nep-agr New Economics Papers
on Agricultural Economics
Issue of 2016‒04‒04
forty-six papers chosen by

  1. Household perception and demand for better protection of land rights in Ethiopia: By Ghebru, Hosaena; Koru, Bethlehem; Taffesse, Alemayehu Seyoum
  2. The role of short food supply chains in the development of small-scale local producers case study: Harghita County By Tanasa, Lucian; Bruma, Ioan Sebastian; Dobos, Sebastian
  3. Agricultural growth in Ethiopia (2004-2014): Evidence and drivers: By Bachewe, Fantu Nisrane; Berhane, Guush; Minten, Bart; Taffesse, Alemayehu Seyoum
  4. Impact of Climate Change on Foodgrain Yields in India By Gupta, Shreekant; Sen, Partha; Verma, Saumya
  5. Market Access, Welfare, and Nutrition: Evidence from Ethiopia: By Stifel, David; Minten, Bart
  6. The Public and Private Benefits from Organic Farming in Pakistan By Muhammad Iftikhar ul Husnain; Muhammad Khan
  7. Green Microfinance and Ecosystem Services - A quantitative study on outcomes and effectiveness By Davide Forcella; Frédéric Huybrechs
  8. The Effects of Market Participation on Farm Households’ Food Security in Cambodia: An endogenous switching approach By Seng, Kimty
  9. Research Needs and Challenges in the FEW System: Coupling Economic Models with Agronomic, Hydrologic, and Bioenergy Models for Sustainable Food, Energy, and Water Systems By Catherine L. Kling; Raymond W. Arritt; Gray Calhoun; David A. Keiser
  10. Understanding farmers’ technology adoption decisions: Input complementarity and heterogeneity: By Abay, Kibrom A.; Berhane, Guush; Taffesse, Alemayehu Seyoum; Koru, Bethlehem; Abay, Kibrewossen
  11. Vegetable consumption in Romania correlations with purchasing power and supply By Alboiu, Cornelia
  12. Long-Term Water Demand Forecasting By Jean-Daniel Rinaudo
  13. The competitive behaviour of rural households in agriculture - a case study in Țara Haţegului By Chitea, Lorena Florentina
  14. Dynamic supply response of farm households in Ethiopia: By Bachewe, Fantu Nisrane; Taffesse, Alemayehu Seyoum
  15. Agricultural knowledge and information system: Lessons learned in the postsocialist period in Romania and Bulgaria By Rusu, Marioara; Dirimanova, Violeta; Simionescu, Violeta Maria
  16. Pesticides and Bees:Ecological-Economic Modelling of Bee Populations on Farmland By Ciaran Ellis; Nick Hanley; Adam Kleczkowski; David Goulson
  17. Worker, Peasant or Entrepreneur? Analysis of the Entrepreneurial Logics and Practices of Family Farmers in Agrarian Reform Cooperatives in the Saiss (Morocco) By Olivier Petit; Valère Martin; Marcel Kuper; Fatah Ameur; Claire Papin-Stammose
  18. The main indicators analysis that characterize the food consumption evolution in Romania in comparison between the period 2001-2006 and 2007-2014 By Necula, Raluca; Stoian, Mirela; Manea, Draghici
  19. Ecological warfare against Pakistan from India Water War Results in a Devastated Ecological issues in Pakistan By Ahmed, Ovais; Mashkoor, Aasim
  20. The State of Supply Chain Management Practices within SMEs in Ghana: A Case Study of Selected Agrochemical Companies in Kumasi By Nsiah Asare, Evelyn; Prempeh, Kwadwo Boateng
  21. Communal Land and Agricultural Productivity By Charles Gottlieb; Jan Grobovsek
  22. Economic Issues in the Coexistence of Organic, Genetically Engineered (GE), and Non-GE Crops By Greene, Catherine; Wechsler, Seth J.; Adalja, Aaron; Hanson, James
  23. The development of private bore-wells as independent water supplies: challenges for water utilities in France and Australia By Jean-Daniel Rinaudo; Marielle Montginoul; Jean-François Desprats
  24. Improving water management in Myanmar’s dry zone for food security, livelihoods and health By International Water Management Institute, IWMI
  25. Adverse rainfall shocks and civil war: Myth or reality? By Ricardo Maertens
  26. Scale versus Scope in the Diffusion of New Technology By Daniel P. Gross
  27. Women’s empowerment in agriculture and dietary diversity in Ethiopia: By Yimer, Feiruz; Tadesse, Fanaye
  28. Payment for Multiple Forest Benefits Alters the Effect of Tree Disease on Optimal Forest Rotation Length By Morag F. Macpherson; Adam Kleczkowski; John R. Healey; Nick Hanley
  29. Food and gastronomy as elements of regional innovation strategies By Alessio CAVICCHI; Katerina CIAMPI STANCOVA
  30. Modeling Uncertainty in Climate Change: A Multi-Model Comparison By Kenneth Gillingham; William Nordhaus; David Anthoff; Valentina Bosetti; Haewon McJeon; Geoffrey Blanford; Peter Christensen; John Reilly; Paul Sztorc
  31. Threshold Effects in Meta Analyses with Application to Benefit Transfer for Coral Reef Valuation By Luke Fitzpatrick; Christopher F. Parmeter; Juan Agar
  32. Gender differences in climate change perceptions and adaptation strategies: an intra-household analysis from rural Kenya By Ngigi, Marther W.; Mueller, Ulrike; Birner, Regina
  33. Children’s diets, nutrition knowledge, and access to markets: By Hirvonen, Kalle; Hoddinott, John F.; Minten, Bart; Stifel, David
  34. Climate Policy Must Favour Mitigation Over Adaptation By Ingmar Schumacher
  35. The Environmental Cost of Global Fuel Subsidies By Lucas W. Davis
  36. The Conjunctive Use of Irrigation Water Over Time in Morocco: Strengthening Ecosystems and Development Linkages By Roe, Terry L.; Smith, Rodney B.W.
