nep-agr New Economics Papers
on Agricultural Economics
Issue of 2014‒11‒12
twenty-one papers chosen by

  1. Heterogeneous responses to heterogeneous food price shocks in Senegal: insights from a CGE By Séne, Ligane Massamba
  2. Risk, Infrastructure, and Rural Market Integration: Implications of Infrastructure Provision for Food Markets and Household Consumption in Rural Indonesia By Miyazaki, Suguru; Shimamura, Yasuharu
  3. Empowering Rights-holders and Facilitating Duty-bearers to Secure Farmers’ Rights in Nepal By Paudel, Bikash; Sthapit, Sajal
  4. Fragmentation and conversion of agriculture land in Nepal and Land Use Policy 2012 By Paudel, Bikash; Pandit, Januka; Reed, Brinton
  5. Barriers and Incentives to Potential Adoption of Biofuels Crops by Smallholder Farmers in the Eastern Cape Province, South Africa By Cheteni, Priviledge; Mushunje, Abbyssinia; Taruvinga, Amon
  6. Forms, Factors and Efficiency of Eco-management in Bulgarian Farms with High Eco-activity By Bachev, Hrabrin
  7. The linkage between oil and agricultural commodity prices in the light of the perceived global risk By Gozgor, Giray; Kablamaci, Baris
  8. On the composite indicators for food security: Decisions matter! By Santeramo, Fabio Gaetano
  9. In-depth Study of the Pluralistic Agricultural Extension System in India By Singh, K.M.; Meena, M.S.; Swanson, B.E.; Reddy, M.N.; Bahal, R.
  10. Integrating Agricultural Risks Management Strategies in selected EU Partner Countries: Syria, Tunisia, Turkey By Santeramo, Fabio Gaetano; Capitanio, Fabian; Adinolfi, Felice
  11. Labour out migration from rice based cropping system: A case of Bihar, India By Kumar, Abhay; Singh, R.K.P.; Singh, K.M.; Kumar, Anjani
  12. Current Crop Insurance Policies By Plastina, Alejandro
  13. The Environmental Impact of Civil Conflict: The Deforestation Effect of Paramilitary Expansion In Colombia By Juan Fernando Vargas; Leopoldo Fergusson; Dario Romero
  14. Delineating Spring Recharge Areas in a Fractured Sandstone Aquifer (Luxembourg) Based on Pesticide Mass Balance By Julien Farlin; Laurent Drouet; T. Gallé; D. Pittois; M. Bayerle; C. Braun; P. Maloszewski; J. Vanderborght; M. Elsner; A. Kies
  15. Determinants of nonfarm participation among ethnic minorities in the Northwest Mountains, Vietnam By Tran Quang, Tuyen
  16. On the interrelation between carbon offsetting and other voluntary climate protection activities: Theory and empirical evidence By Andreas Lange; Claudia Schwirplies; Andreas Ziegler
  17. Basis Risk and the Welfare Gains from Index Insurance: Evidence from Northern Kenya By Jensen, Nathaniel D.; Barrett, Christopher B.; Mude, Andrew G.
  18. Environmental management accounting and environmental management in manufacturing industries in Uganda By Ruth Namakonzi; Ruth Namakonzi
  19. A biofuel mandate and a low carbon fuel standard with ‘double counting’ By Jussila Hammes , Johanna
  20. Looking Like an Industry: Supporting Commercial Agriculture in Africa By Diwan, Ishac; Gaddah, Olivier; Osire, Rosie
  21. Market differences in wild and farmed marine fish in the Spanish seafood market By Rodriguez, Gonzalo; Bande, Roberto

  1. By: Séne, Ligane Massamba
    Abstract: In the wake of the 2008 food crisis, prices of food staples in Senegal rose, with a new wave driven by international price shocks and a decline in productivity; these effects caused sub-optimal performance in the agricultural sector. This paper attempts to identify the implications of these recent price movements on the economy and on the welfare of general households. Our results show that non-agricultural households in rural areas are hurt the most by changes in the prices of staple foods; in urban areas, it appears that higher food prices may substantially affect agricultural households. The simulated low-magnitude changes in transaction costs in the agricultural sector have an impact on poverty.
