nep-agr New Economics Papers
on Agricultural Economics
Issue of 2014‒12‒24
forty-one papers chosen by
Angelo Zago
Università degli Studi di Verona

  1. Fertiliser and Biofuel Policies in the Global Agricultural Supply Chain: Implications for Agricultural Markets and Farm Incomes By Martin von Lampe; Aikaterini Kavallari; Heleen Bartelings; Hans van Meijl; Martin Banse; Joanna Ilicic-Komorowska; Franziska Junker; Frank van Tongeren
  2. Agriculture and Child Under-Nutrition in India: A State Level Analysis By Swarna Sadasivam Vepa; Vinodhini Umashankar; R.V. Bhavani; Rohit Parasar
  3. Alternative Food Networks in Piedmont: determinants of on-farm and off-farm direct sales by farmers. By Corsi, Alessandro; Novelli, Silvia; Pettenati, Giacomo
  4. Wage growth, landholding, and mechanization in Chinese agriculture By Wang, Xiaobing; Yamauchi, Futoshi; Otsuka, Keijiro; Huang, Jikun
  5. Global Value Chains and Indian Food Sector: A Preliminary Analysis of Issues and Options By Sunitha Raju
  6. Integration of biophysical and agro-economic models to assess the economic effects of climate change on agriculture: A review of global and EU regional approaches By Fernández, Francisco J.; Blanco, Maria
  7. The rise of a middle class in East and Southern Africa: Implications for food system transformation By Tschirley, David; Reardon, Thomas; Dolislager, Michael; Snyder, Jason
  8. Economy-wide effects of input subsidies in Malawi: Market imperfections and household heterogeneity By Skjeflo , Sofie Waage; Holden , Stein
  9. Food Supply Chain Management in Indian Agriculture: Issues, Opportunities and Further Research By Parwez, Sazzad
  10. Importing high food prices by exporting : rice prices in Lao PDR By Durevall, Dick; van der Weide, Roy
  11. Population Structures in Russia: Optimality and Dependence on Parameters of Global Evolution By Yuri Yegorov
  12. Milking the data : measuring income from milk production in extensive livestock systems -- experimental evidence from Niger By Zezza, Alberto; Federighi, Giovanni; Adamou, Kalilou; Hiernaux, Pierre
  13. Morocco.s unique situation in the climate change arena: An analysis of climate forecasts and their link to agriculture By Ouraich, Ismail; Tyner, Wallace E.
  14. STRUCTURE AND PERFORMANCE OF ETHIOPIA’S COFFEE EXPORT SECTOR By Minten, Bart; Tamru, Seneshaw; Kuma, Tadesse; Nyarko, Yaw
  15. Country typology on the basis of FNS. A typology of countries based on FNS outcomes and their agricultural, economic, political, innovation and infrastructure national profiles By Hannah Pieters; Nicolas Gerber; Daniel Mekonnen
  16. Remittances, informal loans, and assets as risk-coping mechanisms: Evidence from agricultural households in rural Philippines By Marjorie C. Pajaron
  17. Role of the horse industry in the regional development in France By Geneviève Bigot; Xavier Dornier; Eric Perret; Celine Vial
  18. Structural transformation in the 20th century: A new database on agricultural employment around the world By Asger Moll Wingender
  19. How the Danes Discovered Britain: The International Integration of the Danish Dairy Industry Before 1880 By Markus Lampe; Paul Sharp
  20. Did rapid smallholder-led agricultural growth fail to reduce rural poverty? Making sense of Malawi.s poverty puzzle By Pauw, Karl; Beck, Ulrik; Mussa, Richard
  21. Village Political Economy, Land Tenure Insecurity, and the Rural to Urban Migration Decision: Evidence from China By Giles, John T.; Mu, Ren
  22. Conceptualization of sustainable boreal forests development in present-day economics. By Valentina Zhideleva
  23. Determinants of virtual water flows in the Mediterranean By Fracasso, Andrea; Sartori, Martina; Schiavo, Stefano
  24. Within- and between- sample tests of preference stability and willingness to pay for forest management By Mikolaj Czajkowski; Anna Barczak; Wiktor Budzinski; Marek Giergiczny; Nick Hanley
  25. Customary Norms, Inheritance, and Human Capital: Evidence from a Reform of the Matrilineal System in Ghana By La Ferrara, Eliana; Milazzo, Annamaria
  26. The impact of an EU-US Transatlantic Trade and Investment Partnership Agreement on Biofuel and Feedstock Markets By John C. Beghin; Jean-Christophe Bureau; Alexandre Gohin
  27. Assessing temporal trends and industry contributions to air and water pollution using stochastic dominance By E. Agliardi; M. Pinar; T. Stengos
  28. Does a Renewable Fuel Standard for Biofuels Reduce Climate Costs? By Greaker, Mads; Hoel, Michael; Rosendahl, Knut Einar
  29. The economywide impacts and risks of Malawi.s farm input subsidy programme By Arndt, Channing; Pauw, Karl; Thurlow, James
  30. New Estimates of the Elasticity of Substitution of Land for Capital By Gabriel Ahlfeldt; Daniel McMillen
  31. A National Survey of Consumer Preferences for Branded Gulf Oysters and Risk Perceptions of Gulf Seafood By Petrolia, Daniel R.; Walton, William C.; Sarah, Acquah
  32. Are Time and Money Equally Substitutable for All Commodity Groups in the Household's Domestic Production? By Carla Canelas; François Gardes; Philip Merrigan
  33. Validation of the Identification Method of Management Degree (MIGG) using the methodology of focus groups By Antonio Bliska Jr; Flavia Bliska; Patricia Turco; Paulo Leal
  34. The Heavy Plough and the Agricultural Revolution in Medieval Europe By Thomas Barnebeck Andersen; Thomas Peter Sandholt Jensen; Christian Volmer Skovsgaard
  35. Are there Environmental Kuznets Curves for US State-Level CO2 Emissions? By Nicholas Apergis; Christina Christou; Rangan Gupta
  36. No Price Like Home: Global House Prices, 1870-2012 By Knoll, Katharina; Schularick, Moritz; Steger, Thomas
  37. What Determines Efficiency? An Analysis of the Italian Water Sector By Monica Bonacina; Anna Cretì; Carlotta Mariotto; Federico Pontoni
  38. How Relevant Has Been the Learning-by-Doing for Brazilian Sugarcane Ethanol Production? By Héctor M. Núñez
  39. Multi-level Governance in rural development: Analysing experiences from LEADER for a Community-Led Local Development (CLLD) By Pollermann, Kim; Raue, Petra; Schnaut, Gitta
  40. Measurement of use value and non-use value of environmental quality consistent with general equilibrium approach By Naoki Sakamoto; Kazunori Nakajima
  41. Are there Multiple Bubbles in the Ethanol-Gasoline Price Ratio of Brazil? By Ghassen El Montasser; Rangan Gupta; Andre Luis Martins; Peter Wanke

  1. By: Martin von Lampe; Aikaterini Kavallari; Heleen Bartelings; Hans van Meijl; Martin Banse; Joanna Ilicic-Komorowska; Franziska Junker; Frank van Tongeren
    Abstract: This report analyses policies along the agricultural supply chain, in particular support measures for fertilisers and for biofuels. It uses the OECD Fertiliser and Biofuel Support Policies Database that covers polices in 48 countries (including the EU and its Members) and assesses the market effects of these policies with a computable general equilibrium model, MAGNET. This report finds that biofuel support policies generate additional demand for feedstock commodities and, therefore, higher incomes for crop farmers in subsidising and non-subsidising countries. In contrast, these policies increase costs to downstream industries, including livestock farmers, and to consumers. Fertiliser support policies reduce crop production costs and hence increase yields, production and incomes for crop farmers in subsidising countries. However, they lower crop farm incomes abroad, while livestock farmers in both country groups face lower feed costs and, in consequence, lower livestock prices.
