nep-agr New Economics Papers
on Agricultural Economics
Issue of 2015‒12‒20
twenty papers chosen by

  1. Climate change abatement and farm profitability analyses across agricultural environments By Dumbrell, Nikki P.; Kragt, Marit E.; Biggs, Jody; Meier, Elizabeth; Thorburn, Peter
  2. Global Agrifood Value Chains and Local Poverty Reduction: What Happens to Those Who Don’t Plug In? By Chang, Han-Hsin; Di Caprio, Alisa; Sahara, Sahara
  3. Farmers’ preferences for Fair Trade contracting in Benin By VLAEMINCK, Pieter; VRANKEN, Liesbet; VAN DEN BROECK, Goedele; VANDE VELDE, Katrien; RAYMAEKERS, Karen; MAERTENS, Miet
  4. Farmland Rental Values in GM Soybean Areas of Argentina: Do Contractual Arrangements Matter? By Johanna Choumert; Pascale Phelinas
  5. Overcoming urban-rural imbalances: the role of cooperatives and social enterprises By Andrea SALUSTRI; Michele MOSCA; Federica VIGANÒ
  6. The Impact of Extreme Weather Events on Education By Valeria Groppo; Kati Krähnert
  7. A Portrait of Diversity In Indonesian Traditional Cuisine By Situngkir, Hokky; Maulana, Ardian; M. Dahlan, Rolan
  8. Social protection through work in lower-income countries: an assessment framework By Rodolfo Beazley; Kirit Vaidya
  9. The road to Paris: Towards a fair and effective climate agreement? By Reif, Christiane; Schenker, Oliver
  10. Leaving Coal Unburned: Options for Demand-Side and Supply-Side Policies By Kim Collins; Roman Mendelevitch
  11. Overview and perspectives of protected natural areas in Romania By Antonescu, Daniela; Dumitrascu, Monica; Geacu, Sorin; Grigorescu, Ines
  12. Supplemental Nutrition Assistance Program (SNAP) in Brantley, Glynn and McIntosh Counties: Analyzing the 2007 Recession using Aggregate-level Data By Rhodes, M. Taylor
  13. Will precious metals shine ? A market efficiency perspective By Amélie Charles; Olivier Darné; Jae H. Kim
  14. The Ethanol Mandate and Corn Price Volatility (Payne Institute Policy Brief) By Peter Maniloff; Sul-Ki Lee
  15. Testing the effectiveness of enforcing industrial pollution regulations in Montevideo, Uruguay By Marcelo Caffera, Alejandro Lagomarsino
  16. Cantonal Convergence in Ecuador: A Spatial Econometric Perspective By Mendieta Muñoz, Rodrigo; Pontarollo, Nicola
  17. What is Sustainability of Farms? By Bachev, Hrabrin
  18. Social norms and information diffusion in water-saving programs: Evidence from a randomisedfield experiment in Colombia By Marcela Jaime Torres
  19. Will Low-Income Populations Love Spicy Foods More? Accounting for Tastes By Ma, Chao; Song, Ze; Sun, Xuhui; Zhao, Guangchuan
  20. Genetically Engineered Crops’ Authorizations in the US and the EU: a Struggle Against the Clock By Richard Danvers Smart; Matthias Blum; Justus Wesseler

  1. By: Dumbrell, Nikki P.; Kragt, Marit E.; Biggs, Jody; Meier, Elizabeth; Thorburn, Peter
    Abstract: Management practices that reduce greenhouse gas emissions from farms or increase on-farm carbon storage can contribute to climate change mitigation. Farmers, however, are only likely to adopt new management practices if they contribute to farm profitability. We use the Agricultural Production Systems sIMulator (APSIM) to simulate how different cropping practices contribute to greenhouse gas abatement at case study farms in different grain growing regions across Australia. The APSIM simulations were subsequently used to calculate farm gross margins and conduct whole-farm economic modelling to estimate the costs of abatement under different management practices. Integrating detailed biophysical and economic analyses enables us to demonstrate the difference in potential to reduce greenhouse gas emissions across agricultural environments. We show this for two case study farms in different grain growing regions, where we found both positive and negative relationships between greenhouse gas abatement and profitability for the management practices. This diversity in potential to reduce greenhouse gas emissions across agricultural environments must be recognised in order to understand the role agriculture can play in climate change mitigation, and understand the implications of any potential future changes to include the industry in carbon pricing policies.