  37. Aspects regarding the evolution of organic farming in the EU member states: areas, agents, manufacturers By Niculae, Alecu Ioan; Angelescu, Anda Irina; Marcuta, Liviu; Angelescu, Carmen
  38. Poverty Assessment of Ethnic Minorities in Vietnam By Le, Chau; Nguyen, Cuong; Phung, Thu; Phung, Tung
  39. Do flexible repayment schedules improve the impact of microcredit? Evidence from a randomized evaluation in rural India By Czura, Kristina
  40. Official Data on German Water Supply (Statistik über die öffentliche Wasserversorgung): 2004, 2007, 2010 By Michael Zschille
  41. The relation between climate and agriculture in Danube Valley By Slave, Camelia; Vizireanu, Ioana
  42. Consistency of Risk Preference Measures and the Role of Ambiguity: An Artefactual Field Experiment from China By Pan He; Marcella Veronesi; Stefanie Engel
  43. Baseline Considerations in Designing REDD+ Pilot Projects: Evidence from Nepal By Bishnu Prasad Sharma; Mani Nepal; Bhaskar S. Karky; Subhrendu Pattanayak; Priya Shyamsundar
  44. Global Energy Demand in a Warming Climate By Enrica De Cian; Ian Sue Wing
  45. Risk Premia and Seasonality in Commodity Futures By Hevia, Constantino; Petrella, Ivan; Sola, Martin
  46. The Efficacy of Hybrid Collective Bargaining Systems: An Analysis of the Impact of Collective Bargaining on Company Performance in Europe By Braakmann, Nils; Brandl, Bernd

  1. By: Ghebru, Hosaena; Koru, Bethlehem; Taffesse, Alemayehu Seyoum
    Abstract: The study assesses factors that explain households’ perceived tenure insecurity and the demand for new formalization of land rights in Ethiopia. We use data from the 2013 Agricultural Growth Program (AGP) survey of 7,500 households from high agricultural potential areas of Ethiopia. The results from a logistic estimation and a descriptive analysis reveal that the de-mand for further land demarcation is positively associated with higher perception of tenure insecurity. Moreover, disaggre-gated regression results indicate that ownership and boundary-related disputes characterize peri-urban locations and vibrant communities, whereas perceived risk of government expropriation of land is mainly manifested in predominantly rural com-munities and areas where administrative land redistribution is a recent practices. Hence, the rollout strategy for the recent wave of the Second-Level Land Certification agenda should avoid a blanket approach, as it can only be considered a best fit for those vibrant and peri-urban locations where demand for further formalization is higher and boundary and ownership-related disputes are more common. However, focusing similar interventions in predominantly agrarian communities and communities with recent administrative land distributions may not be advisable since expropriation risk seems to be dictating perceived tenure insecurity of households in such locations. Rather, regulatory reforms in the form of strengthening the depth of rights over land, such as formalization of rural land lease markets and abolishing conditional restrictions on inter-generational land transfers via inheritance or gifting, could be considered as alternative and cost-effective intervention pack-ages in this latter context.
    Keywords: agricultural growth, land rights, households, land tenure, land policies, tenure insecurity,
    Date: 2016
  2. By: Tanasa, Lucian; Bruma, Ioan Sebastian; Dobos, Sebastian
    Abstract: Currently, short food supply chains represent a viable alternative to the conventional globalized supply chains, thus gradually becoming a more and more proeminent actor in the global logistics sector. The previously mentioned short food supply chains are in general extremely varied both in terms of nature and practices, benefiting producers as well as consumers from the socio-economic, environmental and health improvement points of view. In most cases, short food supply chains effectively reconnect end consumers, especially the young generations, with local small agri-food producers, thus contributing to the process of educating and/or sometimes reeducating individuals about the importance of adopting a healthy diet. Romania holds, in this respect, a high potential for the development of short food supply chains due to a series of factors such as: the large number of small semi-subsistence agricultural holdings (under 5 hectares); the persistent historical rural-urban link, as evidenced by the methods of obtaining food and groceries; the growing number of local certified producers, and last but not least the great veriety of specialized shops. Moreover, short supply chains stand solid chances of development in the near future as a result of sizeable financial support provided by the 2014-2020 National Rural Development Programme, which includes special promotion and development measures for small farmers and the short food supply sector. The present case study, which is based on field research undertaken across the Harghita county, aims to provide evidence of the existence and viability of short food supply chains in the agri food sector. The study identifies new associative forms between local producers and traditional processors and suppliers (butcher`s, meat processors, bakers etc.), specialized shops (groceries, mobile food carts, milk vending machines, on-line shops etc.), as well as new methods of promoting local traditional cuisine (gastronomic routes, food markets, food festivals).
    Keywords: short food supply chains, local food producers, new associative forms
    JEL: O52 Q13 Q18 R58
    Date: 2015–11–20
  3. By: Bachewe, Fantu Nisrane; Berhane, Guush; Minten, Bart; Taffesse, Alemayehu Seyoum
    Abstract: Ethiopia’s agricultural sector has recorded remarkable rapid growth in the last decade. This paper documents aspects of this growth process. Over the last decade, there have been significant increases - more than a doubling - in the use of modern inputs, such as chemical fertilizers and improved seeds, explaining part of that growth. However, there was also significant land expansion, increased labor use, and Total Factor Productivity (TFP) growth, estimated at 2.3 percent per year. The expansion in modern input use appears to have been driven by high government expenditures on the agricultural sector, including agricultural extension, but also by an improved road network, higher rural education levels, and favorable international and local price incentives.
    Keywords: agricultural sector, productivity, agricultural growth, economic growth, farm inputs, poverty, farmland, total factor productivity, poverty alleviation,
    Date: 2015
  4. By: Gupta, Shreekant; Sen, Partha; Verma, Saumya
    Abstract: In India, agriculture accounts for about sixty percent of employment. How would climate change, that is expected to hit agriculture in poorer countries very hard, affect India's agriculture? We study the impact of climate change on the mean and variance of yields of three food grains — rice (India's major crop), sorghum and pearl millet — at the district level using a panel data set for 1966-2002. An agricultural production function is estimated with exogenous climate variables -- precipitation and temperature -- controlling for other non climate inputs. To capture the impact of climate extremes, climate variables are modelled as anomalies. The results show that climate change adversely affects mean and variance of crop yields. Rice yields are found to be sensitive to rainfall extremes, extremely high temperatures increase sorghum yield variability, with pearl millet yields invariant to both rainfall and temperature extremes.
    Keywords: Climate change, agricultural impacts, developing countries
    JEL: O13 Q54 R11
    Date: 2016–02
  5. By: Stifel, David; Minten, Bart
    Abstract: We estimate the impact of improved market access on household well-being and nutrition using a quasi-experimental setting in Ethiopia. We find that households in remote areas consume substantially less than households nearer to markets, they are more food insecure, and their school enrollment rates are lower. Although their diets are also less diverse, we find no significant differences in anthropometric measures. Part of these welfare differences can be attributed to lower household agricultural production in remote areas. But agricultural production differences alone do not account for all of the differences in household consumption levels for remote households. An additional contributing factor is the deteriorating terms of trade for remote households that negatively affects both the size of the agricultural surplus that these households market and the quantity of food items that they purchase. Reducing transaction costs associated with poor rural infrastructure can pay off important dividends as it can facilitate households’ abilities to transform marketed surpluses into consumption goods and into healthier, more diverse diets.
    Keywords: welfare, food security, nutrition, food consumption, rural areas, poverty, market access, trade,
    Date: 2015
  6. By: Muhammad Iftikhar ul Husnain; Muhammad Khan
    Abstract: Wheat and Rice are major crops grown in Pakistan. This paper compares mean differences in the productivity and profitability of organic and conventional farms that grow these crops based on primary data collected from 444 farms. We find that growing organic crops is atleast as profitable as conventional crops because of lower input costs and higher output prices. Overall, per hectare input costs are 20% and 10% lower in organic wheat and rice farms relative to their conventional counterparts. These lower costs, however, are likely to be related to the lower yields associated with organic farms. Soils data show that the availability of nutrients such as Potassium, Phosphorous and Nitrogen is significantly higher in organic fields relative to conventional fields. Thus, organic farms tend to better conserve soil fertility and system stability than conventional farms. Based on these private and public benefits, we argue that organic agriculture should be encouraged through reductions in subsidies for conventional farming and more careful zoning and market development. Farmerâ€TMs adoption of commercial organic farming, however, will largely depend on how demand for organically farmed food continues to grow in Pakistan.