    Keywords: food prices, food security, productivity, poverty reduction, agriculture, Computable General Equilibrium Model
    JEL: E31 I32 Q17 Q18
    Date: 2014–09–24
  2. By: Miyazaki, Suguru; Shimamura, Yasuharu
    Abstract: Utilizing original panel data collected in 2007 and 2010 in rural Indonesia for 2261 households located in 98 villages in 7 provinces, this paper investigates the food markets' functions with different extents of integration, and aims to interlink three important factors in the process of economic development — risk, infrastructure and welfare — of the rural poor. Focusing especially on irrigation systems and local paved roads, we explore the potential effect of infrastructure in relation to the global food price crisis that occurred in 2007–08 and thereafter affected poor households in rural Indonesia. The most important finding from our empirical analysis can be seen in the villages with relatively low integration to the surrounding markets, but which had access to irrigation systems. In those villages food prices, and in particular the price of rice, were kept lower, even when rural Indonesia experienced a spike in food prices. This implies that, although the implication is contrastive to rice producers (net sellers), irrigation facilities offset the negative effects for rural households by maintaining a relatively abundant food supply in local markets. Along with this investigation, the threshold estimation examines whether there exists a certain threshold for the proportion of local paved roads that divides villages according to either lower or higher spatial connectivity. Our results clearly indicate the existence of such a threshold. These findings suggest that when evaluating the potential role of irrigation and the effectiveness of irrigation development and management, it is important to pay more attention to the functions of the surrounding markets as related to rural road conditions, in addition to the direct impact of irrigation on agricultural productivity as it affects households.
    Keywords: risk , infrastructure , market integration , food price crisis , Indonesia
    Date: 2014–10–07
  3. By: Paudel, Bikash; Sthapit, Sajal
    Abstract: Nepal has ratified both the Convention on Biological Diversity (CBD) and the International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA). As such, it has accepted its role as a duty-bearer to its people, including the duty to uphold farmers’ rights to plant genetic resources for food and agriculture and their associated traditional knowledge. The chapter discuss how the simultaneous empowerment of right-holders and duty bearers is important for realization of farmers' right by smallholder farmers.
    Keywords: farmers' rights, plant genetic resources, right holder, duty bearer
    JEL: O34 Q18 Q34 Q37 Q57
    Date: 2013
  4. By: Paudel, Bikash; Pandit, Januka; Reed, Brinton
    Abstract: High land fragmentation and accelerated rate of conversion of agriculture land are major challenges for food security of Nepal. Realizing ineffectiveness of previous efforts to manage these problems, government of Nepal has adopted land use policy 2012. The paper reviews the effects of previous land management policies on land fragmentation and conversion of agriculture land, and analyzes land use policy 2012 with respect to these problems. Analysis suggested that land fragmentation and high rate of agriculture land conversion could partly be attributed to failures of previous land management policies that were adopted for land re-distribution. Land use policy 2012 has proposed classical regulation tools for controlling land fragmentation and conversion of agriculture land such as land pooling, land classification, zoning and tax/ incentive based discrimination. Considering long history of non-regulated land use system in Nepal, the acceptability of the strong regulatory provisions could be the main constrain for successful implementation of the policy, thereby recoiling the effort to control land fragmentation and agriculture land conversion in Nepal.
    Keywords: agriculture, land, fragmentation, conversion, land use policy, Nepal
    JEL: D24 D61 Q1 Q15 Q18 Q24
    Date: 2013–04
  5. By: Cheteni, Priviledge; Mushunje, Abbyssinia; Taruvinga, Amon
    Abstract: The main objective of this study was to identify barriers and incentives that influence the potential adoption of biofuel crops by smallholder farmers. The study utilized a semi-structured questionnaire to record responses from 129 smallholder farmers that were identified through a snowballing sampling technique. The respondents were from the Oliver Tambo and Chris Hani District Municipalities in the Eastern Cape Province, South Africa. A Heckman two-step model was applied to analyze the data. Results obtained show that variables; arable land, incentives offered, challenges faced, labour source, were statistically significant to awareness of farmers to biofuel crops. Adoption of biofuel crops was statistical related to gender, qualification, membership to an association and knowledge on biofuel. It is recommended that smallholder farmers should be made aware of the proposed biofuel crops in order for them to adopt. Furthermore, for the biofuel industry to succeed, farmers in the semi-arid regions need to be educated on land improvement and notified of the expected returns if they are to participate in the production of biofuel crops.