    Keywords: Whole-farm economics, APSIM, nitrous oxide, carbon sequestration, climate change mitigation, grain farms, Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Q12, Q54,
    Date: 2015–11–20
  2. By: Chang, Han-Hsin (Consultant at the former Office of Regional Economic Integration, ADB); Di Caprio, Alisa (Asian Development Bank); Sahara, Sahara (Bogor Agricultural University)
    Abstract: Structural changes in the global agrifood value chain have transformed food production in developing countries including Indonesia. One element of this is the spread of supermarket retailing. By increasing the demand for and returns to higher quality produce, this development has the potential to improve living standards in a sector where poverty has been persistent. Many studies have shown the magnitude of price premiums available to farmers who sell to supermarkets. However, little attention has been paid to how the introduction of a supermarket retailer affects those farmers who continue to sell to traditional market channels. Our data suggests that in regions where there are both modern and traditional buyers, competition effects result in the immiserization of farmers who continue to sell to traditional markets. This result underlines the fact that while sectorial transformation has desirable poverty reduction potential, actual impacts are lumpy. The distribution of farmer participation in a region may result in a case where the upgrading of agrifood supply chains can increase poverty in the absence of policy interventions.
    Keywords: agrifood value chain; Indonesia; quality price premium; small farmers; supermarket
    JEL: O13 Q13
    Date: 2015–09–29
  3. By: VLAEMINCK, Pieter; VRANKEN, Liesbet; VAN DEN BROECK, Goedele; VANDE VELDE, Katrien; RAYMAEKERS, Karen; MAERTENS, Miet
    Abstract: Private standards – such as Fair Trade (FT) – have emerged as a response to consumer, civil society and corporate concern about the conditions under which imported food is produced. A large empirical literature exists on the welfare implications of smallholder participation in FT schemes and on consumers’ willingness to pay for ethical products. However, the question whether smallholder farmers prefer to produce under FT has never been studied. Understanding smallholders’ preferences is crucial in light of the main critiques on FT namely that the poorest smallholders are often excluded and that FT is too supply-driven. Using a choice experiment, we investigate preferences of rice smallholders for (organic) FT in Benin and compare the value of three contracts (domestic contract, FT, organic FT). We find that farmers prefer domestic contracts over FT contracts. They prefer contracts with fewer requirements but contract benefits can outweigh the costs related to these requirements in the case of FT contracts. This does not hold for FT contracts with organic standards. Our results imply that adding organic requirements to FT contracts may undermine the adoption and spread of FT certification and limit the expansion of FT production and trade.
    Keywords: Global value chains, Private standards, Contract-farming, Rice, Organic, Ethical certification, Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Development, Q01, Q13, Q17, Q18, Q56,
    Date: 2015–11
  4. By: Johanna Choumert (EDI - Economic Development Initiatives - EDI); Pascale Phelinas (CERDI - CERDI - Univ Clermont Ferrand)
    Abstract: We study the determinants of rental prices of farmland in the Argentinean Pampas. In particular, we examine the value of lease contract characteristics within a hedonic price framework, while controlling for other potential sources of variation. Using first-hand data for 255 parcels, our results indicate that both short-term contracts and contracts with sowing pools push rental prices upwards. We also find that soybean yields have a significant impact on land rental rates. These results suggest that if Argentina intends to protect the enormous natural advantage it has for agricultural production, it should consider strictly regulating land rental contracts.
