nep-agr New Economics Papers
on Agricultural Economics
Issue of 2016‒05‒28
57 papers chosen by

  1. Time to Decide on French Agriculture By Jean-Christophe Bureau; Lionel Fontagné; Sébastien Jean
  2. Identifying a Sustainable Pathway to Household Multi-dimensional Poverty Reduction in Rural China By You, Jing; Kontoleon, Andreas; Wang, Sangui
  3. The Impact of Food Price Shocks on Consumption and Nutritional Patterns of Urban Mexican Households By Juarez-Torres, Miriam
  4. Extension of the CAPRI model with an irrigation sub-module By Maria Blanco; Peter Witzke; Ignacio Perez Dominguez; Guna Salputra; Pilar Martinez
  5. Assessing the Market Impacts of the Common Agricultural Policy: Does Farmers' Risk Attitude Matter? By Alexandre Gohin; Yu Zheng
  6. TTIP and Climate Change – How real are Race to the Bottom Concerns? By Daniel Rais
  7. A cost function analysis of trade-offs within climate smart agriculture: does mulching save the cost of crop production among smallholder farmers in Uganda? By Shikuku, Kelvin M.; Laderach, Peter; Winowiecki, Leigh; Mwongera, Caroline
  8. A Cointegration Analysis of Agricultural, Energy and Bio-Fuel Spot and Futures Prices By David E. Allen; Chialin Chang; Michael McAleer; Abhay K. Singh
  9. Pricing Forest Carbon: Implications of Asymmetry in Climate Policy By Eriksson, Mathilda; Brännlund, Runar; Lundgren, Tommy
  10. Adaptation to natural disasters through the agricultural land rental market: evidence from Bangladesh By Shaikh Eskander; Edward Barbier
  11. The impact of water users' associations on the productivity of irrigated agriculture in Pakistani Punjab By Mekonnen, Dawit; Channa, Hira; Ringler, Claudia
  12. What Do Farmers Want in the Design of Biofuel Investments in Kenya? A Choice Experiment Approach By Ochieng, Isabel Joy; Otieno, David; Oluoch-Kosura, Willis; Jistrom, Magnus
  13. Capitalization of the SPS into Agricultural Land Rental Prices under Harmonization of Payments By Klaiber, Allen; Salhofer, Klaus; Thompson, Stan
  14. Understanding Markets and Marketing Strategies, and Challenges in Locally Grown Fresh Produce Industry By Gumirakiza, J. Dominique; Hopper, Laura
  15. Swiss Policies for more Food Security By Daniel Rais
  16. A Value Chain Approach to Measuring Distortions to Incentives and Food Policy Effects (with application to Pakistan’s grain policy) By Briones, Elena; Swinnen, Alonso; Swinnen, Jo
  17. Economic Implications of EU Mitigation Policies: Domestic and International Effects By Francesco Bosello; Marinella Davide; Isabella Alloisio
  18. The Rewards of an Improved Enabling Environment: How Input Market Reform Helped Kenyan Farmers Raise Their Fertilizer Use By 36% By Sheahan, Megan; Ariga, Joshua; Jayne, T.S.
  19. Mismanagement and its Consequences to Farm Business Prospect and Sustainability: Evidences from Commercial Far By Abba Aminu; Zayyad Adam Abdullahi; Yusuf Abdullahi Muhammed; Mansur Idris
  20. Structural Changes in U.S. Cotton Supply By Mitchell, Donna M.; Robinson, John
  21. On the Possibility of Rice Green Revolution in Irrigated and Rainfed Areas in Tanzania: An Assessment of Management Training and Credit Programs By Nakano, Yuko; Kajisa, Kei; Otsuka, Keijiro
  22. Measuring household food security in a low income country: A comparative analysis of self-reported and objective indicators By Hossain, Marup; Mullally, Conner; Asadullah, M Niaz
  23. A risk - based approach for the economic impact of climate change assessment By Francisco J. Fernández; Roberto Ponce; María Blanco; Diego Rivera; Felipe Vásquez
  24. Crude Oil and Agricultural Futures: An Analysis of Correlation Dynamics By Annastiina Silvennoinen; Susan Thorp
  25. A Functional Approach to Test Trending Volatility By Hernández del Valle Gerardo; Juárez-Torres Miriam; Guerrero Santiago
  26. The Principle of Common Concern and Climate Change By Daniel Rais
  27. The Food Access Environment and Food Purchase Behavior of SNAP Households By James Mabli; Julie Worthington
  28. Knowledge about aerosol injection does not reduce individual mitigation efforts By Merk, Christine; Pönitzsch, Gerd; Rehdanz, Katrin