    Keywords: Barriers; Incentives; Adoption; South Africa; Biofuels; Smallholder
    JEL: I3 O1 Q1 Q16 Q18 Q4 Q48
    Date: 2014–05–09
  6. By: Bachev, Hrabrin
    Abstract: This paper presents the results of a first large-scale study on forms, factors, and efficiency of eco-management in Bulgarian farms with a high eco-activity. First, a brief characterisation of surveyed “eco-active†farms is made. After that, diverse (internal, private, contract, market, formal, informal, hybrid etc.) forms and the scope of eco-management in agricultural farms are analysed. Next, different (ideological, economic, market, social etc.) factors of eco-management in farms are specified. After that, analysis is made on costs, effects, efficiency and perspectives of eco-management in agricultural farms. Finally, conclusions from the study are summarised.
    Keywords: environmental management, agriculture, agro-eco-management, Bulgaria, forms, factors, efficiency
    JEL: Q12 Q18 Q2 Q20 Q3 Q30
    Date: 2014–08–31
  7. By: Gozgor, Giray; Kablamaci, Baris
    Abstract: The paper examines a systematic interrelationship between the world oil and agricultural commodity prices, taking the role of the USD and the perceived global market risks into consideration for the period from January 1990 to June 2013. The authors initially determine the significant cross-sectional dependence in a large balanced panel framework for 27 commodity prices, and then apply the second generation panel unit root (PUR) tests. Findings from the PUR tests clearly suggest that there is a strong unit root in agricultural commodity prices. In addition, the empirical findings from the fixed effects panel data, panel co-integration analysis, the Panel-Wald Causality tests, and the common correlated effects mean group estimations strongly show that the world oil price and the weak USD have positive impacts on almost all agri- cultural commodity prices. There are also retained the adjuvant effects of the escalatory perceived global market risk upon most agricultural commodity prices.
    Keywords: oil prices, panel data estimations, the VIX
    JEL: C23 O13 O24
    Date: 2014–02–03
  8. By: Santeramo, Fabio Gaetano
    Abstract: During the past decades, there has been much debate on food security. A variety of indicators have been proposed in order to establish which countriesare in need of improved food security status. The heterogeneity of existing indicators and the lack of consensus on how to compare and rank countries have motivated international organizations to build composite indexes to synthesize the information. The process of building composite indexes involves multiple choices that influence the outcome. Our analysis aims at understanding how relevant and discretional may be the analyst’s choice of algorithms to compute composite indexes for food security. To this extent, we have computed several composite indexes for food security by using data provided by the Food and Agricultural Organization, which includes a large set of proxies for food security, as emerged from the Committee on World Food Security Round Table. We compare different methods to impute, homogenize, weight and aggregate data, in order to compute composite indexes and show how relevant are the choices to be made. We show that normalization and weighting are not very crucial decisions, whereas special attention has to be paid in choosing the data imputation and aggregation methods. By commenting on the implications that different measurement choices may have in terms global index, we show that the index construction decisions matter.
