nep-agr New Economics Papers
on Agricultural Economics
Issue of 2015‒01‒03
fifty-two papers chosen by

  1. Climate Change, Water Scarcity in Agriculture and the Country-Level Economic Impacts. A Multimarket Analysis. By Roberto Ponce; María Blanco; Carlo Giupponi
  2. Land Reform and Productivity: A Quantitative Analysis with Micro Data By Tasso Adamopoulos; Diego Restuccia
  3. Examining the Impact of Climate Change on Migration through the Agricultural Channel: Evidence from District Level Panel Data from Bangladesh By Kazi Iqbal; Paritosh K Roy
  4. Excise Taxes on Wines, Beers and Spirits: An Updated International Comparison By Anderson, Kym
  5. Drought management plans and water availability in agriculture:A risk assessment model for a Southern European basin By Pérez Blanco, Carlos Dionisio; Gómez, Carlos Mario
  6. Decoding the Growth-Nutrition Nexus in China: Inequality, Uncertainty and Food Insecurity By Jing You; Katsushi Imai; Raghav Gaiha
  7. Importing High Food Prices by Exporting: Rice Prices in Lao PDR By Durevall, Dick; van der Weide, Roy
  8. Self-Selection into Credit Markets: Evidence from Agriculture in Mali By Beaman, Lori; Karlan, Dean S.; Thuysbaert, Bram; Udry, Christopher
  9. The Influence of diversification on short-term and long-term viability in the Scottish and Swedish agricultural sector By Barnes, Andrew P; Hansson, Helena H.; Manevska, Tasevska. G; Shrestha, Shailesh; Thomson, Steven G
  10. Seasonal Credit Constraints and Agricultural Labor Supply: Evidence from Zambia By Fink, Günther; Jack, Kelsey; Masiye, Felix
  11. Arab Development Symposium I : Food and Water Security in the Arab World By Mustapha Rouis; Imed Limam
  12. Perspectives on relevant concepts related to food and nutrition security By Hannah Pieters; Anneleen Vandeplas; Andrea Guariso; Nathalie Francken; Alexander Sarris; Jo Swinnen; Nicolas Gerber; Joachim von Braun; Maximo Torero
  13. The Agricultural Origins of Time Preference By Galor, Oded; Özak, Ömer
  14. Grain price spikes and beggar-thy-neighbor policy responses: A global economywide analysis By Hans G Jensen; Kym Anderson
  15. Farms, Families, and Markets: New Evidence on Agricultural Labor Markets By Daniel LaFave; Duncan Thomas
  16. Competitiveness and Development Opportunities of Slovenian Nurseries with the Production of Ornamental Plants By Segula, Sabina; Udovc, Andrej
  17. Agricultural productivity, hired labor, wages and poverty : evidence from Bangladesh By Emran, Shahe; Shilpi, Forhad
  18. Long Run Dynamics of World Food, Crude Oil Prices and Macroeconomic Variables: A Cointegration VAR Analysis By José M. Fernández
  19. Underdeveloped Supply Chain dynamics of Indian Agriculture: Reference to Information Technology and Knowledge Management By Parwez, Sazzad
  20. Measuring the Effects of Decollectivization on China's Agricultural Growth: A Panel GMM Approach, 1970-1987 By Shengmin Sun; Qiang Chen
  21. Vitamin A Deficiency and Training to Farmers: Evidence from a Field Experiment in Mozambique By Rute Caeiro; Pedro C. Vicente
  22. Pig Farms in Macedonia: Assessment of the Technical Efficiency By Petrovska, Marina; Manevska-Tasevska, Gordana; Martinovska-Stojceska, Aleksandra
  23. Off-farm labour participation of Italian farmers, state dependence and the CAP reform By Corsi, Alessandro; Salvioni, Cristina
  24. Determinants of Virtual Water Flows in the Mediterranean By Andrea Fracasso; Martina Sartori; Stefano Schiavo
  25. Spatial differences between family and non-family farming in Brazilian agriculture By Carlos José Caetano Bacha; Alysson Luiz Stege
  26. The Forest as a Resource. Conflicts in the Northern Sweden Wooded land in the 19th century By Ewa Axelsson
  27. Joint Land Certification, Gendered Preferences, and Land-related Decisions: Are Wives Getting More Involved? By Holden, Stein; Bezu, Sosina
  28. Measures, spatial profile and determinants of dietary diversity: Evidence from India By Mousumi Das
  29. The Role of Time in Fast-Food Purchasing Behavior in the United States By Hamrick, Karen; Okrent, Abigail
  30. Incorrectly accounting for preference heterogeneity in choice experiments: what are the implications for welfare measurement? By Cati Torres; Sergio Colombo; Nick Hanley
  31. Unfolding the Potential of the Virtual Water Concept. What is still under debate? By Marta Antonelli; Martina Sartori
  32. Unfolding the potential of the Virtual Water concept. What is still under debate? By Antonelli, Marta; Sartori, Martina
  33. The Geographical Origins of Early State Formation By Anastasia Litina
  34. Comparing social-economic conditions in ethanol production areas in Brazil and United States ? a spatial econometric approach By Andre Chagas
  35. 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
  36. Connection Between Technological Trajectory of the Coffee Sector and the Economic Growth of Brazilian Producing Regions By Patricia Turco; Ricardo Firetti; Flavia Bliska; Eder Pinatti; Antonio Bliska; Sergio Tôsto
  37. The happy farmer: Self-employment and subjective well-being in rural Vietnam By Markussen, Thomas; Fibaek, Maria; Tarp, Finn; Nguyen, Do Anh Tuan
  38. Los efectos de las transformaciones agrícolas en los antiguos países socialistas: Algunas consideraciones para Cuba By Gonzalez Corzo, Mario
  39. Tools, Fertilizer or Cash? Exchange Asymmetries in Productive Assets By Holden, Stein; Bezu, Sosina
  40. Changes in climatic factors and malaria in Uganda By Yawe, Bruno Lule
  41. Saving for a (not so) Rainy Day: A Randomized Evaluation of Savings Groups in Mali By Beaman, Lori; Karlan, Dean S.; Thuysbaert, Bram
  42. Adaptation to climate variability and change in Uganda: Are there gender differences across households? By Guloba, Madina
  44. New Safety Net: PLC, ARC-CO, ARC-IC By Plastina, Alejandro
  45. Economic valuation of marine and coastal ecosystems:Is it currently fit for purpose? By Nick Hanley; Stephen Hynes; Niels Jobstvogt; David M. Paterson
  46. A Connectivity-Driven Development Strategy for Nepal : From a Landlocked to a Land-Linked State By Pradumna B. Rana; Binod Karmacharya
  47. Environmental Sustainability and Economic Development: Cost Benefit Analysis for Sustainable Development By Anastasios Xepapadeas
  48. Weather and Tourism Demand in the Summer Months across Austrian provinces By Martin Falk
  49. A new paradigm of rural innovation: learning from and with rural people and communities By Bruno Jean
  50. Environmental policies in competitive electricity markets By Langestraat, R.
  51. Socio-economic and environmental impacts of Match 2011 earthquake, tsunami and Fukushima nuclear accident in Japan By Bachev, Hrabrin
  52. The impact of perceptions in averting-decision models: An application of the special regressor method to drinking water choices By Bontemps, Christophe; Nauges, Céline

  1. By: Roberto Ponce; María Blanco; Carlo Giupponi (School of Business and Economics, Universidad del Desarrollo)
    Abstract: Agriculture could be one of the most vulnerable economic sectors to the impacts of climate change in the coming decades. Considering the critical role that water plays for agricultural production, any shock in water availability will have great implications for agricultural production, land allocation, and agricultural prices. In this paper, an Agricultural Multimarket model is developed to analyze climate change impacts in developing countries, accounting for the uncertainty associated with the impacts of climate change. The model has a structure flexible enough to represent local conditions, resource availability, and market conditions. The results suggest different economic consequences of climate change depending on the specific activity, with many distributional effects across regions.
