nep-agr New Economics Papers
on Agricultural Economics
Issue of 2016‒03‒06
37 papers chosen by

  1. Let it rain: Weather extremes and household welfare in rural Kenya By Wineman, A.; Ochieng, J.; Mason, N.; Kirimi, L.
  2. Trading Forests: Quantifying the Contribution of Global Commodity Markets to Emissions from Tropical Deforestation - Working Paper 384 By Martin Persson, Sabine Henders, and Thomas Kastner
  3. Analysis of the Marketing Behaviour of African Indigenous Leafy Vegetables among Smallholder Farmers in Nyamira County, Kenya. By Momanyi, Denis; Lagat, Prof. Job K.; Ayuya, Dr. Oscar I.
  4. Developments in the European market of organic agricultural products By Alecu, Ioan-Niculae; Angelescu, Anda Irina; Marcuta, Alina; Angelescu, Carmen
  5. The necessity of drawing up the annual production plan and the importance of establishment crop structure for next agricultural year By Surca, Daniela - Elena
  6. Using household types for improving livelihood strategies of smallholders: coffee and cocoa producers in the Northern Amazon of Ecuador By Oswaldo Viteri Salazar; Jesus Ramos-Martin; Pedro L. Lomas
  7. The Climate Challenge for Agriculture and the Value of Climate Services: Application to Coffee-Farming in Peru By Filippo Lechthaler; Alexandra Vinogradova
  8. Farmer Participation, Entry and Exit decisions in the Italian Crop Insurance Program By Santeramo, Fabio Gaetano; Adinolfi, Felice; Capitanio, Fabian; Goodwin, Barry K.
  9. Land Productivity and Economic Development: Caloric Suitability vs. Agricultural Suitability By Oded Galor; Ömer Özak
  10. Monitoring grass nutrients and biomass as indicators of rangeland quality and quantity using random forest modelling and WorldView-2 data By Abel A. Ramoelo; Mosesazong M.A. Cho; Renaud R. Mathieu; S. S. Madonsela; Ruben Van De Kerchove; Zaneta Kaszta; Eléonore Wolff
  11. Impacts of policies to implement the EU Water Framework Directive on development strategies and income of typical pig farms in an intensively farmed region of Germany By Garbert, Johanna; Holm-Mueller, Karin
  12. Ecosystem Services from Tropical Forests: Review of Current Science - Working Paper 380 By Katrina Brandon
  13. Romanian agri-food trade with the new member states (NMS-13) of the EU - a comparative analysis By Gavrilescu, Camelia
  14. Land Transport Systems under Climate Change: A Macroeconomic Assessment of Adaptation Measures for the Case of Austria By Gabriel Bachner
  15. The future of the Romanian rural household from the perspective of agricultural censuses By Bohateret, Valentin - Mihai; Bruma, Ioan Sebastian
  16. Support policies for agri-food export promotion in the Republic of Moldova By Stratan, Alexandru; Ignat, Anatolie; Moroz, Victor
  17. The Politics of German Finance for REDD+ - Working Paper 390 By Till Pistorius and Laura Kiff
  18. Communicating Sensory Attributes and Innovation Through Food Product Labeling By Caroline Lancelot Miltgen; Gaelle Pantin-Sohier; Bianca Grohmann
  19. Is Seasonal Hunger a Distant Memory in Bangladesh? Revisiting Earlier Evidences By Khandker, Shahidur R; Samad, Hussain A
  20. The economic effects of long-term climate change: evidence from the little ice age By Maria Waldinger
  21. Carbon emission and social capital in Sweden By Marbuah, George; Gren, Ing-Marie
  22. Informational Rigidities and the Stickiness of Temporary Sales By Malin, Benjamin A.; Anderson, Eric; Nakamura, Emi; Simester, Duncan; Steinsson, Jon
  23. Seven reasons to use carbon pricing in climate policy By Andrea Baranzini; Jeroen van den Bergh; Stefano Carattini; Richard Howarth; Emilio Padilla; Jordi Roca
  24. The INDC counter, aggregation of national contributrions and 2°C trajectories By Hélène Benveniste; Patrick Criqui; Olivier Boucher; Francois-Marie Breon; Celine Guivarch; Emmanuel Prados; Sandrine Mathy; Laetitia Chevallet; Laureline Coindoz; Hervé Le Treut
  25. DOES ORGANIC WINE TASTE BETTER? AN ANALYSIS OF EXPERTS’ RATINGS By Delmas, Magali A.; Olivier, Gergaud; Lim, Jinghui
  26. Evolution and structure of agricultural farms during 2002-2013 By Roşu, Elisabeta
  27. Accessibility of waste collection services in Romania: a multi-scale analysis in EU context using thematic cartography By Mihai, Florin-Constantin
  28. Use of maximum entropy in estimating production risks in crop farms By Kevorchian, Cristian; Gavrilescu, Camelia
  29. "We're in this together": Changing intra-household decision making for more cooperative smallholder farming By Lecoutere, Els; Jassogne, Laurence
  30. The Costs and Benefits of Collective Reputation: Who gains and who loses from generic promotion programs? By Gergaud, Olivier; Livat, Florine; Rickard, Bradley; Warzynski, Frederic
  31. Targeting Disaster Aid in Post-Tsunami Sri Lanka By Asha Gunawardena; Jean-Marie Baland
  32. An overview of climate change vulnerability: a bibliometric analysis based on Web of Science database By Bing Wang; Su-Yan Pan; Ruo-Yu Ke; Ke Wang; Yi-Ming Wei
  33. China's regional energy and environmental efficiency: A Range-Adjusted Measure based analysis By Ke Wang; Bin Lu; Yi-Ming Wei
  34. Obstacles to progress in R&D activities caused by Institutional and Regulatory Frameworks: the case of the Biotech Sector in Colombia By Estrada, Fernando; Moscoso, Fabio F; Diaz, Natalia; Andrade, Nelson
  35. Increasing Trends in the Excess Comovement of Commodity Prices By Kazuhiko Ohashi; Tatsuyoshi Okimoto
  36. Amazonian Deforestation, Environmental Kuznets Curve and Deforestation Policy: A Cointegration Approach By Philippe Polomé; Jérôme Trotignon
  37. Remittances and expenditure patterns of the left behinds in rural China By Sylvie Démurger; Xiaoqian Wang

  1. By: Wineman, A.; Ochieng, J.; Mason, N.; Kirimi, L.
    Abstract: Households in rural Kenya are sensitive to weather shocks through their reliance on rain-fed agriculture and livestock. This study used the latest data sets of historical weather and household panel data collected in 2000-2007 to understand the impact of exposure to weather extremes –including periods of high and low rainfall, heat, and wind– on household welfare. We find that all types of extreme weather affect household well-being, although effects sometimes differ with income and calorie estimates. Periods of drought are the most consistently negative weather shock across different income groups and agro-ecological regions. Exposure to low rainfall reduces income from both on- and off-farm sources, though households compensate for diminished on-farm production with food purchases. The study further explores the factors that offset the negative effects of drought, and finds that access to credit and membership in a savings group render a household more resilient. Thus, policies and programs to improve access to both financial services and food markets could enhance household resilience to weather shocks.
