nep-agr New Economics Papers
on Agricultural Economics
Issue of 2016‒02‒12
thirteen papers chosen by

  1. Climate variability and agricultural production in Argentina: the role of risk-transfer mechanisms By Marcos Gallacher; Daniel Lema; Alejandro Galetto; Laura Gastaldi
  2. Working Paper 231 - Gender productivity differentials among smallholder farmers in Africa: A cross-country comparison By Adeleke Oluwole Salami; Mukasa Adamon N.
  3. Precision requirements in pesticide risk assessments: Contrasting value-of-information recommendations with the regulatory practice in the EU By Goeschl, Timo; Heyen, Daniel
  4. After 200 years, why is Indonesia’s cadastral system still incomplete? By Pierre van der Eng
  5. Climate, Shocks, Weather and Maize Intensification Decisions in Rural Kenya By Martina Bozzola; Melinda Smale; Salvatore Di Falco
  6. Public-Private Partnerships for Agricultural Innovation: Lessons From Recent Experiences By Catherine Moreddu
  7. “Erst Kommt das Fressenâ€: The Neoliberal Restructuring of Agriculture and Food in Greece By Charalampos Konstantinidis
  8. Waiting or acting now? The effects on willingness-to-pay of delivering inherent uncertainty information in choice experiments By Cati Torres; Michela Faccioli; Antoni Riera
  9. Addressing Contextual and Location Biases in the Assessment of Protected Areas Effectiveness on Deforestation in the Brazilian Amazônia By Eric Nazindigouba Kere; Johanna Choumert; Pascale Combes Motel; Jean-Louis Combes; Olivier Santoni; Sonia Schwartz
  10. Managing food price volatility in a large open country : the case of wheat in India By Gouel,Christophe; Gautam,Madhur; Martin,William J.
  11. Global Supply Chains and Trade Policy By Blanchard, Emily; Bown, Chad P.; Johnson, Robert
  12. Impact Evaluation of Burkina Faso's BRIGHT Program: Design Report By Harounan Kazianga; Leigh Linden; Ali Protik; Matt Sloan
  13. Measuring Willingness to Pay for Environmental Attributes in Seafood By Villas-Boas, Sofia B; Hilger, James; Stevens, Andrew; Hallstein, Eric

  1. By: Marcos Gallacher; Daniel Lema; Alejandro Galetto; Laura Gastaldi
    Abstract: Research related to climate variability is particularly important in the current conditions faced by Argentine agriculture. These include (a) increased specialization in soybeans, with resulting reduced possibilities of risk-reduction though “portfolio” effects, (b) increased importance of agriculture in “non-traditional” areas, generally characterized by lower yields, higher yield variability and higher production and transport costs, (c) macroeconomic instability resulting in severe contraction and increased interest rates of credit and (d) upward trend in input use and per-acre production costs with consequent increase in break-even crop yields. This paper summarize recent research related to production variability in Argentine agriculture, as well as the consequences of this variability on efficiency and resource allocation and present an overview of strategies for coping with climate variability. We estimate possible benefits to agricultural producers of improved risk-transfer mechanisms. In particular, we obtain estimates of Willingness-to-Pay (WTP) of selected index-type insurance mechanisms for soybean and milk production and outline the requirements for the development of a risk-transfer market for agricultural producers.
    Date: 2015–12
  2. By: Adeleke Oluwole Salami (African Development Bank); Mukasa Adamon N. (African Development Bank)
    Abstract: This article investigates gender inequality in agricultural productivity, highlights its key determinants, and approximates the potential production, consumption, and poverty gains from reducing or closing the gender productivity gap. The analysis is performed on the basis of representative household survey datasets recently collected in Nigeria, Tanzania, and Uganda. In these countries, agriculture remains the mainstay of the economy and understanding the extent and sources of gender productivity gaps is crucial for building policy interventions and empowering women. Our econometric approach consists initially in estimating a model of agricultural productivity to uncover the impact of gender of the land manager. Then, mean and quantile-based decomposition approaches are applied to each country separately to underscore the sources of gender differences in agriculture. Using the estimated productivity differentials, we finally measure the potential benefits that each country could obtain from closing or gradually reducing these gaps.The results reveal that female-managed plots have clear endowment disadvantages in farm size, use and intensity of non-labor inputs. The findings show that on average female-managed agricultural lands are 18.6, 27.4, and 30.6% less productive than their male counterparts in Nigeria, Tanzania, and Uganda, respectively. The decomposition of the sources of gender productivity differences indicates that in the three countries, endowment and structural disadvantages of female managers in land size, land quality, labor inputs, and household characteristics are the main drivers of gender gaps. Finally, closing gender productivity differentials is estimated to yield production gains of 2.8% in Nigeria, 8.1% in Tanzania, and 10.3% in Uganda; to raise monthly consumption by 2.9%, 1.4%, and 10.7% in Nigeria, Tanzania, and Uganda; and to help around 1.2%, 4.9%, and 13% households with female-managed lands climb out of poverty in Nigeria, Tanzania, and Uganda, respectively.