    Keywords: Agricultural Multimarket Model, Climate Change, Agriculture, Water Resources, Uncertainty.
    JEL: Q13 Q54
    Date: 2014–10
  2. By: Tasso Adamopoulos; Diego Restuccia
    Abstract: We assess the effects of a major land-policy change on farm size and agricultural productivity using a quantitative model and micro-level data. We study the 1988 land reform in the Philippines that imposed a ceiling on land holdings and severely restricted the transferability of the redistributed farm lands. We study this reform in the context of an industry model of agriculture with a non-degenerate distribution of farm sizes featuring an occupation decision and a technology choice of farm operators. In this model, a land reform reduces agricultural productivity not only by misallocating resources from large/high productivity farms to incumbent small/low productivity farms, but also by distorting farmers' occupation and technology adoption decisions. The model, calibrated to pre-reform farm-level data in the Philippines, implies that on impact the land reform reduces average farm size by 34% and agricultural productivity by 17%. The government assignment of land and the ban on its transfer are key for the magnitude of the results since a market allocation of the above-ceiling land produces only 1/3 of the size and productivity effects. These results emphasize the potential role of land market efficiency for misallocation and productivity in the agricultural sector.
    Keywords: agriculture, misallocation, within-farm productivity, land reform.
    JEL: O11 O14 O4
    Date: 2014–12–09
  3. By: Kazi Iqbal; Paritosh K Roy
    Abstract: This paper studies how changes in climatic variables such as temperature and rainfall impact migration through agriculture. We use district level data (64 districts) for 3 inter-census periods (1974-1980, 1981-1990 and 1991-2000) to analyze historical migration related outcomes. We find that fluctuations in temperature and rainfall contributed to a decline in agricultural productivity as measured by revenues from agriculture. Fixed Effect and Instrumental Variable estimations show that about one standard deviation decrease in real per capita agricultural revenue increases the net out-migration rate by 1.4 to 2.4 percent, controlling for unobserved effects for districts and years. Using our estimates and available forecasts in the literature, we predict that the net out-migration rate will be about 22 percent higher in 2030 than in 1990, assuming the variability in temperature stays stable and there are no behavioural responses from the farmers.
    Keywords: Weather Variability, Agricultural Impacts, Internal Migration, Developing Countries Climate Change, Adaptation
  4. By: Anderson, Kym
    Keywords: wine, taxes, Agricultural and Food Policy, International Relations/Trade, Political Economy, Public Economics,
    Date: 2014–10
  5. By: Pérez Blanco, Carlos Dionisio; Gómez, Carlos Mario
    Abstract: The Drought Management Plans (DMPs) are regulatory instruments that establish priorities among the different water uses and define more stringent constraints to access to publicly provided water during droughts, especially for non-priority uses such as agriculture. These plans have recently become widespread across EU southern basins. However, in some of these basins the plans were approved without an assessment of the potential impacts that they may have on the economic activities exposed to water restrictions. This paper develops a stochastic methodology to estimate the expected water availability in agriculture that results from the decision rules of the recently approved DMPs. The methodology is applied to the particular case of the Guadalquivir River Basin in southern Spain. Results show that if DMPs are successfully enforced, available water will satisfy in average 62.2% of current demand, and this figure may drop to 50.2% by the end of the century as a result of climate change. This is much below the minimum threshold of 90% that has been guaranteed to irrigators so far.
    Keywords: Agricultural economics, water economics, risk management
    JEL: D62 D81 Q2 Q25 Q54 R5 R52
    Date: 2014
  6. By: Jing You; Katsushi Imai; Raghav Gaiha
    Abstract: Abstract Chinese households have experienced significant income growth, while their nutrition intake has not increased pari passu. This paper uses household data in both rural and urban China over the period 1989-2009 to explain the paradox of higher income but lower nutrition. In addition to traditional inputs into nutrition intake, we emphasise different sources of income, the heterogeneous income effects across households, and the price effects under rising and volatile food prices. The instrumental variable estimation shows that, although nutrition is not responsive to aggregate income, pro-agriculture income growth in terms of proportionally more crop income raises rural households’ nutrient intake, while business and wage income improves urban households’ nutrition. The estimation of a quantile instrumental variable fixed-effects panel model further documents a nutrition-improving effect of income for the least nourished and only the better-nourished are able to benefit from widely believed contributors of nutrition intake such as dietary knowledge, local off-farm employment and out-migration. Uncertainties attached to prices of meat, eggs and oil and fat accentuate nutrition poverty and can off-set the positive income effect, raising the risk of food insecurity despite growing income.
    Date: 2014
  7. By: Durevall, Dick (Department of Economics, School of Business, Economics and Law, Göteborg University); van der Weide, Roy (Development Economics Research Group, The World Bank, Washington DC, The United States)
    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: exports; food prices; free trade; rice prices; rice markets; sticky rice; welfare
    JEL: F15 Q11 Q17 Q18
    Date: 2014–11
  8. By: Beaman, Lori; Karlan, Dean S.; Thuysbaert, Bram; Udry, Christopher
    Abstract: We partnered with a micro-lender in Mali to randomize credit offers at the village level. Then, in no-loan control villages, we gave cash grants to randomly selected households. These grants led to higher agricultural investments and profits, thus showing that liquidity constraints bind with respect to agricultural investment. In loan-villages, we gave grants to a random subset of farmers who (endogenously) did not borrow. These farmers have lower – in fact zero – marginal returns to the grants. Thus we find important heterogeneity in returns to investment and strong evidence that farmers with higher marginal returns to investment self-select into lending programs.
    Keywords: agriculture; credit markets; returns to capital
    JEL: D21 D92 O12 O16 Q12 Q14
    Date: 2014–08
  9. By: Barnes, Andrew P; Hansson, Helena H.; Manevska, Tasevska. G; Shrestha, Shailesh; Thomson, Steven G
    Abstract: The long-term viability of farm businesses has been a stated goal for agricultural policy in most developed and developing economies. Recent investigations have found the level and type of diversification to be a significant factor in determining viability. This paper presents an index of short term and long term viability over the period 2000-2012 across Scotland and Sweden. Transition probabilities are presented using a balanced Markov chain approach. We find stability in both viable and non-viable farms over time, irrespective of policy and market change. A multinomial logistic regression finds the influence agaricultural diversification on determining higher levels of viability at the farm level.