    Keywords: Environmental Economics and Policy, Food Security and Poverty, International Development,
    Date: 2015–10
  2. By: Martin Persson, Sabine Henders, and Thomas Kastner
    Abstract: This paper aims to improve our understanding of how and where global supply-chains link consumers of agricultural and forest commodities across the world to forest destruction in tropical countries. A better understanding of these linkages can help inform and support the design of demand-side interventions to reduce tropical deforestation. To that end, we map the link between deforestation for four commodities (beef, soybeans, palm oil, and wood products) in eight case countries (Argentina, Bolivia, Brazil, Paraguay, Democratic Republic of the Congo, Indonesia, Malaysia, and Papua New Guinea) to consumption, through international trade. Although few, the studied countries comprise a large share of the internationally traded volumes of the analyzed commodities: 83% of beef and 99% of soybean exports from Latin America, 97% of global palm oil exports, and roughly half of (official) tropical wood products trade. The analysis covers the period 2000-2009. We find that roughly a third of tropical deforestation and associated carbon emissions (3.9 Mha and 1.7 GtCO2) in 2009 can be attributed to our four case commodities in our eight case countries. On average a third of analyzed deforestation was embodied in agricultural exports, mainly to the EU and China. However, in all countries but Bolivia and Brazil, export markets are dominant drivers of forest clearing for our case commodities. If one excludes Brazilian beef on average 57% of deforestation attributed to our case commodities was embodied in exports. The share of emissions that was embodied in exported commodities increased between 2000 and 2009 for every country in our study except Bolivia and Malaysia.
    Keywords: Climate change, Forests, REDD+, Commodities, Commodity supply chains, Energy, Food, Agriculture.
    JEL: Q23 Q54 L73 Q02 Q17
    Date: 2014–10
  3. By: Momanyi, Denis; Lagat, Prof. Job K.; Ayuya, Dr. Oscar I.
    Abstract: The African Indigenous Leafy Vegetables (AILV) agricultural sub-sector in Kenya has in recent times gained considerable prominence and attention. A diverse number of studies have underpinned the role it can play in improving the economic standing of smallholders, while playing an imperative nutritional role in the diets of many consumers. Stemming from increased awareness on the rise of various lifestyle illnesses and crusaders championing for healthy eating habits, the demand of AILV, as healthier dietary alternatives, has been gradually on the rise. However, the socioeconomic and institutional factors that influence market participation and the effect of choice of market packages on AILV income are still not clear. Therefore, the main objectives of the study were: to characterize the socio-economic attributes of AILV farmers; to determine factors influencing households’ market participation behaviour; and to identify the combination of market outlets that deliver the highest payoffs (income) to farmers. The study was based on data collected from a sample of 254 households drawn from Nyamira North Sub-County in Nyamira County. A multistage sampling procedure was used to arrive at the sample, with semi structured questionnaires employed as the research instrument to collect qualitative and quantitative data through face to face interviews. The determinants of market participation behaviour among smallholders was estimated by an ordered probit model, while the combination of market outlets that delivered the highest payoffs (income) to farmers employed a multinomial endogenous switching regression. SPSS and STATA software were used for data analysis and management. Findings revealed that marketing experience, land ownership, households’ food self-sufficiency, contractual marketing, access to credit and extension services significantly influenced the regimes in which smallholders participated in markets. Further, using market packages that contained urban market outlets led to higher incomes among smallholders. It is not enough that farmers merely participated in markets, rather they should participate in markets profitably as net sellers. Identifying the specific challenges and requirements that are unique for each market regime (net sellers, autarkic and net buyers) through proper targeting and screening of farmers is necessary. Here, equipping extension workers with the ability to address the specific needs of each group is recommended. Urban markets, in isolation as well as in market packages, were clearly shown to offer higher incomes in actual and counterfactual scenarios. Improving the condition of roads linking urban markets to producers could potentially reduce transportation costs of accessing such urban markets. This could go on to encourage the use of urban markets among farmers, who stand to gain better income and gradually fish themselves out of poverty traps.
    Keywords: Ordered probit, Multinomial logit, Endogenous switching regression, AILV, Nyamira, Kenya
    JEL: Q13
    Date: 2016–01–13
  4. By: Alecu, Ioan-Niculae; Angelescu, Anda Irina; Marcuta, Alina; Angelescu, Carmen
    Abstract: This paper represents an analysis of the development of the European organic agricultural product market, taking into account especially the consumption of organic agricultural products and some aspects regarding the consumers’ behaviour. The period between 2000 and 2012 was analysed, with particular attention to the situation existent in 2012 and with references to the global situation. The tendencies that are foreseen for the future of this market segment are also considered. The conclusions of this analysis emphasize the idea that, in an era when the population is increasingly more informed and interested in its health and of the environment it is living in, the organic food market, which is still a niche market, has real opportunities of development. The only condition is that all of those involved in this sector of organic farming (producers, processors and retailers) join forces in order to develop concepts and strategies for the organic farming of the future.
    Keywords: Consumption, organic product market, distribution channels.
    JEL: O13 O57 Q15 Q57 R11
    Date: 2015–11–20
  5. By: Surca, Daniela - Elena
    Abstract: Planning represents establishment and substantiate the objectives, accomplish tasks and necessary resources for appropriate period plan ( of perspective, annual, quarterly, monthly). Drawing up annual production plan into a ferm is required primarily for evolution or involution recorded by economical phenomenes, which directly determines the operation of the farm. After determining the annual production plan can establish structures and cultures for the next agricultural year using modeling and simulation methods. Following the application of modeling and simulation methods in a farm resulting optimal dimensions of business operations with profit maximization in terms of economic efficiency increased.
