nep-agr New Economics Papers
on Agricultural Economics
Issue of 2016‒04‒09
nineteen papers chosen by
Angelo Zago
Università degli Studi di Verona

  1. Food trade, Biodiversity Effects and Price Volatility By Cecilia Bellora; Jean-Marc Bourgeon
  2. Productivity and efficiency of smallholder teff farmers in Ethiopia: By Bachewe, Fantu Nisrane; Koru, Bethlehem; Taffesse, Alemayehu Seyoum
  3. 2016 Global Food Policy Report: Synopsis By International Food Policy Research Institute (IFPRI)
  4. Coffee price volatility and intra-household labour supply By Ulrik Beck; Saurabh Singhal; Finn Tarp
  5. Spatial Planning and Segmentation of the Land Market By Or Levkovich; Jan Rouwendal
  6. Analyzing the welfare-improving potential of land in the former homelands of South Africa By Stefania Lovo
  7. Aptitudes of Pakistani Rice Industry with Respect to Global Trade By Jafar, Rana Muhammad Sohail; Rabnawaz, Ambar; Hussain, Safdar; Ahmed, Wasim; Zhuang, Peifen
  8. Thinning Markets in U.S. Agriculture By Adjemian, Michael; Brorsen, B. Wade; Hahn, William; Saitone, Tina L.; Sexton, Richard J.
  9. An overview of theoretical and empirical studies on deforestation By Indarto, Jarot; Mutaqin, Dadang J.
  10. A look back on a unique experiment in interventionism in market economies: the European Common Agricultural Policy (1955 – 2015) By Pierre DELFAUD
  11. Impact of European Food Safety Border Inspections on Agri-Food Exports: Evidence from Chinese Firms By Lionel Fontagné; Anne-Célia Disdier; Matthias Beestermöller
  12. Effectiveness, earmarking and labeling: testing the acceptability of carbon taxes with survey data By Andrea Baranzini; Stefano Carattini
  13. Social justice in the construction of the acceptability judgment. Analysis of the farmers’ reactions to different groundwater sharing rules By Clémence Moreau; Jean-Daniel Rinaudo; Patrice Garin
  14. The impact of farmers' risk preferences on the design of an individual yield crop insurance By Laurent Piet; Douadia Bougherara
  15. From Big Data To Important Information By Yaneer Bar-Yam
  16. Estimation of Vulnerability to Poverty Using a Multilevel Longitudinal Model: Evidence from the Philippines By Christian D. Mina; Katsushi S. Imai
  17. Dynamic Relationships among CO2 Emissions, Energy Consumption, Economic Growth, and Economic Complexity in France By Can, Muhlis; Gozgor, Giray
  18. A Comparison of Panel Data Models in Estimating Technical Efficiency By Rashidghalam, Masoomeh; Heshmati, Almas; Dashti, Ghader; Pishbahar, Esmail
  19. Fisheries management for different angler types By John Curtis; Benjamin Breen

  1. By: Cecilia Bellora; Jean-Marc Bourgeon
    Abstract: Biotic factors such as pests create biodiversity effects that increase food production risks and decrease productivity when agriculture specializes. Under free trade, they reduce the specialization in food production that otherwise prevails in a Ricardian two-country setup. Pesticides allow farmers to reduce biodiversity effects, but they are damaging for the environment and for human health. When regulating farming practices under free trade, governments face a tradeoff: they are tempted to restrict the use of pesticides compared to under autarky because domestic consumption partly relies on imports and thus depends less on them, but they also want to preserve the competitiveness of their agricultural sector on international markets. Contrary to the environmental race-to-the-bottom tenet, we show that at the symmetric equilibrium under free trade restrictions on pesticides are generally more stringent than under autarky. As a result, trade increases the price volatility of crops produced by both countries, and, depending on the intensity of the biodiversity effects, of some or all of the crops that are country-specific.