  29. Does the global trade slowdown matter ? By Constantinescu,Ileana Cristina; Mattoo,Aaditya; Ruta,Michele
  30. Assessing the performance of food co‐ops in the US By Alia, Didier; Katchova, Ani; Woods, Timothy A.
  31. The Economics of Soil Erosion and the Choice of Land Use Systems by Upland Farmers in Central Vietnam By Bui Dung The
  32. Sustainability and Entrepreneurship By NERİMAN ÇELİK
  33. A Comparison of Panel Data Models in estimating Technical Efficiency By Rashidghalam, Masoomeh; Heshmati, Almas; Dashti, Ghader; Pishbahar, Esmail
  34. How Is Multinational Investment in Grain and Oilseed Trading Reshaping the Smallholder Markets in Zambia? By Sitko, Nicholas J.; Chisanga, Brian
  35. Technological change and productivity growth in the agrarian systems of New Zealand and Uruguay (1870-2010) By Jorge Álvarez
  36. Promotion of Renewables and the Challenges in the Water Sector By Daniel Rais
  37. Climatic conditions and child height: Sex-specific vulnerability and the protective effects of sanitation and food markets in Nepal. By Steven A. Block; William A. Masters; Prajula Mulmi; Gerald E. Shively
  38. Supply Chain Management of Agricultural Technology Innovation: Study of Fujian and Taiwan By Hussain, Safdar; Ahmed, Wasim; Rabnawaz, Ambar; Jafar, Rana Muhammad Sohail; Akhtar, Haseeb; JianZhou, Yang
  39. Adaptation of farm-households to increasing climate variability in Ethiopia: Bioeconomic modeling of onnovation diffusion and policy interventions By Berger, Thomas
  40. Milk Cost of Production Estimates for April, May, and June 2014 By Adam Rabinowitz; Rigoberto A. Lopez
  41. Experimental Auctions with Exogenous and Endogenous Information Treatment: Willingness to Pay for Improved Parboiled Rice in Benin By Demont, Matty; Zossou, Esperance; Van Mele, Paul
  42. Seasonal Climate Forecasts and Agricultural Risk Management: Implications for Insurance Design By Miguel A. Carriquiry; Walter E. Baethgen
  43. Do FDI inflows and energy price affect the food import dependency in developing countries? Evidence from panel VAR Models By Medhi Ben Slimane; Marilyne Huchet-Bourdon; Habid Zitouna
  44. Consumers' Costly Response to Product Safety Threats By Ferrer, Rosa; Perrone, Helena
  45. Managing the resilience of a common pool rangeland system in South Africa By Rasch, Sebastian; Heckelei, Thomas; Oomen, Roelof
  46. Immaterial and monetary gifts in economic transactions. Evidence from the field By Michael Kirchler; Stefan Palan
  47. Ecological Modernisation in Japan: The Role of Interest Rate Subsidies and Voluntary Pollution Control Agreements By Robert J.R. Elliott; Toshihiro Okubo
  48. Recap of US Crop Insurance Industry Gains and Losses By Borman, Julia; Vergara, Oscar; Sasanian, Sid; Ward, Katie
  49. Consumers’ Willingness to Pay for Genetically Engineered Edamame By Wolfe, Elijah; Popp, Michael; Bazzani, Claudia; Nayga Jr, Rudolfo; Danforth, Diana; Popp, Jennie; Chen, Pengyin; Seo, Han-Seok
  50. Property Rights and Gender Bias: Evidence from Land Reform in West Bengal By Sonia Bhalotra; Abhishek Chakravarty; Dilip Mookherjee; Francisco J. Pino
  51. The Role of Crop Type in Cross-Country Income Differences By Eberhardt, Markus; Vollrath, Dietrich
  52. A nonparametric welfare analysis on water quality improvement of the floating people on Inlay Lake via a randomized conjoint field experiment By Su Thet Hninn; Keisuke Kawata; Shinji Kaneko; Yuichiro Yoshida
  53. Do Consumers Benefit from Supply Chain Intermediaries? Evidence from a Policy Experiment in Edible Oils Market in Bangladesh By M. Shahe Emran; Dilip Mookherjee; Forhad Shilpi; M. Helal Uddin
  54. Efficient waste management practices: A review By Halkos, George; Petrou, Kleoniki Natalia
  55. Property Rights and Gender Bias: Evidence from Land Reform in West Bengal By Sonia Bhalotra; Abhishek Chakravarty; Dilip Mookherjee; Francisco J. Pino
  56. Got milk? Motivation for honesty and cheating in informal markets: Evidence from India By Kröll, Markus; Rustagi, Devesh
  57. What are the social benefits of carbon sequestration? By Mogas Amorós, Joan

  1. By: Jean-Christophe Bureau (INRA Economie); Lionel Fontagné (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Sébastien Jean (INRA Economie, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique)
    Abstract: Despite significant amounts of subsidies, the French agricultural sector delivers unsatisfactory results in several respects: falling employment rates, partly low revenues, environmental degradation and declining commercial performance. The profession often highlights regulatory complexity and high labour costs as the main culprits. But also the predominantly small structures, in particular in the downstream industry, sluggish technical progress, unequal competence level among farmers, lacking coordination between sectors and questionable non-price competitiveness strategies add to the problem. In this context, public policies lack clear direction as various tools sometimes pursue conflicting objectives. Today, agricultural policy clearly needs to be refocused on key long-term objectives. Protection of natural capital needs to become a central part of agricultural policy. This is both an environmental issue and a condition for the future economic success of agriculture itself. To achieve this, policy needs to be directed at financing amenities, such as soil quality, rather than pursuing uncertain objectives with undifferentiated subsidies. Regulations, currently working restrictively and not effectively, need to better target results. In order to create the conditions necessary for innovative agriculture, promising biological innovations and spatial data, which are becoming strategic, should not be left to a few international companies. Instead there is a need to help public research direct the innovation, so that to ensure the compliance with biologic regulations. At the same time continuing vocational training for farmers needs to be reinforced by enhancing the role of digital tools, agricultural colleges and higher education. Regarding the French export strategy, national agriculture should principally rely upon a small number of labels promoting food control, full traceability, the absence of antibiotics and growth enhancement products and respect for the environment and animal welfare. Finally, in order to help farmers exposed to market volatility, measures such as smoothing taxes over several years, and the postponement of loan and social security contributions, as well as access to risk coverage, need to be promoted more favourably than administered prices and counter-cyclical subsidies. At the EU Community level, non-transferable contractual subsidies targeting public goods or with social objectives should substitute surface-area based subsidies. Competitiveness, environment and revenue are not necessarily incompatible in agriculture. However, major reorientation of policies is required to reconcile them.