    Keywords: Farmer viability, Diversification, Markov chain, Multinomial logistic regression, Agribusiness,
    Date: 2014–12
  10. By: Fink, Günther (Harvard School of Public Health); Jack, Kelsey (Tufts University); Masiye, Felix (University of Zambia)
    Abstract: Small-scale farming remains the primary source of income for a majority of the population in developing countries. While most farmers primarily work on their own fields, off-farm labor is common among small-scale farmers. A growing literature suggests that off-farm labor is not the result of optimal labor allocation, but is instead driven by households' inability to cover short-term consumption needs with savings or credit. We conduct a field experiment in rural Zambia to investigate the relationship between credit availability and rural labor supply. We find that providing households with access to credit during the growing season substantially alters the allocation of household labor, with households in villages randomly selected for a loan program selling on average 25 percent less off-farm labor. We also find that increased credit availability is associated with higher consumption and increases in local farming wages. Our results suggest that a substantial fraction of rural labor supply is driven by short-term constraints, and that access to credit markets may improve the efficiency of labor allocation overall.
    Keywords: agriculture, credit, seasonality, income smoothing
    JEL: J43 O13 O16
    Date: 2014–11
  11. By: Mustapha Rouis; Imed Limam
    Keywords: Agriculture - Food Security Macroeconomics and Economic Growth - Markets and Market Access Private Sector Development - Emerging Markets Macroeconomics and Economic Growth - Regional Economic Development Food and Beverage Industry Industry
    Date: 2014–03
  12. By: Hannah Pieters; Anneleen Vandeplas; Andrea Guariso; Nathalie Francken; Alexander Sarris; Jo Swinnen; Nicolas Gerber; Joachim von Braun; Maximo Torero
    Abstract: The food price spikes of 2007/08 have revived global awareness of the persistent problem of hunger and food insecurity all over the world, and turned the spotlight back onto the critical importance of food and nutritional security for economic development and political stability. Accordingly, interest of major donors, policymakers and research organizations in food security issues has grown in recent years. However, the exact definition of 'food security' remains vague and is subject to interpretation. To be able to monitor progress in global food security, a clear definition of the concept is required as well as a set of quantifiable indicators, which are generally accepted. This first working paper in the FoodSecure project investigates the different proposed definitions for the concept of 'food security', explores their legacy and relates concepts of food and nutrition security to other standard ones. The paper presents operational indicators to measure 'food security', discusses the integration of it in international law and policies (e.g. WTO) as well as the implementation in domestic policies. In their conclusion part the authors argue that food security and the right to food do not impose a specific policy that must be followed to achieve food security. They explain the varying choices of domestic policymakers to follow a policy of food self-sufficiency or food sovereignty instead of a policy of food self-reliance. The food sovereignty movement proposes that adequate food prices should be ensured by protection-based food self-sufficiency as long as the condition of free and perfect food markets is not fulfilled. Under the condition of free and prefect markets, it is economically optimal to pursue a policy of food self-reliance.
    JEL: I3 Q18
  13. By: Galor, Oded; Özak, Ömer
    Abstract: This research explores the origins of the distribution of time preference across regions. It advances the hypothesis, and establishes empirically, that geographical variations in natural land productivity and their impact on the return to agricultural investment have had a persistent effect on the distribution of long-term orientation across societies. In particular, exploiting a natural experiment associated with the expansion of suitable crops for cultivation in the course of the Columbian Exchange, the research establishes that agro-climatic characteristics in the pre-industrial era that were conducive to higher return to agricultural investment, triggered selection and learning processes that had a persistent positive effect on the prevalence of long-term orientation in the contemporary era. This research explores the origins of the distribution of time preference across regions. It advances the hypothesis, and establishes empirically, that geographical variations in the incentives to delay consumption in favor of lucrative investment opportunities have had a persistent effect on the distribution of long-term orientation across societies. In particular, exploiting a natural experiment associated with the Columbian Exchange, the research establishes that agro-climatic characteristics in the pre-industrial era that were conducive to higher return to agricultural investment, triggered selection and learning processes that had a persistent positive effect on the prevalence of long-term orientation in the contemporary era.
    Keywords: agriculture; culture; delayed gratification; economic development; economic growth; evolution; time preference
    JEL: O1 O4 Z1
    Date: 2014–08
  14. By: Hans G Jensen; Kym Anderson
    Abstract: When prices spike in international grain markets, national governments often reduce the extent to which that spike affects their domestic food markets. Those actions exacerbate the price spike and international welfare transfer associated with that terms of trade change. Several recent analyses have assessed the extent to which those policies contributed to the 2006-08 international price rise, but only by focusing on one commodity or using a back-of-the envelope (BOTE) method. This paper provides a more-comprehensive analysis using a global economy-wide model that is able to take account of the interactions between markets for farm products that are closely related in production and/or consumption, and able to estimate the impacts of those insulating policies on grain prices and on the grain trade and economic welfare of the world's various countries. Our results support the conclusion from earlier studies that there is a need for stronger WTO disciplines on export restrictions.
    Keywords: Domestic market insulation, Distorted incentives, International price transmission, Commodity price stabilization
    JEL: F14 Q17 Q18
    Date: 2014
  15. By: Daniel LaFave; Duncan Thomas
    Abstract: The farm household model has played a central role in improving the understanding of small-scale agricultural households and non-farm enterprises. Under the assumptions that all current and future markets exist and that farmers treat all prices as given, the model simplifies households’ simultaneous production and consumption decisions into a recursive form in which production decisions can be treated as if they are independent of preferences of household members. These assumptions, which are the foundation of a large literature in labor and development have been tested and not rejected in several important studies, notably Benjamin (1992). Using new, longitudinal survey data from Central Java, Indonesia, this paper tests a key prediction of the recursive model: demand for farm labor is unrelated to the demographic composition of the farm household. This prediction is rejected. This rejection is not explained by contamination due to unobserved heterogeneity at the farm level, potential endogeneity of household demographic composition, nor differential monitoring costs for family and hired labor. The difference in conclusions can be attributed to implausibly low levels of family labor in the data used by Benjamin.
    JEL: J1 J43 O12 Q12
    Date: 2014–11
  16. By: Segula, Sabina; Udovc, Andrej
    Keywords: Farm Management, Land Economics/Use,
    Date: 2013
  17. By: Emran, Shahe; Shilpi, Forhad
    Abstract: This paper provides evidence on the effects of agricultural productivity on wage rates, labor supply to market oriented activities, and labor allocation between own farming and wage labor in agriculture. To guide the empirical work, this paper develops a general equilibrium model that underscores the role of reallocation of family labor engaged in the production of non-marketed services at home (`home production'). The model predicts positive effects of a favorable agricultural productivity shock on wages and income, but the effect on hired labor is ambiguous; it depends on the strength of reallocation of labor from home to market production by labor surplus and deficit households. Taking rainfall variations as a measure of shock to agricultural productivity, and using subdistrict level panel data from Bangladesh, this paper finds significant positive effects of a favorable rainfall shock on agricultural wages, labor supply to market work, and per capita household expenditure. The share of hired labor in contrast declines substantially in response to a favorable productivity shock, which is consistent with a case where labor-deficit households respond more than the labor-surplus ones in reallocating labor from home production.