    Keywords: Food policy, Food security, Index, Composite Index
    JEL: C43 O13 O57 Q18
    Date: 2014–05
  9. By: Singh, K.M.; Meena, M.S.; Swanson, B.E.; Reddy, M.N.; Bahal, R.
    Abstract: This In-Depth Study of the Pluralistic Agricultural Extension System in India is a full analysis of the pluralistic extension system in India, how it has changed over many years and the direction it is currently moving. Chapter-1 outlines the Evolution of the Pluralistic Agricultural Extension System in India and the changes that have occurred since about 1871, including the establishment of the Department of Agriculture in 1882. Following independence in 1947, many changes have happened as outlined in this first chapter, including the Community Development Program (CDP), the Intensive Agricultural District Program (IADP), including dissemination of high-yielding varieties during the Green Revolution, the Training and Visit (T&V) approach and then the move to the decentralized, farmer-led and market driven approach influenced by the Agricultural Technology Management Agency (ATMA) model. Chapter-2 gives an Overview of the Public Extension System within the Ministry of Agriculture (MoA), the State Departments of Agriculture and then provides more detailed information about the Krishi Vigyan Kendra (KVK) and the public extension system in India. It starts with an overview of the organizational structure at the national level, including the Department of Agricultural Research and Extension (DARE), then into the Department of Agriculture and Cooperation (DAC) and Directorate of Extension within DAC. Then, it moves into the KVKs, which are a critical linkage at the district level between research, extension and farmers. In short, KVKs focus on the specific agro-ecological conditions within each district and then, after conducting research on these different crops, livestock and other farming systems. Then it moves into the development of the ATMA model through two World Bank projects, which is now expand across all Indian districts. Chapter-3 outlines the Directorates of Extension Education within each State Agricultural Universities (SAUs). India is unique in having Extension units established within each SAU, since this extension approach was first introduced by selected US Land Grant Universities into these SAUs in the late 1950s and early 1960s. This chapter outlines the historical development of the extension within each SAU and then outlines the mandate, organizational structure, human resources and methods used within these SAUs and their relationship with the public extension system. Chapter-4 outlines the Private Sector Advisory Services being provided in India, especially in the provision of good advisory services through private Agri-Business Companies through the sale of inputs to farmers. In India, there are over 280,000 input supply firms, but many do not have sufficient knowledge and experience in providing good advisory services to farmers. At first, the public and private sector did not want to work together but through the ATMA approach, the public and private sector started working together and then, in 2004, the National Institute of Agricultural Extension Management (MANAGE) started training and giving diplomas to the participants from these private sector firms, especially in Andhra Pradesh (see: Chapter-5 summarizes the role and activities of the different Commodity Boards currently operating in India, including: Central Silk Board (CSB), Coconut Development Board (CDB), Coffee Board, Coir Board, Rubber Board, Spices Board, Tea Board, Tobacco Board, National Dairy Development Board (NDDB), National Horticulture Board (NHB), Cashew Export Promotion Council (CEPC), National Jute Board (NJB), and the National Federation of Cooperative Sugar Factories (NFCSF) and how each of these boards carry out extension and advisory services to the farmers being served. Chapter-6 outlines the Institutional Mechanism for Capacity Building to strengthen the pluralistic extension system in India. This chapter starts with an overview of the National Institute of Agricultural Extension Management (MANAGE), which is an autonomous organization that has had the most impact on strengthening the extension system in India. Next, it discusses the paradigm shift within the National Institute of Agricultural Marketing (NAIM) in India; and then outlines the role of the Extension Education Institutes (EEIs). Finally, it moves to outline the role and structure of the State Agricultural Management and Extension Training Institutes (SAMETIs), especially in strengthening the ATMA model in India. Chapter-7 is the conclusion chapter that outlines the Strengths and Weaknesses of India’s Pluralistic Extension System. It starts by outlining the Policy Framework and Reforms for strengthening the pluralistic extension system in India. Next, it outlines how to strengthen research-extension linkages as well as capacity building among extension workers. Next, it addresses how to empower farmers, including women farmers. It also outlines the use of Information Technology (IT) and how to strengthen it through different approaches. This chapter also outlines the changing role of government in extension and how the ATMA model can be strengthened following very specific details. The other issue is how to strengthen the SAMETIs, since they still need to be strengthened in providing service to district and block level extension workers. This chapter ends with a brief summary the key role that the public extension system can play in India.
    Keywords: Indian Extension System, India, Pluralistic extension, ATMA Model,
    JEL: O2 O3 O31 O32 O33 Q16 Q17
    Date: 2014–08–15
  10. By: Santeramo, Fabio Gaetano; Capitanio, Fabian; Adinolfi, Felice
    Abstract: Dynamics and transitions in the agricultural sector of emerging countries are not well understood yet. A decade of major political and economic changes is challenging the Mediterranean Economies, affecting the primary sectors of transition economies which are largely influenced by recent trends. The resulting exposure of agriculture to risks has called great attention on risk management strategies and public intervention. We explore their role in three different economies with a view to a unified policy framework. The analysis is conducted through a field activity in Syria, Tunisia and Turkey that has allowed to understand the key issues. The experts’ opinions draw a clear picture of retrospect and prospects and stimulate a comparative analysis that widens the current knowledge of risk management in the EU Partner Countries.