    Keywords: agriculture, competitveness
    Date: 2015–12
  2. By: You, Jing; Kontoleon, Andreas; Wang, Sangui
    Abstract: Poor rural households in developing countries usually endure many-faceted burdens including monetary poverty, nutrition deficiency, and energy shortage due to reliance on limited local natural resources with low utilisation efficiency. This paper investigates a pathway for rural Chinese households to escape the vicious circle between multi-dimensional low wellbeing including deficiency of income, nutrition and energy without relying simply on excessive firewood plantations. We propose a dynamic and recursive multi-equation mixed model to capture the complex, endogenous, and causal inter-play between the above three dimensions of poverty and households’ environment-related livelihood arrangement, namely firewood plantations. We identify inter-locked traps in multi-dimensional poverty by exploiting household panel data. Firewood plantations offer a short-term solution. Increasing labour productivity and providing agricultural loans can break the circle in the longterm. Institutional instruments in terms of subsidising households to converting the cultivated land to forest or pasture play a limited role in limiting firewood production.
    Keywords: poverty, energy, firewood, dynamic causal effect, China, Consumer/Household Economics, Food Security and Poverty, International Development, C33, I31, Q23, O53,
    Date: 2015
  3. By: Juarez-Torres, Miriam
    Abstract: During the 2000s, recurrent food price shocks in Mexico modified consumption and nutritional patterns of households. This research quantifies the impacts of food price shocks on the purchase of nutrients and on the weight gain of children in urban Mexican households. We find differentiated patterns of food consumption across income quintiles, which result in heterogeneous effects of price shocks on the purchase of nutrients and on weight gain according to age and sex in children. In particular, cereal price shocks are more detrimental and more regressive than price shocks on other categories like meats, vegetables or beverages.
    Keywords: Food price elasticities, Nutrient elasticities, Food security, Nutrition, Welfare, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, D12, C31, O12,
    Date: 2015
  4. By: Maria Blanco (Technical University of Madrid (Madrid, Spain)); Peter Witzke (EuroCARE (Bonn, Germany)); Ignacio Perez Dominguez (European Commission – JRC - IPTS); Guna Salputra (European Commission – JRC - IPTS); Pilar Martinez (Technical University of Madrid (Madrid, Spain))
    Abstract: The study enables the CAPRI model to make simulations of the potential impact of climate change and water availability on agricultural production, as well as is looking at the sustainable use of water and the implementation of water-related policies including water pricing. To investigate the role of irrigation as adaptation strategy to climate change, we define a set of simulation scenarios that account for the likely effects on water price, crop yields, water availability and irrigation efficiency.
    Keywords: agriculture, irrigation, water economics, modelling, CAPRI
    Date: 2015–12
  5. By: Alexandre Gohin; Yu Zheng
    Abstract: Recent models assessing the market impacts of Common Agricultural Policy (CAP) reforms are mostly static, non-stochastic and do not account for the risk attitude of farmers. This paper is a first attempt to fill this gap. We develop a stochastic version of GTAP-AGR model in which we introduce exogenous productivity shocks and farmers' attitude towards risks. In addition to the expectation on mean price, the expectation on price volatility also becomes one of the key factors for the farmers' decisions through its influence on risk premium. We show that under the endogenous modeling of the CAP instruments, risk aversion leads to larger production and price effects. The impacts are even larger if wealth effect is taken into consideration.
    JEL: Q17 Q18
    Date: 2016–05
  6. By: Daniel Rais
    Abstract: Abstract This paper examines concerns about the impact that TTIP could have on existing and future climate policies and laws from the inclusion of provisions on investment protection including investor-to-State dispute settlement (ISDS), the reduction of non-tariff barriers and the introduction of rules for trade in energy and raw materials. It argues that from an environmental perspective, ISDS should not necessarily be seen as a regime that goes against the defence of the environment or prevention of climate change. Although it might be used to challenge policies of an EU home State that increase levels of environmental protection, it can also be used to contest changes in an EU home State’s environmental policies that would reduce the protection of the environment, if foreign investment is affected. To a large extent, this also holds true for other areas of TTIP negotiations. While the achievement of a balance between rules that promote trade and those that maintain policy space for governments to respond to environmental concerns has to be closely monitored, benefits for climate could be seized from harmonisation of carbon laws at the level of the strictest regulations of two parties, provisions that promote trade in low carbon technologies and renewable energy and bilateral cooperation on climate change.