    Keywords: Production plan , resources, technical and economic indicators, modeling and simulation.
    JEL: C61 D24 O13 Q12
    Date: 2015–11–20
  6. By: Oswaldo Viteri Salazar (Facultad de Ciencias Administrativas, Escuela Politécnica Nacional, Ecuador); Jesus Ramos-Martin (Facultad Latinoamericana de Ciencias Sociales, Ecuador); Pedro L. Lomas (Institut de Ciencia i Tecnologia Ambientals, Universitat Autonoma de Barcelona, Spain)
    Abstract: Supporting smallholders’ livelihoods in fragile and biodiversity rich regions such as rainforests is a priority of many development agencies and national governments. These regions tend to be characterized by recent settlements, increasing population and infrastructure, as well as land use competing activities that put pressure upon fragile ecosystems. Research aimed at improving livelihood strategies often focuses on increasing yields and productivity, but fails to account for alternative measures such as improving agricultural practices, changing land use or improving commercialization. This paper uses household types defined according to different land use patterns in the northern Amazon region of Ecuador to explore limitations and identify future options for improving livelihood strategies based in the small-scale production of coffee and cocoa. Results for application to four types are discussed, which highlight the utility of the method and identify trade-offs in terms of environmental and social goals versus profitability. Lessons are drawn that can inform public policies oriented to improving livelihood strategies of small producers of coffee and cocoa in the Amazon region without compromising the environment.
    Keywords: Household types, Amazon, Ecuador, livelihoods, coffee, cocoa
    JEL: N56 Q12 Q24 Q56 Q57
    Date: 2016–02
  7. By: Filippo Lechthaler (ETH Zurich, Switzerland); Alexandra Vinogradova (ETH Zurich, Switzerland)
    Abstract: The use of climate information in economic activities, typically provided by climate services, may serve as a possible adaptation strategy to changing climate conditions. The present paper analyzes the value of climate services aimed at improving agricultural productivity through a reduction in weather-associated risks. In the rst part, we provide a theoretical foundation for estimating the value of climate services by proposing a stochastic life-cycle model of a rural household which faces uncertainty with respect to the timing and the size of an adverse weather shock. We subsequently calibrate the model to match the environment of coee producers in the Cusco region of Peru and provide a range of estimates for the value of climate services for a single average household, the region, and the country as a whole. In the second part of the paper we use empirical data to verify the numerical estimates. We assess the value of climate services in the agricultural sector in Cusco based on a choice experiment approach. Data are analyzed using a standard as well as a random parameter logit model allowing for preference heterogeneity. Farmers show a signicant willingness-to-pay for enhanced climate services which is particularly related to the service accuracy and geographic resolution. On average, the yearly value of a climate service in the coffee sector is found to be in the range $20.64 - $21.10 per hectare and $8.1 - $8.2 million for Peru as a whole.
    Keywords: Agriculture, choice experiment, coee farming, coee rust, climate change adaptation, uncertainty
    JEL: C25 D81 H41 O13 Q12 Q16 Q51
    Date: 2016–01
  8. By: Santeramo, Fabio Gaetano; Adinolfi, Felice; Capitanio, Fabian; Goodwin, Barry K.
    Abstract: The factors affecting the demand for agricultural insurance in the US have been extensively studied over the last two decades. However, the determinants of a farm’s entry and exit decisions in the insurance market have received relatively little attention. Turnover in the insurance book of business is an important issue in most private and public crop insurance plans. Moreover, insurance markets in the EU are still largely under-investigated. We investigate empirically the determinants of crop insurance participation in Italy. We show that the participation rate is high for large firms and that it is negatively correlated with crop diversification, which is itself a form of insurance. High premiums tend to inhibit both entry and exit from the insurance market. Larger and wealthier farms are more likely to adopt insurance and renew coverage over time. We discuss implications of our results for public intervention and the private industry. In particular, we demonstrate that the decision to drop coverage by an insured grower may differ significantly from the corresponding decision to enroll in an insurance program by an uninsured farmer. To the extent that policymakers want to encourage participation in subsidized crop insurance programs, education and outreach efforts toward uninsured farmers may differ substantially from those directed toward keeping insured farmers enrolled in the program. We investigate these differences.
    Keywords: Agricultural Policy, Risk Management, Insurance, Turnover
    JEL: D81 G22 Q12 Q14 Q18
    Date: 2016–01–30
  9. By: Oded Galor (Brown University); Ömer Özak (Southern Methodist University)
    Abstract: This paper establishes that the Caloric Suitability Index (CSI) dominates the commonly used measure of agricultural suitability in the examination of the effect of land productivity on comparative economic development. The analysis demonstrates that the agricultural suitability index does not capture the large variation in the potential caloric yield across equally suitable land, reflecting the fact that land suitable for agriculture is not necessarily suitable for the most caloric-intensive crops. Hence, in light of the instrumental role played by caloric yield in sustaining and supporting population growth, and given importance of pre-industrial population density for the subsequent course of economic development, the Caloric Suitability Index dominates the conventional measure in capturing the effect of land productivity on pre-colonial population density and the subsequent course of economic development.
    Keywords: Caloric Suitability, Agricultural Suitability, Agricultural Productivity, Land Productivity, Economic Development, Population Density.
    JEL: O10 O40 Q10
    Date: 2015–06
  10. By: Abel A. Ramoelo; Mosesazong M.A. Cho; Renaud R. Mathieu; S. S. Madonsela; Ruben Van De Kerchove; Zaneta Kaszta; Eléonore Wolff
    Abstract: Land use and climate change could have huge impacts on food security and the health of various ecosystems. Leaf nitrogen (N) and above-ground biomass are some of the key factors limiting agricultural production and ecosystem functioning. Leaf N and biomass can be used as indicators of rangeland quality and quantity. Conventional methods for assessing these vegetation parameters at landscape scale level are time consuming and tedious. Remote sensing provides a bird-eye view of the landscape, which creates an opportunity to assess these vegetation parameters over wider rangeland areas. Estimation of leaf N has been successful during peak productivity or high biomass and limited studies estimated leaf N in dry season. The estimation of above-ground biomass has been hindered by the signal saturation problems using conventional vegetation indices. The objective of this study is to monitor leaf N and above-ground biomass as an indicator of rangeland quality and quantity using WorldView-2 satellite images and random forest technique in the north-eastern part of South Africa. Series of field work to collect samples for leaf N and biomass were undertaken in March 2013, April or May 2012 (end of wet season) and July 2012 (dry season). Several conventional and red edge based vegetation indices were computed. Overall results indicate that random forest and vegetation indices explained over 89% of leaf N concentrations for grass and trees, and less than 89% for all the years of assessment. The red edge based vegetation indices were among the important variables for predicting leaf N. For the biomass, random forest model explained over 84% of biomass variation in all years, and visible bands including red edge based vegetation indices were found to be important. The study demonstrated that leaf N could be monitored using high spatial resolution with the red edge band capability, and is important for rangeland assessment and monitoring.