    Keywords: EU Integration, Agricultural Policy, Partner Countries, Risk Management
    JEL: F15 N54 Q18
    Date: 2014
  11. By: Kumar, Abhay; Singh, R.K.P.; Singh, K.M.; Kumar, Anjani
    Abstract: Migration has been a recurrent phenomenon since the dawn of human history. Though its form has changed but it remains a dominant event in the global social system. In modern days also people migrate from underdeveloped areas to the developed ones in search of better opportunities. A number of social, cultural, economic, spatial, climatic, demographic factors induce migration, however, the economic factors are considered as the primary reasons for inducing migration. Migration of male labour force from Bihar has increased during last two decades. It was observed that the youngsters are more prone to migration and most of them are migrating to urban centers for non-farm work. Migration helped more rational use of two critical inputs, labour and irrigation in rice production on migrant households. The migration seems to have helped in judicious use of human labour at native place due to migration of surplus labour force for gainful employment to destination of migration. Remittances have been utilized for meeting consumption needs, improved livelihood, better education to children and better health care facilities. Migrant households also preferred to save money to meet their requirements in unforeseen situations. It can thus be inferred that migration may be one of risk-coping strategies for the weaker sections of the society and has inculcated the saving habits among migrant households. The allocation of remittances on agricultural inputs could have increased if proper infrastructure facilities were present in rural areas for faster dissemination of modern agricultural technology for increasing agricultural production. Analysis of determinants of migration revealed that a male member of lower caste with larger size of land and larger number of dependents is more prone to migration in Bihar. The caste barrier for migration has weakened but still persists; however, size of farm is no more taboo for migration.
    Keywords: Migration, Rice production, Labor migration, Remittances, Bihar
    JEL: O13 O15 Q1 Q12 Q15 Q16
    Date: 2014–07–14
  12. By: Plastina, Alejandro
    Date: 2014–10–01
  13. By: Juan Fernando Vargas; Leopoldo Fergusson; Dario Romero
    Abstract: Despite a growing body of literature on how environmental degradation can fuel civil war, the reverse effect, namely that of conflict on environmental outcomes, is relatively understudied. From a theoretical point of view this effect is ambiguous, with some forces pointing to pressures for environmental degradation and some pointing in the opposite direction. Hence, the overall effect of conflict on the environment is an empirical question. We study this relationship in the case of Colombia. We combine a detailed satellite-based longitudinal dataset on forest cover across municipalities over the period 1990-2010 with a comprehensive panel of conflict-related violent actions by paramilitary militias. We first provide evidence that paramilitary activity significantly reduces the share of forest cover in a panel specification that includes municipal and time fixed effects. Then we confirm these findings by taking advantage of a quasi-experiment that provides us with an exogenous source of variation for the expansion of the paramilitary. Using the distance to the region of Urabá, the epicenter of such expansion, we instrument paramilitary activity in each cross-section for which data on forest cover is available. As a falsification exercise, we show that the instrument ceases to be relevant after the paramilitaries largely demobilized following peace negotiations with the government. Further, after the demobilization the deforestation effect of the paramilitaries disappears. We explore a number of potential mechanisms that may explain the conflict-driven deforestation, and show evidence suggesting that paramilitary violence generates large outflows of people in order to secure areas for growing illegal crops, exploit mineral resources, and engage in extensive agriculture. In turn, these activities are associated with deforestation.
    Keywords: Deforestation, Conflict, Instrumental Variables, Colombia
    JEL: D74 Q2
    Date: 2014–09–05
  14. By: Julien Farlin (CRP Henri Tudor, CRTE (Luxembourg)); Laurent Drouet (Fondazione Eni Enrico Mattei); T. Gallé (CRP Henri Tudor, CRTE (Luxembourg)); D. Pittois (CRP Henri Tudor, CRTE (Luxembourg)); M. Bayerle (CRP Henri Tudor, CRTE (Luxembourg)); C. Braun (CRP Henri Tudor, CRTE (Luxembourg)); P. Maloszewski (Helmholtz Zentrum, Institute for Groundwater Ecology, Munich (Germany)); J. Vanderborght (Helmholtz Zentrum, Institute of Bio-and Geosciences, Jülich (Germany)); M. Elsner (Helmholtz Zentrum, Institute for Groundwater Ecology, Munich (Germany)); A. Kies (University of Luxembourg)
    Abstract: A simple method to delineate the recharge areas of a series of springs draining a fractured aquifer is presented. Instead of solving the flow and transport equations, the delineation is reformulated as a mass balance problem assigning arable land in proportion to the pesticide mass discharged annually in a spring at minimum total transport cost. The approach was applied to the Luxembourg Sandstone, a fractured-rock aquifer supplying half of the drinking water for Luxembourg, using the herbicide atrazine. Predictions of the recharge areas were most robust in situations of strong competition by neighbouring springs while the catchment boundaries for isolated springs were extremely sensitive to the parameter controlling flow direction. Validation using a different pesticide showed the best agreement with the simplest model used, whereas using historical crop-rotation data and spatially distributed soil-leaching data did not improve predictions. The whole approach presents the advantage of integrating objectively information on land use and pesticide concentration in spring water into the delineation of groundwater recharge zones in a fractured-rock aquifer.
