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on Agricultural Economics |
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Issue of 2014‒06‒28
sixty-nine papers chosen by |
| By: | Lecocq, Frank |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169059&r=agr |
| By: | Kabunga, Nassul |
| Abstract: | There is increasing evidence that improved agricultural technologies benefit smallholder farmers in sub-Saharan Africa. This evidence is however relatively clearer for innovations in smallholder crop production systems as compared to innovations in livestock production systems. Moreover, it is unclear whether the benefits of technology adoption in livestock systems are uniform across small and relatively large farmers. This study uses a national representative sample of 906 households to rigorously assess the impact of adoption of improved dairy cow breeds on enterprise-, household-, and individual child-level nutrition outcomes in Uganda. We find that adopting improved dairy cows significantly increases milk yield, household’s orientation to milk markets, and food expenditure. Consequently, adoption substantially reduces household poverty and stunting for children younger than age five. Considering heterogeneity, we find that adopting households with small farms increase milk yield, food expenditure and reduce poverty substantially while large farms increase not only ownmilk consumption and commercialization but also nutrition outcomes of children younger than age five. |
| Keywords: | improved dairy cows, milk productivity, child nutrition outcomes, poverty, propensity score matching, sub-Saharan Africa, Uganda, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Relations/Trade, Livestock Production/Industries, Production Economics, D1, I15, O13, O33, Q12, Q18, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170517&r=agr |
| By: | Akter, Shaheen; Gathala, Mahesh Kumar |
| Abstract: | Where land is an extremely limiting factor, production is increased through intensive cultivation with two or more crops in a year. We found that 82 per cent of the operating crop land is under 2 or more crops. Soil fertility depletion is one of the main biophysical limiting factors for sustaining per capita food production for smallholder farmers in this system. The adoption of conservation agricultural practices, as a way to tackle this challenge, has become an important issue in the development policy agenda for smallholder agriculture. This paper examines the adoption decisions for conservation tillage, using recent primary data collected from 606 farming households practising diverse cropping systems in three different districts where on-farm participatory trials were being carried out. The paper employs classical tests to identify variations in adoption and yield between participatory and non-participatory farmers as well as variation between cropping patterns and locations. A double hurdle model was employed to explain the factors influencing adoption decisions by farm households. The analysis reveals that several factors contribute to probability and intensity of adoption. Diversities exist between locations, cropping systems, and seasons. Policies that target conservation as a measure of sustainable agriculture must consider diversities for wider diffusion of technology. |
| Keywords: | Community/Rural/Urban Development, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies, O33, Q18, C21, Q16, C24, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170529&r=agr |
| By: | Vellinga, Nico; Matthews, Keith; Roberts, Deborah; Thomson, Ken |
| Abstract: | One of the key features of the CAP 2014 reforms is the requirement for Member States currently distributing direct payments to farmers on the basis of historic support levels to switch an area-based payment scheme. This paper explores effects of this shift for both the farm sector and the wider rural economy in North-East Scotland. Analysis is carried out in two stages: First, the changes in payments for individual farm businesses are estimated based on the integration of several agricultural datasets. Second, the wider economy impacts are estimated using an agriculture-focussed static regional CGE model. The farm-level analysis shows that the North-East Scotland region is likely to suffer a significant net payment loss from the change in payment basis; however, there are gainers as well as losers both between and within farm types. The CGE analysis suggests that the wider economic impacts of the change in payments will be limited, in part due to the relatively small size of the sector in the overall economy. Within the agricultural sector itself, real agricultural GDP falls by 0.55%. Small cropping farm households suffer the largest overall income drop (-9.18%), with output from large “other” farm types falling most (-23.59%). Land rents fall across all farm types, and land switches into forestry. In terms of the wider agri-food chain, demand for agricultural intermediate inputs falls by 3% while the impacts on the downstream food sectors are more limited with meat processing predicted to fall most in percentage terms (-1.47%) due to increased raw imports from other regions. The paper concludes by suggesting areas for further research. |
| Keywords: | CAP reform, farm businesses, CGE, Agriculture, Agribusiness, Agricultural and Food Policy, Political Economy, Q1, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170519&r=agr |
| By: | Ryan, Mary; Buckley, Cathal; Dillon, Emma Jane; Donnellan, Trevor; Hanrahan, Kevin; Hennessy, Thia; Moran, Brian |
| Abstract: | Developing the capacity to assess and chart trends in the sustainability of farming and food production is becoming increasingly more important as agriculture strives to produce more food while minimising the risk to the natural environment. The multi-faceted nature of sustainability is encompassed in economic, environmental, social and innovation indicators. This paper outlines the development of farm level indicators for these sustainability criteria in Ireland. A comparison of indicators across farm systems shows that dairy farms, followed by tillage farms, tend to be the most economically and socially sustainable farm systems. Interestingly, in relation to greenhouse gas emissions in particular, the top performing farms in an economic sense also tend to be the best performing farms from an environmental sustainability perspective. This trend is also evident in terms of the adoption of innovative practices on farm, which is found to be strongly positively correlated with economic performance. |
| Keywords: | Agriculture, Sustainability, Agricultural and Food Policy, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Q12, Q18, Q56, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170501&r=agr |
| By: | Rajendran, Srinivasulu; Afari-Sefa, Victor; Bekunda, Mateete; Dominick, Inviolate; Lukumay, Philipo Joseph |
| Abstract: | Maize is one of the most important staple foods that is critical to food security and livelihoods of farmers in sub-Saharan Africa. Although maize is important staple crop for ensuring food security, it cannot ensure nutritional security. To provide and ensure an adequate supply and greater variety of nutritional foods within a farm household, cropping patterns and farming systems must be diversified to include micronutrient-rich vegetables and fruit crops, particularly traditional African species. Vegetables provide nutritional benefits and increase household incomes for smallholders, and are thus an excellent complement to staple crops for addressing food and nutritional security. The objective of this study is to ascertain if an increased diversity of crops in farmers’ fields leads to increased diversified diets or otherwise. This underlying objective is analyzed with a multiple linear regression model from a primary survey of 300 farm households selected from 10 villages in the Babati, Kongwa and Kiteto districts of Tanzania. Results show that farm diversity does not have a positive and significant effect on dietary diversity after controlling for other covariates. However, variables such as households size, level of education, monthly expenditure on food, irrigated area, proportion of vegetables consumed from own household production and control of household income by female decision makers were found to have strong association with dietary diversity. |
| Keywords: | Farm Diversity, Dietary Diversity, Vegetables, Maize, Agribusiness, Crop Production/Industries, Farm Management, Q10, Q180, I130, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170542&r=agr |
| By: | Kirchweger, Stefan; Kantelhardt, Jochen |
| Abstract: | The effects of policy supported farm investments on structural change in agriculture have been studied rarely. The heterogeneity of farms and the problem of self-selection are challenging the evaluation of treatments in agriculture. Econometric methods can help to overcome these problems. In this paper, we apply a conditional Difference-in-Difference (DiD) estimation, where we combine Direct Covariate Matching with a DiD estimation. Our dataset consist of more than 90,000 farms. In order to measure the development and the heterogeneity of the effects after the investment we look at several years and different farm groups separately. Our results show that investing farms significantly enlarge and intensify their production more than non-investing farms. Furthermore, the results indicate that investments are often not completely implemented short-term but require a certain implementation period. This applies in particular to cattle farming. |
| Keywords: | Farm investment support, structural change, evaluation, conditional difference-in-difference, Matching, Agricultural and Food Policy, Agricultural Finance, Farm Management, Q10, Q12, Q18, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170545&r=agr |
| By: | Fukase, Emiko; Martin, Will |
| Abstract: | This paper uses resource-based cereal equivalent measures to explore the evolution of China's demand and supply for food. Although demand for food calories is probably close to its peak level in China, the ongoing dietary shift to animal-based foods, induced by income growth, is likely to impose considerable pressure on agricultural resources. Estimating the relationship between income growth and food demand with data from a wide range of countries, China's demand growth appears to have been broadly similar to the global trend. On the supply side, output of food depends strongly on the productivity growth associated with income growth and on the country's agricultural land endowment, with China appearing to be an out-performer. The analyses of income-consumption-production dynamics suggest that China's current income level falls in the range where consumption growth outstrips production growth, but that the gap is likely to begin to decline as China's population growth and dietary transition slow down. Continued agricultural productivity growth through further investment in research and development, and expansion in farm size and increased mechanization, as well as sustainable management of agricultural resources, are vital for ensuring that it is primarily China that will feed China in the 21st century. |
| Keywords: | Food&Beverage Industry,Economic Theory&Research,Rural Development Knowledge&Information Systems,Livestock and Animal Husbandry,Regional Economic Development |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6926&r=agr |
| By: | Latacz-Lohmann, Uwe; Schulz, Norbert; Breustedt, Gunnar |
| Abstract: | This paper explores farmers’ prospective responses to the “greening” of the Common Agricultural Policy. The analysis is based on discrete choice experiments with 128 German farmers. Participants were asked to choose between a “greening” option with a given set of management prescriptions and an “opt-out” alternative with a stipulated cut of the single direct payment. A binary logit model is used to identify the variables affecting the likelihood of “greening” being chosen. In addition, latent class estimations are carried out to group respondents into latent classes of “compliers” and “non-compliers”. We find that farmers” choices are driven by “greening” policy attributes, personal and farm characteristics, and interactions between these two groups of variables. Farmers perceive “greening” as a costly constraint, but not all farmers are equally affected and not all “greening” provisions are regarded as equally demanding. Specialised arable farms on highly productive land and intensive dairy farms are most likely to opt out of “greening” and voluntarily forgo part of their single payment entitlements. The paper concludes with a set of recommendations for improving the design of a second-best policy. |