    Date: 2015–05–12
  7. By: Shikuku, Kelvin M.; Laderach, Peter; Winowiecki, Leigh; Mwongera, Caroline
    Abstract: Climate-smart agriculture (CSA) is increasingly being promoted among scientists, policy makers and donors as an approach towards sustainably increasing agricultural productivity, building and increasing resilience of farming systems to climate change, and reduction of greenhouse gases. Successful implementation of CSA, however, depends on the ability to identify and quantify the trade-offs involved in its adoption. This study investigates the trade-offs involved in the adoption of mulching among smallholder farmers in Rakai district of Uganda. It specifically examines the effect of mulching on the expenditure shares of herbicides, pesticides, fertilizer, and labour. A translog cost function is estimated jointly with expenditure shares on these inputs using seemingly unrelated regression analysis. Results indicate a negative relationship between mulching and expenditure share on herbicides on one hand, and a positive relationship between mulching and expenditure share on pesticides, fertilizer, and labour on the other hand. The paper discusses the policy implications.
    Keywords: Mulching, demand for farm inputs, translog cost function, climate-smart agriculture, trade-offs, Farm Management, International Development, C5, D1, O33,
    Date: 2015
  8. By: David E. Allen (University of Sydney, and University of South Australia, Australia); Chialin Chang (National Chung Hsing University, Taiwan); Michael McAleer (National Tsing Hua University, Taiwan; Erasmus University Rotterdam, the Netherlands; Complutense University of Madrid, Spain); Abhay K. Singh (Edith Cowan University, Australia)
    Abstract: This paper features an analysis of the cointegration relationships among agricultural commodity, ethanol and Cushing crude oil spot and futures prices. The use of grains for the creation of bio-fuels has sparked fears that these demands are inflating food prices. We analyse approximately 10 years of daily spot and futures prices for corn, wheat, sugar ethanol and oil prices from Datastream for the period 19 July 2006 to 2 July 2015. The analysis, featuring Engle-Granger pairwise cointegration and Markov-switching VECM and Impulse Response Analysis, confirms that these markets have significant linkages which vary according to whether they are in low or high volatility regimes.
    Keywords: Bio-fuels ; time series; cointegration ; Markov-switching ; VECM; Impulse Responses; Volatility
    JEL: C22 Q02 Q35 Q42
    Date: 2016–05–17
  9. By: Eriksson, Mathilda (CERE and the Department of Economics, Umeå University); Brännlund, Runar (CERE and the Department of Economics, Umeå University); Lundgren, Tommy (CERE and the Department of Economics, Umeå University)
    Abstract: In this paper, we use an integrated assessment model to examine the implications of not recognizing, and partially recognizing forest carbon in climate policy. Specifically, we investigate the impact of an asymmetric carbon policy that recognizes emissions from fossil fuels while ignoring emissions from forests. We additionally investigate the relative importance of not recognizing positive emissions from a reduction in the stock of forest biomass, or of not recognizing negative emissions from the growth of forest biomass. We show that asymmetric carbon policies lead to lower levels of welfare, as well as higher emissions and carbon prices. This occurs because the forest resource will be allocated inefficiently under these carbon policies. Broadly, we find that when the social planner does not account for neither positive or negative forest emissions, the planner will set bioenergy levels that are too high and afforestation and avoided deforestation levels that are too low. Our results further reveal that not recognizing forest emissions leads to larger welfare losses than not recognizing sequestration.
    Keywords: Climate change; Integrated assessment; Forest Carbon; Carbon Taxes and Subsidies
    JEL: C61 H23 Q23 Q54 Q56
    Date: 2016–04–06
  10. By: Shaikh Eskander; Edward Barbier
    Abstract: We examine the effects of natural disaster exposure on agricultural households who simultaneously make rent-in and rent-out decisions in the land rental market. Our econometric approach accounts for the effects of disaster exposure both on the adjustments in the quantity of operated land (i.e. extensive margin) and agricultural yield conditional on the land quantity adjustments (i.e. intensive margin), based on selectivity-corrected samples of rental market participants. Employing a household survey dataset from Bangladesh, we find that farmers were able to ameliorate their losses from exposure to disasters by optimizing their operational farm size through participation in the land rental market. These results are robust to alternative specifications. This suggests that the land rental market may be an effective instrument reducing disaster risk, and post-disaster policies should take into account this role more systematically.
    Date: 2016–05
  11. By: Mekonnen, Dawit; Channa, Hira; Ringler, Claudia
    Abstract: This study explores the impact of water users' associations (WUAs) on farmers' productivity in Punjab province of Pakistan. We find that the presence of WUAs provide a productivity gain of ten and eight percent for farmers at the tail end of watercourses and those that rely solely on groundwater. The productivity impact of WUAs on farmers that rely more on groundwater suggests that improving the management of surface water through functioning watercourse level institutions can be a viable option in reducing over-utilization of groundwater resources and the pressure it creates on the already strained energy situation in the country. However, we find no evidence of WUAs improving productivity for those at the head and middle of watercourses, indicating that the performance of WUAs is likely to face challenges from these groups.