    Keywords: agriculture, agricultural markets, land use, fertiliser support policies, farm incomes, quantitative analysis, fertiliser markets, energy prices, computable general equilibrium model, biofuel support policies, biofuel markets
    JEL: D58 O13 Q11 Q17 Q18 Q42
    Date: 2014–11–28
  2. By: Swarna Sadasivam Vepa (Economist (LANSA), M. S. Swaminathan Research Foundation (Chennai) and Visiting faculty Madras School of Economics (Chennai)); Vinodhini Umashankar (Research Associates (LANSA), M. S. Swaminathan Research Foundation,); R.V. Bhavani (Project Manager, (LANSA), M. S. Swaminathan Research Foundation, Chennai,); Rohit Parasar (Research Associates (LANSA), M. S. Swaminathan Research Foundation,)
    Abstract: The literature review on agriculture-child nutrition linkage indicates that the evidence base is weak and inconclusive (Kadiyala et al., 2013). This paper explores the possible linkages between agricultural prosperity with rural child nutrition at the macro level, controlling for sanitation and safe drinking water, using panel data fixed effects and random effects models. The four alternate indicators of agricultural prosperity viz., agricultural growth, worker productivity, land productivity and food grain production per capita used alternatively enable us to conclude that negative influence of agricultural prosperity on child undernutrition exists, though the influence of various aspects of prosperity on underweight and stunting differ. Other aspects of agriculture considered, such as female agricultural wages help to reinforce the negative influence of agricultural prosperity on underweight in children and the land operational inequality dampens the impact of agricultural prosperity as it increases the incidence of stunting. Water and sanitation help reduce child undernutrition albeit differently on stunting and underweight. The same set of variables seems to influence stunting and underweight differently. Their trajectories seem to differ. The present study enables us to conclude that Indian agricultural growth through higher food grain production and through higher land productivity, when percolates through, labour productivity and higher wages, can reduce child undernutrition in rural India. However, public policy has to promote social provisioning of sanitation and health and make sure that agricultural growth is consistent. Public policy should ensure that growth translates into higher labour productivity and higher wages.
    Keywords: India; Agriculture, productivity, female wages child undernutrition
    JEL: Q19 I18
    Date: 2014–07
  3. By: Corsi, Alessandro; Novelli, Silvia; Pettenati, Giacomo (University of Turin)
    Abstract: Direct sales are a widespread and important typology of the so-called Alternative Food Networks. The direct links between producers and consumers can take two basic forms: consumers going to buy agricultural products at the farm (on-farm sales), and farmers selling their products in urban areas. These practices are an alternative to traditional organizations of the agro-food chains, that typically involve several operators between producers and consumers. It is therefore important to analyse the reasons pushing farmers to adopt this new organization of their marketing chain. This research aims at analysing the territorial distribution of direct links between urban consumers and farmers in Piedmont (Italy), and to assess the main determinants of their choice. Firstly, the territorial distribution of direct sales practices (on-farm or elsewhere) is analysed. This is made possible by the access to micro-data from the 2010 Agricultural Census for Piedmont, a region whose agriculture is characterized by a strong emphasis on quality products. The farms that chose direct sales, both on-and off-farm, are mostlyconcentrated in specific clusters, such as the hilly wine-growing areas of Langhe and Monferrato, the hilly belt surrounding Torino, and some low Alpine valleys. Secondly, we analyse the determinants of the choice to sell directly to consumers, separately for on-farm and off-farm sales, with probit models. Explanatory variables comprise the structural characteristics of the farms (farm size, type of farming, etc.), the personal characteristics of the operators and of the farm households, and the proximity to urban and commercial areas. Operators’ and farm characteristics are found to affect the choice of selling directly, but rather weakly. The most important factors affecting these choices are farm location and, for on-farm direct sales, the complementarity with agro - tourism and recreational activities.
    Date: 2014–12
  4. By: Wang, Xiaobing; Yamauchi, Futoshi; Otsuka, Keijiro; Huang, Jikun
    Abstract: This paper uses farm panel data from China to examine the dynamics of land transactions, machine investments, and the demand for machine services. Recently, China's agriculture has experienced a large expansion of machine rentals and machine services provided by specialized agents, which has contributed to mechanization of agricultural production. The empirical results show that an increase in nonagricultural wage rates leads to expansion of self-cultivated land size. A rise in the proportion of nonagricultural income or the migration rate also increases the size of self-cultivated land. Interestingly, however, relatively educated farm households decrease the size of self-cultivated land, which suggests that relatively less educated farmers tend to specialize in farming. The demand for machine services has also increased if agricultural wage and migration rate increased over time, especially among relatively large farms. The results on crop income support the complementarity between rented-in land and machine services (demanded), which implies that scale economies are arising in Chinese agriculture with mechanization and active land rental markets.
    Keywords: Rural Development Knowledge&Information Systems,Economic Growth,Labor Policies,Regional Economic Development,Land Use and Policies
    Date: 2014–12–01
  5. By: Sunitha Raju (Indian Institute of Foreign Trade, Kolkata, India)
    Abstract: The increased trade in agricultural value added products has internationalized production and marketing systems. As such, a variety of forms of value chain relationships have emerged (outgrower schemes, contract farming, marketing contracts etc.) that have replaced the arms length market relationships between buyers and suppliers. The application of the Global Value Chain framework as also Production Networks to agriculture has gained significance particularly considering the importance of promoting agricultural exports from developing countries. As agriculture in most of the developing countries, as also in India, is dominated by small and medium farms, poverty reduction through exports would require production shifts and access to the global agribusiness. In recent years, the market requirements of agribusiness products have become challenging for three reasons. First, the importance of standards is increasing in global agricultural trade. Meeting the requirements of stringent food safety conditions has become complex as monitoring is required the way products are grown, harvested, processed and transported. Second, the demands of global buyers in terms of large-volume supply, speed and reliability of delivery, customization through processing and packaging and product safety guarantees have emerged as challenges for small producers. And, third, strategies for product differentiation particularly for traditional exports involved certification and/or closer links between producers, traders, processors and retailers. In meeting these challenges, organizing agribusiness value chains or integrated supply chains is necessary for global competitiveness. The Indian agri business is largely unorganized at the production, trading and consumer levels and with trade and retailing gaining importance, structural shifts in agribusiness are taking place. With exports increasing, many food chains and companies are sourcing agricultural products from India to feed their outlets in different parts of the world. Similarly, under organized retailing, several channels of procurement have developed to ensure efficiency in the value chain. Under these evolving conditions, the paper addresses the following contextual issues: Value chain linkages and coordination costs of buyer-seller relationships Information codification and transmission along value chain and supplier competence Channels of procurement of different products by food retailers Public private partnership in developing market, transportation and logistic infrastructure Building supplier competencies of the producer particularly small farmers The application of the GVC has underlined three important issues. First, with globalization and expansion of agricultural trade, India is still an insignificant part of the global production network. Though India has a comparative advantage in the production of many agricultural products, this is being undermined by the high transaction costs arising out of inefficiencies in distribution and logistics. But, considering that the market, transportation and logistics infrastructure is less developed in India and the public investments in the same being low, the policy approach should be to encourage investments by the transnationals in setting up the value chain and strengthening the support institutions like inspecting and testing facilities, certification companies, local consultancy etc. Overall, the effort should be to ensure a conducive economic environment for integrating India into global agricultural production networks. The second important issue emerging out of the GVC analysis is the development of domestic retailing in building the capacities of the local firms for forging international operations. The development of organized retailing, particularly in the urban areas, provides the ‘threshold expertise’ to organize and coordinate supply activities for greater efficiencies. Leveraging the domestic operations for entering into global markets requires development of infrastructure and support institutions. And, lastly, the third important issue arising out of the GVC analysis is the effect of trade in building the supply competencies of the producer, particularly the small farmers. The costs of compliance being high, the role of state in providing the Standards infrastructure becomes crucial. Adopting new technologies and production processes by the farmers is not scale neutral and therefore, can have the tendency of excluding the small farmers. In providing this technical assistance, NGOs, international development organizations and public organizations can cooperate and extend necessary support.