    Keywords: Pakistan, Organic Farming, Wheat, Rice, Profits, Soil Nutrients
  7. By: Davide Forcella; Frédéric Huybrechs
    Abstract: There has been growing interest lately in the role of microfinance to support environmental management of micro-enterprises and poor households. Worldwide, the number of green microfinance projects increases, yet there seems to be little discussion on how effective green microfinance is in achieving its environmental goals. This paper aims to position itself in this debate. We look at the first large-scale green microfinance programme for biodiversity conservation: Proyecto CAMBio. It consists of a combination of credits, technical assistance and conditional payments for environmentally friendly agricultural activities (PES). We focus on its implementation in Nicaragua by the microfinance institution FDL and the NGO Nitlapan. We perform an in-depth econometric analysis of a survey we conducted on a sample of 128 rural producers. We assess the clients’ characteristics that influenced the evolution of the environmental value of their farm –as defined by the indicators we used– on a span of five years, and we assess Proyecto CAMBio’s possible role in this evolution. Moreover, we further look into the effectiveness of PES in rewarding environmental betterment. Factors such as the decision to change the main economic activities, or clients’ strategies or opportunities in land accumulationappear to have the strongest influence on the evolution of the environmental value of the clients’ farm. While the project per se, even if carefully implemented in agreement with its guidelines and well performing at financial level, does not appear to have significantly influenced the evolution of the environmental value of the clients’ farm. Moreover, the PES does not seem to reward environmental improvement while instead it rewards the more credit-worthy activities, producers with more access to land and credit and in addition producers that plant fewer trees per hectare. With these results, we underline the importance of the local territorial dynamics and the complexity of the socio-environmental systems against a vision based simply on single economic actors. From our results it appears that green microfinance, without strategic articulation with local actors and broader territorial dynamics, would tend to (indirectly) support preexisting socioeconomic structures and the possibly related environmental degradation processes. We hence call for a more proactive engagement of green microfinance in the territorial dynamics and with local actors with the aim to support more sustainable livelihood trajectories and development pathways.
    Keywords: Microfinance; Green Microfinance; Rural Development; Payments for Environmental Services; Agricultural Finance; Ecosystem Services; Biodiversity; Central America; Proyecto CAMBio; Quantitative Analysis
    JEL: Q57 Q01 Q12 Q14 Q15 Q23 O13 G21 C01
    Date: 2016–03–16
  8. By: Seng, Kimty
    Abstract: This paper evaluates the effects of market participation on farm households’ food security in rural Cambodia in terms of household dietary diversity score. The evaluation is carried out with an endogenous switching model built on data from the Cambodia Socio-Economic Survey conducted in 2009. This model accounts for selection bias arising from unobserved factors that potentially affect both the participation and food security. The model also controls for structural differences between participants and nonparticipants in markets in terms of food security functions. The results reveal that by participating in markets, farm households enjoy higher household dietary diversity score, thus confirming the hypothesis that participation in markets exerts positive effects on farm households’ food security.
    Keywords: market participation, farm households, food security, endogenous, rural Cambodia
    JEL: O12 O13 Q02
    Date: 2016–03–15
  9. By: Catherine L. Kling (Center for Agricultural and Rural Development (CARD)); Raymond W. Arritt; Gray Calhoun; David A. Keiser (Center for Agricultural and Rural Development (CARD))
    Abstract: Agricultural land, energy, and water historically have been viewed as inputs for production of food; however, the ethanol boom and the potential for second generation feedstocks made from perennial crops show that energy can also be a direct output of agriculture. The events of recent decades have also made clear the profound consequences that agriculture can have for quality and quantity of water available for other uses. We now understand that there are important feedback loops and trade-offs that are omitted when treating food, energy, and water as unidirectionally coupled. Furthermore, new challenges to maintaining sustainable food, energy, and water quality and quantity are on the horizon. For example, projections from climate models suggest that some regions with highly productive agricultural lands will increasingly face extremes such as drought and floods, requiring adaptation and mitigation policies at the farm and watershed level to reduce their impacts. Failure to understand feedback effects between biophysical and economic systems can lead to unintended and undesirable outcomes from these policies. On October 12–13, 2015 a workshop funded by the National Science Foundation (NSF) was held at Iowa State University in Ames, Iowa with a goal of identifying research needs related to coupled economic and biophysical models within the Food-Energy-Water (FEW) system. Approximately 80 people attended the workshop with about half representing the social sciences (primarily economics) and the rest representing the physical and natural sciences. This focus was chosen so that workshop findings would be particularly relevant to NSF's Social, Behavioral & Economic Sciences (SBE) research needs while also including the critical connectivity needed between social sciences and other disciplines. The workshop identified two overarching roles for SBE research in coupled systems. First, economists and other social scientists play a critical role in adapting natural and physical science models for use in economic decision-making and policy analysis. This is illustrated in Figure 1, a highly stylized schematic for an integrated assessment model (IAM) of the FEW system. The top level represents human agent behavior (economic decisions, policies, and institutions), which directly affects a wide range of physical and natural systems that produce outputs of value to humans. The second level depicts models for those physical and natural systems. Finally, extensive economics studies have also addressed market impacts and valuation of ecosystem services that comprise the lower layer of the IAM. The diagram highlights the need for an integrated approach that accounts for crucial links between natural systems and human decisions, policies, and values. While economists have developed extensive research to study the behavior of economic agents and policymakers in the top layer, these studies often stop short of linking those decisions to the biophysical models in the middle layer. In turn, detailed biophysical models have been developed for individual components of the natural system, including linkages across some of those models (e.g., crop growth, land use, fisheries, and water quality), but these have rarely been linked to rigorous economic treatments. As economics provides bookends for the IAM, economists must play a prominent role in research that takes advantage of biophysical models for use in policy evaluation and welfare analysis.
    Date: 2016–03
  10. By: Abay, Kibrom A.; Berhane, Guush; Taffesse, Alemayehu Seyoum; Koru, Bethlehem; Abay, Kibrewossen
    Abstract: Agriculture growth in Africa is often characterized by low aggregate levels of technology adoption. Recent evidence, however, points to co-existence of substantial adoption heterogeneities across farm households and a lack of a suitable mix of inputs for farmers to take advantage of input complementarities, thereby limiting the potential for learning towards the use of an optimal mix of inputs. We use a detailed large longitudinal dataset from Ethiopia to understand the significance of input complementarities, unobserved heterogeneities, and dynamic learning behavior of farmers facing multiple agricultural technologies. We introduce a random coefficients multivariate probit model, which enables us to quantify the complementarities between agricultural inputs, while also controlling for alternative forms of unobserved heterogeneity effects. The empirical analysis reveals that, conditional on various types of unobserved heterogeneity effects, technology adoption exhibits strong complementarity (about 70 percent) between chemical fertilizers and improved seeds, and relatively weaker complementarity (between 6 and 23 percent) between these two inputs and extension services. Stronger complementarities are observed between specific extension services (advice on land preparation) and improved seed and chemical fertilizers, as opposed to simple visits by extension agents, suggesting that additional benefits can be gained if the extension system is backed by “knowledge” inputs and not just focus on “nudging” of farmers to use these inputs. The analysis also uncovers substantial unobserved heterogeneity effects, which induce heterogeneous impacts in the effect of the explanatory variables among farmers with similar observable characteristics. We also show that ignoring these behavioral features bears important implications in quantifying the effect of some policy interventions which are meant to facilitate technology adoption. For instance, ignoring these features leads to significant overestimation of the effectiveness of extension services in facilitating technology adoption. We also document strong learning behavior, a process that involves learning-by-doing as well as learning from extension agents.
