nep-agr New Economics Papers
on Agricultural Economics
Issue of 2015‒10‒10
24 papers chosen by

  1. Gender Differences in Climate Change Risk, Food Security and Adaptation: A Study of Rural Households’ Reliance on Agriculture and Natural Resources to Sustain Livelihoods By B. Tibesigwa, M. Visser, L. Hunter, M. Collinson and W. Twine
  2. Strategies for Addressing Smallholder Agriculture and Facilitating Structural Transformation By Dalila Cervantes-Godoy
  3. Vulnerability to climatic variability: An assessment of drought prevalence on water resources availability and implications for the Ugandan economy By Nicholas Kilimani
  4. Can Crop Purchase Programs Reduce Poverty and Improve Welfare in Rural Communities? Evidence from the Food Reserve Agency in Zambia By Fung, Winnie; Liverpool-Tasie, Saweda; Mason, Nicole; Uwaifo Oyelere, Ruth
  5. Agricultural Scenario and Strategies for Development: The Case of Bihar By Singh, K.M.; Singh, R.K.P.; Kumar, Abhay; Meena, M.S.; Shahi, Brajesh
  6. The Long-Run Impact of Biofuel on Food Prices By Ujjayant Chakravorty; Marie-Hélène Hubert; Michel Moreaux; Linda Nostbakken
  7. An Economic Analysis of Climate Change and Wildlife Utilization on Private Land: Evidence from Wildlife Ranching in South Africa By Jackson Otieno and Edwin Muchapondwa
  8. Protection of soil and water resources in Mediterranean small islands: a Greek case By Olga Christopoulou; Stavros Sakellariou; Stergios Tampekis; Fani Samara; Athanassios Sfougaris; Aristotelis - Kosmas Doukas; Dirk Jaeger; Anastasia Stergiadou; Vassilios Giannoulas
  9. The Impact of Wine Tourism Business: Case Study of Newfoundland Wineries By Roselyne Okech
  10. Quantifying Water Scarcity in Turkey By Asli Tasbasi
  11. Identification of Counterfactuals and Payoffs in Dynamic Discrete Choice with an Application to Land Use By Kalouptsidi, Myrtho; Scott, Paul; Souza-Rodrigues, Edouardo
  12. Reconnection Strategies of Physical Landscape: A Case Study in the Faculty of Sustainable Agriculture By Shahida Mohd Sharif; Izyan Ayuni Mohamad Selamat; Siti Nurulhidayah Zakaria
  13. A Note on Indian Agricultural System vis-à-vis ATMA Model By Singh, K.M.
  14. Market integration of wheat in Pakistan By Sahito, Jam Ghulam Murtaza
  15. Food Security Modelling By Kuzmin, Evgeny
  16. Cereals, Appropriability and Hierarchy By Joram Mayshar; Omer Moav; Zvika Neeman; Luigi Pascal
  17. An Integration of Sustainable Design Strategies and Environmental Stewardship to Landscape Development Plan for the Faculty of Sustainable Agriculture By Izyan Ayuni Mohamad Selamat; Shahida Mohd Sharif
  18. Agricultural marketing cooperatives with direct selling: A cooperative–non-cooperative game By Maxime Agbo; Damien Rousselière; Julien Salanié
  19. Quality standards versus nutritional taxes: health and welfare impacts with strategic firms By Réquillart, Vincent; Soler, Louis-Georges; Zang, Yu
  20. Does Environmental Connotation Affect Coordination Issues in Experimental Stag Hunt Game? By Dimitri Dubois; Mathieu Desole; Stefano Farolfi; Mabel Tidball; Annie Hofstetter
  21. A Comparison of Agricultural Cooperatives in Thailand and China By Ratchanee Mukhjang
  22. Could climate change affect government expenditures? Early evidence from the Russian regions By Leppänen , Simo; Solanko, Laura; Kosonen, Riitta
  23. Targeted opportunities to address the climate-trade dilemma in China By Zhu Liu; Steven J. Davis; Kuishuang Feng; Klaus Hubacek; Sai Liang; Anadon, Laura Diaz; Bin Chen; Liu, Jingru; Yan, Jinyue; Dabo Guan