| Keywords: | Greening, Common Agricultural Policy, discrete choice modelling, latent class estimation, Agricultural and Food Policy, Farm Management, Q18, Q24, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170560&r=agr |
| By: | Kousar, Rakhshanda; Abdulai, Awudu |
| Abstract: | This paper examines the impacts of non-farm work and land tenancy arrangements on the intensity of investment in soil-improving measures and farm productivity. A multivariate tobit model that accounts for potential endogeneity between the intensity of investment and the non-farm work and tenancy arrangement variables is estimated for 341 rural households in Punjab province of Pakistan. Instrumental variable approach is also used to analyze the impact of tenancy arrangement and non-farm work on farm productivity. The empirical results show that participation in non-farm work and tenure security tend to increase the intensity of investment in long-term soil-improving measures, but decrease chemical fertilizer use intensity. We also find that increases in non-farm work and tenure security exert significant and positive effects on agricultural productivity. Investment in soil conservation measures is also found to significantly increase agricultural productivity. |
| Keywords: | farm productivity, land tenure, non-farm work, soil conservation., Environmental Economics and Policy, Land Economics/Use, Production Economics, Productivity Analysis, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170522&r=agr |
| By: | Shrestha, Shailesh; Ahmadi, Bouda Vosough; Thomson, Steven G.; Barnes, Andrew P. |
| Abstract: | The post 2015 Common Agricultural Policy (CAP) reforms may bring a substantial change in the way farm payments are paid in Scotland where earlier farm payments were based on historical entitlements. Scottish farms now have to follow a Basic payment Scheme (BPS) which would be determined under a mandatory internal convergence. For the internal convergence there have been a number of proposals put forward by the Scottish government based on land capabilities. This paper examines one of regional payment scenario with and without partially coupled payments and identifies the winners and losers among Scottish farms under that scenario compared to the historical payments they currently are receiving. Farm level data from the 2010 Scottish Farm Accountancy Survey (FAS) was used in a farm level optimising model (ScotFarm) for this study. The results show that a majority of farm types would lose out under proposed CAP reform scenario. Sheep farms however, would benefit the most (6% to 7% on farm net margins) under the fully decoupled payment scenario. The partial coupled calf payments slightly increase beef farm margins but they still fail to improve on whole farm margins on beef farms. Overall, the studied scenarios support extensive farms in expense of all other farm types. |
| Keywords: | CAP reform, farm level modelling, Scottish farms, regional payments, partial coupled payments, Agricultural and Food Policy, Agricultural Finance, Farm Management, International Relations/Trade, Q180, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170536&r=agr |
| By: | Olarinde, Luke O.; Adepoju, Adebusola A.; Jabaru, Muritala O. |
| Abstract: | It is widely known that climate change and agriculture are interrelated process, both of which take place on a global scale. In effect, crop and animal farming, fisheries, forestry, with the resultant access to food and fibre in many continents and regions of the world are projected to be severely compromised by climate variability and change. Several strategies aimed at reducing climate variability induced hazards abound. These include cultural and conventional food and farming systems to climate variability and these are aimed at enhancing the adaptive capacity and mitigation. In this study, we are investigating the separate and joint effects/impacts that the use of various climate change adaptation strategies have on crop yields and on the resultant marketed values of crops. We are applying instrumental variables method on a cross-sectional survey data of two states (Osun and Oyo) of south western Nigeria to evaluate these impacts. The findings suggest that the use of climate change adaptation strategies has impacted on expected yield and on marketed crop outcomes. Policy indicative variables suggest that sustainable crop production can be achieved in the face of climate change and this can effectively create a win-win situation from the synergy between African and European agriculture. |
| Keywords: | Crop Production/Industries, Environmental Economics and Policy, Farm Management, International Relations/Trade, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170484&r=agr |
| By: | Glithero, N. J.; Wilson, P.; Ramsden, S. J. |
| Abstract: | Food and fuel security in the face of population growth and climate change represent key societal challenges. Extending an arable farm-level bio-economic optimisation model ‘MEETA’ to include dedicated energy crops (DECs) and water metrics, we quantify water use implications and trade-offs between greenhouse gas emissions, net energy and farm profitability. Drawing upon the limited available water use data for arable and energy crops applicable for East Anglia in the UK, six different farm scenarios were investigated. Profit maximisation produces a conventional crop mix, while maximising net energy and minimising greenhouse gas emissions result in crop mixes which impose financial penalties and lower water use in comparison to conventional cropping; average financial impacts of the associated reduced water use under these respective scenarios range from £0.12 to £0.28 per m3 of water. Confidence in these results and work on water use and management more generally would be improved through better data on inter-annual crop-water needs, temporal water availability relationships and water response functions. Water availability for UK crop production is largely perceived to be a non-limiting resource; however climate change predictions demonstrate that availability of water for UK crop production is of increasing concern for both farmers and society as a whole. |
| Keywords: | Food, Bioenergy, Water Use, Modelling, Greenhouse Gas Emissions, Environmental Economics and Policy, International Relations/Trade, Resource /Energy Economics and Policy, Q41, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170557&r=agr |
| By: | Lenglet, Jonathan; Franzel, Martin; Kirchweger, Stefan; Kapfer, Martin; Schaller, Lena; Kantelhardt, Jochen |
| Abstract: | The provision of commodities for feed, food and energy production is the main task of the agricultural sector but it is obvious that agriculture is also essential for the viability of most rural areas. Although the consequences of agriculture on the landscape are extensively described, the reverse is less documented. The objective is therefore to assess the efficiency of agricultural holdings in order to establish correlation between the purely economic factors and the landscape aspects. The study region “Mittleres Ennstal”, is located in the north-east of Styria in Austria. We apply a matching approach to obtain reliable data, then, a data Envelopment Analysis (DEA) is performed, followed by a second stage for interrelations analysis. Two databases supported by the European Commission were used: the IACS and the FADN. This chain process aims to provide sufficient data and allow performing an economic analysis in a proven framework. It enables us to establish ties between agricultural efficiency and the landscape and, to quantify the impact of the landscape on the competitiveness. The results show that the considered landscape features have no first order effect on the farms’ economic efficiency. However, it does not mean that agriculture and landscape are not linked together. |
| Keywords: | Landscape, Economic efficiency, Second stage DEA, Matching, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, International Relations/Trade, Q15, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170549&r=agr |
| By: | Barnes, Andrew; Toma, Luiza; Mathews, Keith; Sutherland, Lee-Ann; Thomson, Steven |
| Abstract: | A series of studies have explored the future intentions of farm households to reforms of the Common Agricultural Policy (CAP). This paper explores the intentions of Scottish livestock farmers under proposed reforms and, using the path dependency model, estimates the effect of past decisions on determining future intentions. A large representative telephone based survey of livestock farmers was conducted over the Summer of 2013. This yielded a response rate of 1,764 observations from livestock based holdings in Scotland. A multinomial logistic regression was used to estimate the influence of various factors on either increasing or decreasing activity in agricultural and non-agricultural related areas. Whilst hypothesised increases in payment will lead to an intention to increase activity, a reduction in payment, in some cases, also leads to stated increases in activity both in agricultural and non-agricultural enterprises. We find that the most powerful predictors of change are response to past reform, farmer age and the identification of a successor within the farm household. This latter variable is highly significant and may negate concerns over uncertainty within short-term policy planning scenarios. Overall we argue for more appreciation of longer term trajectories of change at the farm level. |
| Keywords: | Farmer intentions, Common Agricultural Policy, Path Dependency, Multinomial logistic regression, Intensify, diversify, opt-out: testing farmer stated intentions to past and future CAP reform scenarios, Agribusiness, Agricultural and Food Policy, Research Methods/ Statistical Methods, Q18, Q15, D81, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169724&r=agr |
| By: | Breustedt, Gunnar |
| Abstract: | To internalize climate-related external costs from agricultural production and food consumption Pigou taxes and carbon credits increase private costs for food. Voluntary consumer choices for carbon-neutral food can be advantageous over such policy measures since they avoid higher food prices for the poor. We empirically analyze consumers’ willingness-to-pay for hypothetical carbon-reduced as well as carbon-neutral milk and apple juice. Data are collected in Discrete Choice Experiments in a German supermarket. Estimates reveal a substantial price premium for the carbon-neutral products which is probably sufficient to cover the products’ extra costs, including the purchase of carbon credits. The premiums are around 0.20 € per liter milk and 0.30 € per liter apple juice. Although the external validity of stated-preference methods is limited the willingness-to-pay measures for organic milk and juice as well as for different real-world labels in our experiment are similar to real-world price premiums. |
| Keywords: | climate change, carbon-neutral food, discrete-choice-experiment, Consumer/Household Economics, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, Q54, Q130, Q180, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169748&r=agr |
| By: | Edeh, Hyacinth Onuorah; Gyimah-Brempong, Kwabena |
| Abstract: | Limited economic and physical capacities as well as environmental and economic shocks have constrained the ability of many Nigerian households to feed themselves adequately. This has resulted in these households being faced with food shortages; and they have to adopt various consumption-related strategies to mitigate the effect of the shortfalls. Using the 2010/2011 Nigeria LSMS-ISA survey data and the reduced consumption coping strategy index (RCCSI), this paper examines the determinants of change in food (in)security of Nigerian households in the two major farming periods. Results show that there is a significant difference in the food insecurity status of households in the two periods. The likelihood of change in the food security status were determined by sex of the household head, farmland holdings, nature of livelihood, shocks associated with land loss, and climate change events. Coping strategies in the two periods were dietary change strategies and the rationing strategies. However, the frequency of use of these strategies is higher in the post-planting period and more among female-headed households. The use of high-yielding climate-resistant crops and reduction in post-harvest losses through processing and improved storage facilities are advocated. |