    Keywords: agricultural growth, technology adoption, input complementarity, unobserved heterogeneity, dynamics, random coefficients multivariate probit, maximum simulated likelihood approaches,
    Date: 2016
  11. By: Alboiu, Cornelia
    Abstract: The paper makes an analysis of socio-economic factors that influence food consumption levels in terms of income evolution at regional level and also a comparison with EU average and several regions from Poland; it also presents the dispersion of regional GDP per inhabitant and its influence on consumption taking into account the level of polarization among several EU countries. The research analyses the level of expenditure per household in Romania; in addition comparisons with EU countries are made along with the structure of total average expenditure per person per month at macro region development levels in Romania. An in depth analysis is dedicated to the level of expenditures for vegetables and tinned vegetables and the structure of expenditure on the purchasing power for various types of vegetables by regions and social categories. The results show a quite high level of income dedicated for consumption and important disparities among social categories as far as the vegetable consumption is concerned. Also there is a high polarization among the EU countries concerning the income dispersion and its impact on vegetable consumption.
    Keywords: consumption, expenditure, purchasing power
    JEL: Q11 Q18 R11
    Date: 2015–11–20
  12. By: Jean-Daniel Rinaudo (BRGM - Bureau de Recherches Géologiques et Minières)
    Abstract: This chapter reviews existing long term water demand forecasting methodologies. Based on an extensive literature review, it shows that the domain has benefited from contributions by economists, engineers and system modelers, producing a wide range of tools, many of which have been tested and adopted by practitioners. It illustrates, via three detailed case studies in the USA, the UK and Australia, how different tools can be used depending on the regulatory context, the water scarcity level, the geographic scale at which they are deployed and the technical background of water utilities and their consultants. The chapter reviews how practitioners address three main challenges, namely the integration of land use planning with demand forecasting; accounting for climate change; and dealing with forecast uncertainty. It concludes with a discussion of research perspectives in that domain.
    Keywords: Water demand
    Date: 2015
  13. By: Chitea, Lorena Florentina
    Abstract: The goal of this paper is represented by the analysis of the competitive behaviour at rural household level in Ţara Haţegului, according to the economic size of the agricultural activities performed. If we extrapolate the mechanism from firm level to agricultural household level, competitiveness operates as a selection mechanism (only certain agricultural household farms survive on the market, which obtain quality products and have more efficient production processes); this also acts as a stimulation mechanism (in order to continue to exist on the market, the rural household farms must improve their technology and production organization). Competitiveness increase in agriculture first means a major change with regard to the agricultural behaviour, both at rural household level and at the level of (local and governmental) authorities. But the greatest obstacle to the change of farmers’ behaviour presupposes a fundamental transformation of their values and lifestyle, which is quite difficult.
    Keywords: competitiveness, agricultural household, economic size
    JEL: D13 Q12 R58
    Date: 2015–11–20
  14. By: Bachewe, Fantu Nisrane; Taffesse, Alemayehu Seyoum
    Abstract: We study the dynamics of the supply response of smallholder grain producers to changes in crop prices and costs of production in Ethiopia. We develop an intertemporal acreage demand allocation model of a representative household under a rational expectations hypothesis. An estimable acreage demand equation is derived and estimated for teff, an important staple grain in Ethiopia. We apply systems and linear dynamic panel data models to a data set covering a time period marked with remarkable agricultural and macroeconomic growth and smallholder-focused economic policies. The results indicate that teff acreage demand increases faster than permanent increases in real teff prices, and it rises by a third of temporary price increases. Moreover, teff acreage demand declines with increases in the opportunity cost of producing teff.
    Keywords: smallholders, teff, prices, demand, incentives, dynamic supply response, acreage demand, rational expectations hypothesis, dynamic panel data analyses,
    Date: 2015
  15. By: Rusu, Marioara; Dirimanova, Violeta; Simionescu, Violeta Maria
    Abstract: The new challenges facing Eastern European rural and agricultural sector impose, among other things, a review of the links between knowledge production and its use to promote innovation. Given that, agriculture is the main source of livelihood for a large part of the rural population in Romania and Bulgaria and its development requires multiple interventions that include, inter alia, ensuring effective transfer of agricultural modern knowledge, technologies, methods and practices to the direct beneficiaries - farmers. Both in Romania and Bulgaria, agricultural knowledge generation (research), transfer (extension) and use (farmers as end users) passed during the post-socialist period through important changes. The main objective of this paper is to analyze the Agricultural Knowledge and Information System (AKIS), in the two countries, in terms of pursued objectives, structure and performed functions. Based on this analysis the authors synthesize the main lessons learned during the post-socialist period in the two countries, and outline the future direction of development of agricultural knowledge, production, transfer and use them in agreement with European requirements.
    Keywords: AKIS, agricultural extension, agricultural research and education, Romania, Bulgaria
    JEL: D83 O12 O57 Q1
    Date: 2015–11–20
  16. By: Ciaran Ellis (University of Stirling); Nick Hanley (Department of Geography and Sustainable Development, University of St. Andrews); Adam Kleczkowski (University of Stirling); David Goulson (University of Sussex)
    Abstract: Production of insect-pollinated crops typically relies on both pesticide use and pollination, leading to a potential conflict between these two inputs. In this paper we combine ecological modelling with economic analysis to investigate the effects of pesticide use on wild and commercial bees, whilst allowing farmers to partly offset the negative effects of pesticides on bee populations by creating more on-farm bee habitat. Farmers have incentives to invest in creating wild bee habitat to increase pollination inputs. However, the optimal allocation of on-farm habitat strongly depends on the negative effects of pesticides, with a threshold-like behaviour at a critical level of the impairment. When this threshold is crossed, the population of wild bees becomes locally extinct and their availability to pollinate breaks down. We also show that availability of commercial bees masks the decrease in pollination services which would otherwise incentivise farmers to conserve the wild pollinator population, therefore indirectly leading to local wild bee extinction. The paper demonstrat es the importance of combining ecological modelling with economics to study sustainability in the provision of ecosystem services in agro-ecosystems.