    Date: 2016–01–29
  3. By: Goeschl, Timo; Heyen, Daniel
    Abstract: Pesticides, while rendering immense agricultural benefits, potentially entail risks to human health and the environment. To limit these risks, market approval of a pesticide is typically conditional on an extensive risk assessment demonstrating its safety. The associated testing procedures, often involving significant numbers of animals, however are not only costly; as has become apparent from recent discussions about the active substance glyphosate, testing is often incapable of providing definitive answers on concerns like human carcinogenicity. An important regulatory task, whether explicitly acknowledged or not, is hence to decide what level of remaining uncertainty is deemed acceptable in making the final market approval decision. Economic principles suggest a value-of-information (VoI) approach for this informational task. After presenting the basics of the VoI framework, this paper analyzes the actual regulatory practice in the EU's pesticide approval process, pointing out the defaults and substance-specific procedures that shape the precision of the European Food Safety Authority's (EFSA) risk assessment and hence the level of knowledge under which the European Commission decides on the approval of substances. The comparison between theory and practice uncovers substantial deviations, providing valuable insights for restructuring the risk assessment guidelines.
    Keywords: risk assessment; pesticide; regulation; value-of-information; animal testing; uncertainty; active learning.
    Date: 2016–02–04
  4. By: Pierre van der Eng
    Abstract: This paper discusses Indonesia’s experience with establishing a uniform cadastral system in rural areas since the idea was first mooted in the early 19th century. Until 1961, a formal cadastre that identified, measured, registered and certified land titles existed only in urban areas. A cadastre for rural land did not start until after the 1960 Agrarian Law. Until then, the village-based land tax registers acted as a substitute cadastral register in areas subject to land tax. In the 19th century, this system was imperfect and calls to resolve issues of inequity in tax assessment led to improvements, especially since 1907. A proper rural cadastre was not introduced during the colonial era, because of the high cost involved, and because its certification of individual land rights would have clashed with customary regulations, including notions of communal land tenure. The introduction of a rural cadastre after 1960 was piecemeal, and the use of property tax registration as a substitute cadastre has continued. By 1992 cadastre registrations covered just 20% of land plots, mostly in urban areas. A World Bank-sponsored project helped to increased coverage since 1994 to 32% in 2013. Greater coverage was delayed by the rapid increase in newly opened up agricultural areas, the cost of land title certificates, the difficulties of reconciling individual land ownership with customary regulations, and also the continued use of property tax registers as a substitute cadastre.
    Keywords: land tax, land tenure, land rights, land registration, cadastre, Indonesia
    JEL: N55 Q15 R52
    Date: 2016–02
  5. By: Martina Bozzola; Melinda Smale; Salvatore Di Falco
    Abstract: We explore how climate, climate risk and weather affect maize intensification among smallholders in Kenya. We find that they all play an important role in maize intensification choice. The economic implications of this choice are also analyzed. We find that the share of maize area planted to hybrid seeds contributes positively to expected crop income, without increasing exposure to income variability or downside risk. The promotion of maize intensification is potentially a valuable adaptation strategy to support the well-being of smallholder farmers.
    Keywords: Climate Change, Maize, Smallholder farmer, Vulnerability, Kenya.
    JEL: D81 O13 Q12 Q18
    Date: 2016–01–08
  6. By: Catherine Moreddu
    Abstract: Public-Private Partnerships (PPPs) are increasingly used in agricultural innovation to leverage public funds, enhance efficiency, and improve the adaptation of innovation to demand so as to foster wider and faster diffusion. For governments, PPPs for innovation are but one policy option, whose costs and benefits need to be compared with those of other options. Governments have put in place a policy and regulatory environment to facilitate the development of PPPs for innovation, including financing mechanisms and Intellectual Property (IP) protection. Most programmes are not specific to the food and agriculture system, but apply to the economy-wide innovation system. The main a priori conditions for forming a successful partnership between public and private participants are existence of common objectives, sharing of mutual benefits, and complementarity of human and financial resources. Institutional arrangements need to be clear, but the degree of formality can vary. Elements of good governance include setting clear objectives and rules, and implementing regular monitoring and evaluation that use well-established, open and competitive processes to select PPPs for public participation. Transparency is desirable at all stages of implementation. Improving partners’ capacity to design, manage and participate in PPPs is an important factor of success, and is particularly relevant for agricultural innovation.
    Keywords: governance, agricultural innovation, research funding, public-private partnerships
    JEL: O31 O38 Q16
    Date: 2016–01–28
  7. By: Charalampos Konstantinidis
    Abstract: While public debt has become the focal point of discussions of the Greek crisis, the Greek crisis has been used as an opportunity to extend a series of neoliberal reforms. I examine the agricultural and food sector of Greece since 1981 and I show how Greece’s integration into the European market, following Greece’s entry in the European Economic Community led to (a) the dismantling of agricultural and food production in Greece and (b) the increased power of intermediate actors in the Greek food system. I argue that a series of grassroots responses, including solidarity initiatives and direct consumer-farmer interactions, offer insight into a strategy of food sovereignty to help rebuild productive capacity in agriculture and address food insecurity. However, the three structural adjustment programs implemented in Greece after 2010 undermined these responses, by furthering the liberalization of Greek agriculture and the centralization of the food sector. Finally I argue that recent lender intervention into governance, and particularly lender veto-power over all proposed legislation introduced by the third Structural Adjustment Program of 2015, poses additional challenges for strategies aiming at food sovereignty.