| Keywords: | Food Security, Food Consumption Score, Reduced Consumption Coping Strategy Index, Post-harvest, Post-planting, Consumer/Household Economics, Crop Production/Industries, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Research Methods/ Statistical Methods, D120, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169750&r=agr |
| By: | Claudia Parisi (European Commission – JRC - IPTS); Mauro Vigani (European Commission – JRC - IPTS); Emilio Rodríguez Cerezo (European Commission – JRC - IPTS) |
| Abstract: | Innovation is at the centre of the EU's growth strategy for the coming decade (EU2020). New technologies and their adoption by EU farmers are essential in maintaining European agriculture competitive in a global world. Within this context, nanotechnology represents an innovative technology with great potentials in many areas of applications as diverse as medicine, biotechnology, electronics, materials science and energy technologies. Furthermore, nanotechnology is showing a great potential in the agricultural sector, in particular for the development of more precise and effective methods for disease diagnosis and treatment in crop plants. The purpose of the workshop "Workshop on nanotechnology for the agricultural sector: from research to the field", held at JRC-IPTS (Seville) on 21st and 22nd November 2013, is to review the state-of-the-art of R&D of nanotechnology for the agricultural sector and to analyse possible markets and commercial pipeline of products. The scope is on nanotech-based products with applications in crop production (e.g. applications in plant protection products, fertilisation, soil structure, nano-sensors for biotic and abiotic stresses). This workshop brought together leading scientists, key stakeholders and experts, in order to promote the presentation of research and industry results and the discussion of experiences. |
| Keywords: | Nanotechnology, Agriculture, Bioeconomy, Risk assessment, Regulation, Food security, Innovation |
| JEL: | O13 O31 O34 Q13 Q16 Q18 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc89736&r=agr |
| By: | Anonymous |
| Keywords: | Agricultural and Food Policy, Teaching/Communication/Extension/Profession, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170558&r=agr |
| By: | Glenka, Klaus; Eorya, Vera; Colombo, Sergio; Barnes, Andrew |
| Abstract: | Greenhouse gas mitigation in agriculture implies changes in farm management practices. Knowledge on farmers’ current adoption of management practices aimed at reducing emissions, and their preferences regarding these, is important to inform the development of robust climate change mitigation policies in the agricultural sector. In the context of Scottish dairy farms, this study combines information on current adoption of mitigation practices with preference information based on Best-Worst-Scaling to facilitate the choice of mitigation practices to support via policy mechanisms that encourage and incentivise change. We find that current adoption plays an important role in understanding preference rankings of mitigation practices, and identify promising mitigation practices based on their potential for additional emission reduction, their perceived contribution to the farm’s financial and environmental performance and information on their cost-effectiveness. |
| Keywords: | Climate change, Mitigation, Best-Worst-Scaling, Stated preferences, Technology adoption, Dairy farming, Agribusiness, Environmental Economics and Policy, Livestock Production/Industries, Research and Development/Tech Change/Emerging Technologies, Q19, Q54, D03, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170358&r=agr |
| By: | Loughrey, J.; Thorne, F.; Kinsella, A.; Hennessy, T.; McDonnell, J.; O’Donoghue, C.; Vollenweider, X. |
| Abstract: | The abolition of the milk quota regime in April 2015 will provide the opportunity for many profitable Irish dairy farms to increase their production levels. Market risk will influence the decision-making process at the farm level. Dairy farmers have acquired more recent experience of market risk through highly volatile market prices. This has the potential to affect risk attitudes and the selection of tools available to manage market risk. In this paper, we examine the market risk perceptions and management of Irish dairy farmers using 2011 Teagasc National Farm Survey data. We utilise experimental data in relation to forward contracting in order to examine the risk aversion and adoption rates for this particular risk management tool. Our findings suggest that recent price history and future price expectations have significant effects on decision-making in the area of forward contracting. Within the farm-gate diversification and the number of children in particular age categories have a positive and significant association with the adoption of forward contracting. |
| Keywords: | Market Risk, Risk Perception, Risk Management, Forward Contracts, Risk Aversion, Agribusiness, Farm Management, Livestock Production/Industries, Marketing, Risk and Uncertainty, D81, Q12, Q18, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169760&r=agr |
| By: | Dillon, Emma Jane; Hennessy, Thia; Buckley, Cathal; Donnellan, Trevor; Hanrahan, Kevin; Moran, Brian; Ryan, Mary |
| Abstract: | The concept of sustainability is one of the forefront issues in global agricultural production at present, given mounting pressure to increase food production in both a socially responsible and environmentally friendly way. From an Irish perspective the sustainable intensification of agriculture is of particular relevance given ambitious targets to increase milk production by 50 percent by 2020, in the context of European milk quota removal. Alongside this, environmental targets may be specified, meaning that expansion would have to be achieved in a sustainable way. To evaluate dairy farm-level sustainability a series of indicators are developed here using Teagasc National Farm Survey FADN (Farm Accountancy Data Network) data for Ireland from 2012. Three dimensions, reflecting the multifaceted nature of sustainability (economic, environmental and social) are considered. Given the environmental challenges inherent in the sustainable intensification of agriculture, it is encouraging to observe that the more intensive, top performing farms (in an economic sense) emit relatively less greenhouse gases when compared to their less intensive counterparts. Conversely, the better performing farms in economic terms tend to have higher nitrogen surplus per hectare on average. This is consistent with their higher rates of production intensity but poses a challenge in terms of sustainable expansion. That said this analysis demonstrates that the nitrogen use efficiency of milk production is positively correlated with economic performance, with more intensive farms producing relatively more milk per kg of nitrogen surplus. From a social perspective demography also tends to be correlated with economic performance. These indicators allow for the continued assessment of the sustainability status of Irish farming. |
| Keywords: | Sustainable intensification, Sustainability indicators, Dairy quota removal, Agribusiness, Environmental Economics and Policy, International Relations/Trade, Livestock Production/Industries, Production Economics, Q1, Q5, Q18, Q56, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169740&r=agr |
| By: | Liesivaara, Petri; Myyrä, Sami |
| Abstract: | Crop insurance markets are exposed to unpredictable weather conditions. Yield risks are systemic in nature, and public intervention is often a necessity for the functioning private crop insurance markets. Climate change is expected to increase catastrophic weather events and yield volatility. This paper addresses the question how government actions related to extreme weather events affect the demand and farmers willingness to pay for crop insurance products. The analysis is based on farmers’ stated preferences with split data approach. Our results reveal that farmers’ willingness to pay for crop insurance was different when government disaster relief was possible compared to the situation where disaster relief was not possible. Results show that possibility for disaster relief payments in catastrophic event will lead to extensive misuse of taxpayers’ money if crop insurance premiums are subsidized simultaneously. |
| Keywords: | disaster relief, crop insurance, choice experiment, willingness to pay, Crop Production/Industries, Demand and Price Analysis, Environmental Economics and Policy, Q12, Q18, G22, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170520&r=agr |
| By: | Maddison, David; Rehdanz, Katrin |
| Abstract: | Records of rental agreements for agricultural land in England between 1690 and 1914 are used to develop an annual rental price index for agricultural land. This index displays a long run cointegrating relationship with indices for the price of agricultural output and agricultural wage rates. A vector error correction model illustrates the powerful long run causal influence of the price of agricultural output and wage rates on rents. By contrast, there is no evidence that rents cause wage rates or the price of agricultural output. Such results suggest that Ricardo was right when he posited that rent was a residual driven by increases in the price of agricultural output rather than the other way around. Matters are different however when the price of individual agricultural commodities is used rather than the price of agricultural output. In this situation there emerges a bidirectional causal relationship of the type envisaged by Jevons. Lastly our framework can also be used to measure the rate of technical progress in agriculture. While we cannot find a statistically significant level of technical progress before the industrial revolution, after 1785 the rate of technical progress is a brisk 1.8 percent per annum. |
| Keywords: | Ricardo, Land Rents, Causality, Community/Rural/Urban Development, Consumer/Household Economics, International Development, Land Economics/Use, B31, Q15, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169733&r=agr |
| By: | Tambo, Justice A.; Wünscher, Tobias |
| Abstract: | Innovation is essential for agricultural and economic development, especially in today’s rapidly changing global environment. While farmers have been recognised as one of the key sources of innovation, many studies on agricultural innovations continue to consider farmers as adopters of externally-driven innovations only. Based on cross-sectional data from 409 farm households, this study, in contrast, analyses the innovation-generating behaviour among rural farmers in northern Ghana. Inspired by two innovation theories – induced innovation and innovation systems – we focus on the determinants of innovation behaviour. Employing recursive bivariate probit and endogenous treatment-regression models which control for selection bias, we find that participation in Farmer Field Fora, a participatory extension approach with elements of the innovation systems perspective, is a key determinant of innovation behaviour in farm households. Other important determinants are education, climate shocks and risk preferences. These results are robust to alternative specifications and estimation techniques. We conclude that policies for the generation of innovations among farmers should focus on education, and on building innovation capacity through institutional arrangements that permit interactions and learning between stakeholders. |
| Keywords: | Determinants, Farmer Field Fora, farmer innovation, Ghana, induced innovation, innovation systems, Agribusiness, International Development, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, Q12, Q16, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170351&r=agr |
| By: | Kassie, Girma T.; Abdulai, Awudu; MacRobert, John; Abate, Tsedeke; Shiferaw, Bekele; Tarekegne, Amsal; Maleni, Debrah |