    Keywords: Labor Policies,Labor Markets,Economic Theory&Research,Markets and Market Access,Rural Poverty Reduction
    Date: 2014–10–01
  18. By: José M. Fernández
    Abstract: This study examines the long-run relationship between the real world price of maize, soybeans and sugar with the real world price of crude oil and a series of macroeconomic variables using a cointegration analysis from January 1982 until December 2012. The main empirical results support a strong causal relationship between maize and soybeans with crude oil, the real interest rate and the real U.S. exchange rate. Concretely, we show that real world crude oil prices are cointegrated with real world prices of maize and soybeans for the entire sample period and that real oil prices have a one-to-one relationship with these commodities. In other words, a one-percent increase in the price of real crude oil is associated with a one-percent increase in the price of maize and soybeans. Moreover, we find that permanent shocks to crude oil prices are transmitted to both maize and soybeans by a factor of 0.67 in both cases. In addition, our results show that despite the instability associated with the period between 2007/08, the long-run relationship between crude oil and these agricultural commodities has remained stable during the entire sample period. Finally, our results also support that although the real interest rate and the U.S. exchange rate are cointegrated with these commodities, it is only permanent shocks to real crude oil prices that have a permanent effect on these commodity price behavior.
    Keywords: Cointegration, crude oil, agricultural food commodities.
    JEL: O13 C01 C32
    Date: 2014–11
  19. By: Parwez, Sazzad
    Abstract: Agriculture in India is most important sector for food security and socio-economic development. Agriculture accounted for about 14% of the GDP and employed about 60% of the country’s population. Paper tries 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. 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. As proper flow of information across the chain constitutes an integral part, the role of information and communication technologies (ICTs) in improving supply chain efficiency in agriculture discussed in detail. Thus, this 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 chapter 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 ICT 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; Food Security; Development; Investment; Socio-economic
    JEL: O31 Q13
    Date: 2013–11–22
  20. By: Shengmin Sun (Center for Economic Research, Shandong University); Qiang Chen (School of Economics, Shandong University)
    Abstract: The mainstream view that decollectivization significantly contributed to China's agricultural growth has recently been challenged by revisionists, who emphasize the positive effects of the socialist legacy, such as irrigation and mechanization. This study contributes to this debate by explicitly recognizing the endogeneity of institutional changes and uses lagged weather shocks as valid instruments. With improved data on irrigation and mechanization in a provincial-level dataset covering the1970-1987 period, the results of panel GMM estimations reveal that the Household Responsibility System had a significantly positive effect on China's agricultural growth, which is larger than that indicated by OLS estimates..
    Keywords: Decollectivization, Household Responsibility System, Agricultural Growth, China
    JEL: O13 O43 Q15 N55
    Date: 2014–10
  21. By: Rute Caeiro; Pedro C. Vicente
    Abstract: Vitamin A deficiency is a widespread public health problem in Sub-Saharan Africa. This paper analyzes the impact of a food-based intervention to fight vitamin A deficiency using orange-fleshed sweet potato (OFSP). We conducted a randomized evaluation of OFSP-related training to female farmers in Mozambique, in which the treatment group was taught basic concepts of nutrition, and OFSP-planting and cooking skills. We found encouraging evidence of changes in behavior and attitudes towards OFSP consumption and planting, and considerable increases in nutrition-related knowledge, as well as knowledge on cooking and planting OFSP. JEL codes: O12, O13, O33, I15
    Keywords: Vitamin A, Orange-fleshed Sweet Potato, Mozambique, Randomized Evaluation
    Date: 2013
  22. By: Petrovska, Marina; Manevska-Tasevska, Gordana; Martinovska-Stojceska, Aleksandra
    Abstract: The aim of this paper is to analyse the technical efficiency of pig production farms in the Republic of Macedonia. The Macedonian pig production sub-sector become increasingly inefficient during the period of economic transition; the country is net-importer of pig meat from countries that produce at lower production costs. Farmers are faced with the challenge to increase their efficiency of production thus to become more competitive; this is affected by the decisions made with regard to the quantities of utilised inputs and produced outputs. In this study technical efficiency is explained from output oriented perspective, assessing the possibility of farmers to increase the efficiency by producing maximum output quantities. The technical efficiency is estimated by employing the parametric Stochastic Frontier Analysis. An empirical analysis was carried out on the data collected by questionnaires in 2010. The results show altered technical efficiency levels in each decision making unit.
    Keywords: Farm Management,
    Date: 2013
  23. By: Corsi, Alessandro; Salvioni, Cristina (University of Turin)
    Abstract: We analyse the determinants of off-farm labour participation of farmers. For estimation, we use different dynamic models, accounting for both heterogeneity and state dependence, as well as for the initial conditions. Our results suggest that, when keeping into account all these features, the present work state is almost totally explained by the previous state and by idiosyncratic characteristics, which implies a strong persistence. Variables concerning personal characteristics are not found to be significant in the dynamic setting. Finally, the variables related to the reform of the Common Agricultural Policy have little or no statistically significant effect.
    Date: 2014–12
  24. By: Andrea Fracasso; Martina Sartori; Stefano Schiavo
    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 countryspecific 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 ‘trade’, Mediterranean countries, Bayesian model averaging, weighted average least square.
    JEL: F18 Q25
    Date: 2014
  25. By: Carlos José Caetano Bacha; Alysson Luiz Stege
    Abstract: Brazilian agriculture has grown enormously during the past three decades. An interesting aspect of this growth is the respective roles of family and non-family farming, and the seeming importance of this distinction to Brazilian agricultural policy, reflected in the existence of separate agencies in Federal Government with responsibility for each sector. The paper presents multivariate and spatial analyses examining the family and non-family farming sectors to try to quantify how different they actually are. It employs factor analysis to compare both sectors (family and non-family farming) by homogeneous micro-region in terms of productivity, degree of mechanization, intensity of labour use, and investment. The results show that both sectors are not structurally different to each other; both have been administrated according to the same broad agricultural policies, both are overwhelmingly market-oriented, and both tend to cleave to regional differences rather than being importantly different to each other.
    Date: 2014
  26. By: Ewa Axelsson
    Abstract: The Forest as a Resource. Conflicts in the Northern Sweden Wooded land in the 19th century The forest as a resource played an important role in the structural transformation process which would change Sweden from an agrarian to an industrial economy during the 19th century. This paper will analyze some of the conflicts regarding property rights by focusing on tensions between institutional change, small scale local landowners and forest corporations in Northern Sweden 1862-1906. An aim is to provide a basis for understanding the process of institutional change in general and more specifically how property rights of wooded land develop. The enclosure documents will be examined as source information about tensions between institutions, forest corporations and land in Northern Sweden 1862-1906. The enclosure reform in Sweden, regulated by the enclosure enactment from 1827, has been emphasized as an institutional factor of great importance in the transformation process since it determined and strengthened private property rights over land. Generally the reform is considered a solution to deal the problem of poorly managed forests, with the main argument that strengthened private property rights provided better management. For several reasons however the enclosure reforms created tensions in the local society which may challenge a one-sided positive view on the enclosure reform. Property rights include many dimensions and in comparison to e.g. arable land, property rights of the wooded land was often more complex and less defined. One source of conflict was therefore the uncertainties of ownership when land was to be redistributed as part of the reform. Another source of conflict was the diverging incentives among small scale local landowners as regards their respective benefits from the reform. Some researchers argue that landowners who applied for enclosure were in the forefront and consider them as "entrepreneurs". Others argue however that the enclosure reform was a way for landowners who had mismanaged their forest to benefit from a neighbor's saved forest thorough the redistribution of land. Yet another source of conflict was the industrial exploitation of forests. During the early 19th century forest corporations still acquired raw materials based on monopolized rights of property and for harvesting. Throughout the 19th century it was also common for corporations to purchase forest properties from private landowners, but in 1901 this business became legally prohibited. The issue of regional resource in Northern Sweden is still a today with controversies surrounding mining and river exploration. Keyword: Northern Sweden, enclosure, 19th century, industrial revolution, institution, conflicts, property right. JEL Code: N
    Keywords: Northern Sweden; enclosure; 19th century; industrial revolution; institution; conflicts; property right. Code:
    JEL: N
    Date: 2014–11
  27. By: Holden, Stein (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Bezu, Sosina (Centre for Land Tenure Studies, Norwegian University of Life Sciences)
    Abstract: We have investigated whether joint land certification in Southern Ethiopia has contributed to a strengthening of the perceived land rights of women and an increase in their intra-household involvement in land-related decisions. We use gender-disaggregated household panel data and generate indices for wives’ and husbands’ land rights attitudes and for wives’ involvement in land-related decisions. After controlling for endogeneity of land certification, using a Control function approach, we find that receipt of land certificate has strengthened wives’ awareness of their land rights. We also find evidence of an intra-household bargaining effect and an intracommunity social process effect that both contribute to stronger involvement of wives in landrelated decisions within households.