    Keywords: Global Value Chains, Indian Food Sector, International Trade.
    JEL: Q17
    Date: 2014–07
  6. By: Fernández, Francisco J.; Blanco, Maria
    Abstract: The economic effects of climate change on agriculture have been widely assessed in the last two decades. Many of these assessments are based on the integration of biophysical and agro-economic models, allowing to understand the physical and socio-economic responses of the agricultural sector to future climate change scenarios. The evolution of the bio-economic approach has gone through different stages.This review analyses its evolution: firstly, framing the bio-economic approach into the context of the assessments of climate change impacts, and secondly, by reviewing empirical studies at the global and European level. Based on this review, common findings emerge in both global and regional assessments. Among them, we show that overall results tend to hide significant disparities on smaller spatial scales. Furthermore, due to the effects of crop prices over yield changes, several authors highlight the need to consider endogenous price models to assess production impacts of climate change. Further, major developments are discussed: the progress made since the last two decades and the recent methods used to provide insights into modeling uncertainties. However, there are still challenges to be met. On this matter, we take these unresolved challenges as guidelines for future research.
    Keywords: climate change,bio-economic modelling,agricultural markets,food security,food prices
    JEL: C63 Q10 Q11 Q17 Q54
    Date: 2014
  7. By: Tschirley, David; Reardon, Thomas; Dolislager, Michael; Snyder, Jason
    Abstract: We examine the implications of the rise of a middle class in East and Southern Africa for food consumption patterns and the food system. A unique classification of food items shows that highly processed food has one-third of the purchased food market, wit
    Keywords: Africa, food imports, middle class, processed food, urbanization
    Date: 2014
  8. By: Skjeflo , Sofie Waage (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Holden , Stein (Centre for Land Tenure Studies, Norwegian University of Life Sciences)
    Abstract: The potential bene ts of providing subsidized inputs to farm-households in developing coun- tries may reach well beyond the targeted households. More speci cally, increased food production and demand for rural labor may bene t poor households through lower food prices and higher rural wages. However, two recent studies of a large input subsidy program in Malawi nd that these eects are smaller than expected based on anecdotal evidence and previous studies using simulation models. In this paper we provide a potential explanation for this nding by using six farm-household programming models to show how market imperfections limit households' ability to take advantage of cheaper inputs. Our ndings suggest that input subsidy programs could be combined with improved market infrastructure and market access in order to increase non-bene ciary households' bene ts from input subsidies.
    Keywords: Input subsidies; Malawi; Farm-household models
    JEL: Q12 Q18
    Date: 2014–11–19
  9. By: Parwez, Sazzad
    Abstract: This paper is an attempt to explore the problems faced by Indian agriculture for food security in terms of inadequate infrastructure and highly inefficient supply chain in context of information technology. Due to lack of efficient infrastructure and food processing industry about 30-35 percent of all foods produced in India are wasted. This paper examines the critical issues at each sub-system of agriculture supply chain, starting from the input to the consumer, with a view to integrating them in efficient and effective manner. Investments in cold chain infrastructure, applied research in post harvest technologies, installation of food processing plants in various sectors and development of food retailing sector are mandatory for achieving gains in this sector. Paper broadly covers some of important aspects of agriculture supply chain in India- identification of issues at different levels in the supply chain; transformation in the agriculture due to various supply chain interventions; the role of ICTs in supply chain management: and this paper also covers the suggestion to improve efficiency at different levels in supply chain. There is wide research gap in this sector, having such potential and prospectus for overall growth there is not much research in this field. The paper concludes that efficient supply chain plays very important role for development and contemporary issue for agriculture therefore; government action must address the issue of infrastructure development to achieve the objective of food security for all.
    Keywords: Agriculture; Infrastructure; Supply chain; Food Security; Development; Investment
    JEL: Q13 Q16
    Date: 2013–11–22
  10. By: Durevall, Dick; van der Weide, Roy
    Abstract: This paper shows how a developing country, Lao PDR, imports high glutinous rice prices by exporting its staple food to neighboring countries, Vietnam and Thailand. Lao PDR has extensive export controls on rice, generating a sizable difference between domestic and international prices. Controls are relaxed after good harvests, leading to a surge in exports early in the season and rapidly rising prices later in the year. There is thus a strong case for removal of trade restrictions since they give rise to price spikes, keep the long-term price of glutinous rice low, and thereby hinder increases in income from agriculture. Although this is a case study of Lao PDR, the findings may equally apply to other developing countries that export their staple food.
    Keywords: Markets and Market Access,Food&Beverage Industry,Emerging Markets,Access to Markets,E-Business
    Date: 2014–11–01
  11. By: Yuri Yegorov
    Abstract: The paper is devoted to analytical investigation of the division of geographical space into urban and rural areas with application to Russia. Yegorov (2005, 2006, 2009) has suggested the role of population density on economics. A city has an attractive potential based on scale economies. The optimal city size depends on the balance between its attractive potential and the cost of living that can be proxied by equilibrium land rent and commuting cost. For moderate scale effects optimal population of a city depends negatively on transport costs that are related positively with energy price index. The optimal agricultural density of population can also be constructed. The larger is a land slot per peasant, the higher will be the output from one unit of his labour force applied to this slot. But at the same time, larger farm size results in increase of energy costs, related to land development, collecting the crop and bringing it to the market. In the last 10 years we have observed substantial rise of both food and energy prices at the world stock markets. However, the income of farmers did not grow as fast as food price index. This can shift optimal rural population density to lower level, causing migration to cities (and we observe this tendency globally). Any change in those prices results in suboptimality of existing spatial structures. If changes are slow, the optimal infrastructure can be adjusted by simple migration. If the shocks are high, adaptation may be impossible and shock will persist. This took place in early 1990es in the former USSR, where after transition to world price for oil in domestic markets existing spatial infrastructure became suboptimal and resulted in persistent crisis, leading to deterioration of both industry and agriculture. Russia is the largest country but this is also its problem. Having large resource endowment per capita, it is problematic to build sufficient infrastructure. Russia has too low population density and rural density declines further due to low fertility and migration to cities. Those factors limited the growth of the USSR, but after the economic reforms of 1990s the existing infrastructure became exposed to permanent shock of high transport costs. Due to large distances it is optimal to return to gasoline and thus transport subsidy. This will work also against disintegration of the country.