    Keywords: Biomass; Leaf nitrogen; Random forest model; Rangeland quality; Red edge band; WorldView-2
    Date: 2015
  11. By: Garbert, Johanna; Holm-Mueller, Karin
    Abstract: Agriculture is to a large extent responsible for missing the objective of the EU Water Framework, a good condition of water bodies in Germany and other parts of Europe. In Germany, in order to reach this target in future, the Fertilization Ordinance will be amended. Economic instruments would be another option to improve water quality. Against this background, the study examines impacts of such policies on farm strategies and income for certain fictitious, but typical farms that can be seen as representative for the most common pig farm types in the Muensterland, an intensively farmed region in Germany. From a number of farm development strategies, a mixed integer linear programming model identifies the best individual strategy for each policy and the resulting investments, production changes and income effects. The model results confirm that water protection policies decrease potential future incomes of typical pig farms. A tightening of the Fertilization Ordinance by reducing the phosphorus balances that must not be exceeded by the farms significantly reduces future income compared to an unchanged Fertilization Ordinance. The same applies to the introduction of levies on nutrient surpluses – along the lines of the Dutch policy. Nevertheless, future development strategies of the farms stay mainly the same in all scenarios with different water protection policies: Farms increase stable capacity in all scenarios. Along with this growth, manure export increases as well as the number of animals per hectare on the farms.
    Keywords: Fertilization Ordinance, levies, pig farms, mixed integer linear programming model, manure, Agribusiness, Agricultural and Food Policy, Environmental Economics and Policy, Farm Management, Livestock Production/Industries, Q 18,
    Date: 2015–06–12
  12. By: Katrina Brandon
    Abstract: Tropical forests exert a more profound influence on weather patterns, freshwater, natural disasters, biodiversity, food, and human health – both in the countries where forests are found and in distant countries – than any other terrestrial biome. This report explains the variety of environmental services tropical forests provide and the science underlying how forests provide these services. Tropical deforestation and degradation have reduced the area covered by tropical forests from 12 percent to less than 5 percent of Earth’s land area. Forest loss and degradation has reduced or halted the flows of a wide range of ecosystem goods and services, increasing the vulnerability of potentially billions of people to a variety of damaging impacts. Established and emerging science findings suggest that we have substantially underestimated the global importance of tropical forests and the impacts of their loss on human well-being.
    Keywords: Climate change, Ecosystem services, Energy, Food, Forests, Health, REDD+, Valuation, Water
    JEL: Q23 Q51 Q54
    Date: 2014–10
  13. By: Gavrilescu, Camelia
    Abstract: After joining CEFTA in 1997, Romania established a relatively stable group of partner countries for its agri-food trade. Several factors contributed to the stability in time of this group, firstly the existence or establishment of preferential trade agreements, the geographical proximity, and last, but not least, the historical traditions. The exit from CEFTA and the accession to the EU of some of the partner countries, then of Romania itself, changed only temporarily the trade flows, until everyone's adaptation to the ”new rules of the game”. Among the new Member States of the EU (NMS-13), the main trading partners for Romania were and are Hungary, Bulgaria and Poland. The paper is analyzing the evolution of the agri-food trade flows with these countries, in terms of value and composition of the exchanges.
    Keywords: Agri-food trade, CEFTA, NMS-13, Romania
    JEL: F13 Q17 Q18 Q58
    Date: 2015–11–20
  14. By: Gabriel Bachner (University of Graz)
    Abstract: In the light of climate change, transport systems become increasingly stressed by extreme weather and gradual climatic changes, resulting in direct costs which arise in the affected sector as well as indirect costs due to economic spill-over effects. To attenuate these costs, sector specific adaptation measures are needed, raising the question of the net-benefits of adaptation at a macroeconomic level. However, despite their importance such assessments of impacts and adaptation at the macro-level are scarce and coarse in their implementation. This paper contributes to fill this research gap by analyzing specific adaptation measures for the land transport sectors. To reveal both direct and indirect effects of impacts and adaptation a computable general equilibrium model is deployed. Results confirm the importance of a macroeconomic framework since the indirect effects are found to be larger than the direct ones due to strong economic interlinkages with the transport system. Adaptation measures are able to reduce climate change induced GDP and welfare losses as well as unemployment; even though adaptation does not always seem economically reasonable at the business level.
    Keywords: Climate change; transport; impacts; adaptation; computable general equilibrium;
    JEL: C68 Q51 Q54 Q58 R42
    Date: 2015–01
  15. By: Bohateret, Valentin - Mihai; Bruma, Ioan Sebastian
    Abstract: The development of agriculture in nowadays circumstances cannot be merely assessed from the perspective of agriculture as a main branch of national economy, but further from a social point of view which is highly significant as it represents the traditional small farm households which provide the basic necessaries for the rural population as well as the usability implication of over 55% from the agricultural area of the country. On the whole, by agricultural exploitation there is the general tendency of considering its commercial aspect only, perfectly justifiable in the case of agricultural exploitations with a legal, juridical character, but there is also to be regarded the social aspect of agricultural exploitation without a juridical status, which is largely representative for the small farm households. In the period of time between the 2 General Censuses (2002 and 2010) the agricultural exploitations without a legal, juridical status diminshed by 13.6%, while the agricultural area used diminshed by 3.3% only, leaving over 7.5 million agricultural area as responsability for these exploitations.