| Abstract: | This study aimed at estimating the implicit prices farmers are willing to pay (WTP) for maize traits with deliberate focus on drought tolerance. Using choice experiment, we generated 12600 observations from a random sample of 1400 households in communal areas within 14 districts of Zimbabwe. Taste parameters and heterogeneities (scale and residual taste) were estimated using the generalized multinomial logit model (G-MNL) and its different versions. Drought tolerance, grain yield, large grain size, covered cob tip, big cob and semi flint texture were the most preferred traits by rural Zimbabweans. The WTP values were estimated using the WTP space approach. Sample farmers are, for example, willing to pay a premium for drought tolerance that is 1.75 times the amount they are willing to pay for an increase of 1 ton in grain yield per acre, 8.3 times the value they attach for a change from small to big cob size, and 14.7 times the willingness to pay for semi-flint texture over dent texture of maize. The uncertainty that DT might not be appealing to poor farmers as much as some other technologies can only be cleared only if the promotion of DT materials is done in the right manner and to the right farm community. Innovative ways of promoting DT maize vis-à-vis creating awareness in contextual understanding of drought and drought risk shall be employed to enhance adoption of new DT maize varieties by risk prone farming communities. Given the high level of rural literacy and the high rate of adoption of improved maize in Zimbabwe, trait based promotion and marketing of varieties would be the right strategy. |
| Keywords: | DT maize, choice experiment, WTP space, G-MNL, Zimbabwe, Agribusiness, Crop Production/Industries, Demand and Price Analysis, International Relations/Trade, Research Methods/ Statistical Methods, B41, C25, D03, D12, O13, O33, Q12, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169747&r=agr |
| By: | Asongu, Simplice; Nguena, Christian |
| Abstract: | Large-scale agricultural land acquisitions have been covered substantially in recent literature. Despite the wealth of theoretical and empirical studies on this subject, there is no study that has reviewed existing literature in light of concerns over sustainable and equitable management. This study fills the gap by analyzing and synthesizing available literature to put some structure on existing knowledge. The paper has a threefold contribution to the literature. First, it takes stock of what we know so far about the determinants of land grab. Second, it presents a picture of sustainable and equitable development of the foreign land acquisitions. Third, policy syndromes are examined and policy implications discussed. Based on the accounts, the issues are not about whether agricultural investments are needed, but on how they can be sustainably and equitably managed to make positive contributions to food security and domestic development. |
| Keywords: | Governance; Equity; Sustainable Development; Land Grab |
| JEL: | F21 O13 O55 Q15 Q34 |
| Date: | 2014–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56808&r=agr |
| By: | Schaller, Lena; Kantelhardt, Jochen; Fedrigotti, Valérie Bossi; Targetti, Stefano; Viaggi, Davide; Ariaza, Manuel; Bal, Tufan; Giray, F. Handan; Häfner, Kati; Kart, Çağla Örmeci; Majewski, Edward; Malak-Rawlikowska, Agata; Nikolov, Dimitre; Paoli, Jean-Christophe; Piorr, Annette; Ungaro, Fabrizio; Verburg, Peter; Villanueva, A.J.; Zanten, Boris van; Zasada, Ingo |
| Abstract: | Agricultural landscapes are important elements of European culture. There is an increasing recognition that agricultural landscapes represent economic assets; not only because of the production of agricultural commodities, but also by offering significant opportunities for the socioeconomic development of rural areas. However, in literature there is no clear evidence of which causal relationships exist between the valorisation of landscapes and the creation of socioeconomic benefits. The objective of this paper is to assess causal connections between actors, the goods provided in agricultural landscapes, the socioeconomic benefits created by these goods and the contribution of such benefits to regional competitiveness, using an Analytical Network Process supported by qualitative stakeholder validation. Network evaluation is done on basis of a stakeholder panel exercise conducted in 9 rural European study regions, which are all coping with different basic natural and social conditions. The results show, that various elements impact on the system of landscape valorisation. It can be seen that agricultural production still plays a key role in the relations between landscape and rural development; however the exercise also shows, that public goods lead to socioeconomic benefits and that differing regional conditions influence the importance of single elements playing a role in the system. |
| Keywords: | Analytical Network Process, Agricultural Landscape, Landscape valorisation, Ecosystem Services, Private and Public goods, Regional competitiveness, Agricultural and Food Policy, Community/Rural/Urban Development, Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170370&r=agr |
| By: | Henderson, J. Vernon; Storeygard, Adam; Deichmann, Uwe |
| Abstract: | This paper documents a significant impact of climate variation on urbanization in Sub-Saharan Africa, primarily in more arid countries. By lowering farm incomes, reduced moisture availability encourages migration to nearby cities, while wetter conditions slow migration. The paper also provides evidence for rural-urban income links. In countries with a larger industrial base, reduced moisture shrinks the agricultural sector and raises total incomes in nearby cities. However, if local cities are entirely dependent on servicing agriculture so their fortunes move with those of agriculture, reduced moisture tends to reduce local urban incomes. Finally, the paper shows that climate induces employment changes within the rural sector itself. Drier conditions induce a shift out of farm activities, especially for women, into non-farm activities, and especially out of the workforce. Overall, these findings imply a strong link between climate and urbanization in Africa. |
| Keywords: | Science of Climate Change,Climate Change Mitigation and Green House Gases,Population Policies,Climate Change Economics,Water Conservation |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6925&r=agr |
| By: | Loy, Jens-Peter; Holm, Thore; Steinhagen, Carsten; Glauben, Thomas |
| Abstract: | In food retailing a high degree of static price dispersion between and within stores and between brands has been documented, but at the brand and/or retail outlet level the dynamic behaviour of prices, as well as its causes, have not been analysed in the European food market context. In this paper we estimate the dynamic pricing behaviour of brands at various retail outlets to identify the role of private (low-price brands) and national (high-price brands) labels to explain the dispersion of retail price dynamics. The results indicate significant asymmetries in cost pass-through processes, which vary between brands and outlets. In particular, private labels (low-price brands) adjust prices faster than national labels (high-price brands). Moreover, cost pass-through is slightly more (positive) asymmetrical for private labels than for high-price national brands. |
| Keywords: | Cost Pass-Through, Panel Threshold Error Correction Model, Dairy, Retail Market, Germany, Demand and Price Analysis, International Relations/Trade, Livestock Production/Industries, Marketing, C32, D21, L11, L81, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169762&r=agr |
| By: | Läpple, Doris; Hennessy, Thia |
| Abstract: | This article evaluates the impact of an extension programme that financially rewards farmers for participation. The evaluation focuses on programme participants who joined after a financial reward was introduced and compares their farm performance to farmers who chose not to join the programme. Farmers are assessed in relation to improvements in financial, grassland and breeding management over an observation period from 2008 and 2012. The results, based on a modified difference-in-difference estimator, reveal no significant impact of the programme, albeit programme participants seem to have improved their farm performance. Reasons for this finding are discussed and, given this rather unique policy move, the study offers policy recommendations of broad relevance. |
| Keywords: | Extension programme, difference-in-difference estimator, farm performance, Agribusiness, Production Economics, Q160, C10, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169737&r=agr |
| By: | Fraser, Rob; Hussein, Mohamud |
| Abstract: | This paper analyses an incentive payment-based approach to improving food safety in the supply chain. It develops a principal-agent model of the food supply chain in which the principal offers heterogeneous agents a payment to implement costly additional practices to improve food safety. It is shown that the presence or absence of the moral hazard problem affects the balance of benefits and costs from broadening the scope of the system from just lower cost larger agents to include higher cost smaller agents, thereby affecting the optimal design of the system. In particular, broadening the scope of the system to include smaller agents by increasing the size of the incentive payment can ameliorate the moral hazard problem among larger agents to the extent that this more costly approach is socially optimal. |
| Keywords: | incentive payments, moral hazard, food safety, supply chain, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, D82, L51, Q18, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170525&r=agr |
| By: | Feng, Siyi; Patton, Myles; Binfield, Julian; Davis, John |
| Abstract: | Following the move from a situation of stable, administratively determined prices and production linked subsidies to freely moving prices and decoupled subsidies, risk is of increasing concern within the EU agricultural sector. Also, significant increases in global market prices have further contributed to volatility. There are increasing interests in developing programmes aiming at providing assistance in risk management, which already exist in other countries such as the US on a large scale. The operation of these programmes is similar to insurance to some extent and therefore entails complex design issues. At the same time, these programmes generally involve policy support due to the presence of systematic risks within the sector. Thus, careful assessment is required. This paper examines a hypothetical scheme that provides protection against crop yield falls within the UK using the stochastic FAPRI-UK and EU-GOLD modelling system. The two key aspects investigated are the level of aggregation and the definition of reference. The choice of level of aggregation is closely related to the trade-offs between programme cost and its effectiveness in risk reduction. Furthermore, the definition of reference also has implications on programme costs and their variability. |
| Keywords: | stochastic modelling, risk management tool, Agricultural Finance, Demand and Price Analysis, Research Methods/ Statistical Methods, Risk and Uncertainty, Q1, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170538&r=agr |
| By: | Kanik, Zafer; Kucuksenel, Serkan |
| Abstract: | Two of the primary issues of the next Common Fisheries Policy (CFP) reform are maximum sustainable yield (MSY) and transferable fishing concessions (TFCs). The European Commission set the goal of achieving MSY for all European fisheries by 2015. Besides, the European Commission agreed on implementing TFCs under some major principles including reserving a part of total quotas for small-scale fishermen in order to prevent the disappearance of small-scale fishing communities in coastal regions. The interrelation between these two objectives should be well understood. In this study, the impact of fishing on total biomass is analyzed under an age-structured model. Following that, the potential effects of TFCs on the achievement process of the goal of MSY harvesting conditions are explained. This paper shows that the implementation of TFCs, under the major principles defined by the European Commission, has an impact on both the total biomass growth and the time to reach the goal of MSY. The paper concludes that the level of reserved quotas for small scale fishermen does matter since reserving more quotas for small-scale fishermen reduces the time needed to achieve MSY. |
| Keywords: | Mechanism Design, Transferable fishing concessions, Maximum sustainable yield, Small-scale fishermen, Agricultural and Food Policy, Livestock Production/Industries, D04, D47, D78, Q22, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170526&r=agr |