  24. Processed Food Trade of Greece with EU and Non-EU Countries: An Empirical Analysis By Ghazalian, Pascal L.

  1. By: B. Tibesigwa, M. Visser, L. Hunter, M. Collinson and W. Twine
    Abstract: Climate and weather variability in sub-Saharan Africa disproportionately leave female-headed households food insecure. However, the extent and reasons for these gender differences are, thus far, not well understood. This study examines gender-food-climate connections using longitudinal data from rural households in north-eastern South Africa. Results confirm gender distinctions in that male-headed households are more food secure. Importantly, however, female-headed households are not a homogenous group. Participation in agriculture and utilisation of natural resources narrows the male-female consumption gap to 10.3% amongst de jure female-headed households – those with female heads who are single, widowed, divorced, or separated. Yet, these land-based practices are associated with a greater male-female gap (27.4%) amongst de facto female-headed households – married female heads who are married, but whose husbands are away. Further, and contrary to expectation, weather-related crop failure threatens food security in both male- and female-headed households, but less so amongst de facto female-headed households, who remain more dependent on remittances.
    Keywords: Gender; climate change; subsistence farming; natural resources; food security; adaptation; livelihoods
    JEL: Q12 Q18 Q54
    Date: 2015
  2. By: Dalila Cervantes-Godoy
    Abstract: This report aims to identify the main constraints that limit smallholders in emerging countries from accessing markets. It does this first through a literature review of economic development theory and findings from past empirical studies. It then looks at different policy instruments currently used in five countries: Brazil, Chile, Indonesia, Mexico and South Africa. The results suggest that the focus of agricultural policies in these five countries has been on input use subsidies, whether these are for variable input use, fixed capital formation, or on-farm services. Agricultural policies that strengthen the broader enabling environment (general services or public goods) are very limited in most countries covered in this report. Empirical evidence suggests that policies that best support the integration of smallholders into markets include investments in general services for the sector, as well as policies that reinforce land tenure systems or those that promote farmer associations.
    Keywords: agricultural policy, smallholders, emerging economies
    JEL: O13 Q1 Q18
    Date: 2015–09
  3. By: Nicholas Kilimani
    Abstract: The volatile changes in climate are increasingly becoming a threat to many economies globally. This study assesses Uganda’s vulnerability to climatic variability in the context of how these volatile changes in climate are likely to affect long-run water resources availability. This is done by using household survey data, rainfall data as well as findings from a water resource accounting study on Uganda. First, we use the results from the water accounts to establish the current level of demand for available water resources. Second, these findings are mirrored to the drought prevalence results with a view to highlight the potential adverse affects on water availability, and ultimately economic activity in Uganda.Whereas the country’s water resource accounting position shows that the current level of water resources is still adequate to meet current demand, drought is affecting economic activity primarily in the agricultural sector since it is rain-fed. It is also affecting the water recharge system as a big proportion of precipitation is lost through evapo-transpiration. This has implications for long-run water availability for the country. The findings point to the need for policy interventions that can ensure optimal water use in the economy. These may include improved hydrological planning and the development of water supply infrastructure.
    Keywords: Water accounting, Drought, Standardized Precipitation Index, Economic activity, Uganda
    JEL: E01 Q56
    Date: 2015
  4. By: Fung, Winnie (Wheaton College); Liverpool-Tasie, Saweda (Michigan State University); Mason, Nicole (Michigan State University); Uwaifo Oyelere, Ruth
    Abstract: The last decade has seen a resurgence of parastatal crop marketing institutions in sub-Saharan Africa, many of which cite improving food security and incomes as key goals. However, there is limited empirical evidence on the welfare effects of these programs. This article considers one such program, the Zambian Food Reserve Agency (FRA), which purchases maize from smallholder farmers at a pan-territorial price that typically exceeds maize market prices in surplus production areas. Using both fixed effects and an instrumental variables approach combined with correlated random effects, we estimate the effects of the FRA's maize marketing activities on smallholder farm household welfare. Results suggest that FRA activities have positive direct welfare effects on the small minority of smallholder households that are able to sell to it. However, the results also suggest negative indirect FRA effects, as higher levels of FRA activity in a district are associated with higher levels of poverty.