    Keywords: pollination, pesticides, wild bees, commercial bees, ecological-economic modelling
    JEL: Q12 Q57
    Date: 2016–03
  17. By: Olivier Petit (UA - Université d'Artois, CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS - Centre National de la Recherche Scientifique - Université Lille 1 - Sciences et technologies); Valère Martin (UMR G-EAU - Gestion de l'Eau, Acteurs et Usages - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - Ecole Nationale du Génie Rural des Eaux et Forêts - CEMAGREF-UR IRMO); Marcel Kuper (UMR G-EAU - Gestion de l'Eau, Acteurs et Usages - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - Ecole Nationale du Génie Rural des Eaux et Forêts - CEMAGREF-UR IRMO); Fatah Ameur (UMR G-EAU - Gestion de l'Eau, Acteurs et Usages - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - Ecole Nationale du Génie Rural des Eaux et Forêts - CEMAGREF-UR IRMO); Claire Papin-Stammose (UMR G-EAU - Gestion de l'Eau, Acteurs et Usages - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - Ecole Nationale du Génie Rural des Eaux et Forêts - CEMAGREF-UR IRMO)
    Abstract: The aim of this paper is to analyze the emerging entrepreneurial practices and the underlying logic of family farms in two agrarian reform cooperatives in Morocco. These practices can be explained by the constant negotiation of multiple and sometimes even antagonistic logics (peasant, entrepreneurial, proletarian, capitalistic) within these farms in a context of rapid agrarian change and a juxtaposition of different farm types on the same territory. Five factors illustrate this emergence: (1) the access to credit, (2) the functioning of the farm (rotation of the crops, use of inputs, workforce), 3) the access to groundwater resources, (4) the marketing practices adopted by farmers and (5) the informational factors. The porosity of the peasant and entrepreneurial worlds is the main lesson we can draw from our study. There is a subtle process of hybridization between the peasant and entrepreneurial modes of farming, with a wide range of profiles, ranging from a pure 'peasant', to a pure 'entrepreneur' and in between the peasant-entrepreneur and the entrepreneur-peasant. If we only focus on the political discourse, the trend in the development of new modes of farming seems inescapable. Our study stresses the resistance of practices and logics of peasant modes of farming which can mix with a 'modern' vision of agriculture. However, the siren songs of entrepreneurship can lead to bankruptcy, an exit from agriculture, which could have a strong impact on the social cohesion of the Moroccan society, particularly in rural areas.
    Keywords: Morocco,groundwater economy,innovation,modes of farming,entrepreneurial practices and logics,irrigation,Saiss
    Date: 2015–10–12
  18. By: Necula, Raluca; Stoian, Mirela; Manea, Draghici
    Abstract: The analysis on the food consumption is particularly important because it helps us to discover information about the individual's health and economic differences between the two periods studied, outlining the economic impact on human food consumption and the worldwide food trends impact on the food transit that's going on within our country. It have been also noticed changes at the level of urban and rural areas and the differences between the two environments, which illustrates on the one hand the existence of changes in feeding with the accession to the European Union, the tendency being to decrease the number of calories, and the differences between environments demonstrating a higher food consumption for the countryside.
    Keywords: food consumption, calories, protein, carbohydrates, lipids
    JEL: O13 Q12 Q18 R00
    Date: 2015–11–20
  19. By: Ahmed, Ovais; Mashkoor, Aasim
    Abstract: This research study of ecological warfare against Pakistan from India is the big problem for sustainable and stagnant Pakistan economic growth. Water is a source of life and without this natural gift, there is no living phenomena will be existing, now coming era Water will become a prominent issue in the world if we lose control over Indus Basin and supply of drinking water, or unable to appropriate supply to our people therefore, we will start living like for those countries which have below the line poverty, such as, Africa, where people starving for food and water. In this research study we put light on some important facts of climate impact and environmental issues in Pakistan which can be resolve by law.
    Keywords: Ecological, Environment, Water Crisis
    JEL: O1 O13 Q5 Q57
    Date: 2016–03–17
  20. By: Nsiah Asare, Evelyn; Prempeh, Kwadwo Boateng
    Abstract: The study seeks to find out the state of supply chain management within SME’s in Ghana by investigating the extent of Supply Chain Management (SCM) practices, its benefits and challenges using some selected agrochemical companies in the Kumasi Metropolis. The study was a descriptive study. Primary data was obtained from the selected respondents using postal questionnaires. Convenience sampling technique was employed to obtain information from both the management staff and the consumers (farmers). Two hundred and fifty (250) questionnaires were distributed to the respondents. However, a total number of 200 could be retrieved for discussion and analysis. The obtained data was then analysed by the usage of descriptive method which employed tools like charts and tables. The study revealed that foreign and domestic suppliers, distributors and consumers together with Agrochemical Companies forms the supply chain; and an indication of weak supply chain management practices within the supply chain of Agrochemical companies. The study however was limited by difficulty in obtaining data and respondents’ unwillingness to give information can affect reliability of the study. However, all academicians and practitioners who are active in SCM will find value in this research
    Keywords: Supply Chain Management (SCM), SMEs, Agrochemical Companies and Logistic Management
    JEL: M00
    Date: 2016–02–15
  21. By: Charles Gottlieb; Jan Grobovsek
    Abstract: This paper quantifies the aggregate impact of communal land tenure arrangements that prevail in Sub-Saharan Africa. Such tenure regimes limit land transferability by prohibiting sales, subjecting rented-out land to the risk of expropriation, and redistributing it to existing farmers in a progressive fashion. We use a general equilibrium two-sector selection model featuring agents heterogeneous in skills to compute the resulting occupational and operational choices as well as land allocations. The quantification of the model is based on policies deduced from Ethiopia. In the Sub-Saharan African context we find that such policies substantially dampen nominal agricultural relative to non-agricultural productivity, by 25%. Real relative agricultural productivity, however, only falls by 4% since cross-sectoral terms of trade adjust strongly, with excess agricultural employment only amounting to some 1.5 percentage points. The loss in GDP is small, about 2%. That serves as a reminder that ostensibly highly distortionary policies need not have substantial bite when individuals strategically adjust to them and equilibrium prices adapt. For example, the model predicts that at given prices 62% of farmers in an economy such as Ethiopia would leave farming if tenure were secured, casting land insecurity as a major obstacle. Yet only 9% would actually switch sectors after price adjustments are factored in.
    Keywords: Agricultural Productivity, Growth and Development, Misallocation, Land
    JEL: O10 O13 O40 O55 Q15
    Date: 2015–02–03
  22. By: Greene, Catherine; Wechsler, Seth J.; Adalja, Aaron; Hanson, James
    Abstract: Two decades after the first genetically engineered (GE) seeds became commercially available for major field crops, GE varieties have been widely adopted for U.S. corn, soybean, cotton, canola, and sugar beet production. The small, longstanding market for organically grown food (which excludes GE seed and material) continues to expand and a market for conventionally grown foods produced without GE seed has also emerged. In order to maintain the integrity of GE-differentiated markets, organic farmers—and other farmers using non-GE seeds—employ a variety of practices to avoid the accidental mixing of GE material in their crops. This report examines organic and conventional product markets in the United States. It describes commonly used coexistence practices and discusses the economic impacts when GE material is detected in organic crops.
    Keywords: Coexistence, organic crops, USDA organic standards, genetically engineered crops, identity preservation, non-GE, non-GMO, adoption, prices, economic impacts, corn, soybeans, Agricultural and Food Policy, Crop Production/Industries, Farm Management,
    Date: 2016–02
  23. By: Jean-Daniel Rinaudo (BRGM - Bureau de Recherches Géologiques et Minières); Marielle Montginoul (UMR G-EAU - Gestion de l'Eau, Acteurs et Usages - AgroParisTech - AgroParisTech - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - Irstea - Centre International des Hautes Études Agronomiques Méditerranéennes-Institut Agronomique Méditerranéen de Montpellier [CIHEAM-IAMM]); Jean-François Desprats (BRGM - Bureau de Recherches Géologiques et Minières)
    Abstract: In developed countries, a number of factors are leading a growing number of households to drill private boreholes as independent water supplies. This chapter describes this phenomenon based on two case studies conducted in Southern France and Western Australia. It shows that, while the development of private wells was encouraged by the authorities in Perth, it is a major source of environmental, public health, economic and social concern for French water utilities. Household's motivations to develop independent supply are then investigated. We finaly discuss how water utilities need to adapt their management practices (setting tariffs, demand forecasting and resource protection) to take into account this phenomenon.