    Keywords: urban; rural; population density; prices; transport; transition.
    JEL: R14 R23 R40 R48
    Date: 2014–11
  12. By: Zezza, Alberto; Federighi, Giovanni; Adamou, Kalilou; Hiernaux, Pierre
    Abstract: Milk is an important source of cash and nutrients for many households in developing countries. Yet, the understanding of the role of dairy production in livelihoods and nutritional outcomes is hindered by the lack of decent quality household survey data. Data on milk off-take for human consumption are difficult to collect in household surveys for several reasons that make accurate recall challenging for the respondent (continuous production and seasonality, among others). As a result, the quantification and valuation of milk off-take is particularly difficult in household surveys, introducing possibly severe biases in the computation of full household incomes and farm sales, as well as in the estimation of the contribution of livestock (specifically dairy) production in agricultural value added and the livelihoods of rural households. This paper presents results from a validation exercise implemented in Niger, where alternative survey instruments based on recall methods were administered to randomly selected households and compared with a 12-month system of physical monitoring and recording of milk production. The results of the exercise show that reasonably accurate estimates via recall methods are possible and provide a clear ranking of questionnaire design options that can inform future survey operations.
    Keywords: Dairies and Dairying,Livestock and Animal Husbandry,Regional Economic Development,Rural Development Knowledge&Information Systems,Rural Poverty Reduction
    Date: 2014–11–01
  13. By: Ouraich, Ismail; Tyner, Wallace E.
    Abstract: Alterations in rainfall patterns and increasing temperatures due to climate change will most likely translate into yield reductions in desirable crops. In this particular context, the object of this paper is to lay down findings and results for projected
    Keywords: Morocco, climate change, CliCrop, agriculture, uncertainty
    Date: 2014
  14. By: Minten, Bart; Tamru, Seneshaw; Kuma, Tadesse; Nyarko, Yaw
    Abstract: We study the structure and performance of the coffee export sector in Ethiopia, Africa’s most important coffee producer, over the period 2003 to 2013. We find an evolving policy environment leading to structural changes in the export sector, including an elimination of vertical integration for most exporters. Ethiopia’s coffee export earnings improved dramatically over this period, i.e. a four-fold real increase. This has mostly been due to increases in international market prices. Quality improved only slightly over time, but the quantity exported increased by 50 percent, seemingly explained by increased domestic supplies as well as reduced local consumption. To further improve export performance, investments to increase the quantities produced and to improve quality are needed, including an increase in washing, certification, and traceability, as these characteristics are shown to be associated with significant quality premiums in international markets.
    Keywords: coffee, Ethiopia, exports, Agribusiness, Agricultural and Food Policy, Crop Production/Industries, International Relations/Trade, Productivity Analysis,
    Date: 2014–10
  15. By: Hannah Pieters; Nicolas Gerber; Daniel Mekonnen
    Abstract: Addressing short- and long-term challenges of global food and nutrition security entails putting the right policies and strategies in place. In the context of FoodSecure project, this involves analysing drivers of global FNS and drawing suitable conclusions based on empirical evidence from different countries and regions of the world. This typology facilitates calibration of models and interpretation of results from case studies, and also it provides guidance on selection of case studies by FoodSecure project partners. In this regard, the typology classifies regions and livelihood systems based on the countries’ characteristics including their food or nutrition security profiles, as well as on their agricultural, economic, (agricultural) innovation systems, social and political profiles. Methodologically, it builds upon existing country classifications used by major international agencies. Yet, existing multidimensional typologies reviewed in this study often rely on indices and apply equal weights (or fixed weights ex ante) to indicators within thematic profiles. The proposed typology however differs not only by its broad coverage of FNS indicators and their determinants, but also through its method of determining indicator weights empirically through Principal Component Analysis (PCA) and its component loadings. To derive a unique thematic score for each country, only the first principal component which accounts for the highest share of the total variance is retained for it provides the best summary of the data. Accordingly, a food or nutrition security score is calculated using PCA on different groups’ of FNS indicators and their potential determinants. Each country is then clustered according to: (1) its quintile score on FNS and its quintile score on one of the key thematic indicators, and, (2) its position as high or low relative to the median scores for food security and its determinants. Results presented in this typology are believed would help refine selection of case studies or model scenarios.
    JEL: O57
  16. By: Marjorie C. Pajaron (School of Economics, University of the Philippines Diliman)
    Abstract: This paper investigates whether agricultural households in rural Philippines insure their consumption and whether they use remittances, informal loans, or assets as ex post risk-coping mechanisms. Since these households have limited access to formal insurance and credit markets, any shocks to their volatile income can have substantial impacts. Using panel data and rainfall shocks as the instrumental variable for income shocks, this paper finds evidence that households depend on their networks of family and friends to partially insure their consumption. 2SLS and OLS estimates show that approximately 27 percent of consumption is insured. International remittances from migrant members replace about 11 percent of income decline while domestic transfers replace about 14 percent. Informal loans, however, decrease as rainfall shocks increase. Borrowers and lenders may be experiencing similar shocks, which would reduce the effectiveness of local risk-sharing arrangements.
    Keywords: Risk-coping, Remittance, Informal loan, Consumption insurance, Rainfall shocks, Philippines
    JEL: O12 Q12 D81 D12 F22 F24
    Date: 2014–12
  17. By: Geneviève Bigot (Mutations des Activités, des Espaces et des Formes d'Organisation dans les Territoires Ruraux, INRA); Xavier Dornier (Institut Français du Cheval et de l'Equitation); Eric Perret (Mutations des Activités, des Espaces et des Formes d'Organisation dans les Territoires Ruraux, INRA); Celine Vial (Marchés, Organisations, Institutions et Stratégies d'Acteurs, INRA; Institut Français du Cheval et de l'Equitation)
    Abstract: In Europe, the horse industry is seldom included in regional development policies. Stakeholders explain this dismiss by the lack of visibility about this sector. In fact, the main difficulties to gather available data can be related to the diversity of horse uses (races, sport and leisure, meat…) and to the contribution of this industry to various sectors such as agriculture, sports and tourism. The aim of this paper is (1) to present data available in national bases in France, and (2) how these data precise the place of the horse industry in the different French regions. The national number of horses is estimated at 1 million animals with significant regional differences. For example, Basse-Normandie is the first French region with a total of 77,000 horses and gathered near 50% of the national livestock for races but only 6% of sport and leisure horses, while Auvergne is the first area for meat production thanks to 5,000 draught mares. The horse industry is well involved in the agricultural sector of these regions, as they both gathered 20% of farms with horses and 20% of horses registered by the agricultural census. Studies in French regions as Languedoc-Roussillon show that the horse industry is also developed in suburban districts where private owners and equestrian structures use small plots left available by the increase of urbanization. These regularly updated data are used in various French contexts as public investments and national CAP implementation. While national and regional policies depend more and more on European regulations, the European horse industry remains invisible despite its obvious role in rural development, probably because of a lack of a Community procedure for the organization of data.