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy,
    Date: 2015
  12. By: Ochieng, Isabel Joy; Otieno, David; Oluoch-Kosura, Willis; Jistrom, Magnus
    Abstract: Emerging forms of investment such as biofuels have intensified pressure on scarce land especially in developing countries. This has implications on household enterprise choice and food security. However, biofuel investments in Sub-Saharan Africa are often undertaken without adequate stakeholder consultations on priorities and preferences. In order to provide insights for managing potential resource conflicts, this study assessed farmers’ preferences on the design of biofuel investments in Kenya. Choice Experiment was used to elicit survey data from 342 farmers, and random parameter model applied in analysis. Results indicated higher positive preferences for short contract lengths, leasing of a quarter of their land, permanent employment and renewable contracts. Compensating surplus estimates showed that farmers who already practice mixed crop-livestock systems required higher compensation to accept biofuel investments. These findings offer insights on the design of biofuel investments as a potential livelihood diversification option.
    Keywords: Biofuel-investments, Farmer preferences, Livelihood diversification., Agricultural and Food Policy, Farm Management,
    Date: 2015
  13. By: Klaiber, Allen; Salhofer, Klaus; Thompson, Stan
    Abstract: This paper provides estimates of the capitalization of the Single Payment Scheme (SPS) payment of the Common Agricultural Policy (CAP) on agricultural land rental rates. In so doing we address problems of unobserved heterogeneity and sample selection. As the 2013 CAP Reform calls for the harmonization of SPS payments, we estimate the implications of this mandate on agricultural land rental rates over time as Germany began introducing their Hybrid payment system in 2011. Using Bavarian farm level panel data we find strong capitalization effects that increase substantially in the most recent years of 2011 and 2012 after the introduction of the hybrid model. On average, the marginal effect on rental rates of an additional SPS euro is 38 cents, growing over time to 57 cents as regionalization of payments develops.
    Keywords: CAP Reform, Capitalization Effect, Sample Selection, Panel Data, German Farms, Land Economics/Use, C33, Q15, Q18,
    Date: 2015
  14. By: Gumirakiza, J. Dominique; Hopper, Laura
    Abstract: Existing literature on locally grown food systems is extensive and spread. Navigating it can be tedious. This study uses an exploratory research approach to identify common findings and recommendations, and propose priorities, key variables, and relationships for future studies. Findings show that local food marketing through farmers’ markets and Community Supported Agriculture and the benefits of local food systems to local economies (found to be an on-going debate) dominate the literature heavily. Prior studies commonly reported enthusiasm for locally grown fresh produce, but present diverging results about significant consumer characteristics. Studies regarding marketing decisions among food growers/marketers, local foods supply chains, online markets for local food products, and the use of marketing mix tool are relatively limited. This study is helpful to researchers by directing their activities towards addressing major gaps. In addition, this study facilitates growers/marketers—especially those who are interested in implementing research-based recommendations—by providing a complied one-stop point of information. Likewise, stakeholders including community-based organizations and policy makers will find this study beneficial to their involvement in the industry.
    Keywords: Local food movement, farmers' markets, CSA programs, local foods supply chain, Agribusiness,
    Date: 2016–01–21
  15. By: Daniel Rais
    Abstract: Abstract Resource-poor yet blissful Switzerland is also one of the most food-secure countries in the world: there are abundant food supplies, relatively low retail prices in terms of purchasing power parity, with few poverty traps. Nonetheless, the food security contribution by the four sectoral policies involved is mutually constrained: our agriculture is heavily subsidised and protected by the world’s highest tariffs. These inefficiencies also prevent trade and investment policies which would keep markets open, development policies giving African farmers the tools to become more competitive, and supply policies which would work against speculators. Is there a solution? Without new international agreements, further market openings and a consequent “recoupling†of taxpayer support to public goods production remain highly unlikely. To the very minimum Switzerland should resume the agricultural reform process, prevent predatory behaviour of its investors in developing countries, and regionalise its food reserve strategy.
    Date: 2014–11–05
  16. By: Briones, Elena; Swinnen, Alonso; Swinnen, Jo
    Abstract: We develop an extended Nominal Rate of Assistance (NRA) methodology to disentangle policy welfare impacts for various interest groups along the value chain (to disaggregate effects within the “producer” and “consumer” umbrellas). We apply our value chain NRA methodology to Pakistan’s price and trade policy. We analyse the welfare implications for various agents in the wheat-flour value chain from 2000 to 2013, a period characterized by major global price volatility and by regular adjustments of domestic policies. We find that the wheat price policy has generally benefitted flour consumers and wheat traders at the expense of wheat farmers and to a lesser extent flour millers. Our findings illustrate that the welfare implications of policies can be quite different within the “producer” and “consumer” umbrellas, which has potentially important implications for economic and political economy analyses and for the design of policies aimed at targeting the poorest groups along value chains.