    Keywords: Argentina,Hedonic price,Lease,Contracts,Soybean
    Date: 2015–12–03
  5. By: Andrea SALUSTRI (Fondazione Economia-Università Tor Vergata, Roma, Italy); Michele MOSCA (Università Federico II Napoli, Napoli, Italy); Federica VIGANÒ (Libera Università di Bolzano - Free University Bozen - Freie Universität Bozen, Brixen-Bressanone, Italy)
    Abstract: The paper introduces a theoretical model to show how in a spatial framework characterized by urban-rural imbalances, the production of goods and services decreases moving from urban to rural areas. Specifically in rural and peripheral areas, the market and the public sector might supply an insufficient level of goods and services due to higher distance costs and lack of financial resources. Cooperatives and nonprofit organizations, i.e. social enterprises, are able to overcome distance costs and therefore spatial inequalities, by developing a productive and distributive function in marginalized areas, ensuring a fair and equal treatment among residents. Moreover, cooperatives and nonprofit organizations endorse the inclusiveness of the labor market, and raise peoples’ intrinsic motivation.
    Keywords: cooperative economics; nonprofit institutions and social enterprises;urban-rural development; size and spatial distributions of regional economic activity
    JEL: J54 R11 R12
    Date: 2015–12
  6. By: Valeria Groppo; Kati Krähnert
    Abstract: This paper analyzes the short- and long-term impact of extreme weather events on educational outcomes in Mongolia. Our focus is on two extremely severe winters that caused mass livestock mortality. We use household panel data with comprehensive retrospective information on households’ historic experience with weather shocks. Exposure to the weather shock significantly reduces the likelihood of being enrolled in mandatory school two to three years after the shock. Similarly, it significantly reduces the probability of completing basic education ten to eleven years after the shock. Both effects are driven by children from herding households. Results are robust to measuring shock intensity with district-level livestock mortality and climate data as well as household-level livestock losses. Exposure to weather shocks during preschool age (as opposed to exposure during primary and secondary school age) yields the worst consequences for educational attainment. Overall, the evidence points toward income effects as the channel through which the shock impacts education.
    Keywords: human capital accumulation, weather shocks, Mongolia
    JEL: I25 Q54 O12
    Date: 2015
  7. By: Situngkir, Hokky; Maulana, Ardian; M. Dahlan, Rolan
    Abstract: The archipelagic geography and demography of Indonesian people due to the way people serve food and drinks on the table is analyzed. Statistically some properties about the food recipes are observed, while the analysis is followed by the methodology to see the clustering of the food and beverage due to their ingredients. The global mapping of all the food yields four classes of the food that is related to the way people conventionally prepare the cuisines, whether the recipes are on vegetables, fish and seafood, chicken and poultry, and meats. It is obvious that ingredient wise, the diversity of the food is emerged from traditional ways adding spices and herbs. For more insights, the analysis for food dressings and traditional drinks are also delivered. While the mappings exhibit the classes of food and beverages based on the purposes and styles of the service in the cuisines, some signatures of regional localities are also detected.
    Keywords: food, culinary, diversities, clustered map, memetics, phylomemetic tree, hierarchical clustered tree
    JEL: C1 C6 C63 C8 C88 I0 I39 Q0 Q01 Q18 Q57 Y1 Z1
    Date: 2015–11–10
  8. By: Rodolfo Beazley (IPC-IG); Kirit Vaidya (IPC-IG)
    Abstract: "Extending social protection to the rural population in lower-income countries is a global priority, with both workfare and welfare playing significant roles. Workfare makes transfers to beneficiaries subject to their meeting work requirements, whereas welfare programmes do so unconditionally or subject to conditions not related to labour. Although workfare schemes are more costly, they are often put forward as a favoured option for supporting the rural working poor, as they can supposedly." (?)
    Keywords: social protection, lower-income countries, assessment framework
    Date: 2015–12
  9. By: Reif, Christiane; Schenker, Oliver
    Abstract: The research conducted at the Research Department "Environmental and Resource Economics, Environmental Management" at ZEW provides a better understanding of environmental policy instruments, national sensitivities, and strategies for overcoming the impediments to global climate policy. The findings of this research can be subsumed by the following key messages: Even in situations of uncertainty, early and credible commitments like "intended nationally determined contributions" (INDCs) serve as important signals for future climate cooperation (Dannenberg et al. 2015). Given that situations and needs vary among countries, discussions on minimum participation rules can be expected to remain controversial among key players (Kesternich forthcoming). Coordinated emission reductions through the linking of different emission trading systems reduce the price tag of global climate policy goals (Hübler et al. 2014). Funding from industrialised countries for adaptation measures in developing countries - a potentially important part of a fair and effective global climate agreement - can be driven by the funders' own self-interest and motivated by international trade (Schenker and Stephan 2014).