    Keywords: France, Australia, water supply, private bore-wells
    Date: 2015
  24. By: International Water Management Institute, IWMI
    Keywords: Water management, Arid zones, Food security, Living standards, Health, Agroecosystems, Rivers, Runoff, Water resources, Water use, Water conservation, Water accounting, Reservoir storage, Ponds, Wells, Domestic water, Multiple use, Groundwater irrigation, Groundwater recharge, Rainwater, Water harvesting, Irrigated land, Irrigation, schemes, Pumping, Investment, Landscape, Land degradation, Rainfed farming, Farmers, Soil conservation, Information management, Myanmar, Agribusiness, Agricultural Finance, Community/Rural/Urban Development, Farm Management, Food Security and Poverty, Health Economics and Policy, Land Economics/Use,
    Date: 2015
  25. By: Ricardo Maertens (Department of Economics and Business, Universitat Pompeu Fabra)
    Abstract: News reports and policy makers frequently link African civil conflicts and wars to agricultural crises caused by droughts. However, empirical studies of the relationship between rainfall and civil conflict or war remain inconclusive. I reexamine this relationship focusing on rainfall over each country's agricultural land during the growing seasons. I also incorporate that the relationship between rainfall and agricultural output is hump-shaped, as rainfall beyond a threshold decreases output. I find a U-shaped relationship between rainfall and the risk of civil conflict and war in (Sub-Saharan) African countries. This relationship mirrors the hump-shaped relationship between rainfall and agricultural output.
    Date: 2016–03
  26. By: Daniel P. Gross (Harvard Business School, Strategy Unit)
    Abstract: Using the farm tractor as a case study, I show that lags in technology diffusion arise along two distinct margins: scale and scope. Though tractors are now used in nearly every agricultural field operation and in the production of nearly all crops, they first developed with much more limited application, and early diffusion was accordingly limited in scope until tractor technology generalized. The results are consistent with theory and other historical examples, suggesting that the key to understanding technology diffusion lies not only in explaining the number of different users, but also in explaining the number of different uses.
    Keywords: Technology diffusion; Spatial technology diffusion; Farm tractors; R&D; General-purpose technologies
    JEL: N52 O13 O32 O33 Q16
    Date: 2016–03
  27. By: Yimer, Feiruz; Tadesse, Fanaye
    Abstract: Intra-household resource allocation has a considerable role to play in nutritional status in developing countries. Maternal and children’s dietary diversity are linked, not only with the circumstances of the household in general, but also with the status of women in particular. The extent to which women have access to and control over re-sources largely determines the kind of care they provide for their children and for the rest of the household. As recognized by the National Nutrition Program, women’s lack of control over household resources, time, knowledge, and social support networks constitutes a major barrier to improving poor nutritional outcomes in Ethi-opia. Using household survey data from 2013, we investigate the impact of women’s empowerment in agriculture on the nutrition outcomes of children and women. The data were collected in five regions of the country from more than 7,000 households in 84 woredas. We use multivariate regression methods and instrumental variable tech-niques to establish the relationship between women’s empowerment and the dietary diversity of women and chil-dren. The results indicate that all of the women’s empowerment indicators used are positively related to better die-tary diversity for both children and women. As women’s empowerment leads to improvements in children’s and women’s dietary diversity, it follows that interventions which increase women’s empowerment contribute to im-proving child nutrition as well as their own well-being.
    Keywords: gender, women, agriculture, diet,
    Date: 2015
  28. By: Morag F. Macpherson (Computing Science and Mathematics, School of Natural Sciences, University of Stirling); Adam Kleczkowski (Computing Science and Mathematics, School of Natural Sciences, University of Stirling); John R. Healey (School of Environment, Natural Resources and Geography, Bangor University); Nick Hanley (Department of Geography and Sustainable Development, University of St. Andrews)
    Abstract: Forests deliver multiple benefits both to their owners and to wider society. However, a wave of forest diseases and pests is threatening this worldwide. In this paper we examine the optimal rotation length of a single-aged, single rotation forest when a payment for non-timber benefits is included. This payment reflects the social values of forest management and is offered to private forest owners to partly internalise such benefits. We show that the inclusion of such a payment generally increases optimal rotation length, but this effect shows a range of complex interactions with key factors linked to tree disease (its external pressure, rate of transmission and impact on the value of harvested timber). Moreover, we highlight that this result is dependent on the structure of the payment for non-timber benefits, and under some constraints it may be optimal to never harvest the forest.
    Keywords: multiple-output forest, payment for ecosystem services, bioeconomic modelling, optimal rotation length, Hartman model.
    JEL: Q23 Q54 Q57
    Date: 2016–03
  29. By: Alessio CAVICCHI (University of Macerata, Department of Education, Cultural Heritage and Tourism); Katerina CIAMPI STANCOVA (European Commission – JRC - IPTS)
    Abstract: The paper discusses recent innovation and diversification paths in agro-food, specifically the linkage between food, territory and branding, the emerging phenomenon of Food Cities and increasing interest in healthier and more sustainable food products. It also focuses on EU policies and instruments in support of R&I activities in agro-food and explores agro-food domain within the context of smart specialisation.
    Keywords: EU policies, regional policies, regional innovation, smart specialisation, agro-food, gastronomy, branding
    Date: 2016–03
  30. By: Kenneth Gillingham (Yale University, New Haven, CT, USA); William Nordhaus (Yale University, New Haven, CT, USA); David Anthoff (University of California, Berkeley, USA); Valentina Bosetti (Bocconi University, Milan, Italy); Haewon McJeon (PNNL, College Park, Maryland, USA); Geoffrey Blanford (EPRI, USA); Peter Christensen (Aarhus University, Denmark); John Reilly (MIT, Cambridge, MA, USA); Paul Sztorc (Yale University, New Haven, USA)
    Abstract: The economics of climate change involves a vast array of uncertainties, complicating both the analysis and development of climate policy. This study presents the results of the first comprehensive study of uncertainty in climate change using multiple integrated assessment models. The study looks at model and parametric uncertainties for population, total factor productivity, and climate sensitivity. It estimates the pdfs of key output variables, including CO2 concentrations, temperature, damages, and the social cost of carbon (SCC). One key finding is that parametric uncertainty is more important than uncertainty in model structure. Our resulting pdfs also provide insights on tail events.
    Keywords: Climate Change, Integrated Assessment Models
    JEL: Q54
    Date: 2016–03
  31. By: Luke Fitzpatrick (Department of Economics, University of Miami); Christopher F. Parmeter (Department of Economics, University of Miami); Juan Agar (NOAA, National Marine Fisheries Service)
    Abstract: Policymakers and advocates alike often turn to benefit transfers to estimate the economic value of environmental amenities when primary valuation studies are infeasible. Coral reef ecosystems, among the most biologically diverse and productive ecosystems on the planet, are an amenity for which benefit transfers are particularly helpful. Meta analyses, which synthesize site and methodological characteristics from many different studies, can improve upon traditional site-to-site transfers. We build on previous research on meta analysis by introducing threshold effects. We find that a threshold in reef quality exists: users of coral reefs place a higher value on improvements in live coral cover on degraded reefs than on healthy ones. Relaxing the assumption of users' constant valuation across the distribution of this characteristic improves the performance of coral reef benefit transfers. Tests of convergent validity reveal that including the threshold effect reduces the variability and magnitude of transfer errors in some experiments.