    Keywords: Agricultural Trade;Food Prices;Agrobiodiversity;Pesticides
    JEL: F18 Q17 Q18 Q56
    Date: 2016–03
  2. By: Bachewe, Fantu Nisrane; Koru, Bethlehem; Taffesse, Alemayehu Seyoum
    Abstract: A large proportion of Ethiopians derive their livelihood from smallholder agriculture. This has provided the impetus for the smallholder agriculture focused policies that have guided agricultural development efforts in Ethiopia over the past two decades. This work studies smallholder teff producers. Teff is an important crop in terms of cultivated area, share of food expenditure, and contribution to gross domestic product. Despite the remarkable growth in teff production in the last decade, the drivers of this growth are not well understood. In particular, there is a lack of evidence on the contribution of improvements in productivity to this growth and the link between farm size and productivity. More-over, doubts exist on whether it is possible to sustain such growth on landholdings that are declining in size. This study employs data envelopment analysis on a recently collected large-scale farm household survey dataset to measure and explain the relative productivity and efficiency of smallholder teff producers.
    Keywords: teff, smallholders, productivity, efficiency, households, food production,
    Date: 2015
  3. By: International Food Policy Research Institute (IFPRI)
    Abstract: The Global Food Policy Report is IFPRI’s flagship publication. This year’s annual report examines major food policy issues, global and regional developments, and commitments made in 2015, and presents data on key food policy indicators. The report also proposes key policy options for 2016 and beyond to achieve the Sustainable Development Goals. In 2015, the global community made major commitments on sustainable development and climate change. The global food system lies at the heart of these commitments—and we will only be able to meet the new goals if we work to transform our food system to be more inclusive, climate-smart, sustainable, efficient, nutrition- and health-driven, and business-friendly.
    Keywords: agricultural research; agricultural development; economic development; agricultural policies; governance; poverty; conflicts; food security; food policies; climate change; sustainability; water; water management; nutrition; food consumption; malnutrition; health; land degradation; land management; soil fertility; soil carbon; energy; smallholders; markets; value chains; gender; women; resilience; social protection; social safety nets; post harvest losses; food loss and waste; spillage; spoilage; sustainable development goals (SDGs); Africa South of Sahara; South Asia; Latin America; Africa; Asia; South America; Americas
    Date: 2016
  4. By: Ulrik Beck; Saurabh Singhal; Finn Tarp
    Abstract: Volatility in commodity markets poses an acute risk to farmers in developing countries who rely on cash crop agriculture. We combine a time series of international coffee prices with a long-running panel on coffee-growing households in Viet Nam to investigate coping mechanisms employed by farmers in a transitioning economy. We find that households cope with lower coffee prices by increasing wage labour of adults with children and adolescents substituting for adults on the farm and in home production. Account should be taken of this finding in formulating and implementing social protection and inclusive growth policies.
    Keywords: intra-household allocation, commodity prices, income shocks, labour supply
    Date: 2016
  5. By: Or Levkovich (VU University Amsterdam, the Netherlands); Jan Rouwendal (VU University Amsterdam, the Netherlands)
    Abstract: In this paper we provide evidence of segmentation of the Dutch land markets by spatial planning into three compartments referring to agricultural, industrial and residential use. We analyze transactions of ready-to-be developed land provided by the Dutch Land Register (Kadaster) and find that residential land is much more expensive than industrial land. We also compare the prices observed in these transactions with prices for agricultural land in the vicinity and find that agricultural land is much cheaper than residential and industrial land.
    Keywords: land use policy; spatial planning; land prices
    JEL: R52 R21 R33
    Date: 2016–03–21
  6. By: Stefania Lovo
    Abstract: This article contributes to the debate on the role of land in reducing poverty in rural South Africa. It uses the year of arrival in the former homelands as an instrument for land access and size. This identification strategy is based on the fact that African households were forcibly relocated to the homelands during the apartheid. Due to increasing population pressure, later arrivals were less likely to be assigned land. The results show that land has a large positive effect on household welfare. Because the homelands are relatively disadvantaged areas, these results provide a lower bound for the positive effects of land on household welfare.
    Keywords: land; household welfare; asset index forced removals; homelands; South Africa
    JEL: O12 Q12 Q15
    Date: 2014–11
  7. By: Jafar, Rana Muhammad Sohail; Rabnawaz, Ambar; Hussain, Safdar; Ahmed, Wasim; Zhuang, Peifen
    Abstract: Economy of Pakistan based on agriculture, owing to the export of agricultural commodities is major source of foreign exchange earnings. Export of rice play a vital role in country’s economy. However, trade policies influenced the performance of agricultural sector, as there are some gaps of technical advancement in system, financial irregularity, as well as other constitutional regulatory factors. Pakistan is following three years Strategic Trade Policy Framework (STPF) since 2009, to enhance the performance and efficiency of trade sector. Since last few years, trade of rice is decreasing due to traditional markets, energy crises and lack of research and development in agricultural sector. Thus, Pakistan has lost its more than 30% share from Gulf market via rice export during previous three decades. The transaction cost to imports is significantly lower than the exportation, which is negatively affecting the competitiveness of country’s exports. So, it's prior need to pay attention in the export chain sector, to approach the Europeans markets for encouraging trade performance of rice sector, as well as, improve the reforms in trade policies to compete in the international market for maximum foreign exchange revenues.