    Keywords: Rural/ small farm household, agricultural exploitation without a legal/ juridical status, the size of the agricultural exploitation, the agricultural area used
    JEL: C15 D13 Q12 R20
    Date: 2015–11–20
  16. By: Stratan, Alexandru; Ignat, Anatolie; Moroz, Victor
    Abstract: Agri-food trade has expanded over the recent decade in the Republic of Moldova. Trade policies promoted by the Republic of Moldova are mostly oriented towards product diversification, knowledge transfer and promotion of new competitive goods with high added value for domestic and foreign markets. The trade balance remains dynamic with significant fluctuations in product categories over time and countries of destination, due to climatic and trade shocks. In this context, the aim of the paper is to provide an analysis of agri-food sector and external trade, assess the impact of external factors over the national economy and opportunities for the better export targeting, and identify possible solutions to increase resilience to agro-food foreign trade shocks. For such tasks were used the statistical methods of analysis and informal interviews with main stakeholders. This paper’s outcome incorporates the scale, significance and dynamics of the agri-food export including the continued evolution of the regulatory agencies involved and the critical role of support policies provided by other sectors of national economy for the export promotion.
    Keywords: Agri-food trade, trade policies, export promotion
    JEL: F13 Q17 Q18
    Date: 2015–11–20
  17. By: Till Pistorius and Laura Kiff
    Abstract: The concept of Reducing Emissions from Deforestation and Forest Degradation (REDD+) and its framing of forest protection as a climate mitigation approach mark a clear paradigm shift – after decades of up-front financing of traditional ODA projects REDD+ follows the logic of ex-post payments for measured and verified performance within much larger jurisdictions. Germany has been among the major donor countries supporting forest protection for a long time: during the last three decades it has continuously supported developing countries in their efforts to cope with unsustainable use and conversion of forests through direct programming and activities within its bilateral development cooperation. Convinced of the urgency to facilitate an effective transformative change in the global land sector, Germany continues its support and is also among those countries that promoted REDD+ early on. It considers the concept as a major chance to slow down and eventually reverse the overuse and conversion of forests, especially in recognition that traditional development assistance has not succeeded in stopping the detrimental uses of forest lands. REDD+ is seen as a way to break new ground in order to increase the efficiency and effectiveness of international support.
    Keywords: Climate change, Forests, REDD+, Germany
    JEL: Q23 Q54 Q58
    Date: 2014–12
  18. By: Caroline Lancelot Miltgen (Audencia Recherche - Audencia); Gaelle Pantin-Sohier (UA - Université d'Angers); Bianca Grohmann (Concordia University - CONCORDIA UNIVERSITY)
    Abstract: This article explores the influence of food product packaging on consumers’ sensory expectations and perceived newness of the product. Two experiments examine to what extent consumers use product typicality, graphical representations, and package typicality in evaluating new food products. Study 1 finds that (1) a typical flavor induces more positive expectations of pleasantness, taste, color, and smell, and (2) the presence of graphic representation on product labels increases perceived pleasantness but does not affect sensory expectations. Study 2 indicates that the product seems newer in the absence of a package (label-only condition), but when the product packaging is presented, an atypical package conveys more newness than a typical package. These results provide practical guidelines for the design and introduction of innovative food products.
    Keywords: Communication of sensory information, consumer expectations, new food products, packaging, sensory attributes
    Date: 2015–12–21
  19. By: Khandker, Shahidur R; Samad, Hussain A
    Abstract: While seasonality of income, consumption and poverty is not uncommon in rural Bangladesh, it is more pronounced in the Rangpur region, where it is exacerbated by the region’s agroecology and adverse economic geography. This paper, using three rounds of nationally representative data from household income and expenditure surveys from 2000-2010, follows up on earlier findings based on two rounds of data from 2000 and 2005 (Khandker 2012) to determine the extent and causes of seasonality and the factors that helped to combat the severity of such seasonality. This paper adds value to the earlier study in two ways. First, it examines whether the earlier findings still hold over a longer timeframe. Second, having the benefit of three data points allows us to examine the trends in outcomes and underlying factors. The paper finds that seasonal hunger, often known as ‘monga’ in the North-West region of Bangladesh, is caused by both yearly aggregate of income and its seasonal variation. The paper recommends that structural integration of labor, food, and credit markets is necessary to alleviate endemic poverty as well as mitigate the adverse impacts of agricultural seasonality. Combating seasonal hunger therefore calls for diversifying agricultural and rural incomes as well as enhancing poor households’ capacity to insure against seasonality.
    Keywords: seasonality of income , seasonality of consumption , rural poverty , crop cycle , Bangladesh
    Date: 2016–01–18
  20. By: Maria Waldinger
    Abstract: Recent studies have consistently found important economic effects of year-to-year weather fluctuations. This paper studies the economic effects of long-term and gradual climate change, over a period of 250 years, when people have time to adapt. In particular, I study the effects of the Little Ice Age, a historical episode of long-term climate change. Results show significant negative economic effects of long-term climate change. Cities with good access to trade were substantially less affected. Results from yearly historical wheat prices and yield ratios show that temperature change impacted economic growth through its effect on agricultural productivity. Further evidence shows a lack of adaptation. I show evidence of the relevance of these results to the context of contemporary developing countries and recommend ways in which these findings may improve Integrated Assessment Models.
    Date: 2015–10
  21. By: Marbuah, George (Department of Economics, Swedish University of Agricultural Sciences); Gren, Ing-Marie (Department of Economics, Swedish University of Agricultural Sciences)
    Abstract: This paper addresses the issue of whether or not social capital explains per capita CO2 emissions dynamics in Swedish counties in an augmented environmental Kuznets curve framework. By accounting for issues of endogeneity in the presence of dynamic and spatial effects using geo-referenced emissions data, we show that per capita carbon emissions in a county matters for other counties and that net of economic, demographic and environmental factors, social capital has the potential to reduce carbon emissions in Sweden albeit less robustly. We test two different social capital constructs; trust in government and environmental engagement. Specifically, trust in the government inures to the reduction in CO2 emissions. Membership and engagement in environmental organisations reduces CO2 emissions only through its interaction with per capita income or trust. The implication of our estimates suggest that investment geared toward increasing the stock of social capital could inure to reductions in CO2 emissions in addition to climate policy instruments in Sweden
    Keywords: Social capital; environmental Kuznets curve; co2 emissions; spatial analyses; Sweden
    JEL: C23 Q53 Q56 Z13
    Date: 2015–04–30
  22. By: Malin, Benjamin A. (Federal Reserve Bank of Minneapolis); Anderson, Eric (Northwestern University); Nakamura, Emi (Columbia University); Simester, Duncan (Massachusetts Institute of Technology); Steinsson, Jon (Columbia University)
    Abstract: We use unique price data to study how retailers react to underlying cost changes. Temporary sales account for 95% of price changes in our data. Simple models would, therefore, suggest that temporary sales play a central role in price responses to cost shocks. We find, however, that, in response to a wholesale cost increase, the entire increase in retail prices comes through regular price increases. Sales actually respond temporarily in the opposite direction from regular prices, as though to conceal the price hike. Additional evidence from responses to commodity cost and local unemployment shocks, as well as broader evidence from BLS data reinforces these findings. We present institutional evidence that sales are complex contingent contracts, determined substantially in advance. We show theoretically that these institutional practices leave little money “on the table”: in a price-discrimination model of sales, dynamically adjusting the size of sales yields only a tiny increase in profits.