    Date: 2015
  10. By: Kim Collins; Roman Mendelevitch
    Abstract: Climate policy consistent with the 2°C target needs to install mechanisms that leave most current coal reserves unburned. Demand-side policies have been argued to be prone to adverse carbon leakage and “green paradox” effects. A growing strain of literature argues in favor of supply-side policies in order to curb future coal consumption. Various concepts with analogies in other sectors are currently discussed. Future empirical research on both demand- and supply-side policy is vital to be able to design efficient and effective policy instruments for climate change mitigation.
    Date: 2015
  11. By: Antonescu, Daniela; Dumitrascu, Monica; Geacu, Sorin; Grigorescu, Ines
    Abstract: Under the global environmental changes, the impacts of human-induced activities on habitats and ecosystems have become increasingly high, thus the role of protected areas in conserving biodiversity becomes critical. As a result, protected areas are exposed to a variety of pressures (e.g. biodiversity loss, habitat fragmentation, deforestation, pollution, overexploitation of natural resources, land use/land cover changes) posing major threats to ecosystems and their services. Currently, protected natural areas in Romania cover 1,798,782 hectares (7.55% of the national territory). An increased surface of protected areas was a priority of Romania’s following the accession to the European Union (2007), thus having to reach a 17% protected surface of the national territory (from 7% as it had previously been before EU accession) by means of other important conservative tools, such as “Natura 2000” European Network. The current study is aiming to provide a general overview on the natural protected areas in Romania, identify and assess the main strengths, weaknesses, opportunities and threats (SWOT analysis) and, ultimately propose a strategic vision, for the next twenty years, based on key scenarios in relation to the measures and management guidelines assumed under the EU and national environmental policies. The research was undertaken in the framework of the project entitled: “Natural resources - strategic reserves, what we use and what we leave to future generations” supported by the Romanian Academy.
    Keywords: regional development, protected area, sustenable development
    JEL: Q0 Q2 Q20 Q28 R1 R11
    Date: 2015–12–10
  12. By: Rhodes, M. Taylor (College of Coastal Georgia, Reg Murphy Center for Economic and Policy Studies)
    Abstract: Using publicly available aggregate-level data from 1997 to 2010, this report examines SNAP expenditures and participation rates for the US, the state of Georgia and the three counties within the Brunswick, Georgia Metropolitan Statistical Area (MSA)-Brantley, Glynn and McIntosh. The purpose is two-fold: to investigate the impact of the 2007 recession on SNAP participation and to analyze longer-termed trends in SNAP participation with an emphasis on notable cross-regional comparisons.
    Keywords: Georgia county-level SNAP participation; recessions
    JEL: H53 H75 I38
    Date: 2015–10–14
  13. By: Amélie Charles (Audencia Recherche - Audencia); Olivier Darné (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes); Jae H. Kim (School of Economics and Finance - School of Economics and Finance)
    Abstract: Precious metals (gold, silver, and platinum) have become an important part of investment portfolios for individuals as well as for institutions. This paper examines the weak-form efficiency of precious metal markets, using the automatic portmanteau and variance ratio tests. It is found that return predictability of these markets has been changing over time, depending on the prevailing economic and political conditions. The return predictability of gold and silver markets has been showing downward trends, implying that the degree of the weak-form efficiency of these markets has been gradually improving. In particular, the gold market has been highly efficient recently, showing the highest degree of market efficiency among the three precious metal markets.
    Date: 2015–12
  14. By: Peter Maniloff (Division of Economics and Business, Colorado School of Mines); Sul-Ki Lee (Division of Economics and Business, Colorado School of Mines)
    Keywords: Ethanol, biofuels, food price shocks, food security
    Date: 2015–12
  15. By: Marcelo Caffera, Alejandro Lagomarsino (Facultad de Ciencias Empresariales y Economía, Universidad de Montevideo)
    Abstract: This paper fills a gap in the literature by providing empirical estimates of the effect that enforcement actions by municipal and national authorities have on the level of both reported and actual emissions (as measured by sampling inspections) of industrial plants. In a regulatory framework where non-complying is ubiquitous and most violations are not followed by a sanction, we provide evidence consistent with under-reporting of BOD discharges by industrial plants. Previous empirical analyses on environmental enforcement either did not deal with this question or were not able to find such evidence.