    Keywords: Spring Protection Zones, Atrazine, Luxembourg, Fractured Rock, Groundwater Pollution
    JEL: Q5 Q53
    Date: 2014–09
  15. By: Tran Quang, Tuyen
    Abstract: This study is the first to analyze the intensity of nonfarm participation and its correlates among ethnic minority households in the Northwest Mountains - the poorest region of Vietnam. We found that ethnic minority households depend heavily on agriculture for subsistence and their access to nonfarm employment is very limited. Households that participated in nonfarm activities have a much higher level of education, income, assets and a lower level of poverty than those without nonfarm participation. Factors affecting the level of nonfarm participation were examined by using a fractional logit model. The results show that education, notably among other factors, has a strongly increasing effect on the intensity of nonfarm participation. Having more annual crop land and water surface for aquaculture reduces the intensity of participation in nonfarm activities. In addition, some commune characteristics were found to be closely linked to the extent of nonfarm participation. A commune with nonfarm job opportunities and paved roads increases the intensity of nonfarm participation for households living in that commune. From the findings what policy implication can be drawn is that any poverty alleviation policies should aim at improving the access of ethnic minorities to education and nonfarm job opportunities.
    Keywords: fractional logit, ethnic minorities, intensity, nonfarm participation
    JEL: I38 J15 O12
    Date: 2014–10–04
  16. By: Andreas Lange (University of Hamburg); Claudia Schwirplies (University of Kassel); Andreas Ziegler (University of Kassel)
    Abstract: This paper provides theoretical and empirical insights on the extent to which the availability of carbon offsetting may substitute the individual use of other carbon-reducing measures. Theoretically, we demonstrate an ambiguous impact of offsetting on the use of other measures and derive conditions under which both are substitutes or complements. We then empirically test our predictions using data from representative surveys among more than 2000 citizens in Germany and the U.S. Considering seven measures that can be taken by individuals to direct-ly reduce greenhouse gas emissions, our empirical evidence is consistent with the theoretical predictions that substitution occurs particularly if individuals lay a sufficiently large weight on environmental preference or if offsetting is perceived to be relatively effective in providing the public good climate protection. Complementary effects are shown to exist for a perceived intermediate effectiveness of offsetting activities.
    Keywords: On the interrelation between carbon offsetting and other voluntary climate protection activities: Theory and empirical evidence
    JEL: C25 Q54 Q58
    Date: 2014
  17. By: Jensen, Nathaniel D.; Barrett, Christopher B.; Mude, Andrew G.
    Abstract: Index insurance products circumvent many of the transaction costs and asymmetric information problems that obstruct provision of low value conventional insurance policies in developing countries. Recent years have seen tremendous growth in index insurance pilots in developing countries, but there has been little progress in our understanding of the quality of those products. Basis risk, or remaining uninsured risk, is a widely recognized, but rarely measured drawback of index insurance that carries significant implications for the quality of any such product. This research uses a rich longitudinal household dataset to examine basis risk associated with an index based livestock insurance (IBLI) product available to pastoralists in northern Kenya since 2010. We find that IBLI coverage reduces downside risk for most households when purchased at actuarially fair premium rates and has net utility benefits for most even at commercial rates. Examining the components of basis risk, we find that IBLI reduces exposure to covariate risk due to high loss events by an average of 62.8%. The benefits of reduced covariate risk exposure are relatively small, however, due to high exposure to seemingly mostly random idiosyncratic risk, even in this population often thought to suffer largely from covariate shocks. Depending on covariate region, IBLI policy holders are left with an average of between 62.3% and 76.7% of their original risk due to high loss events. This research underscores the need for caution when promoting index insurance as a tool for reducing exposure to risk and the importance of ex post product evaluation.