    Keywords: Regular retail prices; Retail sales; Trade deals
    JEL: E30 L11 M30
    Date: 2015–06–25
  23. By: Andrea Baranzini; Jeroen van den Bergh; Stefano Carattini; Richard Howarth; Emilio Padilla; Jordi Roca
    Abstract: The idea of a global carbon price has been a recurrent theme in debates on international climate policy. Discarded at the Conference of Parties (COP) of Copenhagen in 2009, it remained part of deliberations for a climate agreement in subsequent years. Unfortunately, there is still much misunderstanding about the reasons for implementing a global carbon price. As a result, ideological and political resistance against it prospers. Here we present the main arguments in favor of a carbon price to stimulate a fair and well-informed discussion about climate policy instruments. This includes arguments that have received surprisingly little attention so far. It is stressed that a main reason to use carbon pricing is environmental effectiveness, so not only economic efficiency (including the special case of cost-effectiveness). In addition, we provide ideas on how to implement a uniform global carbon price, whether using a carbon tax or emissions trading.
    Date: 2016–02
  24. By: Hélène Benveniste (Institut Pierre-Simon Laplace (IPSL) - CNRS - Centre National de la Recherche Scientifique); Patrick Criqui (équipe EDDEN - PACTE - Politiques publiques, ACtion politique, TErritoires - Grenoble 2 UPMF - Université Pierre Mendès France - UJF - Université Joseph Fourier - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - CNRS - Centre National de la Recherche Scientifique); Olivier Boucher (LMD - Laboratoire de Météorologie Dynamique - ENS Paris - École normale supérieure - Paris - UPMC - Université Pierre et Marie Curie - Paris 6 - INSU - Polytechnique - X - CNRS - Centre National de la Recherche Scientifique); Francois-Marie Breon (Laboratoire des sciences du Climat de l'Environnement (UMR 8212) - Commissariat à l'Energie Atomique et aux Energies Alternatives); Celine Guivarch (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - EHESS - École des hautes études en sciences sociales - École des Ponts ParisTech (ENPC) - AgroParisTech - AgroParisTech); Emmanuel Prados (STEEP - Sustainability transition, environment, economy and local policy - Inria Grenoble - Rhône-Alpes - INRIA - Institut National Polytechnique de Grenoble (INPG) - LJK - Laboratoire Jean Kuntzmann - Grenoble 2 UPMF - Université Pierre Mendès France - UJF - Université Joseph Fourier - Institut Polytechnique de Grenoble - Grenoble Institute of Technology - CNRS - Centre National de la Recherche Scientifique); Sandrine Mathy (équipe EDDEN - PACTE - Politiques publiques, ACtion politique, TErritoires - Grenoble 2 UPMF - Université Pierre Mendès France - UJF - Université Joseph Fourier - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - CNRS - Centre National de la Recherche Scientifique); Laetitia Chevallet (équipe EDDEN - PACTE - Politiques publiques, ACtion politique, TErritoires - Grenoble 2 UPMF - Université Pierre Mendès France - UJF - Université Joseph Fourier - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - CNRS - Centre National de la Recherche Scientifique); Laureline Coindoz (équipe EDDEN - PACTE - Politiques publiques, ACtion politique, TErritoires - Grenoble 2 UPMF - Université Pierre Mendès France - UJF - Université Joseph Fourier - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - CNRS - Centre National de la Recherche Scientifique); Hervé Le Treut (UPMC - Université Pierre et Marie Curie - Paris 6)
    Abstract: Considering that limiting global warming to below 2°C implies a CO2 budget not to be exceeded and near-zero emissions by 21OO (IPCC), we can assess global 2030 greenhouse gas emissions implied by INDCs in comparison to long-term trajectories. Ahead of the COP21, we estimate that submitted INDCs would bring global greenhouse gas emissions in the range of 55 to 64 GtC02eq in 2030. Under this assumption,global emissions in 2030 are thus higher than the level of 51GtC0 2eq for the year 2012. However, this is not in contradiction with a peaking of global emissions that can only be expected after 2020, given in particular the projected dynamics of emissions in China and other developing countries. The published INDCs represent a significant step towards trajectories compatible with the 2°C goal,but remain insufficient to join trajectories presenting a reasonable probability of success. ln order to increase the chance of meeting the 2°C objective, the ambition of the short-term contributions needs to be strengthened in future negotiations. ln order to sustain a high pace in emissions reductions after 2030,structural measures are also needed, which, in order to have a rapi impact, should be prepared as early as possible. Continued efforts are needed to accelerate the development of low carbon solutions on the one hand,and demonstrate the feasibility of negative emissions on the other hand.
    Date: 2015–11
  25. By: Delmas, Magali A.; Olivier, Gergaud; Lim, Jinghui
    Abstract: Eco-labels are part of a new wave of environmental policy that emphasizes information disclosure as a tool to induce environmentally friendly behavior by both firms and consumers. Little consensus exists as to whether eco-certified products are actually better than their conventional counterparts. This paper seeks to understand the link between eco-certification and product quality. We use data from three leading wine rating publications (Wine Advocate, Wine Enthusiast, and Wine Spectator) to assess quality for 74,148 wines produced in California between 1998 and 2009. Our results indicate that eco-certification is associated with a statistically significant increase in wine quality rating
    Keywords: eco-labels, credence goods, information disclosure policy, asymmetric information, product quality, Agribusiness, Demand and Price Analysis, Environmental Economics and Policy, Marketing, Q56, Q13, L15, L66, Q21,
    Date: 2016–01
  26. By: Roşu, Elisabeta
    Abstract: The agriculture’s evolution and restructuring process was rather a slow one and the phenomenon of structural coexistence of the two types of agricultural farms, with or without juridical personality was maintained. The large number of agricultural farms shows how ample is their fragmentation phenomenon, having negative consequences upon economic performance, general state of evolution and development. The agricultural farms’ structure as regards the utilized agricultural area is one of contrasts, from some hectares in the case of the subsistence households, to tens of thousands hectares in case of commercial farms.