    Keywords: Trade strategies, Export competition, Rice export
    JEL: L1
    Date: 2015
  8. By: Adjemian, Michael; Brorsen, B. Wade; Hahn, William; Saitone, Tina L.; Sexton, Richard J.
    Abstract: Concentration levels in U.S. agriculture are high and rising. As downstream competition declines, marketing opportunities for producers are constrained to—in some cases—a single buyer. Processors in thin markets (those with few purchasers, low trading volume, and low liquidity) could use informational advantages to depress farm-level prices for commodities (compared to a competitive market). Moreover, the low volume of trading in thin markets makes it difficult for participants and observers to gather market information and assess market performance. At the same time, many markets are moving away from traditional cash markets to bilateral contracts and vertical integration, which offer more opportunities for coordination and may foster efficiency gains that ultimately benefit producers. Both methods resolve information problems not addressed by the cash market, and forward-looking processors in many thin markets pay producers high enough prices to ensure a stable input supply. Thin market producers who can successfully enter and maintain contracts with these processors can achieve returns that meet or exceed their longrun costs. Attempting to impose greater competition on naturally thin markets can have adverse consequences for producers, processors, and consumers. However, small producers face new challenges in a thin market environment.
    Keywords: Thin markets, farm prices, competition, coordination, market power, contracts, Agribusiness, Crop Production/Industries, Industrial Organization, Livestock Production/Industries, Marketing,
    Date: 2016–03
  9. By: Indarto, Jarot; Mutaqin, Dadang J.
    Abstract: Deforestation is one of the critical issues in our global climate change era. It leads to two important environmental challenges, loss of biodiversity and increasing of greenhouse gas emission. Many efforts have been introduced, developed and implemented. However, a declining forest cover still presents. Since deforestation is a complex and intertwined issue, understanding its complexity and context on which it is debated is crucial. This paper aims at discussing some grand theories of deforestation, especially from economics perspective. The discussion covers the proximate-underlying causes of deforestation, the Environmental Kuznets Curve for deforestation theory, the forest transition theory and the land rent theory. For each, this paper elaborates their original notion, basic idea, empirical studies and policy derivation. Finally, comparable similarities and dissimilarities and their future extend are reviewed.
    Keywords: Deforestation, proximate and underlying causes, Environmental Kuznets Curve for deforestation, forest transition, land rent.
    JEL: Q57
    Date: 2016–03–01
  10. By: Pierre DELFAUD
    Abstract: Now that agricultural surpluses, after the removal of quantitative restrictions put into effect thirty years ago, are beginning to reappear, it is an opportune moment to revisit the history of the Common Agricultural Policy. This policy in effect constituted a unique experiment which can only be understood, as in any policy of intervention in market economies, through the combination of three concepts: economic rationality, social acceptability and institutional capability. This can be verified throughout the sixty years of the CAP’s existence, from its formulation (1955-1962) to its establishment with successive readjustments (1962-1992) through to the gradual dismantling (1992-2015). We are thus faced with two models: firstly the policy of price regulation, secondly competition policy compensation.
    Keywords: History of Europe, agricultural policy, interventionism, price regulation, competition policy
    JEL: N54 Q13 Q18
    Date: 2016
  11. By: Lionel Fontagné; Anne-Célia Disdier; Matthias Beestermöller
    Abstract: The cost of complying with a sanitary standard is certain. However, such regulatory measure introduces an element of uncertainty for exporting firms in relation to border rejections. Shipments may fail to pass inspections and may be refused entry into the importing country. This risk is shaped by variance in the quality of the exported product, and the stringency of the border controls. Large developing countries are over-represented in import refusals and may be targeted by inspectors. We examine how the risk of rejection at European borders on safety grounds is affecting Chinese agri-food exporters. We combine information from the European Rapid Alert System for Food and Feed with Chinese firm-level export data by product, destination and year for the period 2000-2011. We show that information externalities and reputation effects are important. Border rejections amplify the turnover among firms at the extensive margin of trade. This risk is curbing small Chinese exporters and resulting in a concentration of Chinese exports from big and more productive exporters.