    Keywords: cheval, équidé, analyse économiquedéveloppement régionalfrance
    Date: 2014
  18. By: Asger Moll Wingender (Department of Economics, Copenhagen University)
    Abstract: Many empirical questions about economic growth and development are left open due to the lack of long time series of reliable GDP estimates. The share of the labor force employed in agriculture can fill this gap. Agricultural employment shares are highly correlated with GDP per capita, less prone to measurement errors, and data are available for longer periods than existing GDP estimates. This paper describes a new database on agricultural employment covering 169 countries for the period 1900-2010. Some of the many potential uses of the data are discussed.
    Keywords: Economic growth, structural transformation, agricultural employment
    JEL: O1 O4
    Date: 2014–12–01
  19. By: Markus Lampe (Universidad Carlos III Madrid); Paul Sharp (University of Southern Denmark)
    Abstract: The success of Danish agricultural exports at the end of the nineteenth century is often attributed to the establishment of a direct trade with Britain. Previously, exports went mostly via Hamburg, but this changed with the loss of Schleswig and Holstein to Prussia in the war of 1864. After this, quantity and price data imply narrowing price gaps and thus imply gains for Danish producers. Why then did Denmark not discover the British market earlier? We show that butter markets in both countries were integrated in the eighteenth century, but through the Hamburg hub. We then demonstrate that there were sound economic reasons for this well into the nineteenth century. However, movements to establish a direct trade were afoot from the 1850s. Thus, although the war certainly gave an extra boost to the process, the shock from the loss of the Duchies was not necessary for the future Danish success.
    Keywords: Butter, dairies, Denmark, hubs, international trade, market integration
    JEL: F1 L1 N5 N7 Q1
    Date: 2014–10
  20. By: Pauw, Karl; Beck, Ulrik; Mussa, Richard
    Abstract: Disappointment was widespread when rapid economic growth since 2005, coupled with a smallholder-targeted fertilizer subsidy program, failed to significantly reduce poverty in Malawi. Official estimates for 2011 showed a 1.7 percentage point decline in nat
    Keywords: poverty measurement, inequality, cost of basic needs; Malawi
    Date: 2014
  21. By: Giles, John T. (World Bank); Mu, Ren (Texas A&M University)
    Abstract: This paper investigates the impact of land tenure insecurity on the migration decisions of China's rural residents. A simple model first frames the relationship among these variables and the probability that a reallocation of land will occur in the following year. After first demonstrating that a village leader's support for administrative land reallocation carries with it the risk of losing a future election, the paper exploits election-timing and village heterogeneity in lineage group composition and demographic change to identify the effect of land security. In response to an expected land reallocation in the following year, the probability that a rural resident migrates out of the county declines by 2.8 percentage points, which accounts for 17.5 percent of the annual share of village residents, aged 16 to 50, who worked as migrants during the period. This finding underscores the potential importance of secure property rights for facilitating labor market integration and the movement of labor out of agriculture.
    Keywords: migration, land tenure, property rights, China, village political economy
    JEL: O12 O15 J61 Q15 R23
    Date: 2014–11
  22. By: Valentina Zhideleva
    Abstract: In research of boreal forests conservation and sustainable development mechanism in the climate changes conditions the main aspect is a study of various natural forces and the society, interests of different segments of population, conditions and productivity of forest ecosystems, threats removal dealing with growing of new forest making tree species and spruce stands drying and their interference. To achieve and protect sustainable development of boreal forests there is a need to arrange monitoring of boreal forests conditions. Its goal is to establish the scientific rationale for the required protection level, conservation and regeneration of boreal forests, and their use level. A new synthetic approach to sustainable development of the regional timber cluster evaluation (the Komi republic) is worked out, it considers the system integrity. A new methodology of sustainable development level calculation is introduced; it is based on a synthetic model of the timber cluster duality: forestry ? forest use and basic public relationship indicators. Conditions, opportunities and limits of sustainable development of boreal forests are considered. Methodical and practical schemes of sustainable regional timber cluster development evaluation are approved. Possible mechanisms of results use in the regional forest sector management practice are described, as well as sustainable development planning at the regional and company level. Integrated model of the timber cluster sustainable development and methods of boreal forests changes evaluation, required for its practical implementation are suggested to be used as the basic tool for the solution of a wide range of regional problems in strategic planning and sustainable management in boreal forests. One of important goals of forest planning and sustainable forest management is the evaluation of the resources and ecological potential of boreal forests, provision of balanced use and boreal forests regeneration, their evaluation and forecasting. The basic model of the forest cluster dynamic provides the possibility to achieve that goal, which has certain forest management strategies, forest use regimes and regeneration. By each fixed forest use and regeneration level a potential evaluation of the timber cluster sustainable development might be calculated, it's based on the dual optimization method that is a Cartesian product and ecological and economical limitations system that reflect the timber cluster sustainable development criteria and indicators.
    Keywords: Conception; sustainable development evaluation; boreal forests; synthetic model of the timber cluster duality
    Date: 2014–11
  23. By: Fracasso, Andrea; Sartori, Martina; Schiavo, Stefano
    Abstract: The aim of the paper is to investigate the main determinants of the bilateral virtual water ‘flows’ associated with international trade in agricultural goods across the Mediterranean basin. Virtual water refers to the volume of water used in the production of a commodity or a service. The exchange of water as embedded in traded goods brings about the so-called virtual water ‘trade’. We consider the bilateral gross ‘flows’ of virtual water in the area and study what export-specific and import-specific factors are significantly associated with virtual water ‘flows’. We follow a sequential approach. Through a gravity model of trade, we obtain a “refined” version of the variable we aim to explain, one that is free of the amount of flows due to pair-specific factors affecting bilateral trade flows and that fully reflects the impact of country-specific determinants of virtual water ‘trade’. A number of country-specific potential explanatory variables is presented and tested. To identify the variables that help to explain the bilateral ‘flows’ of virtual water, we adopt a model selection procedure based on model averaging. Our findings confirm one of the main controversial results in the literature: larger water endowments do not necessarily lead to a larger ‘export’ of virtual water, as one could expect. We also find some evidence that higher water irrigation prices reduce (increase) virtual water ‘exports’ (‘imports’).
    Keywords: virtual water, Mediterranean, model averaging
    JEL: F18 Q25
    Date: 2014–12
  24. By: Mikolaj Czajkowski (University of Warsaw, Faculty of Economic Sciences, Warsaw Ecological Economics Center, Poland); Anna Barczak (University of Warsaw, Faculty of Economic Sciences, Warsaw Ecological Economics Center, Poland); Wiktor Budzinski (University of Warsaw, Faculty of Economic Sciences, Warsaw Ecological Economics Center, Poland); Marek Giergiczny (University of Warsaw, Faculty of Economic Sciences, Warsaw Ecological Economics Center, Poland); Nick Hanley (School of Geography and Sustainable Development, University of St. Andrews)
    Abstract: The assumption of the stability of preferences is a fundamental one in the theory of the consumer. Many papers within the stated preferences literature have tested this assumption, and have found mixed results. Individuals may become more sure of their preferences as they repeat a valuation task or purchase decision; they may also learn more about prices and quantities of substitutes or complements over time, or about other relevant characteristics of both the good being valued and alternatives in their choice sets. In this paper, we test for the stability of preferences and willingness to pay for attributes of forest management both within and between samples. The within-sample test compares a set of responses from individuals over the sequence of a survey; the between-sample test compares responses from the same people over a period of 6 months. We find that respondents’ preferences differ more within a sample (comparing their first 12 with their second 12 choices) than across samples. This may imply that preference learning and/or fatigue effects within choice experiments are more important than changes in preferences over time in this data.