    Keywords: index insurance, basis risk, pastoralists, Kenya
    JEL: O1 O16
    Date: 2014–09
  18. By: Ruth Namakonzi (P.O. Box 5048, Kampala, Uganda. E-mail:; Ruth Namakonzi (Corresponding author. Maastricht School of Management, Endepolsdomein 150, 6229 EP Maastricht. Postbus 1209, 6201 BE Maastricht The Netherlands. E-mail:
    Abstract: Given the importance of the environment and the attention environmental issues are currently receiving from public and private organisations, it has become crucial for companies, especially in manufacturing industries, to consider the impact of their activities on the environment. This is because the large amount of material, energy and water consumed by these industries constitute a major source of carbon dioxide, waste and effluents emissions. The aim of this study is to find out what actions, if any, manufacturing industries in Uganda are taking to enhance effective environmental management, the extent to which environmental management accounting (EMA) is applied, as well as costs and challenges that these industries face in the process of implementing EMA to achieve effective environmental management.Some of the study findings reveal that manufacturing companies in Uganda are, indeed, taking environmental issues seriously. Some companies are adopting internally developed environmental policies, setting environmental goals and objectives. Some manufacturing firms have encountered challenges in achieving set environment management goals. The greatest of these challenges arer difficulties in defining, separating, identifying, classifying, measuring and controlling environmental protection costs. Others include inaccessibility to environmental management technologies, limitknowledge and training, endemic corruption and inadequate legislation. The study ends with recommendations and suggests areas for further research.
    Keywords: Environmental Management Accounting (EMA); Environmental management; Environmental costs and manufacturing industries.
    Date: 2014–10
  19. By: Jussila Hammes , Johanna (VTI)
    Abstract: European Union’s (EU) energy legislation from 2009 is still being implemented in the Member States. We study analytically the Renewable Energy Directive and the Fuel Quality Directive’s provisions for the transport sector. The former Directive imposes a biofuel mandate and allows double counting of some biofuels. The latter Directive imposes a Low Carbon Fuel Standard (LCFS). We show that either the biofuel mandate or the LCFS is redundant. Double counting makes the biofuel mandate easier to fulfil but also depresses the price of biofuels. Production of the doubly counted biofuels increases nevertheless and production of the single-counted biofuels falls. Given the type of technical change studied, double counting spurs technical development of the doubly counted biofuels. The LCFS directs support towards those biofuels with lowest life-cycle carbon emissions. The redundant policy instrument, the biofuel mandate or the LCFS, only creates costs but no benefits and should be abolished. Double counting makes the biofuel mandate non-cost-efficient and should be reconsidered.
    Keywords: Biofuel mandate; Low carbon fuel standard; Double counting; Technical change; European energy legislation
    JEL: D61 H21 H23
    Date: 2014–10–24
  20. By: Diwan, Ishac (Harvard University); Gaddah, Olivier (Harvard University); Osire, Rosie (Harvard University)
    Abstract: It has long been known that countries only converge conditionally i.e. poor countries catch up with richer ones only if they adopt policies and institutions that are conducive to economic growth. Recently, Dani Rodrik (2011) has shown that manufacturing industries, unlike countries, converge unconditionally. We look at countries' performance in agriculture and find that agricultural productivity actually shows unconditional divergence (and like GDP, conditional converge). This means that agriculture very much behaves like a country and not like industry. We find however that many crops do converge unconditionally, like industry. The question we then ask is: how can we make particular sectors in agriculture more like an "industry" and less like a "country?" The paper argues that the solution lies in finding business models that provide capital and access to missing markets in an aggregated fashion, thus forming high-productivity islands of quality. We provide examples and a discussion of promising business models that do that.
    Date: 2014–02
  21. By: Rodriguez, Gonzalo; Bande, Roberto
    Abstract: It has long been generally accepted that substitution between wild and farmed fish exists when they are of the same species. While this is true for some species and markets, the relation does not hold for all of them. In fact, using cointegration methodology, this paper proves that farmed and wild gilthead sea bream, sea bass and turbot (90% of Spanish marine fish production) are not substitutives in the Spanish seafood market. Those results have implications for policy makers, fishers and fish farmers, stemming from ecological, economical and social sustainability.
    Keywords: Aquaculture, seabream; Seabass; turbot, market analysis; cointegration
    JEL: Q22
    Date: 2014–10–08

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