    Keywords: Food Safety;Border Inspections;Import Refusals;Uncertainty;Firm Heterogeneity
    JEL: F14 L25 Q17 Q18
    Date: 2016–03
  12. By: Andrea Baranzini; Stefano Carattini
    Abstract: This paper analyzes the drivers of carbon taxes acceptability with survey data and a randomized labeling treatment. Based on a sample of more than 300 individuals, it assesses the effect on acceptability of specific policy designs and individuals’ perceptions of carbon taxes advantages and disadvantages. We find that the lack of perception of primary and ancillary benefits is one of the main barriers to the acceptability of carbon taxes. In addition, policy design matters for acceptability and in particular earmarking fiscal revenues for environmental purposes can lead to larger support. We also find an effect of labeling, comparing the wording “climate contribution” with “carbon tax”. We argue that proper policy design coupled with effective communication on the effects of carbon taxes may lead to a substantial improvement in acceptability.
    Keywords: climate policy; carbon tax; CO2 emissions; political economy
    JEL: D72 H23 Q48 Q52 Q58
    Date: 2016–02–24
  13. By: Clémence Moreau (BRGM - Bureau de Recherches Géologiques et Minières); Jean-Daniel Rinaudo (BRGM - Bureau de Recherches Géologiques et Minières); Patrice Garin (SGBX - Services généraux - Irstea)
    Abstract: Cet article analyse les discours des agriculteurs en réaction à différents modes de calcul de quotas individuels, pouvant être utilisés pour la mise en place de la loi sur l'eau de 2006. La démarche consiste à articuler deux types d'approches : l'évaluation de l'acceptabilité de ces règles et l'analyse des principes de justice sociale sous-jacents aux argumentaires. Cette problématique est abordée à travers une revue de la littérature et une étude empirique, consistant à soumettre neuf scénarios d'allocation à 76 agriculteurs sélectionnés dans cinq terrains en France. Cet article contribue à la littérature sur la justice sociale dans la gestion de l'eau, en combinant différents cadres d'analyse ; il donne également des outils pour la mise en place d'une gestion quantitative, en proposant une méthode d'évaluation a priori de l'acceptabilité des modes de calculs des quotas. MOTS-CLÉS : acceptabilité, justice sociale, loi sur l'eau, politiques publiques, irrigation Social justice in the construction of the acceptability judgment. Analysis of the farmers' reactions to different groundwater sharing rules This article analyses farmers' answers to different water allocation rules which could be used to implement the 2006 French Water Law. We develop an analytical framework which combines an evaluation of overall acceptability of these rules with an analysis of the underlying principles of social justice. This framework is applied through conducting a survey in five French case studies. Nine allocation rules are presented to 76 irrigating farmers and their preferences analyzed. This article contributes to literature on social justice by articulating different analysis framework, and gives tools to quantitative management implementation, by proposing an assessment method on calculation quotas acceptability. (JEL: Q25, Q15, Q28, Q54, K32, H39)
    Keywords: acceptability,social justice,framework water directive,public policy,irrigation
    Date: 2015
  14. By: Laurent Piet; Douadia Bougherara
    Abstract: Kahneman and Tversky's Cumulative Prospect Theory (CPT) has proved to be better suited for representing risk preferences than von Neumann and Morgenstern's Expected Utility Theory (EUT). We argue that neglecting this may explain to some extent why farmers do not contract crop insurance as much as they are expected to. We model the decision to contract an individual yield crop insurance for a sample of 186 French farmers. We show that 21% of the farmers who would be expected to contract assuming that their preferences are EUT, would actually not do so if their true preferences were in fact CPT.
    Keywords: yield, crop insurance, cumulative prospect theory, premium subsidy, France
    JEL: D81 Q10 Q12 Q18
    Date: 2016
  15. By: Yaneer Bar-Yam
    Abstract: Advances in science are being sought in newly available opportunities to collect massive quantities of data about complex systems. While key advances are being made in detailed mapping of systems, how to relate this data to solving many of the challenges facing humanity is unclear. The questions we often wish to address require identifying the impact of interventions on the system and that impact is not apparent in the detailed data that is available. Here we review key concepts and motivate a general framework for building larger scale views of complex systems and for characterizing the importance of information in physical, biological and social systems. We provide examples of its application to evolutionary biology with relevance to ecology, biodiversity, pandemics, and human lifespan, and in the context of social systems with relevance to ethnic violence, global food prices, and stock market panic. Framing scientific inquiry as an effort to determine what is important and unimportant is a means for advancing our understanding and addressing many practical concerns, such as economic development or treating disease.