    Keywords: Agricultural farms, structure, agriculture.
    JEL: Q12 R11 R58
    Date: 2015–11–20
  27. By: Mihai, Florin-Constantin
    Abstract: Low coverage of urban and rural population to waste collection services leads to various environmental threats caused by uncontrolled waste disposal. New EU regulations on waste management issues transposed into national laws have improved this sector, but, the population access to such services is still low compared to others new EU members. A multi-scale approach of this indicator is a necessary tool for a proper analysis of this environmental issue. The maps reveal that Romanian development regions (NUTS 2) have the lowest coverage rates at EU level in 2010. Furthermore, major disparities are reflected between Romanian counties in 2010. Thematic maps outline a comparative analysis at national and regional scale (Romanian counties & cities and communes of North-East Region) between urban vs rural areas in 2010. These geographical approaches are necessary for a better monitoring process of waste management sector.
    Keywords: multi-scale analysis, waste collection services, disparities, thematic cartography, municipal waste,
    JEL: K32 O18 O44 Q50 Q53 Q56 Q58 R11 R53 R58
    Date: 2015–12
  28. By: Kevorchian, Cristian; Gavrilescu, Camelia
    Abstract: The entropic value of the production risk is closely linked to the farmer’s aversion to this type of risk. Since risk aversion is difficult to quantify, it is preferable to use the MaxEnt model as a quantitative benchmark in assessing and covering the production risk through adequate financial resources. The classification of the Selyaninov index value as measure of the production risk based on the MaxEnt model utilization makes it possible to evaluate the production risk and the transfer decision to an adequate market implicitly. The authors’ previous research investigated the risk coverage through derivative financial instruments that diminish the farmer’s exposure to the production risk; the present paper adds to previous research by investigating an equally important issue: sizing the risk that is the object of coverage. Through the utilization of the stochastic methods in estimating the risk measure, a less rigid method is obtained that can be adapted and applied to the risk management processes in agriculture.
    Keywords: Production risk, crop farms, Markov models, MaxEnt
    JEL: C12 C63 D81 Q12
    Date: 2015–11–20
  29. By: Lecoutere, Els; Jassogne, Laurence
    Abstract: Conceptualising smallholder farming households as collective action institutions, that make interrelated decisions about investment, resource use and allocation in a common household farm, may contribute to understanding widely observed uncooperative outcomes, such as yield gaps, gender gaps in productivity, suboptimal or Pareto inefficient sustainable intensification and climate change adaptation. We examine the relation between participatory intra-household decision making – as a set of ‘rules of the game’ that reduces information and bargaining power asymmetries – and cooperative, i.e. more efficient, sustainable and equitable, outcomes in smallholder coffee farming households in Uganda. We find experimental evidence that participatory decision making is positively related to investments in the common household farm. Consumption behaviour however is not fairer nor more sustainable. Participatory decision making is associated with more cooperative actual outcomes such as greater investment in sustainable intensification, consideration of women’s interests, fairer reproductive intra-household labour division, more balanced control over cash crop income and improved livelihoods.
    Keywords: smallholder farming; intra-household decision making
    Date: 2016–01
  30. By: Gergaud, Olivier; Livat, Florine; Rickard, Bradley; Warzynski, Frederic
    Abstract: In this paper we develop an original approach to evaluate the costs and benefits associated to a generic promotion program using an application to Bordeaux wines. The benefit is computed from the marginal impact of the collective reputation of the program on the individual reputation of its members. These different marginal impacts are estimated using detailed survey data about the image of Bordeaux wines in seven European countries. We find positive and significant spillover effects from the umbrella reputation (Bordeaux) that moreover increase with the individual reputation level of the wine. Controlling for the natural endogeneity of the collective reputation in this setup, we capture the important fact that this relationship is faced with marginal diminishing returns. These spillover effects, when significantly positive, vary from a minimum of 5% to a maximum of 15% of additional favorable quality opinions. We then show that some subregions are more likely to benefit from generic promotion programs, suggesting that fees should be established on a benefit-cost basis.
    Keywords: Benefit-cost analysis, Individual reputation, Collective reputation, Bordeaux wines, Appellations, Demand and Price Analysis, Marketing, L15, L66, Q13, Z13,
    Date: 2016–01
  31. By: Asha Gunawardena (Institute of Policy Studies of Sri Lanka, Columbo, Sri Lanka); Jean-Marie Baland (CRED, University of Namur)
    Abstract: In this article we examine the allocation of boats and houses, the two major types of aid made available to tsunami-affected fishery households in Sri Lanka. We investigate the effectiveness of targeting by looking at the distributional impacts and the determinants of allocation of these transfers at the household level. We find that houses were much better targeted than boats in terms of compensating for the losses due to the tsunami. We also find that the ex post distribution of boats is much more unequal than the distribution that prevailed before the tsunami. The reverse is true for the distribution of houses, for which the government took a much more active role.
    Keywords: Aid targeting, fishery sector, post-disaster development, reconstruction and rehabilitation, Sri Lanka
    Date: 2016–02
  32. By: Bing Wang; Su-Yan Pan; Ruo-Yu Ke; Ke Wang; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology)
    Abstract: Based on worldwide scholars' 3004 papers published in 658 academic journals in the Web of Science (WOS) database on the topic of climate change vulnerability from 1991 to 2012, this paper quantitatively analyzes the global scientific performance and hot research areas in this field by adopting bibliometric method. The results show that (i) the vulnerability researches on climate change have experienced a rapid growth since 2006 and the publications are widely distributed in a large number of source journals while the top two productive institutions are the University of East Anglia and Potsdam Institute for Climate Impact Research; (ii) the cooperation at author level is on the rise and there are closer relationships in institutional and national levels; (iii) the most widely focused research topics in this field include health issues in the socioeconomic system, food security in the field of agricultural system and the issue of water resource management, etc.; (iv) according to the papers from the top journals, we find that the research areas for climate change vulnerability in those publications are located in the ecological diversity, ecosystem service, water resource management and electric power supply, etc.