| By: | Steinbuks, Jevgenijs; Hertel, Thomas W. |
| Abstract: | Economic, agronomic, and biophysical drivers affect global land use, so all three influences need to be considered in evaluating economically optimal allocations of the world's land resources. A dynamic, forward-looking optimization framework applied over the course of the coming century shows that although some deforestation is optimal in the near term, in the absence of climate change regulation, the desirability of further deforestation is eliminated by mid-century. Although adverse productivity shocks from climate change have a modest effect on global land use, such shocks combined with rapid growth in energy prices lead to significant deforestation and higher greenhouse gas emissions than in the baseline. Imposition of a global greenhouse gas emissions constraint further heightens the competition for land, as fertilizer use declines and land-based mitigation strategies expand. However, anticipation of the constraint largely dilutes its environmental effectiveness, as deforestation accelerates prior to imposition of the target. |
| Keywords: | Climate Change Mitigation and Green House Gases,Environmental Economics&Policies,Climate Change Economics,Environment and Energy Efficiency,Energy and Environment |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6928&r=agr |
| By: | Giacomo Pallante (Department of Economics and Finance, University of Rome Tor Vergata, Via Columbia 2, Rome, Italy.); Adam Drucker (Bioversity International, Via dei Tre Denari 472, Maccarese, Italy.) |
| Abstract: | Through the implementation of a choice experiment among Nepalese urban consumers, this paper aims to evaluate the effectiveness of a niche product development as market-oriented instrument for the conservation of endangered crops landraces. We compare establisheddiscrete choice models (conditional logit, random parameter logit and latent class) with the novel generalized multinomial logit model in WTP space to account for the preference and the scale heterogeneity effect on the WTP for the finger millet crop. The estimations are utilized to evaluate the impact that a potential price premium has on local rural farmers’ opportunity costs of cultivating the finger millet. Results confirm that, by controlling for heterogeneity, there are segments of population with a WTP that ensures an efficient increase in FM area cultivated. Further, the success of the niche market can attract public investments on the development and conservation of the entire stock of neglected and underutilized local species thereby safeguarding the related agrobiodiversity ecosystem services. |
| Keywords: | Agricultural biodiversity, niche market,Nepal, choice experiment, scale heterogeneity, WTP. |
| JEL: | Q18 Q21 Q26 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1414&r=agr |
| By: | McVittie, Alistair; Austin, Zoe; White, Piran; Moxey, Andrew; McCracken, Davy; Moran, Dominic |
| Abstract: | The development of environment measures in the reformed CAP can be informed by the evaluation of existing policies. We undertook a cost-effectiveness analysis of biodiversity measures in Scotland to determine whether current biodiversity objectives have been achieved. We assessed measures targeting 13 species and 5 habitats under the Scottish Rural Development Programme (SRDP) and similar schemes. Expert interviews were used to determine the extent to which published conservation objectives for species and habitats have been achieved. Effectiveness scores for multiple objectives were then weighted and combined to produce overall effectiveness for each species or habitat. Cost data for relevant SRDP and other scheme measures were apportioned to our study species and habitats. There was a wide variation in cost per unit of effectiveness both across and within species and habitats, e.g. Hazel gloves fungus cost-effectiveness was £3,286 per unit whilst Black grouse ranged between £112k and £4m. These results reflected both levels of funding and effectiveness; also the often wide variation in assessment of effectiveness can be linked to vague objectives and lack of monitoring. We also considered impacts on wider ecosystem services which found that there are often broader benefits from biodiversity measures that should be considered. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, International Development, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169713&r=agr |
| By: | Lemus, David Magaña; Bessler, David A. |
| Abstract: | In this paper the dynamic information flows among monthly prices of agricultural commodities in the United States (U.S.) and Mexico for the years 2000-2012 are analysed. Error correction models and directed acyclical graphs are employed with observational data to identify the dynamic relationships among prices for important agricultural commodities in both countries. Unlike previous studies, results here indicate the existence of long-run relationships among prices. Results suggest that commodity prices in the U.S. market are highly influenced by their own historical innovations, while U.S. grain prices have a consistently strong impact on price movements in Mexican agricultural markets in the longrun. Further, information flows among grain markets in Mexico and from grain to cattle markets are also identified and described. |
| Keywords: | Direct Acyclical Graph, Causality, Vector Error Correction Model. Agricultural Commodity Prices, Trade., Demand and Price Analysis, International Relations/Trade, Research Methods/ Statistical Methods, F15, F60, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169736&r=agr |
| By: | Wolbert-Haverkamp, Matthias; Feil, Jan-Henning; Mußhoff, Oliver |
| Abstract: | Woody biomass in terms of short rotation coppice (SRC) could be a promising alternative for producing biomass to generate renewable energy. Even through, from a single farms point of view, SRC seems to be an interesting land use alternative, farmers do not cultivate SRC. Some studies found out that the real options approach (ROA) could at least partially explain farmers' inertia of cultivating SRC. Nevertheless, those studies do not take into account market competition between farmers and farmers' fear of not having an outlet market in order to dispose the harvested wood chips. This inertia can also cause an investment reluctance concerning building biomass heating stations. In the present study therefore, we focuses on the whole value chain from producing wood chips over generating energy and selling the energy to the end-consumers. We develop an agent-based model which is able to consider market competition and can picture the whole value chain. In order to further motivate farmers to cultivate SRC different types of incentives offered by the biomass heating station are investigated. Our results show that if no incentive system is offered, farmers cultivate SRC reluctantly which leads to a loss of profit of the biomass heating station. With regard to an investment subsidy, it needs to be equal to approximately 300% of the capital costs of investment to strongly motivate farmers to produce enough wood chips that largely decrease the loss of profit of the biomass heating station. If a price floor is offered, farmers' additional amount of wood chips produced is very small. Therefore, the loss of profit does not significantly decrease if the price floor amounts to 95%. -- |
| Keywords: | real options,value chain,competition,incentive systems,biomass,short rotation coppice |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:daredp:1407&r=agr |
| By: | Thomson, Kenneth J.; Davidova, Sophia |
| Abstract: | The International Year of Family Farming (IYFF) in 2014 has raised a number of issues related to the economic and policy context of family farming (FF), which covers a wide variety of organisations of farm production. In this paper, after some conceptual discussion, definitional issues are considered, in both qualitative and statistical terms, with evidence based mainly on Eurostat and FADN data on farm labour use, legal type and farm specialisation. The need or otherwise of quantitative thresholds is discussed, as well as the sensitivity of the scale of FF in the EU to different definitions. The economic nature of FF is then analysed, in terms of its significance for EU and national policy. Challenges to FF are identified, and the importance of farm succession legislation and taxation for the persistence of FF is stressed. Finally, based on the previous material, a number of discussion points are offered, for consideration in future economic analysis. |
| Keywords: | Family Farming, EU, Agribusiness, Farm Management, International Relations/Trade, Q15, P32, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170354&r=agr |
| By: | Dorothée Boccanfuso (Département d'Économique, Université de Sherbrooke); Véronique Gosselin (GREDI, Université de Sherbrooke); Jonathan Goyette (Département d'Économique, Université de Sherbrooke); Luc Savard (Département d'Économique, Université de Sherbrooke); Clovis Tanekou Mangoua (GREDI, Université de Sherbrooke) |
| Abstract: | Quebec’s forests represent 20% of the Canadian forest and 2% of world forests. They play a major role for habitat preservation, supplying goods and services to the population and hence contributing to the economy of this Canadian province. Climate change (CC) will have an impact on forests through increased droughts, warmer summers and winters or infestations such as the pine beetle (British Columbia and New Jersey). In our study we analyze the economic and distributional impact of CC on the forest industry in Quebec. To achieve this, we simulate two productivity changes in the forestry sector and two potential adaptation programs that could be implemented to help the sector cope with CC direct and indirect effects. Our analysis is performed over a 40 year using a recursive dynamic CGE-micro-simulation framework. We show that the economic impacts on the forest industry are relatively substantial but quite small for the rest of the economy. Moreover, the distributional impacts are present and significant but they are weak (below 0.1%). |
| Keywords: | Distributive analysis, computable general equilibrium model, micro-simulation model, climate change, adaptation policies |
| JEL: | C68 D58 I32 O13 Q54 Q56 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:14-04&r=agr |
| By: | Chandana Maitra (School of Economics, The University of Queensland) |
| Abstract: | This paper primarily addresses the issue of food access in urban India by investigating into the possibility of constructing an experience-based measure of food access following the U.S. Household Food Security Survey Module (US HFSSM), on the basis of a survey conducted in 500 households in the slums of Kolkata, India, in 2010-11. In past, National Sample Survey Organisation (NSSO) attempted to measure food insecurity, subjectively, by asking a single question based on whether or not a household gets two square meals a day but the survey apparently produced estimates too low to be believed. In the absence of reliable official data on self-reported hunger, it may be worthwhile to explore other methods of constructing such experiential measure of food access such as the US HFSSM. The questionnaire was administered in Bengali, based on which a nine-item food security scale was constructed according to which, 15.4% of the Kolkata slum households were food insecure including 2.6% severely food insecure. The finding has important implications for food security measurement and targeting in view of the fact that the experiential measure provides an alternative indicator of food access which can be used in conjunction with the existing indicators like calorie intake and nutritional status, for better identification of the food insecure households which makes targeting more cost-effective. |
| Date: | 2014–06–11 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:523&r=agr |
| By: | Ibrahim, M.K.; Srinivasan, C.S. |