    Keywords: joint land certification; gender; empowerment of wives; Ethiopia
    JEL: D03 J16 Q15
    Date: 2014–11–18
  28. By: Mousumi Das (Indira Gandhi Institute of Development Research)
    Abstract: Food security policies in developing countries generally focus on calorie intake, which is not sufficient to tackle the triple burden of malnutrition: undernourishment, micronutrient deficiencies and over-nutrition. Consumption of a diverse diet is important to lessen the burden and is constrained by different factors. This paper using nationally representative dataset from India, analyzes the determinants of dietary diversity, which is measured using the Entropy Index. Heterogeneous dietary diversity profile across adjoining regions highlights the persistence of uneven development in terms of consumption and health indicators. Quantile regression analysis is used to identify the impact of determinants at different parts of the intake distribution. We find that level of consumption expenditure, quality adjusted prices of food items, educational attainment and information dissemination are important factors that affect the household's consumption of a diverse diet. As one moves away from towns dietary diversity improves. Large size landholders need not necessarily consume a diverse diet as expected. Suitable policy interventions are identified.
    Keywords: Dietary diversity, Quality-adjusted prices, Quantile regression, Food policy, India
    JEL: C21 D12 O10 Q18
    Date: 2014–11
  29. By: Hamrick, Karen; Okrent, Abigail
    Abstract: Meals, snacks, and beverages purchased at fast-food restaurants account for an increasingly large share of a typical American’s food budget and have been blamed for Americans’ expanding waistlines and poor diet quality. This study uses data from the 2003-11 American Time Use Survey to examine the effects of time-use behaviors, prices, sociodemographic characteristics, labor force participation, and prices on fast-food purchasing patterns in the United States before and after the Great Recession. Fast-food purchasers spend less time sleeping, doing housework, eating and drinking, and watching television than nonpurchasers, and more time traveling from place to place. They also tend to have higher incomes and higher education levels. While the time that Americans spent eating out at all restaurants declined during and after the 2007-09 recession, the share of the population eating at fast-food restaurants on a given day stayed fairly constant, seemingly unaffected by the economic downturn, but the share for sit-down restaurants declined.
    Keywords: Food away from home, FAFH, fast food, time use, American Time Use Survey, ATUS, Eating and Health Module, Great Recession, time pressure, eating patterns, sleep, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, Labor and Human Capital,
    Date: 2014–11
  30. By: Cati Torres (Universitat de les Illes Balears, Mallorca, Spain); Sergio Colombo (Instituto de Investigación y Formación Agraria y Pesquera (IFAPA), Junta de Andalucia); Nick Hanley (School of Geography and Sustainable Development, University of St. Andrews)
    Abstract: Gains from the incorporation of monetary values for changes in environmental goods and services within cost-benefit analysis depend on how well researchers can estimate these values. One key problem in both stated and revealed preference approaches is how best to model preference heterogeneity. Researchers have implemented several approaches to represent this heterogeneity, and have shown that the choice of approach can have an effect on welfare estimates. However, the question as to the degree of error in welfare measurement from an inappropriate choice of approach has not been addressed. We use Monte Carlo analysis to investigate this issue in the context of choice modelling of coastal water quality changes, when the researcher chooses between a random parameters and latent class model for representing heterogeneity. This allows us to quantify the errors that emerge from using the wrong model in estimating the benefits of water quality improvements. Our overall conclusion is smaller welfare errors are likely to come from use of a latent class model.
    Keywords: choice experiments; cost-benefit analysis; Monte Carlo analysis; non-market goods;preference heterogeneity; welfare measurement.
    JEL: C15 C52 Q51
    Date: 2014–10
  31. By: Marta Antonelli; Martina Sartori
    Abstract: The concept of virtual water refers to the volume of water used in the production of a commodity or a service. The concept was identified by the geographer Tony Allan in the early 1990s, to draw attention on the global economic processes that ameliorate local water deficits in the MENA region and elsewhere. Since its inception, the virtual water concept has inspired a flourishing literature on how to address global water resource scarcity vis-à-vis commodity production and consumption in a variety of disciplines, but also has been the object of a number of critiques. Against this backdrop, the aim of the study is, first, to conduct a thorough review of the conceptual definition of the concept, its critics and applications. Secondly, to analyse its theoretical underpinnings and, in particular, its relationship with economic theory. The study argues that, despite not being a policy tool itself, the virtual water concept can reveal aspects related to production, consumption and trade in goods which monetary indicators do not capture. Its potential as an indicator for informing decision-making in water management and policy, as well as commodity trade policy, still has to be fully unfolded.
    Keywords: virtual water, water footprint, green and blue water, water scarcity and security, water policy, international trade.
    JEL: F18 Q25 Q56
    Date: 2014
  32. By: Antonelli, Marta; Sartori, Martina
    Abstract: The concept of virtual water refers to the volume of water used in the production of a commodity or a service. The concept was identified by the geographer Tony Allan in the early 1990s, to draw attention on the global economic processes that ameliorate local water deficits in the MENA region and elsewhere. Since its inception, the virtual water concept has inspired a flourishing literature on how to address global water resource scarcity vis-à-vis commodity production and consumption in a variety of disciplines, but also has been the object of a number of critiques. Against this backdrop, the aim of the study is, first, to conduct a thorough review of the conceptual definition of the concept, its critics and applications. Secondly, to analyse its theoretical underpinnings and, in particular, its relationship with economic theory. The study argues that, despite not being a policy tool itself, the virtual water concept can reveal aspects related to production, consumption and trade in goods which monetary indicators do not capture. Its potential as an indicator for informing decision-making in water management and policy, as well as commodity trade policy, still has to be fully unfolded.