    Keywords: climate change, vulnerability, bibliometric, backward search
    JEL: Q40 Q58
    Date: 2014–07–13
  33. By: Ke Wang; Bin Lu; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology)
    Abstract: Energy and environmental efficiency evaluation has recently attracted increasing interest in China. In this study, we utilize the Range-Adjusted Measure (RAM) based nonparametric approach to evaluate the regional energy and environmental efficiency of China over the period of 2006-2010. The desirable/good and undesirable/bad outputs, as well as the energy and non-energy inputs are considered in the efficiency evaluation so as to characterize the energy consumption, economic production, and CO2 emission process of different China's regions. In addition, the economic concepts of natural disposability and managerial disposability are incorporated in the evaluation instead of the strong and weak disposability in conventional environmental efficiency evaluation. Therefore, the types of returns to scale and damages to scale of different China's regions are measured and correspondingly the strategy and policy implications are proposed for guiding the future improvement of regional energy and environmental efficiency. This study finds that: i) Beijing, Shanghai, and Guangdong had the highest integrated energy and environmental efficiency during the study period, which could be seen as the benchmarks of inefficient China's regions. ii) On average, east China had the highest integrated efficiency under natural disposability, and west China had the highest integrated efficiency under managerial disposability. iii) During 2006-2010, the average production efficiency of China slightly decreased and the average emission efficiency of China slightly increased. v) Among China's 30 regions, 19 regions exhibited decreasing returns to scale, 4 regions shown increasing returns to scale, and 7 regions have mixed returns to scale types under natural disposability in our study period. In addition, under managerial disposability, there are 18, 3 and 9 regions respectively exhibited increasing, decreasing and mixed damages to scale types over time. v) For most Chinese regions, it is not recommended to simply increase or maintain their current scales of production, but alternatively, they should pay more attentions on technology innovation of energy utilization efficiency improvement, since up to 2010, China still had large energy conservation and emission reduction potentials.
    Keywords: Energy and environmental efficiency, Range-Adjusted Measure (RAM), Returns to scale, Damages to scale
    JEL: Q40 Q58
    Date: 2014–07–05
  34. By: Estrada, Fernando; Moscoso, Fabio F; Diaz, Natalia; Andrade, Nelson
    Abstract: This article is based on an exhaustive review of empirical evidence from secondary sources of information seeking to answer the research question: What are the main obstacles raised by the Institutional and Regulatory framework for R&D activities in Colombia’s biotechnology sector? The main findings indicate: (I) that there is a flawed competitive environment that tends to create oligopolies and other scenarios that facilitate the hoarding of information and knowledge and prevent access by many scientists to relevant new information breakthroughs, thus generating material asymmetries between the scientific communities of developed and developing countries; and (II) that other obstacles, generally associated with government shortcomings, produce non-financial transaction costs in terms of time and administrative processes, that represent significant impediments to the development of the biotechnology industry and which, in the Colombian case, have slowed progress in the sector.
    Keywords: Biotechnology, Property Rights, Public Policy, Institutional Environment.
    JEL: H41 O11 O14 O16 O34 Q14 Q18
    Date: 2015
  35. By: Kazuhiko Ohashi; Tatsuyoshi Okimoto
    Abstract: We investigate how the excess comovement of commodity prices, that is, the correlation in commodity returns after filtering out common fundamental shocks, has changed over the past three decades by developing the smooth-transition dynamic conditional correlation model that can capture long-run trends and short-run dynamics of correlation simultaneously. Using data from 1983 to 2011, we find that significant increasing longrun trends in excess comovement have appeared since around 2000. We confirm that these increasing trends are neither an artifact of the financial crisis after the bankruptcy of Lehman Brothers in September 2008 nor the time-varying sensitivities of commodity returns to common fundamental shocks. Moreover, we find that no significant increasing trends exist in the excess comovement among off-index commodities and that the surge of global demand alone cannot explain the increasing trends. These findings provide additional evidence for the timing and scope of the recent increasing commodity-return correlations that suggest the influence of the financialization of commodity markets starting around 2000.
    Keywords: excess comovement, commodity return, time-varying correlation, smooth transition, regime change, financialization
    JEL: C32 C51 G15
    Date: 2016–02
  36. By: Philippe Polomé (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France); Jérôme Trotignon (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France)
    Abstract: Brazilian Amazon deforestation rate is found to display a unit root and to be cointegrated with Brazilian GDP and its square – An Environmental Kuznets Curve (EKC). Although, it is not the first time that such an EKC is detected, this may be the first such time-series evidence. Detecting an EKC is hampered by several econometric issues that have been shown to lead to possibly spurious results in cross-section and panel contexts, but are satisfactorily addressed in a cointegrated (time-series) framework. Alternative theories for explaining the deforestation path are rejected. There is evidence that the “Action Plan” of the Brazilian government against deforestation had an important effect. These results are in contrast to the economics literature on an EKC in emissions such asCO2, but appear to be consistent with a geographical sciences literature that considers that deforestation declines when alternative activities become available.
    Keywords: Amazon deforestation; unit root; cointegration; “Action Plan”policy; Environmental Kuznets Curve
    JEL: C22 Q23 Q28
    Date: 2016
  37. By: Sylvie Démurger (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 - Centre National de la Recherche Scientifique); Xiaoqian Wang (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 - Centre National de la Recherche Scientifique)
    Abstract: This paper investigates how private transfers from internal migration in China affect the expenditure behaviour of families left behind in rural areas. Using data from the Rural-Urban Migration in China (RUMiC) survey, we assess the impact of remittances sent to rural households on consumption-type and investment-type expenditures. We apply propensity score matching to account for the selection of households into receiving remittances, and estimate average treatment effects on the treated. We find that remittances supplement income in rural China and lead to increased consumption rather than increased investment. Moreover, we find evidence of a strong negative impact on education expenditures, which could be detrimental to sustaining investment in human capital in poor rural areas in China.
    Keywords: remittances, labour migration, expenditure behaviour, left-behind, propensity score matching, China
    Date: 2016

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.