| Abstract: | This study employed Nigeria’s household data from the RIGA database to examine the effect of off-farm income on rural poverty and income distribution. Specifically, the study employs the Foster, Greer and Thorbecke (FGT) poverty measurement indices to examining the effect of off-farm income on rural poverty and Gini decomposition techniques for the effect of off-farm income on rural income distribution. Our findings suggest that offfarm income as a part of total household income significantly contributed towards reducing the incidence, depth and severity of poverty as evident in the outcomes of the poverty measures for the wage and self employment activities. Same cannot be said for rural income inequality, as off-farm income on aggregate level is observed to increase rural income inequality. Results of the decomposition by income sources revealed that with the exception of self-employment income, other off-farm incomes have unequalising effect on income distribution, an outcome attributed to entry barriers which prevents poor households from undertaken the lucrative kind of off-farm work. Programmes of government and nongovernmental organisations aimed at growth and development of the off-farm sector needs to have an aspect well targeted at the poor rural households to assist them in removing the entry barriers, placing them in a better position to maximise the opportunities in the off-farm sector. |
| Keywords: | Off-farm, Rural Poverty, Income Distribution, Community/Rural/Urban Development, Food Security and Poverty, International Development, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170509&r=agr |
| By: | Blandford, David; Gaasland, Ivar; Vårdal, Erling |
| Abstract: | Agriculture makes a significant contribution to Norway’s emissions of greenhouse gases (GHG). Although the sector accounts for only 0.3 per cent of GDP, it accounts for roughly 9 per cent of total GHG emissions. Norwegian agriculture is dominated by livestock production; ruminants (cattle and sheep) are particularly important. There are opportunities for GHG mitigation under existing technology through changes in agricultural practices. Analytically we derive abatement cost curves for Norway in terms of the change in economic welfare, and on a theoretical basis we examine the impact of various policy objectives on the abatement cost curve. In particular we consider the policy objective of keeping the production of calories at the current level. We use a detailed economic model to assess the impact and welfare implication of a reduction in GHG emissions. |
| Keywords: | greenhouse gas mitigation, economic model, abatement costs, Environmental Economics and Policy, International Relations/Trade, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, C61, Q18, Q54, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169734&r=agr |
| By: | Lan, H.; Lloyd, T. A.; Morgan, C. W. |
| Abstract: | Using a sample comprising nearly a quarter of a million weekly prices from the largest seven supermarket chains in the UK, we present statistical evidence on two pricing practices that have attracted public interest. Analysing price dynamics before and after periods of promotional discounting the investigation finds first, no evidence of a general tendency for sales to disguise rises in the regular price, and second, some evidence for prices to rise prior to sales in a manner that is consistent with the exaggeration of the discount. As such, the results parallel the competition authority’s view of supermarkets use of promotions and also point to the useful contribution that retail price microdata might play in keeping prices in check. |
| Keywords: | supermarket promotion, food prices, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Marketing, L16, L66, E30, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169749&r=agr |
| By: | Martin, Elsa |
| Abstract: | Pesticides efficiency decreases with their global application by farmers. Within a strategic dynamic framework, this results in a classic intertemporal production externality. We analyze tax and subsidy schemes that can be used in order to internalize this externality. We show that they are able to restore socially optimal paths but that final time of pesticide use differs. With these schemes, farmers have a tendency to switch to alternative pest-control technology, as integrated pest management, earlier than is optimal. A lump-sum transfer is shown to be necessary to obtain a switching time equal to the socially optimal one, for the subsidy case only. Furthermore, the socially optimal switching time can be later than the one obtained under a situation without control. |
| Keywords: | stock externality, pest resistance, technology change, Agribusiness, Agricultural Finance, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies, Q10, Q3, H23, C73, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169739&r=agr |
| By: | Owusu, Victor; Frimpong, Frederick Kwabena |
| Abstract: | Using a cross-sectional data collected on 400 cocoa farmers from the Ashanti and Western Regions of Ghana, this paper provides empirical evidence on the impacts of cocoa agroforests on yield and household income. The propensity-score matching model was employed. The heterogeneity of high, medium and low shade adopters is statistically addressed. The empirical results generally indicate that adoption of cocoa agroforests has significant positive impacts on yield and household income. The impact on yields for low shade adopters was higher than medium shade and high shade adopters of cocoa agroforests. The paper provides useful policy recommendations based on the empirical magnitudes and directions on sustainable cocoa production and household welfare. |
| Keywords: | Adoption, Cocoa agroforests, Ghana, Household income, Impact, Yield, Consumer/Household Economics, Environmental Economics and Policy, International Relations/Trade, Production Economics, Q1, Q23, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170787&r=agr |
| By: | Eory, Vera; Topp, Cairistiona F. E.; Moran, Dominic; Butler, Adam |
| Abstract: | Information on the uncertainty of quantitative results feeding into public decision making is essential for designing robust policies. However, this information is often not available in relation to the economics of greenhouse gas (GHG) mitigation in agriculture. This paper analyses the uncertainty of the mitigation estimates provided by a Marginal Abatement Cost Curve (MACC). The case study is based on the GHG MACC developed for Scottish agricultural soils. The qualitative assessment disentangled the different sources and types of uncertainty in the cost-effectiveness analysis of GHG mitigation options. The quantitative assessment estimated the statistical uncertainty of the results by propagating uncertainty through the model, using three uncertainty scenarios. The results show that the uncertainty in the economically optimal abatement in Scottish agricultural soils is high with the medium and high uncertainty scenarios, with the ratio of the 95% CI to the mean being 0.57-1.01 and 0.98-1.4, respectively, while the low uncertainty scenario resulting in a ratio of the 95% CI to the mean of 0.24-0.68. However, the ranking of the measures are relatively robust with all three uncertainty scenarios, especially in terms of which options have cost-effectiveness below the carbon price threshold. |
| Keywords: | marginal abatement costs curves, uncertainty, greenhouse gases, agriculture, GHG mitigation, Environmental Economics and Policy, Risk and Uncertainty, Q54, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170784&r=agr |
| By: | Dachary-Bernard, Jeanne; Rambonilaza, Tina; Lemarié-Boutry, Marie |
| Abstract: | We develop a hedonic price model on the Gironde estuary (south of France) in order to test the impact of vulnerability to flooding on land prices. The original contribution of our analysis relies on distinguishing the respective impact of two non-structural measures on land prices - the preventive strategy consisting in a flood hazard zoning and the curative response to flood events consisting in orders for natural disaster to initiate financial compensation. This analysis is conducted on three different segments of land market (agricultural, vineyards and residential segments). We pay a particular attention to the respective importance of attractiveness factors from vulnerability ones to explain land price. We use a two-step method to estimate the model, starting with a semi-parametric model (based on the distance to the estuary) followed by a feasible generalized spatial two-stage least squares (FGS2SLS) with which we correct the model from spatial autocorrelation and endogeneity. Our main results indicate that both zoning measure and institutional response to vulnerability to flooding have a significant impact on prices, but in an opposite direction. We discuss the policy implications related to flooding prevention in regards to land use changes. |
| Keywords: | vulnerability to flooding, land prices, hedonic pricing method, Demand and Price Analysis, Environmental Economics and Policy, Land Economics/Use, Q54, R21, Q15, C31, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169761&r=agr |
| By: | Revell, Brian; Saunders, John; Saunders, Caroline |
| Abstract: | A bi-lateral trade agreement between the EU and the South American trading bloc known as Mercosur has been under consideration since 1995, with periodic hiatuses in negotiations since their inception. During the past twelve years there have been concurrent multilateral negotiations taking place under the WTO Doha Development Agenda. This work examines the potential production, trade and environmental outcomes for the EU and Mercosur that could arise under each of the trade negotiations using the Lincoln Trade and Environment Model, a multi-commodity and multi-country partial equilibrium model focused on projecting changes in international markets for agricultural products, and the greenhouse gas and nitrate implications from the outputs of these markets. The Scenarios presented include trade liberalisation, both global and EU/Mercosur specific, those which have been proposed under the Doha Development Agenda ranging around the 2008 Revised Draft Modalities document, and the 2004 and 2006 EU bi-lateral trade offer to Mercosur. |
| Keywords: | International Trade, Partial Equilibrium Modelling DDA, EU, Mercosur, Environmental Impact, Environmental Economics and Policy, International Relations/Trade, Production Economics, Q17, Q18, Q56, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169728&r=agr |
| By: | Niemi, Jarkko K.; Lehtonen, Heikki |
| Abstract: | An outbreak of foot and mouth disease (FMD) can distort livestock markets. In this paper we have simulated welfare effects due to the risk of a hypothetical FMD outbreak and trade distortions associated with the disease. The analysis was carried out with stochastic dynamic partial-equilibrium models characterizing the Finnish pig and cattle sectors. The models maximise the aggregate welfare of consumers, producers and taxpayers arising from the domestic and two export markets, imported goods and direct costs caused by disease eradication measures. The duration of trade distortions and the probability of occurrence of disease are stochastic and unknown beforehand. The results suggest that if a disease outbreak with trade distortions occurs, the losses are likely to be primarily by excess supply of pigmeat, butter and cheese. Consumers can occasionally benefit if a disease outbreak with a trade ban results in the saturation of the domestic markets and falling prices. Although there are limited opportunities to adjust production rapidly, the meat sector is able to reduce losses through premature slaughter and reduced insemination of animals whereas in the dairy sector the largest potential seems to be in adjusting the processing quantities of milk products. |
| Keywords: | Foot and mouth disease, dynamic programming, supply, price, trade, risk, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Livestock Production/Industries, Research Methods/ Statistical Methods, C61, Q11, Q17, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169759&r=agr |
| By: | CEMBALO, Luigi; PASCUCCI, Stefano; TAGLIAFIERRO, Carolina; CARACCIOLO, Francesco |
| Abstract: | The topic of integration and development of sustainable chains has lately gained much attention in the academia debates. In particular, how to manage integration in the bio-energy chains is discussed. Integration is a process of progressive dependence among different actors willing to coordinate processes of innovation. This dynamic is generated by the interaction of individuals willing to start up collective action. The effectiveness of a collective action depends on the number of formal norms developed by collective contracts. This paper tackles these issues considering the specific case study of a collective action in a bio-energy chain. It focuses on the decision-making process of farmers on whether to join or not a collective action, analysing their trade-offs over the attributes of collective contracts. The empirical study was conducted in an area in Southern Italy, most affected by soil erosion problems. A stated preference model was implemented where respondents were asked to choose between alternative collective contracts with varying attribute levels to start biomass cultivation. Two hundreds face-to-face questionnaires were administered to farmers in September-October 2013. First results show that participation is mainly influenced by minimum price guaranteed, contract length, and re-negotiation before the end of a contract. |