    Keywords: Agricultural and Food Policy,
    Date: 2015
  17. By: Francesco Bosello (FEEM, CMCC and University of Milan); Marinella Davide (FEEM, CMCC and University of Venice); Isabella Alloisio (FEEM and CMCC)
    Abstract: The EU has a consolidated climate and energy regulation: it played a pioneering role by adopting a wide range of climate change policies and establishing the first regional Emission Trading Scheme (EU ETS). These policies, however, raise several concerns regarding both their environmental effectiveness and their potentially negative effect on the economy, especially in terms of growth and competitiveness. The paper reviews the European experience in order to understand if these concerns are supported by quantitative evidence. It thus focuses on key economic indicators, such as costs, competitiveness and carbon leakage as assessed by quantitative ex-ante and ex-post analyses. A dedicated section, extends the investigation to the potential extra-EU spillover of the EU mitigation policy with a particular attention to developing countries. The objective of the paper is to highlight both the limits and the opportunities of the EU regulatory framework in order to offer policy insights to emerging and developing countries that are on the way to implement climate change measures. Overall, the European experience shows that the worries about the costs and competitiveness losses induced by climate regulation are usually overestimated, especially in the long term. In addition, a tightening climate policy regime in the EU might in fact negatively impact developing countries via deteriorated trade relations. Nonetheless it tends to facilitate a resource relocation that if well governed could be beneficial to those countries where the poor are mainly involved in rural activities.
    Keywords: Climate Change, Climate Policy, Mitigation, Economic Impacts, GDP, Competitiveness
    JEL: F64 H23 O44 O52 Q54 R11
    Date: 2016–04
  18. By: Sheahan, Megan; Ariga, Joshua; Jayne, T.S.
    Abstract: Raising agricultural productivity remains a major challenge in developing countries. Farm productivity is especially low in Sub-Saharan Africa, where fertilizer use lags far behind the rest of the world. Identifying effective strategies for raising fertilizer use in Africa has been a longstanding policy priority. While most of the region has struggled to raise fertilizer use in a sustainable manner, several countries have recorded impressive steady growth in fertilizer use, suggesting that there may be important success stories from which to learn.
    Keywords: Agricultural and Food Policy,
    Date: 2016–02
  19. By: Abba Aminu (Bayero University, Kano); Zayyad Adam Abdullahi (Bayero University, Kano); Yusuf Abdullahi Muhammed (Ahmadu Bello University, Zaria (NAERLS)); Mansur Idris (Bayero University, Kano)
    Abstract: The objective of any business is to make profit, not necessarily maximum profit or super-normal profit but a certain level of profit is necessary if the business is to continue. The business therefore has to be effectively managed in order to achieve this objective. The fundamental cause of failure and ultimate collapse of many businesses be it in the agricultural or non-agricultural sector is traceable to mismanagement. The unique nature and magnitude of farm businesses and thus the disastrous consequences of mismanagement, poses additional challenge to their managers. The main objective of the study was to identify and discussed the causes, manifestations and consequences of mismanagement and suggest means by which it can be mitigated among commercial farms. Data from three (3) commercial farms selected from four northern states of Nigeria were collected, analyzed and discussed as case studies to illustrate the issue in a pragmatic manner.
    Keywords: Mismanagement, businesses, Farm
    JEL: A00
  20. By: Mitchell, Donna M.; Robinson, John
    Abstract: Recent droughts have caused policy makers to implement water use restrictions in some areas, causing shifts out of irrigated cotton production. With the passage of the 2014 Farm Bill, cotton lint is no longer considered a program crop, and producers will now have to rely on using additional crop insurance for protection. Low cotton prices coupled with lack of domestic policies could negatively impact the amount of acreage dedicated to cotton production. Cotton supply functions were estimated to determine if structural changes exist.
    Keywords: cotton, supply functions, Crop Production/Industries, Production Economics, Q31,
    Date: 2016
  21. By: Nakano, Yuko; Kajisa, Kei; Otsuka, Keijiro
    Abstract: In order to develop a strategy for a rice Green Revolution in sub-Saharan Africa, this study investigates the determinants of the adoption of new technologies and their impact on productivity of rice cultivation. We analyzed two kinds of data sets collected in Tanzania: a nationally representative cross-sectional data and a three-year panel data of irrigated farmers in one district. We found that not only irrigation but also agronomic practices taught by training play key roles in increasing the adoption of modern technologies and the productivity of rice farming
    Keywords: Rice production, Tanzania, Adoption of new technology, impact on productivity, agronomic practices, training, Crop Production/Industries, Environmental Economics and Policy,
    Date: 2015
  22. By: Hossain, Marup; Mullally, Conner; Asadullah, M Niaz
    Abstract: Measuring food security in an accurate and cost effective way is important for targeted food relief and for designing anti-poverty programs. A number of studies have established different food security indicators as alternatives to calorie intake but none has conducted a comparative study of multiple indicators. We present a comparative analysis of 3 alternative indicators, (a) dietary diversity score (DDS) (b) self-reported food security and (c) land holding, as alternatives to calorie intake for prediction of household food security. We assess the reliability of the 3 indicators through their relation with household calorie intake, food and non-food expenditure, and nutritional status. We use a nationally representative cross sectional data consisting of 4,423 households from Bangladesh. We find no systematic difference in association with access to food (as measured by household food and non-food expenditure) among the alternative indicators. We also find that the land indicator predicts nutritional status better than DDS and self-reported indicator. We compare the ability of different indicators to predict calorie intake using a Vuong closeness test and find that DDS or any indexes of multiple indicators consisting of DDS can predict calorie intake better than others and more closely resemble the true model of calorie intake. We find the similar conclusion from out-of-sample prediction ability, lowest mean square error and mean absolute error, of alternative indicator. Finally, we try to find a discontinuous break point in DDS at different calorie intake threshold points which we can use as a cut-off points to identify food insecure household. We find no such structural points in DDS distribution.