    Keywords: crop marketing boards, strategic grain reserves, maize, smallholder farmers, income, poverty, Zambia, sub-Saharan Africa
    JEL: Q12 Q13 Q18 I38 D31 O13
    Date: 2015–09
  5. By: Singh, K.M.; Singh, R.K.P.; Kumar, Abhay; Meena, M.S.; Shahi, Brajesh
    Abstract: Agriculture is at the core of Bihar’s economy, employing 77 % of the workforce and generating 35 % of the state domestic product. With 88 % of the state’s poor living in rural areas, improving agricultural performance and related rural non-farm activity is critical for improving livelihoods and reducing poverty. Major crops grown in Bihar are rice, wheat, maize, gram, red gram, sugarcane, potato & other vegetables. However, the agricultural sector in Bihar is plagued with numerous, and well known, constraints and problems. The present paper discusses the issues plaguing the agricultural sector in Bihar state, India and talks about the possible strategic interventions to make the best use of available resources adopting a multi-pronged strategy of development. It also talks about the area specific problems and suggests ways and means to tackle them.
    Keywords: India, Bihar, Agricultural sector, Development strategies
    JEL: O13 O32 Q1 Q18
    Date: 2015–10–04
  6. By: Ujjayant Chakravorty (Department of Economics, Tufts University (TSE, CESifo)); Marie-Hélène Hubert (CREM, Department of Economics, University of Rennes 1); Michel Moreaux (Toulouse School of Economics (IDEI, LERNA)); Linda Nostbakken (Department of Economics, Norwegian School of Economics)
    Abstract: More than 40% of US corn is now used to produce biofuels, which are used as substitutes for gasoline in transportation. Biofuels have been blamed universally for past increases in world food prices, and many studies have shown that these energy mandates in the US and EU may have a large (30-60%) impact on food prices. In this paper, we use a partial equilibrium framework to show that demand-side effects – in the form of population growth and income-driven preferences for meat and dairy products rather than cereals – may play as much of a role in raising food prices as biofuel policy. By specifying a Ricardian model with differential land quality, we find that a significant amount of new land will be converted to farming, which is likely to cause a modest increase in food prices. However, biofuels may increase aggregate world carbon emissions, due to leakage from lower oil prices and conversion of pasture and forest land for farming.
    Keywords: Clean Energy, Food Demand, Land Quality, Renewable Fuel Standards, Transportation
    JEL: Q24 Q32 Q42
    Date: 2015–09
  7. By: Jackson Otieno and Edwin Muchapondwa
    Abstract: Wildlife ranching is emerging as a new frontier for wildlife conservation and alternative land use to agriculture in Southern Africa marginal areas. But wildlife sector also faces climate related challenges. In this study, we investigated the effects of climate change on the revenues of wildlife ranchers in South Africa. This paper applied a median Ricardian modelling on net farm revenues using a sample of 506 wildlife ranches drawn from the latest version (2007) of Census of Commercial Agriculture data for South Africa. In order to predict the impact of climate change in future, the paper used three Atmospheric-Oceanic Global Circulation, which includes CSIRO2, Parallel Circulation Model, and Hadley Centre Coupled model, which have been used for South African agriculture modelling. The study confirms that current climate affects the net revenues of wildlife ranches across South Africa especially in cases where small scale wildlife ranches are involved. For example towards 2050, climate change could reduce net revenues from wildlife by up to 28 percent. In certain regions the models predict modest gains on revenues towards 2100. Revenues of specialized wildlife ranches would be more affected in the long run when compared to ranches that practice mixed wildlife and livestock ranching.