    Date: 2014
  16. By: Mendieta Muñoz, Rodrigo; Pontarollo, Nicola
    Abstract: The paper analyses the convergence process of Ecuadorian cantons during the period 2007-2012 accounting for the role of spatial spillovers through spatial econometric tool. The advantage of this technique is to provide a reliable estimation because it takes into account the spatial interaction in the territory. In addition, it allows identifying clusters of cantons characterised by similar spatial patterns that can be interpreted as convergence clubs because they represent areas with similar initial conditions in the “basin of attraction” that, according to economic theory, converge to a common steady state equilibrium. The results highlight that a convergence process is present, but it involves the cluster of most developed cantons. This opens various policy implications related to i) the capacity of cantons to take advantage from the positive dynamics of neighbours, ii) the persistence of development in some circumscribed areas, and iii) the spatial unbalanced development.
    Keywords: Subnational convergence, Spatial Econometrics, Convergence Clubs.
    JEL: C21 O47 R11
    Date: 2015–12–16
  17. By: Bachev, Hrabrin
    Abstract: This paper attempts to give answer to some important questions, on which there is no agreement among researchers, namely: „what is farm sustainability?“, „what is the relation between farm and agrarian sustainability?“, “which are critical factors of farms sustainability?”, and „how to assess farms sustainability level“. First, evolution of the “concept” of farm sustainability as alternative ideology, new strategy, system characteristics etc. is analyzed and discussed. On that base is suggested adequate definition of farm sustainability as ability of a particular farm to maintain its governance, economic, social and ecological functions in a long term. The final goal is better define farm sustainability and develop an efficient framework for assessing sustainability level of different type of farms.
    Keywords: farm sustainability, governance, economic, social, ecological aspects, framework for assessment
    JEL: Q12 Q18 Q2 Q3 Q5
    Date: 2015–12
  18. By: Marcela Jaime Torres (University of Gothenburg – University of Concepcion)
    Abstract: This paper investigates the effects of an information campaign aimed at encouraging residential water-savings in Colombia. The experiment was organized as a randomised control trial, consisting of monthly delivery of consumption reports including normative messages during one year. We first evaluate the direct and indirect effects of the campaign, and then we investigate whether indirect effects are due to social networks. Results indicate that social information and appeal to norm-based behaviour has decreased water use by 5.4% during the first year following the intervention. We also find significant but short-term evidence of spillover effects. Nevertheless, these effects cannot be explained by social networks alone when social connectedness is proxied by both social and geographic proximity.
    Date: 2014
  19. By: Ma, Chao; Song, Ze; Sun, Xuhui; Zhao, Guangchuan
    Abstract: Based on the Theory of Rational Addiction (TORA), this paper identifies the correlation between income and the preference for spicy foods by analysing the China Health and Nutrition Survey (CHNS) data. The results show that compare with high-income residents of same area, the low-income residents prefer to spicy foods in China. The regression results of IV and Lewbel IV all support it. According to the result, the channel of health behaviours and health awareness are possible causal channels for the negative correlation between income and the preference for spicy foods, rather than health capital stock and food selection.
    Keywords: Spicy taste; Income; Rational addiction
    JEL: D12 I10 I31
    Date: 2015–12–15
  20. By: Richard Danvers Smart; Matthias Blum; Justus Wesseler
    Abstract: The regulation of genetically engineered crops is important for society: ensuring their safety for humans and the environment. Their authorization starts with a scientific step and ends with a political step. Trends in the time taken for their authorization in the European Union are that they are decreasing, but in the United States there is a break in the overall trend: initially it decreased until 1998 after which it increased.
    Keywords: Regulation, Agriculture, Agricultural economics, Innovations, GMO, Biotechnology
    JEL: Q16 Q18 N22 N24 N42 N44
    Date: 2014

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