    Keywords: virtual water, water footprint, green and blue water, water scarcity and security, water policy, international trade
    JEL: F18 Q25 Q56
    Date: 2014–12
  33. By: Anastasia Litina (CREA, Université du Luxembourg)
    Abstract: This research theoretically and empirically advances the hypothesis that in early stages of development, land and climatic variability had a persistent beneficial effect on the advent of early statehood. A high degree of land and climatic diversity, and its association with potential gains from trade, accentuated the incentives to develop social, political and physical infrastructure that could facilitate interregional interaction. Hence, the emergence of states was expedited in more diverse geographical environments. To explore the hypotheses the analysis exploits exogenous sources of variation in a) the measure of land variability across countries, and b) climatic variability within countries over the period 500-1500 CE. The research establishes that i) the advent of statehood was expedited in regions characterized by a higher degree of variability in land and climatic conditions, ii) the effect of (land and climatic) variability on statehood operates partly through the advancement of technologies associated with trade, thus suggesting that it is the pivotal role of states in facilitating trade that ultimately contributed to their emergence and consolidation, and, iii) the effect of land variability on statehood dissipates over time,
    Keywords: State Formation, Climatic Variability, Land suitability for agriculture
    JEL: O50 O57 N70
    Date: 2014
  34. By: Andre Chagas
    Abstract: The production of ethanol has increased in United States and Brazil in recent years, because of incentives to reduce gas consumption. In Brazil, there is a big program to use ethanol both as a single fuel or an additive to gas. In US, the incentive is to use ethanol combined to gas in proportion that can reach to 85 percent of the mix. This situation has prompted the need to assess the economic, social and environmental impacts of this process, both for the country as a whole and for the regions where this has occurred. Doubts that can be raised, for example, concerning the quality of employment, the environmental impacts (soil contamination, atmospheric pollution from burning fields, water use, etc.) and dislocation of other crops to native forests, among others. Even though the balance of costs and benefits is, in general, positive from an overall standpoint, this may not be so in specific producing regions, due to negative externalities. The producing regions may disproportionately bear the negative impacts of the sector's presence. Perhaps the most obvious aspect in this respect is the labor market, since many studies have analyzed the working conditions in the sector, particularly those encountered in manual harvesting, in Brazilian case. It is recognized that sugarcane is significantly more valuable by tilled area than many other crops, such as soybeans, for example. The objective of this paper is to estimate the effect of growing sugarcane on socio-economic indicators (like GDP, HDI or others) in ethanol producing regions, comparing differences in results of Brazilian regions with American ones. In the literature on matching effects, this is interpreted as the effect of the treatment on the treated. Location effects are controlled by spatial econometric techniques, giving rise to the spatial propensity score matching model. This work extends the results from Chagas, Toneto-Jr. and Azzoni (2011), analysing the producing regions in both countries according its social and economics characteristics, as well the producing characteristics.
    Keywords: Sugarcane; Spatial propensity score matching; Ethanol;
    JEL: C14 C21 Q18
    Date: 2014–11
  35. 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
  36. By: Patricia Turco; Ricardo Firetti; Flavia Bliska; Eder Pinatti; Antonio Bliska; Sergio Tôsto
    Abstract: This study examines the relationship between the trajectory of technological innovations in Brazilian coffee regions in the period 1932-2012, with the economic growth and development in those areas. The objective of the study is to provide information to public and private institutions involved in research, development, innovation and extension, as well as to the authorities responsible for preparing the regional development policies and for making decisions regarding the application of financial and human resources. First, we studied the evolution of coffee research and identified the technologies that resulted in break points or key points for sectoral development. For this we conducted semi-structured interviews with 14 researchers, farmers and consultants related to the coffee sector. Second, based on the periods in which the breakpoints were identified, we analyzed the trajectories of innovations in each of the five main Brazilian coffee regions. For this, we developed a structured questionnaire, which was applied to 148 representatives of the coffee sector, by random sampling, for the following periods: ? 1932-1954: the beginning of coffee research at the first break point in the sectoral evolution: the release of the first 'modern' coffee cultivar ? 1955 - 1974: the consolidation of the adoption of this cultivar to the second breakpoint in the sectoral evolution: the release of the second 'modern' cultivar and the beginning of mechanized farming; ? 1975 - 1989: consolidation of mechanization and adoption of those two 'modern' cultivars; ? 1990 - 2000: expanding the use of irrigation in crops; ? 2001 - 2012: emphasis on the final product quality and integrated management of production. To analyze the information from the questionnaire, we used cluster analysis by two-way joining method, in which a graph of color scale is generated, which expresses in the vertical reading the technologies used in the analyzed period, and horizontally, the five periods identified in the survey, for Brazil as a whole and for each of the five Brazilian coffee regions. The results show that in regions where technological innovations were adopted and consolidated, there was an increase in productivity and that socioeconomic indicators are significantly better than in other regions.
    Keywords: Coffee production; Regional Development; Multivariate Analysis
    JEL: Q
    Date: 2014–11
  37. By: Markussen, Thomas; Fibaek, Maria; Tarp, Finn; Nguyen, Do Anh Tuan
    Abstract: Using survey data from rural Vietnam, this paper documents a statistically significant, positive effect of self-employment in farming on subjective well-being. Wage workers are less happy than farmers across a range of different types of wage jobs. These
    Keywords: happiness, self-employment, wage work, agriculture, Vietnam
    Date: 2014
  38. By: Gonzalez Corzo, Mario
    Abstract: This paper examines the principal agricultural transformations in a selected group of former socialist countries in Asia and Eastern and Central Europe, using commonly-accepted indicators such as physical output, labor productivity, and agricultural yields, and offers some relevant recommendations for Cuba. The countries included in this study are: China, Vietnam, Russia, Ukraine, Estonia, the Czech Republic, Hungary, Poland, Bulgaria, Rumania and Slovenia. Section one presents a brief introduction. Section two analyzes the role of agriculture in the (post-socialist) transition countries included in the study. This is followed by a detailed analysis of general trends and indicators such as output, labor productivity, and agricultural yields in these countries during the first decade of agricultural transformations. Finally, section four discusses the relevance of these experiences in the case of Cuba within the context of the ongoing process of “updating” the country’s (socialist) economic model.
    Keywords: Agriculture, Cuba, economic reforms, transition economies
    JEL: P2 P25 P3 P32
    Date: 2013–12–31
  39. By: Holden, Stein (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Bezu, Sosina (Centre for Land Tenure Studies, Norwegian University of Life Sciences)
    Abstract: We used a field experiment to investigate exchange asymmetries in productive assets among poor rural respondents in Ethiopia. Farmers were randomly allocated two types of productive assets or cash, with a choice to keep the productive asset (cash) or exchange it for cash (productive asset). To introduce productive asset variation, a durable asset (farm tool) and a short-term input (fertilizer) were randomly allocated and combined with a random amount of cash. Loss aversion was proxied with a separate experiment and was used to assess the importance of endowment effect theory to explain exchange asymmetries. A greater exchange asymmetry was found for the more popular tool than for fertilizer. Loss aversion could explain a small but significant part of the exchange asymmetry in tools, but experience did not reduce the exchange asymmetry. Compared to the female respondents, the male respondents exhibited greater exchange asymmetries and more non-linear price responses with declining elasticities as prices increased. Key words: exchange asymmetry, endowment effect, loss aversion, factor markets, productive assets, input demand elasticities, field experiment. JEL codes:
    Keywords: exchange asymmetry; endowment effect; loss aversion; factor markets; productive assets; input demand elasticities; field experiment.