| Keywords: | Agro-biomass, Choice Modelling, Contract farming, Soil erosion mitigation, Valuing contract attributes, Agribusiness, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, D71, D86, O13, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170481&r=agr |
| By: | Mateos-Ronco, Alicia; Lajara-Camilleri, Natalia |
| Abstract: | The study of the financial structure is a complex and recurrent line of research in the field of corporate finance. Increasing the understanding of the financial structure and its implications on corporate governance is the starting point for improving the access to external financing and reduce transaction costs as to optimize internal funding policies. There is no universal theory of financial structure although partial theories have arisen from empirical studies, attempting to relate structure with different variables. However, at the micro level, the impact of different types of funding could vary according to the economic situation or the type of company. While financial theory has traditionally been based on using internal indicators of the companies as explanatory variables of their financial structure, the empirical evidence reveals that this structure varies over time as a result of macroeconomic conditions of the environment in which they are immersed. This paper provides empirical evidence on the financial structure of cooperatives in Spain and its possible relationship with different variables through a regression model, particularizing the study to agricultural cooperatives. The use of accounting data in different time horizons eases the analysis of the effect of macroeconomic conditions and financial constraints on the determinants of the capital structure of these entities. |
| Keywords: | agricultural cooperatives, capital structure, debt, macroeconomic conditions, regression, Agribusiness, Agricultural Finance, Marketing, Risk and Uncertainty, Q13, G32, M41, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169687&r=agr |
| By: | Francisco Campos-Ortiz; Mariana Oviedo-Pacheco |
| Abstract: | In this paper, we study various key structural features of sugarcane production and sugar mills in Mexico. Regarding the production of sugarcane: (a) we document a U-shaped relationship between the size of sugarcane cultivation plots and their yield, and show suggestive evidence that this relationship is driven by the more intensive use of inputs in smaller and larger plots relative to those of medium size; (b) we argue that there are factors that complicate the functioning of the land market; and (c) we present evidence refuting the conjecture that the mechanism used to determine payments for sugarcane affects negatively the quality of this crop. With respect to sugar mills, we find that those mills that are able to generate electricity more efficiently tend to observe higher returns in sugar production. |
| Keywords: | Sugar, Sugar Industry, Competitiveness, Sugarcane, Plot Yield, Sugar Mill Efficiency |
| JEL: | D23 D24 L66 Q1 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:bdm:wpaper:2013-16&r=agr |
| By: | Addison, Tony; Ghoshray, Atanu |
| Abstract: | Commodity price shocks are an important type of external shock and are often cited as a problem for economic growth in Sub-Saharan Africa. This paper quantifies the impact of agricultural commodity price shocks using a near vector autoregressive model. The novel aspect of this model is that we define an auxiliary variable that can potentially capture the definition of a price shock and allows us to determine whether the response of per capita GDP growth in Sub-Saharan Africa to these price shocks is asymmetric. We find that there is evidence of such asymmetric responses to commodity price shocks. |
| Keywords: | Commodity Prices, External Shocks, Price Shocks, Economic Growth, Demand and Price Analysis, International Relations/Trade, E30, F40, O11, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169726&r=agr |
| By: | Radwan, Amr; Gil, José M. |
| Abstract: | Poor diets and rising obesity rates dominate the current food, nutrition and health policy debate in many countries, including Spain. Despite the increasing obesity rate in Spain, there has been no known published research in Spain that has studied the economic factors affecting obesity prevalence. The main aim of our work is analysing the relevance of economic factors in obesity prevalence in Spain. This aim is especially relevant in shadow of the Economic crisis that hit Spain recently. Our methodological approach depending upon the estimation of a multinomial Logit Regression (MLR) Combined with a nonparametric model, the Multivariate Adaptive Regression Splines (MARS), to judge the role of different socioeconomic factors on the obesity prevalence. Despite the desirable advantages of using nonparametric models such as MARS, our paper is the first attempt to use this type of models to analyse the determinant factors of obesity prevalence. Our results suggest that Socio Economic factors seem to have a significant impact on obesity prevalence. MARS models outperform the traditional MLR and could be a helpful tool for understanding the nature of the relationship and moreover it could be helpful as pre estimate guides the estimation of its parametric counterpart. |
| Keywords: | Obesity, Multinomial Logit, Multivariate Adaptive Regression Splines (MARS), Spain, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, International Relations/Trade, I10, I18, Q11, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170341&r=agr |
| By: | Upton, Vincent; Ryan, Mary; O’Donoghue, Cathal |
| Abstract: | Forest benefits are now commonly understood through the ecosystem service framework. Recreational visits to forests, considered an important cultural service, have been the target of a significant proportion of the non-market valuation literature to date. Such models have evolved from relatively simple travel cost models to employing GIS to develop spatial demand models. Due to restrictions on accessing private land, forests are a particularly important recreational resource in Ireland as those which are publicly owned are accessible to the public and free to use. In addition, recent policies directed at private forests have included attempts to encourage owners to open their forests to the public. This study outlines the development of a spatially explicit recreation demand model for Ireland that describes how visitation differs across the population based on population characteristics and existing recreational resources. The model combines a zero-inflated negative binomial model of annual forest visits of a random sample of individuals with a simulated population model of Ireland and spatial data on household location. The results include an estimation of annual forest visitation and the development of a demand map that highlights where forest expansion could be targeted to maximise the recreational value of afforestation. |
| Keywords: | Forestry, Recreation demand, GIS, Environmental Economics and Policy, International Relations/Trade, Land Economics/Use, Research Methods/ Statistical Methods, Q51, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170791&r=agr |
| By: | Mazzocchi, Mario; Irz, Xavier; Modugno, Lucia; Traill, W Bruce |
| Abstract: | The continuous aging of the EU population poses important challenges to the sustainability of welfare states. Part of the solution is to ensure that people not only live longer but also better (i.e., can function independently while remaining free of disease and disability), which may be achieved through better nutrition. In order to test that proposition, we develop a behavioural model of diet quality choice and health determination. The simultaneous equation model, which accounts for the endogeneity of dietary and other lifestyle choices, is applied to a sample of older people from Italy and allows for the possibility of bi-directional causality between diet and health. |
| Keywords: | Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Institutional and Behavioral Economics, International Relations/Trade, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170497&r=agr |
| By: | Nathalie Bréda (UMR 1137 INRA UL, Forest Ecology and Ecophysiology,); Marielle Brunette (Laboratoire d'Economie Forestière, INRA - AgroParisTech) |
| Abstract: | In this paper, we tackle the reduction of rotation from an economic perspective. In a costbenefit framework, we look at the impact of such a reduction on the forest economic value. We concentrate on a Douglas-fir plantation with rotation of 55 years and we wonder about the relevance to reduce to 40 years. We consider the role of climate change (through an increasing drought risk), the role of site fertility and temporal horizon. We also conduct sensitivity analysis on the discount rate and introduce fertilization overcost needed to sustain productivity in shorter rotation. We compare, from an economic point of view, three different adaptation strategies: absence of adaptation (i.e. sylviculture as usual), immediate adaptation and a delayed one. In our case study, the best option for the forest owner in terms of economic return is the absence of adaptation, after it is to delay the adaptation by one rotation and finally to adopt immediate adaptation. However, we also prove that such a trend should be reversed from a damage threshold. Then, with a loss of volume superior to 28% in case of drought event occurrence, an immediate adaptation allows a better economic return than the absence of adaptation. This result seems to suggest that the reduction of rotation may be an adaptation tool for vulnerable stands. |
| Keywords: | adaptation, climate change, cost-benefit analysis, drought, risk of decline, rotation, forest. |
| JEL: | Q54 Q23 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:lef:wpaper:2014-03&r=agr |
| By: | Marielle Brunette (Laboratoire d'Economie Forestière, INRA - AgroParisTech); Stéphane Couture (INRA, UR 875 Applied Mathematics and Computer Science laboratory) |
| Abstract: | In this paper, we propose to analyse the choice of risk management activity made by a non-industrial private forest owner who derives utility from consumption and from the sentimental value of the forest that bears a risk of disaster. We consider a bivariate utility function depending on consumption and sentimental value of forest. In this context, we analyse insurance and/or self-insurance decisions. We show that, under fair premium, full insurance is optimal only if the cross derivative of the utility function equals zero. Under-insurance and over-insurance may also be optimal depending on the sign of this cross derivative. We also show that, under a positive loading factor, optimal partial insurance is validated only if the cross derivative is positive; otherwise full insurance may be optimal even with a loading insurance. We also observe that risk aversion increases the level of insurance demand and selfinsurance activity, extending this standard result obtained with an univariate utility function to a bivariate utility function. Moreover, when the forest owner can simultaneously insure and invest in self-insurance activity, full insurance is never optimal if the cross derivative is positive. Finally, we prove that insurance and selfinsurance may be substitutes, and if preferences are separable and exhibit decreasing absolute risk aversion, then insurance and self-insurance are always considered as substitutes. |
| Keywords: | Forest management, insurance, self-insurance, bivariate utility, risk. |
| JEL: | D81 Q26 Q23 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:lef:wpaper:2014-01&r=agr |
| By: | Hubbard, Carmen; Alvim, Augusto Mussi; Mattos, Ely Jose de; Hubbard, Lionel |