    Keywords: Policymakers and advocates alike often turn to benefit transfers to estimate the economic value of environmental amenities when primary valuation studies are infeasible. Coral reef ecosystems, among the most biologically diverse and productive ecosystems on the planet, are an amenity for which benefit transfers are particularly helpful. Meta analyses, which synthesize site and methodological characteristics from many different studies, can improve upon traditional site-to-site transfers. We build on previous research on meta analysis by introducing threshold effects. We find that a threshold in reef quality exists: users of coral reefs place a higher value on improvements in live coral cover on degraded reefs than on healthy ones. Relaxing the assumption of users' constant valuation across the distribution of this characteristic improves the performance of coral reef benefit transfers. Tests of convergent validity reveal that including the threshold effect reduces the variability and magnitude of transfer errors in some experiments. Publication Status: Under Review
    JEL: C24 C52 Q22 Q5
    Date: 2016–02–20
  32. By: Ngigi, Marther W.; Mueller, Ulrike; Birner, Regina
    Abstract: It has been widely acknowledged that the effects of climate change are not gender neutral. However, existing studies on adaptation to climate change mainly focus on a comparison of male-headed and female-headed households. Aiming at a more nuanced gender analysis, this study examines how husbands and wives within the same household perceive climate risks and group-based approaches as coping strategies. The data stem from a unique self-collected and intra-household survey involving 156 couples in rural Kenya, where husbands and wives were interviewed separately. Options for adapting to climate change closely interplay with husbands’ and wives’ roles and responsibilities, social norms, risk perceptions and access to resources. Consequently, a higher percentage of wives adopt crop-related strategies, whereas husbands employ livestock- and agroforestry-related strategies. Besides, there are gender-specific climate information needs, gendered trust of information and preferred channels of information dissemination. Further, it turned out that group-based approaches benefit husbands and wives differently. Group-based approaches provide avenues for diversifying livelihoods and managing risks for wives, while they are pathways for sharing climate information and adaptation options for husbands. Social groups help husbands and wives to enhance their welfare through accumulating vital types of capital such as livestock, durable assets, human, natural, financial and social capital. The findings suggest that designing gender-sensitive policies and institutionalizing gender in climate change adaptation and mitigation frameworks, are vital. Policy interventions that rely on group-based approaches must reflect gender perspectives on the ground in order to amplify men’s and women’s specific abilities to manage risks and improve welfare outcomes in the wake of accelerating climate change.
    Keywords: perceptions, adaptation, group-based approaches, gender, intra-household analysis, Kenya, Consumer/Household Economics, Environmental Economics and Policy, Farm Management, Food Consumption/Nutrition/Food Safety, D13, J16, Q54,
    Date: 2016–03
  33. By: Hirvonen, Kalle; Hoddinott, John F.; Minten, Bart; Stifel, David
    Abstract: Chronic undernutrition in Ethiopia is widespread and many children consume highly monotonous diets. To improve feeding practices in Ethiopia, a strong focus in nutrition programming has been placed on improving the nutrition knowledge of caregivers. In this paper, we study the impact of improving nutrition knowledge within households and its complementarity with market access. To test whether the effect of nutrition knowledge on children’s dietary diversity depends on market access, we use survey data from an area with a large variation in transportation costs over a relatively short distance. This allows us to carefully assess the impact of households’ nutrition knowledge with varying access to markets, but still within similar agro-climatic conditions. We find that nutrition knowledge leads to considerable improvements in children’s diets, but only in areas with relatively good market access.
    Keywords: diet, nutrition, malnutrition, children, food consumption, surveys, market access, dietary diversity, food markets, remoteness,
    Date: 2016
  34. By: Ingmar Schumacher
    Abstract: In climate change policy, adaptation tends to be viewed as being as important as mitigation. In this article we present a simple yet gen- eral argument for which mitigation must be preferred to adaptation. The argument rests on the observation that mitigation is a public good while adaptation is a private one. This implies that the more one disag- gregates the units in a social welfare function, i.e. the more one teases out the public good nature of mitigation, the lower is average income and thus less money (per region, country or individual) is available for adaptation and mitigation. We show that, while this reduces incen- tives to invest in the private good adaptation, it increases incentives to invest in the public good mitigation since even small contributions of everyone can have signi cant impacts at the large. Conclusively, private adaptation thus must be viewed as a signi cant loss to global welfare. When taking this result to the data we nd that a representa- tive policy maker who relies on world-aggregated data would invest in both adaptation and mitigation, just as the previous literature recom- mends. However, a representative policy maker who relies on country- level data, or data at further levels of disaggregation, would optimally only invest in mitigation.
    Keywords: climate change, mitigation, adaptation.
    JEL: Q58 Q54
    Date: 2016–03–17
  35. By: Lucas W. Davis
    Abstract: Despite increasing calls for reform many countries continue to provide subsidies for gasoline and diesel. This paper quantifies the external costs of global fuel subsidies using the latest available data and estimates from the World Bank and International Monetary Fund. Under preferred assumptions about supply and demand elasticities, current subsidies cause $44 billion in external costs annually. This includes $8 billion from carbon dioxide emissions, $7 billion from local pollutants, $12 billion from traffic congestion, and $17 billion from accidents. Government incentives for alternative fuel vehicles are unlikely to cost-effectively reduce these externalities as they do little to address traffic congestion or accidents, and only indirectly address carbon dioxide and local pollutants.
    JEL: H23 Q31 Q41 Q48 Q52 Q53 Q54 Q58 R41
    Date: 2016–03
  36. By: Roe, Terry L.; Smith, Rodney B.W.
    Abstract: Final Report, United Nations Environment Program, Project number 00042903
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy, Productivity Analysis,
    Date: 2015–11
  37. By: Niculae, Alecu Ioan; Angelescu, Anda Irina; Marcuta, Liviu; Angelescu, Carmen
    Abstract: This paper represents an analysis of the way in which the organic farming has evolved in the EU member states, focusing on the crop production. The analysed period is 2000-2011, years for which a full set of data was found. Data regarding the following have been analysed and interpreted: organically farmed areas, number of farms, number of the manufacturers in the system and the main utilization categories for the organically farmed lands. The conclusions reinforce the idea that, in an era when the society is increasingly concerned with the health of its members and of the environment, the organic farming has gathered pace in the last years having an extremely dynamical evolution in Europe and not only.
    Keywords: Organic farming, organically farmed areas, organic farms
    JEL: O13 O57 Q57 R10
    Date: 2015–11–20
  38. By: Le, Chau; Nguyen, Cuong; Phung, Thu; Phung, Tung
    Abstract: Ethnic minorities in Vietnam have experienced high income fluctuation over time. This study aims to examine why a number of households experienced an income increase while others experienced an income decrease in poor areas with high density of ethnic minorities in Vietnam. It shows that the increase in household income results from an increase in average income per working hour. That is, the number of working hours did not change significantly but the increase in productivity per working hour helps households to increase their household income. In addition, the increase in number of working hour and increase in income transfers also contribute to the income increase. Our study also indicates that the increase in labor productivity mostly comes from agricultural sector but not from non-agricultural sector. For households with falling income, the major reasons for the income decrease are decreasing labor productivity, especially in agricultural sector.