    JEL: D03 D51 O13 Q12
    Date: 2014–12–03
  40. By: Yawe, Bruno Lule
    Abstract: The study examines the relationship between climatic factors and reported malaria cases using data from 12 districts in Uganda over the period 2000-2011. A panel dataset comprising temperature, temperature standard deviation; minimum humidity; maximum hum
    Keywords: climate change, malaria, health, ecological economics
    Date: 2014
  41. By: Beaman, Lori; Karlan, Dean S.; Thuysbaert, Bram
    Abstract: High transaction and contracting costs are often thought to create credit and savings market failures in developing countries. The microfinance movement grew largely out of business process innovations and subsidies that reduced these costs. We examine an alternative approach, one that infuses no external capital and introduces no change to formal contracts: an improved “technology” for managing informal, collaborative village-based savings groups. Such groups allow, in theory, for more efficient and lower-cost loans and informal savings, and in practice have been scaled up by international non-profit organizations to millions of members. Individuals save together and then lend the accumulated funds back out to themselves. In a randomized evaluation in Mali, we find improvements in food security, consumption smoothing, and buffer stock savings. Although we do find suggestive evidence of higher agricultural output, we do not find overall higher income or expenditure. We also do not find downstream impacts on health, education, social capital, and female decision-making power. Could this have happened before, without any external intervention? Yes. That is what makes the result striking, that indeed there were no resources provided nor legal institutional changes, yet the NGO-guided, improved informal processes led to important changes for households.
    Keywords: micro-savings; savings groups impact
    JEL: D12 D91 O12
    Date: 2014–10
  42. By: Guloba, Madina
    Abstract: This paper hypothesizes that adaptation to climate change is influenced by the gender of the decision maker of the household. Using a two-wave household panel survey dataset, choice of adaptation strategies employed by female- and male-headed households a
    Keywords: adaptation, climate change, covariate shocks, gender, multinomial logit
    Date: 2014
  43. By: Zoran Simonović, Vesna Simić, Janko Todorov (Institute of Agricultural Economics)
    Abstract: through the current legal framework, which consists of three laws: the Law on Health Insurance, the Law on Compulsory Social Insurance and the Law on Employment and Unemployment Insurance. These laws are observed in terms of the rules that are currently open. This approach is the study of these laws relies on the fact that these laws are applicable regulations in this area. The legislation in force in Serbia, in our opinion, should be subject to change and adjustment with the current legislation in force in the EU. Or should it be changed and improved.
    Keywords: health insurance of farmers, farmers' pension insurance, Serbia.
    JEL: H7 H75
    Date: 2014–04
  44. By: Plastina, Alejandro
    Keywords: farm bill; PLC; ARC
    Date: 2014–10–31
  45. By: Nick Hanley (School of Geography and Sustainable Development, University of St. Andrews); Stephen Hynes (Socio-Economic Marine Research Unit, National University of Ireland,Galway); Niels Jobstvogt (Aberdeen Centre for Environmental Sustainability, University of Aberdeen); David M. Paterson (Scottish Oceans Institute,School of Biology, University of St Andrews)
    Abstract: In Europe, as in many other parts of the world, an increasing number of coastal and marine policies require or encourage the use of environmental valuation and cost-benefit analysis. This means that policy-makers and regulators are placing increasing demands on economists to supply such values for use in policy analysis and management. There has also been a growing emphasis on basing environmental management and policy analysis on the ecosystem services approach (Fisher et al, 2008; UK NEA, 2011; Keeler et al, 2012). The consequence of this is a parallel requirement to link ecosystem function and service flows to environmental valuation. The purpose of this paper is to examine whether ec onomists are in a position to deliversuch evidence for use in policy analysis, in terms of the conceptual basis of valuation, the availability of the scientific evidence that is required to implement valuation methods, and the existing data base of economic values. The focus of the paper is on the European policy arena, but most of the issues discussed apply equally to other locations. We approach the question in three ways. First, by reviewing existing European legislative drivers for increased use of valuation in coastal and marine policy; second, by reviewing the existing body of evidence on ecosystem and biodiversity values related to the coastal and marine environment in the EU and third, by considering whether both the economic valuation framework itself, and the scientific evidence required for its implementation, is “fit for purpose” and capable of meeting the needs of regulators.
    Keywords: ecosystem values, marine values, deep sea, salt marsh, off-shore renewables, marine biodiversity.
    JEL: Q51 Q54 Q57
    Date: 2014–12
  46. By: Pradumna B. Rana (Asian Development Bank Institute (ADBI)); Binod Karmacharya
    Abstract: Nepal’s lackluster economic performance during the post-conflict period (that is, after November 2006) has been driven by remittances from the export of labor services and the improved performance of the agricultural sector, which is still very much weather dependent. The authors make the case for a connectivity-driven development strategy for the country. They argue that improved connectivity within Nepal and cross-border connectivity with its neighbors in South Asia, the Association of Southeast Asian Nations (ASEAN), and the People’s Republic of China (PRC) that are converting Nepal from a landlocked into a land-linked state, could be important “engines of growth†for the country. It is argued that such a development strategy is not a new one for Nepal as in the past the country was strategically located on the Southwestern Silk Road (SSR). A number of factors have revived the case for making Nepal a land-linked state in Asia. Nepal has adopted a multi-track approach to promoting regional cooperation and integration in connectivity with its neighbors. But a lot more needs to be done, especially in the context of the difficult political situation in the country, and donors have an important role to play in this regard. Ten priority projects to convert Nepal into a land-linked state are identified, but a detailed impact analysis of these projects is beyond the scope of this paper.
    Keywords: Nepal, land-locked, land-linked, cross-border connectivity, South Asia, ASEAN, Southwestern Silk
    JEL: F15
    Date: 2014–09
  47. By: Anastasios Xepapadeas
    Abstract: Sustainable development, environmental sustainability, green economies and green growth are issues which are of great importance for both the research and the policy agenda. The present paper clearly defines the concepts of sustainability and environmental sustainability and provides a conceptual framework for developing sustainability-founded cost benefit rules. It shows that a certain policy cannot necessarily simultaneously satisfy sustainable development and environmental sustainability objectives, the development of green economies, and the attainment of development or green growth.This is important for decision makers because it suggests using more than one criterion depending on the combination of the objectives to be pursued.The cost benefit rules presented in this paper could provide a basis for a clear distinction among objectives and for project selection mechanisms that promote single or multiple objectives.