    Keywords: Food security, Nutrition, Access to food, Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Development, Research and Development/Tech Change/Emerging Technologies, O12, Q18,
    Date: 2016–01
  23. By: Francisco J. Fernández; Roberto Ponce; María Blanco; Diego Rivera; Felipe Vásquez (School of Business and Economics, Universidad del Desarrollo)
    Abstract: This paper contributes to shed light on the economic impacts of changes in water availability due to climate change on small-scale agriculture. We provide an hydro-economic modelling framework that captures the socio-economic effects of water shocks on smallholder at river basin scale. This approach link a farm risk-based economic optimization model and a hydrologic simulation model specified for the basin. Large differences in the economic impacts across the studied farm types are found. In this context, the smallest farmers will be most negatively affected by the change in water availability. These results suggest large distributional consequences of climate change for the economy of the small-scale farmers in the basin, challenging the public policy to generate reliable tools to cope with climate change small-scale farmers’ vulnerability
    Keywords: hydro-economic model, small-scale farmers, basin, risk assessment
    Date: 2016–05
  24. By: Annastiina Silvennoinen (QUT); Susan Thorp (Sydney Uni)
    Abstract: Correlations between oil and agricultural commodities have varied over previous decades, impacted by renewable fuels policy and turbulent economic conditions. We estimate smooth transition conditional correlation models for 12 agricultural commodities and WTI crude oil. While a structural change in correlations occurred concurrently with the introduction of biofuel policy, oil and food price levels are also key influences. High correlation between biofuel feedstocks and oil is more likely to occur when food and oil price levels are high. Correlation with oil returns is strong for biofuel feedstocks, unlike with other agricultural futures, suggesting limited contagion from energy to food markets.
    Keywords: Smooth transition conditional correlation; Structural breaks; Return comovement;
    Date: 2015–10–29
  25. By: Hernández del Valle Gerardo; Juárez-Torres Miriam; Guerrero Santiago
    Abstract: In this paper we extend the traditional GARCH(1,1) model by including a functional trend term in the conditional volatility of a time series. We derive the main properties of the model and apply it to all agricultural commodities in the Mexican CPI basket, as well as to the international prices of maize, wheat, pork, poultry and beef products for three different time periods that implied changes in price regulations and behavior. The proposed model seems to adequately fit the volatility process and, according to homoscedasticity tests, outperforms the ARCH(1) and GARCH(1,1) models, some of the most popular approaches used in the literature to analyze price volatility.
    Keywords: Agricultural prices; volatility; GARCH models.
    JEL: C22 C51 E31 Q18
    Date: 2016–04
  26. By: Daniel Rais
    Abstract: AbstractEffective policies combating global warming and incentivising reduction of greenhouse gases face fundamental collective action problems. States defending short term interests avoid international commitments and seek to benefit from measures combating global warming taken elsewhere. The paper explores the potential of Common Concern as an emerging principle of international law, in particular international environmental law, in addressing collective action problems and the global commons. It expounds the contours of the principle, its relationship to common heritage of mankind, to shared and differentiated responsibility and to public goods. It explores its potential to provide the foundations not only for international cooperation, but also to justify, and delimitate at the same time, unilateral action at home and deploying extraterritorial effects in addressing the challenges of global warming and climate change mitigation. As unilateral measures mainly translate into measures of trade policy, the principle of Common Concern is inherently linked and limited by existing legal disciplines in particular of the law of the World Trade Organization.
    Date: 2014–06–06
  27. By: James Mabli; Julie Worthington
    Abstract: This study describes the food access environment and food purchase behavior of Supplemental Nutrition Assistance Program (SNAP) households using data from the SNAP Food Security Survey, the largest and most recent national survey of SNAP participants to date.
    Keywords: food access , SNAP , Food Stamp Program , Supplemental Nutrition Assistance Program , food shopping , GIS , spatial analysis , geographic access
    JEL: I0 I1
  28. By: Merk, Christine; Pönitzsch, Gerd; Rehdanz, Katrin
    Abstract: Stratospheric aerosol injection (SAI) is a climate engineering method that is reputed to be very effective in cooling the planet but is also thought to involve major risks and side effects. As a new option in the bid to counter climate change, it has attracted an increasing amount of research and the debate on its potential gained momentum after it was referred to in the 5th IPCC assessment report (IPCC 2013). One major objection to SAI and the research done on it is that it could undermine commitment to the mitigation of greenhouse gases. Policymakers, interest groups or individuals might wrongly perceive SAI as an easy fix for climate change and accordingly reduce their mitigation efforts. This is the first study to provide an empirical evaluation of this claim for individuals. In a large-scale framed field experiment with more than 650 participants, we provide evidence that people do not back-pedal on mitigation when they are told that the climate change problem could be partly addressed via SAI. Instead, we observe that people who have been informed about SAI mitigate more than people who have not. Our data suggest that the increase is driven by a perception of SAI as potential threat.