    Keywords: Wildlife Ranching; Climate change; Ricardian
    JEL: Q50 Q54 Q57 Q15
    Date: 2015
  8. By: Olga Christopoulou (Department of Planning and Regional Development, University of Thessaly); Stavros Sakellariou (Department of Planning and Regional Development, University of Thessaly); Stergios Tampekis (Department of Planning and Regional Development, University of Thessaly); Fani Samara (Department of Planning and Regional Development, University of Thessaly); Athanassios Sfougaris (Department of Agriculture Crop Production and Rural Environment, University of Thessaly); Aristotelis - Kosmas Doukas (Department of Forestry and Natural Environment, Aristotle University of Thessaloniki); Dirk Jaeger (University of Freiburg); Anastasia Stergiadou (Department of Forestry and Natural Environment, Aristotle University of Thessaloniki); Vassilios Giannoulas (Department of Forestry and Natural Environment, Aristotle University of Thessaloniki)
    Abstract: The natural environment in Mediterranean and, therefore, small and medium-sized Greek islands, definitively forms their landscape. Elements that make up this landscape are, naturally, the history of each island, the inhabitants activities, the fragility of its natural and built environment, as well as its sensitive ecosystems. Thus, the rational management of natural resources of small-medium sized islands coupled, of course, with appropriate policies that do not depend on the socio-economic structures of the mainland, could be an important factor of self-sufficiency, attractiveness and sustainable development in general.In this study, the island of Samothrace was examined, a 54% mountainous island, with 35.7% forest cover, whose inhabitants are employed mainly in the primary sector (farming, agriculture, fisheries) and in which the secondary sector has shrunk dramatically, while shrinking can also be observed at the tertiary sector.The occupation of large proportion of the residents with livestock, in combination with natural disasters (intense floods, forest fires), has led to significant soil erosion phenomena (soil leaching and dramatic reduction in its productivity) and degradation of existing forests. The mitigation of these phenomena, the protection and rational management of the island’s water resources, including wetlands, are imperative to safeguard the comparative advantage that is its natural environment.
    Keywords: Environmental protection, soil and water resources, islands, Greece
  9. By: Roselyne Okech (Grenfell Campus, Memorial University)
    Abstract: Wine tourism has been defined as the visiting of vineyards and wineries where wine tasting and purchase of the wines are the main purpose of the visit. Over the past quarter-century, Canadian vintners have increased their production of high-quality wines. Although Canada is not a major wine producer by global standards, the industry has evolved into a niche maker of internationally-respected ice wines and late harvest wines due to cool-climate influences. The study of wine tourism and their management offers many opportunities to reflect on the importance of sustainability and the possibilities of implementing new tourism approaches in a new direction in the province. Newfoundland province has only two wineries and could be a major player in this type of tourism. However, literature of wine tourism in the province is lacking even though the results in this study reveal there is sufficient interest and knowledge of wine tourism industry. Hence, this research has attempted to conceptualize the growth of wine tourism products, experiences, impacts and their management in the Newfoundland region. The research which adopts both quantitative (surveys) and qualitative approaches (interviews and participatory approaches) examines the potential impact of wine tourism in Newfoundland and how wine tourism is being managed based on the two distinct case studies in the Province. The findings of this research therefore have implications for wine tourism development and promotion in the Province, in Canada and internationally. As with all research, this study had some limitations which will serve to identify and future research needed. Since the data was collected through purposive sampling approach, it would be suggested that any generalizability beyond this context of study be used with caution.