    Keywords: Ethnic minority; household income; poverty; decomposition, Vietnam.
    JEL: I31 I32 O1
    Date: 2014–05–20
  39. By: Czura, Kristina
    Abstract: Microcredit institutions typically apply rigid and fixed repayment schedules when disbursing loans in order to reduce transaction costs, simplify procedures, and inculcate fiscal discipline for better repayment behavior. Microcredit clients, however, often have neither smooth income nor singular moments in which to make lumpy investments throughout the year. This mismatch generates a cash flow disconnect and, given the presumed liquidity constraints of the typical microcredit client, a potential welfare loss. Using data from a randomized evaluation with dairy farmers in rural India, we test the impact of flexible microcredit repayment schedules relative to "normal" inflexible, fixed repayment schedules. Although we are only able to track those who borrow, which introduces potential selection effects, we find amongst those in flexible lending groups some evidence for higher ability to absorb shocks and higher income, which seems to be driven by limited improvements in investment and higher production from milk. On the cost-side, defaults do increase for the lender. Towards the end of the study, the microcredit market encountered crisis, with mass defaults, thus it is hard to generalize with respect to the default results. We conclude with caution, that we have shown suggestive evidence that a more flexible product design, one tailored to the needs of a dairy farmer, may be welfare enhancing for the dairy farmer. Further work is needed to both validate these results, and explore how to balance any trade-off with default.
    Keywords: Flexible repayment schedules; micro finance; microcredit; consumption smoothing
    JEL: O16 Q14
    Date: 2015–11
  40. By: Michael Zschille
    Date: 2016
  41. By: Slave, Camelia; Vizireanu, Ioana
    Abstract: The work includes analysis of natural and geographical elements of the Danube floodplain, the correlation between these elements and their interpretation. In this regard, the work was conceived as a unitary character of the area at the confluence of the Olt River with Vedea River - Plain Boianului. The area has high availability for agriculture, good yields being recorded today this is due to the conditions of receiving the geographic. The purpose of this paper is to present data on agricultural development of the area.
    Keywords: agriculture, cereal plains, dunes, Danube Valley
    JEL: Q54 R58
    Date: 2015–11–20
  42. By: Pan He (ETH Zurich); Marcella Veronesi (Department of Economics (University of Verona)); Stefanie Engel (Institute for Environmental Decisions, ETH Zurich)
    Abstract: A variety of measures have been developed to elicit individual risk preferences. How these measures perform in the field, in particular in developing countries with non-student subjects, is still an open question. We implement an artefactual field experiment using a large sample of Chinese farmers to investigate (i) whether subjects behave in a consistent manner across incentivized experimental risk measures, (ii) whether non-incentivized survey measures can elicit actual risk preferences, and (iii) possible explanations for risk preference inconsistency across measures. We find that inconsistent risk preferences across survey and experimental measures may be explained by ambiguity preferences. In the survey, subjects seem to mix risk and ambiguity preferences.
    Keywords: risk preferences, ambiguity preferences, field experiments, socio-economic survey, China
    JEL: C93 D81 O1
    Date: 2016–03
  43. By: Bishnu Prasad Sharma; Mani Nepal; Bhaskar S. Karky; Subhrendu Pattanayak; Priya Shyamsundar
    Abstract: In this paper we discuss how three criteria - carbon effectiveness, cost efficiency, and equity and co-benefits - can be incorporated in the experimental design for Reducing Emissions from Deforestation and Degradation and enhancing forest carbon stocks in developing countries (REDD+). We discuss how additional design components can be introduced using a propensity score matching method in pre-selected study sites. Finally, we explain how this carefully designed study has helped to prepare the ground for a difference-in-difference framework for future outcome and impact evaluation. Given the lack of adequate data in developing country scenarios, and the mismatch between project implementation and impact evaluation, this paper highlights how a reliable baseline for forest carbon, ecology, and social and livelihood indicators could be created by collecting data at community level. This paper concludes with considerations for future outcomes and an impact evaluation of the REDD+ mechanism.
    Keywords: REDD+, impact evaluations, forest carbon, co-benefits, Nepal
  44. By: Enrica De Cian (Centro Euro-Mediterraneo sui Cambiamenti Climatici and Fondazione Eni Enrico Mattei); Ian Sue Wing (Dept. of Earth & Environment, Boston University)
    Abstract: This paper combines an econometric analysis of the response of energy demand to temperature and humidity exposure with future scenarios of climate change and socioeconomic development to characterize climate impacts on energy demand at different spatial scales. Globally, future climate change is expected to have a moderate impact on energy demand, in the order of 6-11%, depending on the degree of warming, because of compensating effects across regions, fuels, and sectors. Climate-induced changes in energy demand are disproportionally larger in tropical regions. South America, Asia, and Africa, increase energy demand across all sectors and climate scenarios, while Europe, North America and Oceania exhibit mixed responses, but with consistent reductions in the residential sector. Even so, only Europe and Oceania in the moderate warming scenario experience aggregate reductions in energy use, as commercial electricity use increases significantly. We find that climate change has a regressive impact on energy demand, with the incidence of increased energy demand overwhelmingly falling on low- and middle-income countries, raising the question whether climate change could exacerbate energy poverty.
    Keywords: Panel Data, Climate Change, Adaptation, Energy
    JEL: N5 O13 Q1 Q54
    Date: 2016–03
  45. By: Hevia, Constantino; Petrella, Ivan; Sola, Martin
    Abstract: We develop and estimate a multifactor affine model of commodity futures that allows for stochastic variations in seasonality. We show conditions under which the yield curve and the cost-of-carry curve adopt augmented Nelson and Siegel functional forms. This restricted version of the model is parsimonious, does not suffer from identification problems, and matches well the yield curve and futures curve over time. We estimate the model using heating oil futures prices over the period 1984-2012. We find strong evidence of stochastic seasonality in the data. We analyze risk premia in futures markets and discuss two traditional theories of commodity futures: the theory of storage and the theory of normal backwardation. The data strongly supports the theory of storage.
    Keywords: Commodity Futures; Nelson and Siegel; Risk premium; Seasonality; Theory of storage.
    Date: 2016–03
  46. By: Braakmann, Nils; Brandl, Bernd
    Abstract: Individual and company bargaining has increasingly supplanted sector and country collective bargaining leading to increasingly perforated and multi-layered national collective bargaining systems. In this paper, we develop a comprehensive categorization of bargaining and argue that both the bargaining level and the degree of integrative interaction between bargaining units matters for efficacy. This idea is tested using representative company level data for the European Union. We find that the efficacy of coordinated sector and multi-level systems is higher than for all other forms of bargaining. Policy implications are discussed as these results challenge current attempts to reform collective bargaining in Europe.
    Keywords: collective bargaining; efficacy; hybrid bargaining systems; company performance
    JEL: J31 J32 J52
    Date: 2016–02–08

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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.