| Abstract: | International trade between countries can be categorised as inter-industry or intra-industry. Intra-industry trade, particularly of vertically differentiated products, has expanded significantly since the 1960s, especially in Europe. However, Fontagné et al. (2006) note that inter-industry trade has made something of a comeback since 2000, due to the increasing participation of emerging economies in world trade. Accordingly, this paper asks whether such a change is evident in the bilateral agri-food trade between the EU and Brazil which is the largest of all exporters of agri-food products to the EU. Trade types are categorised in the paper following Fontagné and Freundenberg (1997). Results suggest that whilst the majority of agri-food trade between Brazil and the EU is of an inter-industry nature, its relative importance has not increased, although there is evidence that inter-industry trade of other primary products has become more important, which accords with the observation of Fontagné et al. (2006). A better understanding of the changing nature and pattern of trade should inform on-going international negotiations between the EU and Brazil. |
| Keywords: | Industrial Organization, International Relations/Trade, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:170491&r=agr |
| By: | Jérôme Foncel (Université Lille 3 Charles-de-Gaulle,); Eric Kéré (Laboratoire d'Economie Forestière, INRA - AgroParisTech; BETA, UMR 7522 CNRS/Univ. de Strasbourg/Univ. de Lorraine) |
| Abstract: | Using a stochastic dynamic programming model we analyze how French private forest owners make inter-temporal trade-offs between non-timber amenities and timber income. We explicitly take into account the price expectations and forest growth. In addition, unlike previous empirical studies involving clear-cutting, we consider that the owner can make a partial cut. Our estimation results show that the willingness to pay for non-timber amenities is €23 in our case study. This value represents the difference between the amount an owner would earn if he maximized timber revenue and the revenue of their actual logging. Given the intention of the French government to develop the use of lumber, we show to which extent prices could be subsidized to increase production provided that private owners value amenities. In addition, the introduction of a tax on the stock for amenities could be used to increase timber production. |
| Keywords: | Forest economics, amenities, Indirect inference, stochastic dynamic programming. |
| JEL: | C61 C63 C81 Q23 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:lef:wpaper:2013-04&r=agr |
| By: | DELPIERRE Matthieu; VERHEYDEN Bertrand; WEYNANTS Stéphanie |
| Abstract: | Empirical evidence on developing countries highlights that poor farm-households are less keen to adopt high risk / high return technologies than rich households. Yet, they tend to be more vulnerable to income shocks than the rich. This paper develops a model of informal risk-sharing with endogenous risk-taking which provides a rationale for these observations. In our framework, informal risk-sharing is incomplete due to risk externalities, which leads to moral hazard. We compare the .rst best and second best to a decentralized bargaining process, where the lack of coordination ampli.es moral hazard. The analysis of group composition yields counterintuitive results. First, if groups are homogeneous, poor groups share less risks than rich groups even though the rich take more risks. Second, the insurance level of rich households decreases in the presence of poor households, potentially making them reluctant to share risk with poorer households. |
| Keywords: | Risk-taking; Risk-sharing; Risk externality; Moral hazard |
| JEL: | O12 O13 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2014-08&r=agr |
| By: | Miller, Ana Corina; Jack, Claire G.; Anderson, Duncan J. |
| Abstract: | Traditionally the definition and analysis of household well-being has focused on the main economic measures of income and wealth. However, there is now an increased interest within the wider economic literature in exploring those measures which contribute to household well-being which can extend beyond purely economic measures. Furthermore, from a farm household perspective, there is increased research and policy interest in the general well-being of farm households, including how decision-making processes within the farm family influence overall well-being. This paper explores the causal effect of both economic an non-economic factors on well-being for farm and non-farm households in Northern Ireland. The methodology incorporates two complimentary data sources. The results suggest that almost three fifths of those living in Northern Ireland report a high level of satisfaction with life overall, with farm households recording a slightly lower rate of life satisfaction compared with the non-farm group. Regression results support the U-shaped life-cycle effect hypothesis. In terms of gender, for farm based females, the level of education and having an off-farm job has a positive impact on life satisfaction compared to males. For males, being in full time employment brings an increase in the life satisfaction overall. |
| Keywords: | households well-being, econometric analysis, farm households, Agribusiness, Consumer/Household Economics, Farm Management, Research Methods/ Statistical Methods, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169732&r=agr |
| By: | Marielle Brunette (Laboratoire d'Economie Forestière, INRA - AgroParisTech); Philippe Delacote (Laboratoire d'Economie Forestière, INRA - AgroParisTech; Climate Economic Chair); Serge Garcia (Laboratoire d'Economie Forestière, INRA - AgroParisTech); Jean-Marc Rousselle (INRA, UMR 1135 LAMETA) |
| Abstract: | The impact of the safety-net use of Common-pool resources (CPR) on the individual investment into and extraction from the commons is analyzed in this paper. Agents of the community first choose to invest in their private project and in the CPR; second, they choose how much to extract from their private project and the commons. The model compares two types of risk management tool: CPR as risk-coping and risk-diversification mechanisms. It also compares two types of risk: risk on a private project and risk on CPR investment by other community members. The theoretical predictions are empirically tested with experimental economics. In this view, we propose an original CPR game composed of two periods, an investment one and an extraction one. Our result clearly shows that risk reduction in the private project unambiguously decreases investment in the CPR, while it does not impact CPR extraction. We also show that a risk-coping strategy is well understood as more flexible and influenced by the outcome in terms of private project yield. |
| Keywords: | Common-pool resource, Common-pool resource game, deforestation, experimental economics. |
| JEL: | Q15 Q23 D71 D81 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:lef:wpaper:2014-06&r=agr |
| By: | Halkos, George |
| Abstract: | This paper presents the dimensions of the climate change problem and its economic effects as well as the evolution of the international meetings to cope with it. In these lines it discusses the use of Integrated Assessment Models (IAMs), the damage cost estimates and various other issues related to global warming and concerning the significance of uncertainty and risk aversion, the importance of discounting and the impact of financial crisis on emissions predictions. The methods of constructing abatement cost curves together with adaptation policies are presented. It also refers to the basic policy approaches for reducing greenhouse gases paying attention to emissions trading schemes. |
| Keywords: | Climate change; Integrated Assessment Models; Abatement costs. |
| JEL: | Q50 Q52 Q54 Q58 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56841&r=agr |
| By: | Dwyer, Janet; Powell, John |
| Abstract: | Transaction Cost (TC) economics is highly relevant to public policy issues, enabling exploration of the influence of institutional and organisational arrangements upon policy performance. As policies evolve, often becoming more multifaceted as they grow, so the associated transactions costs increase and this affects policy outcomes in multiple ways. We consider this phenomenon in the case of rural development (RD) programming under Pillar 2 of the CAP. Expectations of what RD funding should deliver are both broad and significant. However, performance frequently falls short of goals. From detailed analysis of the experience of RDP review and planning in Malta, we aim to analyse how transaction costs, in both private and public spheres, may distort and undermine RDP performance in ways which are largely unrecognized at EU level. At the same time, we identify potential ‘transaction benefits’, when exchange processes are designed in ways that generate positive returns going beyond those of the immediate transaction. We suggest that more attention to these aspects of policy design is warranted. |
| Keywords: | rural development programmes, transaction costs and benefits, policy performance, Community/Rural/Urban Development, International Relations/Trade, Research and Development/Tech Change/Emerging Technologies, Q180, B520, H540, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169758&r=agr |
| By: | Antimiani Alessandro (Istituto Nazionale di Economia Agraria (INEA), Roma (Italy).); Valeria Costantini (Department of Economics, Roma Tre University, Roma (Italy).); Anil Markandya (Basque Centre for Climate Change (BC3), Spain.); Chiara Martini (Agenzia nazionale per le nuove tecnologie, l’energia e lo sviluppo economico sostenibile (ENEA), Italy.); Alessandro Palma (Department of Economics, Roma Tre University, Roma (Italy).); Maria Cristina Tommasino (Agenzia nazionale per le nuove tecnologie, l’energia e lo sviluppo economico sostenibile (ENEA), Italy.) |
| Abstract: | We investigate the trade-offs between economic growth and low carbon targets for developing and developed countries in the period up to 2035. Policy options are evaluated with an original version of the dynamic CGE model GDynE. Abatement costs appear to be strongly detrimental to conomic growth for developing countries. We investigate options for reducing these costs that are consistent with a green growth strategy. We show that Green Climate Fund financed through a levy on carbon taxation can benefit all parties, and larger benefits are associated with investment of the Green Climate Fund to foster energy efficiency in developing countries. |
| Keywords: | Climate Change Policies, Green Growth, Developing Countries, Dynamic CGE Energy Model, Green Climate Fund. |
| JEL: | C68 H23 O44 Q54 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1614&r=agr |
| By: | Thorne, F.; Loughran, D.; Fox, S.; Mullins, E.; Wallace, M. |
| Abstract: | The introduction of genetically modified (GM) crops to Europe has been a significant source of tension among EU member states. While the political landscape is much divided there is also much unknown at the consumer level. The question of whether European consumers want GM foods made available to them or not has yet to be answered definitively. Hence, this research is considered timely; the objective is to examine willingness to pay (either a positive or negative amount) for GM Late Blight resistant (GMLBR) potatoes in Ireland. The methods used in this study serve as a new departure in the experimental auctions literature, whereby willingness to purchase bids for a new technology can have a positive and negative value in a single experiment. The results show that the majority of consumers’ that participated in the experiment derived a greater utility from the conventional potato product compared to the GM potato product when priced at equivalent values. 3 out of 4 participants required the GM product to be priced at a discount in order for the utility to be derived from the GM product to be the same as the utility derived from the conventional product. However, the findings from this research would indicate that if the entry price point for the GMLBR potato product was correctly positioned then a market for the product could exist. Further investigation of the factors that influenced the participants’ willingness to purchase the GMLBR potato indicated that education level, presence of children in the household and frequency of potato purchases significantly affected the purchase decision. |
| Keywords: | Crop Production/Industries, International Relations/Trade, Political Economy, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc14:169746&r=agr |