    Keywords: Canada, Impact, Newfoundland, Tourism, Wine
  10. By: Asli Tasbasi (Isik University)
    Abstract: This study provides a quantitative assesment of water resources in Turkey in order to diagnose the water scarcity in the country. To this end, water stress indices are calculated which serve a multi-dimensional analysis by linking water scarcity to variables of population, income, pollution, withdrawals and social adaptive capacity. Results of the calculations are used to portray whether access to water and water poverty are directly or indirectly related. In view of its findings, the paper argues that water resources should not be managed according to the neoliberal rules of scarce resources, which may eventually make water unaffordible for the poor. The paper brings attention to the need for a socially equitable water policy and calls for a rapid agenda for the implementation of EU Water Framework Directive.
    Keywords: Water scarcity, Turkey, Falkenmark Index,Water Exploitation Index, Water Scarcity Index, , Social Water Stress Index, Water Poverty Index.
    JEL: Q50 Q53 Q56
  11. By: Kalouptsidi, Myrtho; Scott, Paul; Souza-Rodrigues, Edouardo
    Abstract: Dynamic discrete choice models are non-parametrically not identified without restrictions on payoff functions, yet counterfactuals may be identified even when payoffs are not. We provide necessary and sufficient conditions for the identification of a wide range of counterfactuals for models with nonparametric payoffs, as well as for commonly used parametric functions, and we obtain both positive and negative results. We show that access to extra data of asset resale prices (when applicable) can solve non-identifiability of both payoffs and counterfactuals. The theoretical findings are illustrated empirically in the context of agricultural land use. First, we provide identification results for models with unobserved market-level state variables. Then, using a unique spatial dataset of land use choices and land resale prices, we estimate the model and investigate two policy counterfactuals: long run land use elasticity (identified) and a fertilizer tax (not identified, affected dramatically by restrictions).
    Keywords: Identification, Dynamic Discrete Choice, Counterfactual, Land Use
    Date: 2015–08
  12. By: Shahida Mohd Sharif (Universiti Malaysia Sabah); Izyan Ayuni Mohamad Selamat (Universiti Malaysia Sabah); Siti Nurulhidayah Zakaria (Universiti Malaysia Sabah)
    Abstract: The Landscape Development Plan of the Faculty of Sustainable Agriculture (FSA) aims to adopt the sustainable design strategies and environmental stewardship which can initiate reconnection with nature as well as to improve the well-being of its community. A pilot study was conducted at the faculty’s farm administration building to evaluate the foundation towards the formulation of a landscape design featuring reconnection of the major systems of physical landscape; air, water and land. Application of sustainable landscape design strategies were pre-tested on the campus ground which include soil amelioration, rainwater harvesting and selection of drought-tolerant plants. The farm administration building was chosen as it is frequently visited by the faculty members and visitors. It reflects the faculty’s aim to demonstrate to the wider public the application of sustainable practices as well as to encourage collaborative monitoring and maintenance of the landscape. The envisioned design is in response to the opportunities and ideas to improvise functionality and aesthetic appeal of the site.
    Keywords: sustainable design strategies, reconnection with nature, physical landscape
    JEL: O29 Q01
  13. By: Singh, K.M.
    Abstract: During the past 60 years, the Indian extension system has evolved to reflect national priorities. At the same time, malnutrition and poverty continue to be persistent problems for the rural poor. The major issues before Indian extension system are: how to improve the effectiveness of extension systems? How to serve the small land holders and marginal farmers in diversified farming systems, and proper allocation of funds, human resources and its management? The World Bank funded Innovations in Technology Dissemination (ITD) component of National Agricultural Technology Project (NATP) focused on bottom-up planning process for technology assessment, refinement and dissemination in order to make the whole extension system demand-driven and farmer accountable. This has helped to strengthen research and extension capabilities, restructure public extension services and test new institutional arrangements for technology transfer with the involvement of all the stakeholders of Government and Non-Government agencies at the district level.