    Keywords: preference stability, test-retest, discrete choice experiments, contingent valuation, stated preferences, forestry
    JEL: D01 H4 Q23 Q51
    Date: 2014–09
  25. By: La Ferrara, Eliana; Milazzo, Annamaria
    Abstract: This paper studies the effects of descent rules on human capital accumulation. We exploit a policy experiment in Ghana that introduced minimum quotas for the land that parents should devolve on their children. This policy differentially affected ethnic groups depending on their descent rules: the matrilineal Akan saw a reduction in the share of land going to the matriclan and an increase in the land going to male children (who could not inherit from their own fathers before the reform). Patrilineal groups were instead less affected because sons could already inherit from fathers before the reform. Using a difference-in-differences strategy, across cohorts and ethnic groups, we estimate the impact of the reform on educational attainment. We find that Akan boys exposed to the reform received on average 0.9 less years of education, a 10 percent reduction. The effect is driven by landed households, for whom the reform did effectively bind, while no effect is found for non-landed households. This evidence is consistent with the fact that before the reform matrilineal groups in Ghana "over-invested" in education to substitute for land inheritance. Our findings suggest that in the presence of customary norms, land reform and the individualization of land rights may have implications that go beyond the agricultural sector and affect human capital accumulation in the long run.
    Keywords: education; Ghana; inheritance reform; land rights
    JEL: I25 O12
    Date: 2014–09
  26. By: John C. Beghin (Center for Agricultural and Rural Development (CARD)); Jean-Christophe Bureau; Alexandre Gohin
    Abstract: We assess the impact of a potential TTIP bilateral free trade agreement on the EU and US bio-economies (feedstock, biofuels, by-products, and related competing crops) and major trade partners in these markets. The analysis develops a multi-market model that incorporates bilateral trade flows (US to EU, EU to US, and similarly with third countries) and is calibrated to OECD-FAO baseline for 2013–2022 to account for recent policy decisions. The major policy reforms from a TTIP involve tariff and TRQ liberalization and their direct contractionary impact on US sugar supply, EU biofuel production, and indirect negative effect on US HFCS production. EU sugar and isoglucose productions expand along with US ethanol and biodiesel and oilseed crushing. EU sugar would flow to the US, US biofuels and vegetable oil to the EU. We further quantify nontariff measures (NTM) affecting these trade flows between the EU and the US. EU oilseed production contracts, and EU crushing expands with improving crushing margins following reduced NTM frictions. Our analysis reveals limited net welfare gains with most net benefits reaped by Brazil and not the two trading partners of the TTIP.
    Keywords: TTIP, bilateral trade agreement, biofuel, ethanol, biodiesel, sugar, nontariff measure JEL Codes: F13, Q17, Q42, Q48
    Date: 2014–11
  27. By: E. Agliardi; M. Pinar; T. Stengos
    Abstract: We employ a stochastic dominance (SD) approach to analyze the components that contribute to environmental degradation over time. The variables that are considered include countries’ greenhouse gas (GHG) emissions and water pollution. Our approach is based on pair-wise SD tests. First, we study the dynamic progress of each separate variable over time, from 1990 to 2005, within 5-year horizons. Then, pair-wise SD tests are used to study the major industry contributors to the overall GHG emissions and water pollution at any given time, to uncover the industry which contributes the most to total emissions and water pollution. We find that CO2 emissions not only contribute the most to the GHG emissions over time, but also increased within 15 year in the first-order SD sense. On the other hand, water pollution increased in a second-order SD sense. Pair-wise industry comparisons suggest that the major industry contributors to the CO2 emissions have always been the electricity and heat production sectors, while the transport sector has been the second contributor between 1990 and 2005. Finally, the food industry gradually became the major contributing industry for water pollution over time.
    JEL: C4 C5 C14 Q01 Q5 Q51
    Date: 2014–12
  28. By: Greaker, Mads (Statstics Norway); Hoel, Michael (Dept. of Economics, University of Oslo); Rosendahl, Knut Einar (Norwegian Univeristy of Life Sciences)
    Abstract: Recent literature on biofuels has questioned whether biofuels policies are likely to reduce the negative effects of climate change. Our analysis explicitly takes into account that oil is a non-renewable natural resource. A blending mandate has no effect on total cumulative oil extraction. However, extraction of oil is postponed as a consequence of the renewable fuel standard. Thus, if emissions from biofuels are negligible, the standard will have beneficial climate effects. The standard also reduces total fuel (i.e., oil plus biofuels) consumption initially. Hence, even if emissions from biofuels are non-negligible, a renewable fuel standard may still reduce climate costs. In fact our simulations show that even for biofuels that are almost as emissions-intensive as oil, a renewable fuel standard has beneficial climate effects.
    Keywords: Renewable fuel standard; Blending mandate; Biofuels; Climate costs; Petroleum extraction profi…le
    JEL: Q30 Q40 Q50
    Date: 2014–04–23
  29. By: Arndt, Channing; Pauw, Karl; Thurlow, James
    Abstract: We estimate the impact of Malawi.s Farm Input Subsidy Programme using an economywide approach. We find potentially substantial net benefits with indirect benefits accounting for about two-fifths of total benefits. Due to these indirect benefits, the cut-o
    Keywords: programme evaluation, risk assessment, economywide model, farm subsidies, Malawi
    Date: 2014
  30. By: Gabriel Ahlfeldt; Daniel McMillen
    Abstract: We reconcile conflicting evidence on the magnitude of the elasticity of substitution of land for capital, which is a key determinant of the relationship between the price of land and the density of land use. We first compare the performance of classic estimation approaches with a new estimation procedure using a series of Monte Carlo experiments. We then apply the approaches to various real-world data sets drawn from Berlin, Chicago, and Pittsburgh. Our results indicate that many existing estimates are likely to be biased downward, and the true elasticity is likely to be closer to one than widely believed in the literature. The results suggest that a Cobb-Douglas form is a reasonable approximation to of the production function for housing.
