstract: This paper examines how left-behind children influence return migration in China. We first present a simple illustrative model based on Dustmann (2003) that incorporates economic and non-economic motives for migration duration (or intentions to return), among which are parents' concerns about the well-being of their left-behind children. We then propose two complementary empirical tests based on data we collected from rural households in Wuwei county (Anhui province) in fall 2008. We first use a discrete-time proportional hazard model to estimate the determinants of migration duration for both on-going migrants with an incomplete length of duration and return migrants with a complete length of duration. Second, we apply a binary Probit model to study the return intentions of on-going migrants. Both models yield consistent results regarding the role of left-behind children as a significant motive for return. First, left-behind children are found to draw their parents back to the village, the effect being stronger for pre-school children. Second, sons are found to play a more important role than daughters in reducing migration duration.
    Keywords: left-behind children, migration duration, return migration, discrete-time duration analysis, China
    JEL: J61 J13 C41 C25 O53
    Date: 2013–11
  28. By: Stoop, Nik; Houssa, Romain; Verpoorten, Marijke
    Abstract: This paper looks at the relationship between natural resource degradation and income diversification for fishing communities in southern Benin. We find that the higher the degradation of the fishery stock, the more fishers diversify their income away from the fishery sector. However, given the rapid natural resource degradation, the level of income diversification that we find is surprisingly low and far from sufficient to relieve the stress on the lakes. In explaining the low level of income diversification, our results suggest that education plays a role.
    Date: 2013–01

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