    Keywords: Sustainable development, wellbeing, comprehensive investment, accounting prices, cost benefit analysis, environmental sustainability, green economies, green growth
    Date: 2014–12–06
  48. By: Martin Falk
    Abstract: The relationship between weather and tourism demand has been widely investigated for different locations and for different seasons. Although weather and climate conditions are widely seen as an important factor for tourism, relative little is known about their effects over a longer time period. Given that about 50% of tourists come to Austria during summer months May to September, favourable summer weather can play a very important role in determining the number of visitor nights and arrivals. The relationship between weather and tourism is particularly important for regions with moderate climate conditions. It is expected that summer tourism in these location will benefit from global warming (Nicholls and Amelung 2008). The aim of the paper is to investigate the impact of weather on visitor nights using regional data for Austria at the level of provinces for the period 1974-2012. In particular, we distinguish between the capital region Vienna and eight other provinces. The econometric model is based on the seemingly unrelated regression method which makes it possible to account for the cross-regional correlations. We also allow for lagged effects of weather. We provide separate estimates of the relationship between visitor nights and weather for each province. Global warming has lead to new interest in the weather-tourism relationship. More and more is being published on the relationship between weather patterns and tourism demand (see Becken, 2013; Gössling et al., 2012; Kaján & Saarinen, 2013 for surveys). A general finding of the literature is that there is a significant relationship between domestic tourism demand and weather conditions, while foreign (inbound and outbound) tourism is only affected by weather conditions with a 1-year (or -season) lag. Few studies have investigated the impact of summer weather on tourism demand in regions with cooler climate conditions and moderate temperatures, which are likely to gain from climate change (Serquet & Rebetez, 2011 is an exception). Austria is an interesting country case to study with a long tradition in summer alpine tourism. However, summer tourism in the Alps has suffered from a steady decline starting from the 1970s and has now stabilized. Results using the seemingly unrelated regression model show that sunshine duration and temperatures have a significant and positive impact on both domestic and German tourism demand for most of the provinces. However, sunshine and temperatures affect German overnight stays only with a one year lag. Weather effects are larger in August and September than in June and July. Overall, the impact of weather is highest in Salzburg and Upper Austria where current and lagged sunshine or temperature can explain between 25 and 50 percent of the variation of overnight stays. In contrast, weather conditions are not relevant for visitor nights in Vienna.
    Keywords: tourism demand; weather factors; seemingly unrelated regression modelm; regions
    JEL: R11 L83
    Date: 2014–11
  49. By: Bruno Jean
    Abstract: Scientists and the general public agree that the rural world is characterized by a strong attachment to traditional values, and lacks a sense of initiative, creativity and innovation. This, supposedly, is why the rural world is lagging behind in development. Even if rural people are typically excluded from the creative class, the history of Québec rural communities shows that they have been and are still very creative; we can definitely learn from them. A paradigm shift is needed for a better understanding of rural innovation based on the recognition that rural people and communities are creative and have been innovative for some time. Instead of aiming to teach them how to innovate, we must try to understand the various innovations they put in place in response to multifaceted rural development challenges. Rural innovation is much more than technical innovation and new products; it reflects three basic dimensions of genuine sustainable development: managing natural environments, building instruments or institutions for economic development, and facilitating social life. Under this new paradigm of rural innovation, innovations are studied as they emerge from within rural communities, as exemplified by the Québec Rural University initiative. Rural communities should also be seen as living examples (or living labs) of innovation. "Rural clusters" are additional models for rural innovation. Public policy must therefore support empowerment and community capacity building that foster an innovative rural sector. This support covers not only technical R&D for new products but also the "social innovations" that rural communities have introduced to achieve sustainable rural development.
    Keywords: Innovation; rurality; learning; rural community; paradigm
    Date: 2014–11
  50. By: Langestraat, R. (Tilburg University, School of Economics and Management)
    Abstract: In this thesis we model and analyze several environmental policies in an existing mathematical representation of a perfectly competitive electricity market. We contribute to the literature by theoretically and numerically establishing a number of effects of environmental policies on investment strategies and prices. We provide a theoretical benchmark for environmental regulators aiming to achieve certain policy goals, and present a way to use numerical tools in case a complete theoretical analysis cannot be obtained. Two policies that charge firms for their carbon emissions, namely cap-and-trade and carbon taxation, are modeled into both a stylized deterministic and a two-stage stochastic framework. In the former we characterize equilibria, leading to key results on the dispatching order of technologies and identification of unused technologies. The latter framework is analyzed through a sampling study and focuses on the effectiveness of the policies in the presence of network limitations. We successively study a renewable energy obligation, which indirectly subsidizes electricity production from renewable resources through green certificates. We additionally explore the effects of technology banding, meaning that different renewable technologies are eligible for a different number of certificates. To account for some of the drawbacks of the existing UK technology banding system, we introduce an alternative banding policy. Finally, a feed-in tariff (FIT) is a direct subsidy on electricity production from renewable resources. In a stochastic framework we derive analytically that under linear cost assumptions, this price based instrument cannot guarantee that quantity based policy targets are met. Assuming non-linear convex cost, we find that the opposite holds and that a regulator has the freedom to set FITs in such a way that any desired mixture of renewable technologies can be attained at equilibrium. These FITs are derived analytically or, when necessary, estimated using the numerical tools that we propose.
    Date: 2013
  51. By: Bachev, Hrabrin
    Abstract: On March 11, 2011 the strongest recorded in Japan earthquake occurred which triggered a powerful tsunami and caused a nuclear accident in the Fukushima Daichi Nuclear Plant Station. The triple 2011 disaster has had immense impacts on people life, health and property, social infrastructure and economy, agri-food chains, natural and institutional environment, etc. in North-eastern Japan and beyond Due to the scale of the disasters and the number of affected agents, the effects’ multiplicities, spillovers, and long time horizon, the constant evolution of the nuclear crisis, the lack of “full” information and models of analysis, etc. the overall impacts of the 2011 disasters is far from being completely evaluated. Besides most information and publications are in Japanese. The goal of this paper is to assess the socio-economic and environmental impact of Match 2011 earthquake, tsunami and Fukushima nuclear accident in Japan. Firstly, a short description of the three events is presented. Next, the overall impacts on population, health and displacement assessed. Third, the effects of economy are evaluated. After that, diverse impacts on agri-food chains are presented. Finally, the impact on natural environment is assessed. A wide range of official governmental, farmers, industry and international organisations, and Tokyo Electric Power Company data as well as information from publications in media, research and experts reports, etc. have been extensively used.
    Keywords: social, economic, agri-food chain, environmental impact, Great East Japan Earthquake, March 11, 2011 earthquake and tsunami, Fukushima nuclear accident, disaster risk managment, Japan
    JEL: D0 E0 F5 H0 I0 J0 L1 O1 Q1 Q13 Q16 Q17 Q18 Q4 Q5 R0 Z0
    Date: 2014–12–13
  52. By: Bontemps, Christophe; Nauges, Céline
    Abstract: Individuals are commonly surveyed about their perception or assessment of risk and these variables are often used to explain individuals’ actions to protect themselves against these risks. Perceptions appear as endogenous variables in traditional theoretical averting-decision models but, quite surprisingly, endogeneity of perceived risk is not always controlled for in empirical studies. In this article, we present different models that can be useful to the practitioner when estimating binary averting-decision models featuring an endogenous discrete variable (such as risk perception). In particular we compare the traditional bivariate probit model with the special regressor model, which is less well known and relies on a different set of assumptions. In the empirical illustration using household data from Australia, Canada, and France, we study how the perceived health impacts of tap water affect a household’s decision to drink water from the tap. Individuals’ perceptions are found to be endogenous and significant for all models, but the estimated marginal effect is sensitive to the model and underlying assumptions. The special regressor appears to be a valuable alternative to the more common bivariate probit model.
    Keywords: Discrete choice, special regressor, endogeneity, water consumption.
    JEL: C14 C25 Q51 Q53
    Date: 2014–11–05

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