    Keywords: Elasticity of substitution; housing production function; land values; Monte Carlo simulatio
    JEL: R20 R30
    Date: 2014–11
  31. By: Petrolia, Daniel R.; Walton, William C.; Sarah, Acquah
    Abstract: Three restaurant taste panels and an online consumer survey were conducted during 2012-2013 to assess whether Gulf consumers would be willing to pay a premium for place-name specific (i.e., “branded”) Gulf oysters over typical “generic” Gulf oysters, and whether consumers in other U.S. markets would be willing to pay for branded Gulf oysters compared to other U.S. branded oysters. Panelists in the two Gulf Coast taste panels had strong preferences for local oyster varieties when they were aware of oyster variety names and harvest locations (i.e., during labeled rounds). In the absence this information (i.e., during blind rounds), panelists had no such preferences, and in the case of the Houston taste panel, actually had a significant distaste for the local Galveston Bay variety. Panelists in the Chicago taste panel had strong preferences for the Island Creek oyster, in both the blinded and labeled rounds, although during the labeled rounds, the Point aux Pins oysters fared equally well (statistically) to the Island Creeks. Additionally, during the labeled rounds, the Apalachicola Bay and Point aux Pins oysters were statistically more likely to be chosen over the San Antonio Bay oysters. Respondents to the online survey tended to have higher perceptions of quality and seafood safety regarding their own regionally-produced oysters relative to oysters from other regions. There was limited variation in perceptions from one Gulf Coast variety to another, with the exception of the Apalachicola Bay variety being rated higher in several cases, and the more general “Gulf of Mexico” category being rated lower. Online survey results indicate that, consumers living in eastern Gulf states such as Georgia and Florida may be willing to pay a premium for branded Gulf oysters, particularly oysters from Florida and Louisiana. Gulf consumers living in Alabama, Mississippi, Louisiana, and Texas, however, did not show any strong preferences for branded oysters relative to cheaper generic ones. Among non-Gulf consumers, survey results indicate that while a price discount may be needed to sell branded Gulf oysters relative to local oysters (i.e., relative to, say, East Coast oysters in East Coast markets), that Gulf oysters generally fared no worse than other non-local oysters (i.e., West Coast oysters in East Coast markets). Of the Gulf oysters tested, Atlantic Coast respondents appear to prefer Louisiana oysters. Pacific Coast respondents appear to be indifferent between most Atlantic Coast and Gulf Coast varieties. Also, it appears that relatively few respondents were concerned about the Deepwater Horizon oil spill when answering questions about oysters, although these concerns did affect preferences for Gulf Coast oysters negatively in some cases. Less than 1% of all respondents indicated any concern regarding Vibrio vulnificus, bacteria, or similar. However, such concerns, though not cited explicitly, may yet be latent in the reported perceptions of oysters from various Gulf Coast locations. These results would indicate that there is some room for opportunity for branded Gulf Coast oysters along these other two coasts in places where other non-local oysters are marketed successfully. The major challenge appears to be whether the price discount necessary to entice consumers in these other markets to buy Gulf Coast oysters relative to local varieties is yet sufficiently high as to remain a profitable enterprise for Gulf Coast producers. The price discounts estimated here in the range of $5-$10 per half-dozen sounds like a steep discount, but given the large differential in retail prices in Atlantic and Pacific markets - where oysters retail anywhere from $15 to $25 per half-dozen-- compared to Gulf Coast markets – where they retail in the neighborhood of $7 to $10 -- it is possible that even with the discounts, the prices received in these alternative markets may remain profitable.
    Keywords: branding, choice experiment, food safety, oysters, risk, taste panel, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Marketing, C93, D12, M31, Q13, Q22, Q26,
    Date: 2014–11
  32. By: Carla Canelas (Centre d'Economie de la Sorbonne - Paris School of Economics); François Gardes (Centre d'Economie de la Sorbonne - Paris School of Economics); Philip Merrigan (UQAM-CIRPEE)
    Abstract: This article uses household data to measure the substitutability between time and money for eight commodity groups and different countries. The elasticities estimated using the household's market wage and an estimated opportunity cost of time are positive, indicating substitutability, and much larger for all goods compared to food. The estimates with the wage rate are, in general, smaller than those obtained using the opportunity cost of time.
    Keywords: Elasticity of substitution, time use, statistical matching.
    JEL: D12 D13 D24
    Date: 2014–09
  33. By: Antonio Bliska Jr; Flavia Bliska; Patricia Turco; Paulo Leal
    Abstract: This study aimed to validate the Identification Method of Management Degree (MIGG) as a tool for diagnosis and intervention, applicable in various activities of agricultural production. The MIGG aims to provide information to producers to enhance their economic activity and turn it into an organized and profitable business over time. Their design aimed to develop a questionnaire for quick and easy application, able to classify the levels of management of economic activities with varying degrees of organization. This classification provides nine levels of management, from the most elementary to the highest, considered excellent. This classification system allows the establishment comparisons between companies, production processes, technological levels and regions. It can also assist in assessing the competitiveness of local arrangements for sustainable regional development. The method includes parameters of leadership, strategy, planning, customers, society, information, knowledge, people, processes and results. It also lets you point strengths and weaknesses and indicate corrective actions to the constant pursuit of quality in the processes. To validate the MIGG, we used the methodology of focus groups, defined as a special type of group interviews. The focus group participants should be connoisseurs of the subject under review and are free to express their opinions. The purpose of the discussion should be well defined to encourage the effective participation of the group in the validation process. Researchers should record the entire interview so they can extract the maximum information from the discussions. To organize the agenda for discussion a researcher acts as moderator, preventing dispersions. The recommended number of participants in a focus group is 10-12 people. In this work, the group was composed of rural entrepreneurs in the coffee sector. All of them are members of the Association of Coffee Growers of Western Bahia (ABACAFÉ), Brazil. These entrepreneurs form a homogeneous group with regard to the technology used in coffee production, particularly regarding the use of irrigation, mechanization of farming and harvesting, and environmental conditions of cultivation. This uniformity is desirable in the use of the methodology of focus groups. Each group participants responded to the questionnaire MIGG, and evaluated the appropriateness and relevance of the parameters that make up this method. From this focus group discussions, adjustments in the wording of some questions were made, but without any need to change their content, which confirmed the validity of the method.
    Keywords: Competitiveness; Regional development; Quality management.
    JEL: Q12
    Date: 2014–11
  34. By: Thomas Barnebeck Andersen (University of Southern Denmark); Thomas Peter Sandholt Jensen (University of Southern Denmark); Christian Volmer Skovsgaard (University of Southern Denmark)
    Abstract: This research tests the long-standing hypothesis put forth by Lynn White, Jr. (1962) that the adoption of the heavy plough in Northern Europe was an important cause of economic development. White argued that it was impossible to take proper advantage of the fertile clay soils of Northern Europe prior to the invention and widespread adoption of the heavy plough. We implement the test in a difference-in-difference set-up by exploiting regional variation in the presence of fertile clay soils. Using a high quality dataset for Denmark, we find that historical counties with relatively more fertile clay soil experienced higher urbanization after the heavy plough had its breakthrough, which was around AD 1000. We obtain a similar result, when we extend the test to European regions
    Keywords: Heavy plough, medieval technology, agricultural productivity
    JEL: J1 N1 N93 O1 O33
    Date: 2014–12
  35. By: Nicholas Apergis (Department of Economics and Property, Curtin University, Australia and Department of Banking and Financial Management, University of Piraeus, Greece); Christina Christou (Department of Banking and Financial Management, University of Piraeus, Greece); Rangan Gupta (Department of Economics, University of Pretoria)
    Abstract: The paper assesses the existence of the Environmental Kuznets Curve (EKC) hypothesis, across 48 contiguous states of the US, using recent advances in panel data techniques, given the existence of cross-sectional dependence, which in turn, makes reliance on time-series evidence biased. The Common Correlated Effects (CCE) estimation procedure of Pesaran,(2006), allows us to obtain state-level results, while staying in a panel set-up to accommodate for cross-sectional dependence, in the presence of cointegration in the relationship between emissions and a measure of output, and its squared value – a function that captures the inverted u-shaped relationship postulated by the EKC. Our results show that, the EKC hypothesis holds for only 10 of the 48 states, and hence implies that, the remaining 38 states should reform a number of their environmental regulatory policies to prevent environmental degradation, since otherwise, lower levels of emissions would only be possible at the expense of production.