    Keywords: ATMA, Agricultural Extension,
    JEL: Q1 Q16 Q18
    Date: 2015–10–04
  14. By: Sahito, Jam Ghulam Murtaza
    Abstract: Understanding market integration in developing countries is an important issue in current research. This study is an attempt to analyze wheat market integration in Pakistan. Previous research on the subject has attempted at analyzing market integration in Pakistan's south and north Punjab regions, mainly relying on co-integration only and not considering advanced dynamic models and transaction costs to analyze the degree of integration. Therefore, this study is a first attempt to analyze the extent of market integration in the whole country using a dynamic model. Monthly wholesale price data of five regional markets from January 1988 to April 2011 are used for this study. Price series were tested for stationarity with the Augmented Dickey Fuller (ADF) test and it was found that all prices are integrated of order one, commonly written as I(1). Co-integration was also identified in all price series pairs using Johansen's co-integration test. The Vector Error Correction Model (VECM) was then applied to the data to analyze the extent of market integration. As a result, it was found that the adjustment to shocks or disequilibrium was higher for the Lahore and Rawalpindi markets as compared to the Hyderabad and Peshawar markets. It might be because of the high consumption, low production and developed infrastructure in these regions. Adjustment coefficients were significant for most of the market pairs. The Threshold Vector Error Correction Model (TVECM) with a band of non-adjustment was applied to incorporate transaction costs, without relying on observations for these costs, which were not available for the study. It was found that linear ECMs or VECMs provide misleading results as compared to TVECMs. Short-run adjustments in the TVECM model provide mixed results depending on regimes as well as markets. Strong adjustments were found in the upper regime, which shows that when price differences are above the second threshold markets tend to adjust significantly.
    Keywords: market integration,co-integration,wheat,commodity prices,error correction,thresholds
    JEL: C32 F15
    Date: 2015
  15. By: Kuzmin, Evgeny
    Abstract: A focus of the paper is a problem of "observability" regarding food security. Known scientific approaches to identification of a similar condition have not provided us with a grounded solution to refer to actual borders of security (or standards of mutual penetration). Their absence makes methodological capacities of modelling essentially disturbed. It is levelling of these contradictions that is an aim of this research. The authors put forward and give a scientific rationale for a hypothesis for fragmentary food security, an essence of which is come down to a research on certain agricultural commodity groups. In a critical review, features of security are specified. A theoretical development of authors’ provisions have resulted in formalization of a number of models built in terms of the dependence factor or inherent openness of the food system. These and other features have made it possible to offer a distinctive technique for an analytical interpretation of findings, including an assessment of risk for lost security condition in a food aspect of the issue.
    Keywords: food security, agriculture, security modelling.
    JEL: Q11 Q17 Q18
    Date: 2015–09
  16. By: Joram Mayshar; Omer Moav; Zvika Neeman; Luigi Pascal
    Abstract: We propose that the development of social hierarchy following the Neolithic Revolution was an outcome of the ability of the emergent elite to appropriate cereal crops from farmers and not a result of land productivity, as argued by conventional theory. We argue that cereals are easier to appropriate than roots and tubers, and that regional di¤erences in the suitability of land for di¤erent crops explain therefore di¤erences in the formation of hierarchy and states. A simple model illustrates our main theoretical argument. Our empirical investigation shows that land suitability for cereals relative to suitability for tubers explains the formation of hierarchical institutions and states, whereas land productivity does not.
    Keywords: geography, hierarchy, institutions, state capacity
    JEL: D02 D82 H10 O43
    Date: 2015–09
  17. By: Izyan Ayuni Mohamad Selamat (Universiti Malaysia Sabah); Shahida Mohd Sharif (Universiti Malaysia Sabah)
    Abstract: Faculty of Sustainable Agriculture (FSA) is gearing towards the ‘Eco Campus’ movement which is in line with the university focus to foster sustainable practices in the campus. The lack of landscape elements and facilities in the newly established campus has inspired a landscape development plan equipped with sustainable strategies initiatives for multifunctional uses. Located in the city of Sandakan, the campus was established in 2011 and currently undergoing intensive infrastructure development for teaching and learning purposes. The strategies correspond to the challenges faced by the campus in terms of its rough microclimate and the deterioration of soil condition which could severely affect future landscape implementation if meticulous planning is overlooked. The strategies acknowledge the importance of engaging the stakeholders of the campus; especially the students and staff to create a multifunctional, adaptive, and resilient landscape plan. This is important to encourage more outdoor spaces utilisation and social interaction among community members. The future landscape-related development projects are envisioned to implement the strategies to reflect Universiti Malaysia Sabah ‘EcoCampus’ aspiration.