    Keywords: food, agriculture, Greece, political economy, European Union, neoliberalism
    JEL: B5 O52 Q18
    Date: 2016–02
  8. By: Cati Torres (Universitat de les Illes Balears); Michela Faccioli (Universitat de les Illes Balears); Antoni Riera (Universitat de les Illes Balears)
    Abstract: With a focus on expected climate change (CC) risks, this paper analyzes the effects of inherent uncertainty on the willingness-to-pay for a preservation policy. To do this, it relates outcome uncertainty to the probability of occurrence of an expected CC impact within a given time horizon. Thus, unlike the existing studies, this paper links outcome uncertainty to the uncontrollable component of environmental uncertainty derived from the stochastic nature of ecosystems’ behavior. Results show the support for the preservation policy is stronger in the presence of inherent uncertainty, this indicating risk aversion. In contrast, findings are not conclusive with respect to individuals’ sensitivity to the probability of impact occurrence. These results are policy relevant since they can serve to stimulate rather than discourage environmental action when it comes to contexts characterized by many uncertainties.
    Keywords: preference analysis, inherent uncertainty, choice experiment, adaptation, climate change.
    JEL: D6 D81 Q51 Q54
    Date: 2015
  9. By: Eric Nazindigouba Kere (CERDI - Centre d'études et de recherches sur le developpement international - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique); Johanna Choumert (CERDI - Centre d'études et de recherches sur le developpement international - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique); Pascale Combes Motel (CERDI - Centre d'études et de recherches sur le developpement international - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique); Jean-Louis Combes (CERDI - Centre d'études et de recherches sur le developpement international - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique); Olivier Santoni (CERDI [CERDI] - Centre d'études et de recherches sur le développement international - CNRS [CNRS]); Sonia Schwartz (CERDI - Centre d'études et de recherches sur le developpement international - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Using a remotely sensed pixel data set, we develop a multilevel model and propensity score weighting with multilevel data to assess the impact of protected areas on deforestation in the Brazilian Amazon. These techniques allow taking into account location bias, contextual bias and the dependence of spatial units. The results suggest that protected areas have slowed down deforestation between 2005 and 2009, whatever the type of governance. The results also evidence that protected and unprotected areas do not share the same location characteristics. In addition, the effectiveness of protected areas differs according to socioeconomic and environmental variables measured at municipal level.
    Keywords: Brazilian Legal Amazon,Protected areas,deforestation,Impact analysis.
    Date: 2016–01–15
  10. By: Gouel,Christophe; Gautam,Madhur; Martin,William J.
    Abstract: India has pursued an active food security policy for many years, using a combination of trade policy interventions, public distribution of food staples, and assistance to farmers through minimum support prices defended by public stocks. This policy has been quite successful in stabilizing staple food prices, but at a high cost, and with potential risks of unmanageable stock accumulation. Based on a rational expectations storage model representing the Indian wheat market and its relation to the rest of the world, this paper analyzes the cost and welfare implications of this policy and unpacks the contribution of its different elements. To analyze alternative policies, social welfare is assumed to include an objective of price stabilization and optimal policies corresponding to this objective are assessed. Considering fully optimal policies under commitment as well as optimal simple rules, it is shown that adopting simple rules can achieve most of the gains from fully optimal policies, with both potentially allowing for lower stockholding levels and costs.
    Keywords: Debt Markets,Access to Markets,Economic Theory&Research,Emerging Markets,Markets and Market Access
    Date: 2016–02–02
  11. By: Blanchard, Emily; Bown, Chad P.; Johnson, Robert
    Abstract: How do global supply chain linkages modify countries' incentives to impose import protection? Are these linkages empirically important determinants of trade policy? To address these questions, we introduce supply chain linkages into a workhorse terms-of-trade model of trade policy with political economy. Theory predicts that discretionary final goods tariffs will be decreasing in the domestic content of foreign-produced final goods. Provided foreign political interests are not too strong, final goods tariffs will also be decreasing in the foreign content of domestically-produced final goods. We test these predictions using newly assembled data on bilateral applied tariffs, temporary trade barriers, and value-added contents for 14 major economies over the 1995-2009 period. We find strong support for the empirical predictions of the model. Our results imply that global supply chains matter for trade policy, both in principle and in practice.
    Keywords: GSP; preferences; supply chains; tariffs; temporary trade barriers; trade agreements; value added
    JEL: F13
    Date: 2016–01
  12. By: Harounan Kazianga; Leigh Linden; Ali Protik; Matt Sloan
    Keywords: BRIGHT, Burkina Faso, International, Design Report
    JEL: F Z
    Date: 2015–11–24
  13. By: Villas-Boas, Sofia B; Hilger, James; Stevens, Andrew; Hallstein, Eric
    Keywords: Social and Behavioral Sciences
    Date: 2016–02–08

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.