    Date: 2016–04
  16. By: Christian D. Mina (Philippine Institute for Development Studies (PIDS), the Philippines); Katsushi S. Imai (School of Social Sciences, University of Manchester (UK) and RIEB, Kobe University (Japan))
    Abstract: Using the panel data for the Philippines in 2003-2009, we estimate a three-level random coefficient model to measure household vulnerability and to decompose it into idiosyncratic and covariate components. We correct heterogeneity bias using Bell and Jones’s (2015) ‘within-between’ formulation. A majority of the poor and 18 percent of the non-poor are found to be vulnerable to unobservable shocks, while both groups of households are more susceptible to idiosyncratic shocks than to covariate shocks. Adequate safety nets should be provided for vulnerable households that lack access to infrastructure, or are larger in size with more dependents and less-educated heads. The JEL codes: C23, I32, O15 Key Words: Vulnerability, Poverty, Multilevel Model, Panel Data,
    Keywords: Vulnerability, Poverty, Multilevel model, Panel data, The Philippines
    JEL: C23 I32 O15
    Date: 2016–03
  17. By: Can, Muhlis; Gozgor, Giray
    Abstract: Environmental degradation is most often brought to the agenda by arousing the attention of scholars, and there has been an increase in the studies on this issue. This paper re-estimates the environmental Kuznets curve in France over the period of 1964–2011. To this end, the unit root test with one structural break and a cointegration analysis with multiple endogenous structural breaks are considered. The impacts of the energy consumption and the economic complexity on CO2 emissions are also included in dynamic empirical models. First, it is found that the environmental Kuznets curve hypothesis is valid in France in both the short and the long run. Second, the positive impact of energy consumption on CO2 emissions is also observed in the long run. Third, it is observed that a higher economic complexity suppresses CO2 emissions in the long run. The evidence suggests important environmental policy implications to suppress CO2 emissions in France.
    Keywords: environmental Kuznets curve; energy consumption; economic complexity; time series modeling; structural breaks; French economy
    JEL: C32 O13 Q55 Q56
    Date: 2016–03–30
  18. By: Rashidghalam, Masoomeh (University of Tabriz); Heshmati, Almas (Jönköping University, Sogang University); Dashti, Ghader (University of Tabriz); Pishbahar, Esmail (University of Tabriz)
    Abstract: The purpose of this paper is two-fold. First, it compares the performance of various panel data models in estimating technical efficiency in production. Second, it applies various stochastic frontier panel data models to estimate the technical efficiency of Iran's cotton production and to provide empirical evidence on the sources of technical inefficiency of cotton producing provinces. The results indicate that labor and seeds are determinants of cotton production and inorganic fertilizers result in reducing technical efficiency. The mean technical efficiency of the models is around 80 percent. Variations in the distribution of estimated efficiency amongst the different models is large.
    Keywords: technical efficiency, labor use, panel data modeling, time-variant, persistent inefficiency, individual heterogeneity, model comparison, cotton production, Iran
    JEL: C23 D24 Q12
    Date: 2016–03
  19. By: John Curtis; Benjamin Breen
    Abstract: On-site survey data from coarse and game angling sites in Ireland is used to estimate count data models of recreational angling demand. To investigate the existence of preference heterogeneity across angler-types, three demand functions are estimated according to angler type; coarse, game and a combination of both. Comparison of these demand functions indicates that the fishery characteristics which drive demand differ depending on angler-specific characteristics. For example treating all anglers as an homogeneous group led to results suggesting angling demand is higher where there is a greater provision of angling services (such as guide-hire and tackle shops). While this relationship pertained for the game angling demand function, angling service levels had no effect on coarse angling demand. Water quality, which was not found to be significant in driving demand in the combined case, was identified as a significant determinant of angling demand in game fisheries. Overall the results strongly support the need to specifically address angler characteristics when analysing angler preferences. Improved survey design that attains more detailed information such as anglers' quarry-type, skill level, etc. will improve the ability of analysts to understand angler preferences and provide more effective policy recommendations.
    Date: 2016–03

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