    Keywords: sustainable practices, landscape development plan, universities, sustainable strategies
    JEL: Q01 O29
  18. By: Maxime Agbo (African School of Economics); Damien Rousselière (AGROCAMPUS OUEST [Le Rheu] - UR1 - Université de Rennes 1, Granem - Groupe de Recherche ANgevin en Economie et Management - UA - Université d'Angers - Agrocampus Ouest - Institut National de l'Horticulture et du Paysage); Julien Salanié (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - CNRS)
    Abstract: We build a theoretical model to study a market structure of a marketing cooperative with direct selling, in which many farmers are members of an agricultural marketing cooperative. They can sell their production either to the cooperative or on an oligopolistic local market. We show that the decision to sell to the cooperative induces an anti-competitive effect on the direct selling market. The cooperative facilitates collusion on the local market by making farmers softer competitors on that market. Conversely, direct selling may create a "healthy emulation" among farmers, leading to more production benefiting the cooperative.
    Keywords: competition,direct selling,local market,marketing cooperative
    Date: 2014
  19. By: Réquillart, Vincent; Soler, Louis-Georges; Zang, Yu
    Abstract: Up to now, most nutritional policies have been set up to inform consumers about the health benefits induced by more balanced diets. Reviews of the impacts of these policies show that the effects are often modest. This has led governments to implement, in more recent times, policies focused on the market environment, especially on the characteristics of the food supply. The goal of this paper is to deepen the analysis of firms' strategic reactions to nutritional policies targeting food quality improvements and to derive a set of optimal policies. To reach this goal, we propose a theoretical model of product differentiation taking into account both the taste and health characteristics of products, and use it to assess the health and welfare impacts of taxation and MQS-based policies. The model studies how a duopoly of mono-product firms reacts to three alternative policies: an MQS policy, linear taxation of the two goods on the market, and finally taxation of the low-quality good. We find that only the MQS policy and the linear excise tax on the low-quality product are welfare increasing. The choice, however, between the two depends on the priorities of the regulator. On the one hand, for a given moderate level of improvement in health, we show that social welfare increases more with the tax policy than the MQS policy. On the other hand, for a larger increase in the health status of the population, a MQS-based policy may be preferred. Moreover, the policies have distributional effects that must be taken into account, in particular for reasons related to their social acceptability. Finally we show that policies aiming at changing the food market environment allow getting greater health benefits and welfare than policies only based on information campaigns.
    Keywords: Taxation, MQS, Product differentiation, Strategic pricing, Nutritional policies
    JEL: I18 L13 Q18
    Date: 2015–09–03
  20. By: Dimitri Dubois; Mathieu Desole; Stefano Farolfi; Mabel Tidball; Annie Hofstetter
    Abstract: We introduce illustration identifying environmental degradation or improvement into a 2x2 coordination game with two pareto-ranked equilibria. Our contribution focuses on the environmental nature of the information provided through the illustrations, and its effects on possible pro-environmental behaviour. Our findings have some important consequences in terms of public policies. Incentives based on sensitization campaigns for environmental issues can be an alternative to economic instruments for environmental management.