    Keywords: ECO2 Emissions; Environmental Kuznets Curve; US States
    JEL: C33 Q53 Q56
    Date: 2014–11
  36. By: Knoll, Katharina; Schularick, Moritz; Steger, Thomas
    Abstract: How have house prices evolved in the long-run? This paper presents annual house price indices for 14 advanced economies since 1870. Based on extensive data collection, we are able to show for the first time that house prices in most industrial economies stayed constant in real terms from the 19th to the mid-20th century, but rose sharply in recent decades. Land prices, not construction costs, hold the key to understanding the trajectory of house prices in the long-run. Residential land prices have surged in the second half of the 20th century, but did not increase meaningfully before. We argue that before World War II dramatic reductions in transport costs expanded the supply of land and suppressed land prices. Since the mid-20th century, comparably large land-augmenting reductions in transport costs no longer occurred. Increased regulations on land use further inhibited the utilization of additional land, while rising expenditure shares for housing services increased demand.
    Keywords: house prices; land prices; neoclassical theory; transportation costs
    JEL: N10 O10 R30 R40
    Date: 2014–09
  37. By: Monica Bonacina; Anna Cretì; Carlotta Mariotto; Federico Pontoni
    Abstract: The Italian water sector has encompassed major changes since mid?90s when law 96/94 has entered into force. Next to private participation, integration of services and growth in production scales, the reform was intended to revolutionize the traditional financial model almost fully based on public funds. Although citizens, politicians and experts on water services have been debating for a long time on the impact of the reform on the industry, as well as on the fairness of a tariff system inspired by the concept of full cost recovery, we are still on a state of uncertainty. The final purpose of this paper is to provide regulators with guidelines that could be used to revise water tariffs in a way that may be cost?efficient, sustainable and fair to the most. According to the analyses, which rely on firm?specific Xinefficiency scores, despite a satisfactory mean level of performance, in the period under investigation, efficiency improvements have been limited. Moreover, the results demonstrate that both the ownership structure and politics do have an impact on the efficiency of the firms: in particular, public shareholding and centreright local governments negatively affects firms’ performances. To this respect, we think that a more effective regulation would also have the side effect of loosening the ties between politicians and managers.
    Keywords: Water Policy, Water Distribution, Water Pricing, Efficiency.
    JEL: H44 L95
    Date: 2014
  38. By: Héctor M. Núñez (Division of Economics, CIDE)
    Abstract: This paper examines the role of several factors in reducing the production costs of Brazilian sugarcane ethanol, including learning-by-doing (LBD), economies of scale, rising factor prices, market competitiveness, and exogenous technological changes. Using the aggregate industry-level data over the period 1975- 2010, we find that the reduction in production costs of sugarcane ethanol was primarily driven by autonomous technological changes and unrelated to LBD. The increase in energy prices raised production costs of sugarcane ethanol, while the effects of other input prices on reducing production costs of sugarcane ethanol are found to be insignificant. By increasing the costs of procuring key inputs for ethanol production, market competitiveness had a negative effect on reducing production costs of sugarcane ethanol. The role of economies of scale in affecting sugarcane ethanol production costs is inconclusive depending on model specifications.
    Keywords: Sugarcane ethanol, Production cost reductions, Learning-by-doing; Technological changes
    JEL: O33 Q20 Q42
    Date: 2013–06
  39. By: Pollermann, Kim; Raue, Petra; Schnaut, Gitta
    Abstract: In the last funding periods there was steady increase in the number of LEADER-regions in Europe, and, at least in Germany, it is already evident that this gain will continue: for the 2014-2020 funding period there around 300 LAGs expected in comparison to 244 LAGs in the last period. For the new funding period new regulations envisages a Common Strategic Framework (CSF) to provide all EU Funds with a set of basic rules in line with the general principles - partnership, multi-level governance, equality and sustainability. Now there are common options for a so-called “Community-Led Local Development” (CLLD). Although LEADER is commonly called a bottom-up approach, it has to be pointed out that there is a high influence through a superordinated framework of funding regulations. So more precisely LEADER is neither "top-down" nor "bottom-up", but can classified as a “down up”-approach. This clarifies the basic understanding for the terms used in the context of multi-level governance. Second there is a look on the state of the art of LEADER-related research in the view of LEADER as a "down up" approach. Anyhow the experiences with LEADER in the last 25 years can give valuable insights. Altogether, the literature review already supports the need to have a multi-level-view on CLLD.
    Keywords: Multi level Governance,LEADER,CLLD,rural development
    JEL: R1 R5 R0
    Date: 2014–08
  40. By: Naoki Sakamoto; Kazunori Nakajima
    Abstract: This paper proposes the consistent method with general equilibrium models to measure use value and non-use value of large-scale change in environmental quality. First, we develop a general equilibrium model that parameters of the utility function with environmental quality as a dependent variable can be estimated on the basis of the travel cost method and the contingent variation method. Second, we examine to identify the general equilibrium impact of environmental quality by a comparative static analysis. Third, considering change in prices and income, we decompose the benefits from change in environmental quality into use value and non-use value. JEL Classifications: C68, Q51, Q54 Keywords: Computable general equilibrium models;Use value; Non-use value
    JEL: C68 Q51 Q54
    Date: 2014–11
  41. By: Ghassen El Montasser (Ecole supérieure de commerce de Tunis, University of Manouba, Tunisia); Rangan Gupta (Department of Economics, University of Pretoria); Andre Luis Martins (COPPEAD Graduate Business School, Federal University of Rio de Janeiro, Rua Paschoal Lemme, 355. 21949-900 Rio de Janeiro); Peter Wanke (COPPEAD Graduate Business School, Federal University of Rio de Janeiro, Rua Paschoal Lemme, 355. 21949-900 Rio de Janeiro)
    Abstract: This paper presents an analysis of ethanol-gasoline price ratio in Brazil from 2000 to 2012. Since 2008 Brazilian Government has artificially frozen gasoline prices while prices of ethanol to the consumer were still liberated. Considering that annual inflation in Brazil is around 5% per year and increase in costs is transferred to ethanol prices this explain why ethanol consumption decays while gasoline consumption boosts. In Brazil, consumers are often told that ethanol is more advantageous for refueling cars when such price ration is below 0.70. In this paper, we use right-tailed ADF tests, developed recently by Phillips et al., (2013), to check for bubbles in this ratio. The results obtained suggest the existence of two bubbles: one has already collapsed and the other is still on course since 2010. Policy implications are also derived.
    Keywords: Brazil, Bubbles, Ethanol-Gasoline Price-ratio, Right-tailed ADF tests
    JEL: C15 C22 Q16 Q21
    Date: 2014–12

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