    Date: 2015–10
  21. By: Ratchanee Mukhjang (Naresuan University)
    Abstract: A cooperative is one of the crucial mechanism for the development of many countries since they have strong ties to local communities including Thailand and China. There are a lot of research reports related to agricultural cooperatives in Thailand and China but there are very few studies focusing on a comparison of the agricultural cooperatives in China. The main objective of this paper is to study on a comparison of agricultural cooperatives in both Thailand and China by using the institutional perspective. It was shown that the agricultural cooperatives were the major financial sources for farmers. Furthermore, they paid a leading part in the provision of goods, services, products processing respectivelyThe new institutional economics perspective explained that institutional factors influenced organizational evolution while the historic path has been affected by the interaction between institutions and organizations. The major obstacles to achieving the goal of the cooperatives in Thailand are as follows 1) limitation of knowledge and understanding about the cooperative 2) lack of linkage for mutual cooperation 3) absence organization directly taking the role in harmonizing the information technology development system 4) inadequate role of the Cooperative League of Thailand. Currently, the agricultural cooperatives was challenging by changes in various external and internal environment. To be sustainable in that situation, they must adjust their structures and business activities. In China, the agricultural marketing cooperatives has expanded rapidly in the 1990s. Additionally, the Cooperative National law on farmer professional cooperatives 2007 enhanced the expansion of the enterprises. It is believed that it could tie many small farmers with traders, retailers, as well as commercial premises. As a result, the cooperatives may contribute to the market development . More interestingly, it could enrich the supply chain. Even though, the State support is very important in the establishment of cooperatives, China apply a different model to initiate a cooperative. Particularly, the newly established cooperative must employ at least one member with huge experience. For example, he or she could access to funding sources and has plenty of social capital. The significant recommendation of the study is to learn more about the alternative model of establishing agricultural cooperatives from China.
    Keywords: agricultural cooperatives, new institutional economics, alternative model
    JEL: A14
  22. By: Leppänen , Simo (BOFIT); Solanko, Laura (BOFIT); Kosonen, Riitta (BOFIT)
    Abstract: This paper explores the implications of climate change for government expenditures. Using a rich sub-national dataset for Russia covering 1995–2009, we estimate the impacts of changes in climatic conditions through short-term variation and medium-term changes in average regional temperatures and precipitation. We show a strong and robust negative (but non-linear) relation between regional budget expenditures and population-weighted temperature. The results indicate that an increase in temperature results in a decrease in public expenditures and that the magnitude of this effect diminishes the warmer the region. Further, our results suggest that the benefits from warming accumulate and that adaptation measures could help leverage those benefits. The estimated decreases in regional government expenditure are, however, quite small. It should be noted that our results are estimated for a scenario of mild temperature increase (1–2 °C). Larger temperature increases are likely to have dramatic consequences e.g. from loss of permafrost and methane release that are impossible to predict with available historical data.
    Keywords: climate change; public expenditures; adaptation; non-linearity; Russia
    JEL: C50 H72 P20 Q54 Q58 R59
    Date: 2015–09–22
  23. By: Zhu Liu; Steven J. Davis; Kuishuang Feng; Klaus Hubacek; Sai Liang; Anadon, Laura Diaz; Bin Chen; Liu, Jingru; Yan, Jinyue; Dabo Guan
  24. By: Ghazalian, Pascal L.
    Abstract: This paper examines the implications of the European Union (EU) regional trade preferences for processed food trade between Greece and its EU partners, and between Greece and non-EU countries. The empirical analysis relies on the gravity model, and uses different estimation techniques. The results show that the EU regional trade preferences led to substantial increases in processed food trade between Greece and its EU partners, emphasizing trade creation effects. The magnitudes of these increases are higher than the intra-EU average, and are more pronounced for Greece’s imports than for Greece’s exports. The results also indicate that the EU regional trade preferences brought about decreases in processed food trade between Greece and non-EU countries, implying trade diversion effects. The findings in this paper suggest that the Greek food processing industry would benefit from enhanced production, innovation, and market strategies to expand exports to the EU market and to counter import competition in the domestic market.
    Keywords: European Union, food processing, gravity model, Greece, regional trade agreement, trade creation, trade diversion
    JEL: F13 F14 F15
    Date: 2015–10–05

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