    Keywords: climate engineering,stratospheric aerosol injection,risk compensation,climate change mitigation,moral hazard
    Date: 2016
  29. By: Constantinescu,Ileana Cristina; Mattoo,Aaditya; Ruta,Michele
    Abstract: Since the Global Financial Crisis, world trade growth has been subdued and lagging slightly behind growth of gross domestic product. Trade is growing more slowly not only because growth of global gross domestic product is lower, but also because trade itself has become less responsive to gross domestic product. This paper reviews the reasons behind the changing trade-income relationship, and then investigates its consequences for economic growth. On the demand side, sluggish world import growth may adversely affect individual countries'economic growth, as it limits opportunities for their exports. On the supply side, slower trade may diminish the scope for productivity growth through increasing specialization and diffusion of technologies. The paper finds preliminary evidence that the changing trade-income relationship matters, although the quantifiable effects do not appear to be large.
    Keywords: Free Trade,Economic Theory&Research,Trade Policy,Labor Policies,Emerging Markets
    Date: 2016–05–13
  30. By: Alia, Didier; Katchova, Ani; Woods, Timothy A.
    Abstract: Food cooperatives (co-ops) as a key component of the local food network play an increasingly important role in the US food system. Co-ops use various strategies to promote local products, ensure a greater commitment of members, and the rofitability and sustainability of the business. This paper assessed the effectiveness of these strategies as perceived and appreciated by co-ops' members using survey data from a national study on eight large food cooperatives in the U.S. The survey identifies a wide range of attributes related to store and product characteristics, and marketing and management strategies. It asks interviewees to rank their co-op on these attributes on a Likert-scale of 0-4. Using Principal Component Analysis, we aggregate and combine information from the large number of rankings into a six major categories. Next, exploiting the hierarchical structure of the data with members nested within their respective co-ops, we use Hierarchical Linear Modeling methods to identify the factors that determine the perceived performance of co-ops. The results show that in general member has a strong positive perception of the performance of their co-ops in term of quality of the products, quality of the management and the service, and the physical quality of the store. We also find there is a lot heterogeneity among co-ops and member socio-demographic and economic characteristics are strongly correlated with their perception.
    Keywords: Food Network, Food Co-ops Performances, Hierarchical Linear Model, Agribusiness, Community/Rural/Urban Development, Food Consumption/Nutrition/Food Safety, Marketing,
    Date: 2016–02
  31. By: Bui Dung The (Hue University)
    Abstract: Soil erosion is a significant problem in the uplands of the Central Coast of Vietnam. It affects the livelihood of farmers and could hinder the long-term economic development efforts in the uplands. Yet, trapped in poverty, upland farmers, especially the ethnic minority, are still using erosive land use systems to meet their immediate needs. This study demonstrates how the level of soil erosion varies across the typical land use systems. The fruit tree based agroforestry system is least erosive and most financially profitable. Measured by the annualized income loss, the on-site costs of soil erosion under upland ricebased and eucalyptus-based systems are VND 1,022 and 1,019 thousand/ha per year, respectively. That under the sugarcane system is VND 635 thousand/ ha per year, as compared (in all cases) to the fruit tree-based agroforestry system. The choice of land use system is influenced by farmers’ attributes, land plot characteristics, and policy-related variables. Promoting the switch to agroforestry systems and the adoption of soil conservation measures is essential in reducing soil erosion and sustaining development in the uplands. It is, however, a very challenging task.
    Keywords: Economics of Soil Erosion,Choice of Land Use Systems,Vietnam
    Date: 2016–04
    Abstract: Humanity is at the parting of the ways because of the climate change taking place in the whole planet, draining of world's resources and destructions which are not easy to redeem. As a result of the activities of people during the past century, it has spread into the atmosphere in large amounts of carbon dioxide and other greenhouse gases. Global warming has negatively effect on environment, our water resources, agricultural conditions, energy production and transport system, our health and safety. The outcomes of the effects should be taken into consideration. Rapidly changing world order brings back changing of the business model in the business world. In this study, the necessity of the sustainability and the action that are taken to achieve this aim will be examined.
    Keywords: Sustainability, Entrepreneurship,Environmental
    JEL: L26
  33. By: Rashidghalam, Masoomeh (Department of Agricultural Economics,University of Tabriz, Tabriz, Iran); Heshmati, Almas (Jönköping International Business School (JIBS), Centre of Excellence for Science and Innovation Studies (CESIS),& Department of Economics, Sogang University, Seoul, South Korea); Dashti, Ghader (Department of Agricultural Economics,University of Tabriz, Tabriz, Iran); Pishbahar, Esmail (Department of Agricultural Economics,University of Tabriz, Tabriz, Iran)
    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 production using 2000-2012 panel data from Iran's 13 cotton producing provinces. The results indicate that labor and seeds are determinants of cotton production. Further, an investigation of the sources of technical inefficiency reveals that inorganic fertilizers result in reducing technical efficiency. The mean technical efficiency according to most of the models is found to be around 80 per cent. The empirical results show evidence of variations in the distribution of estimated efficiency amongst the different models. We also find a large difference in technical efficiency levels between provinces, which shows that geography and management’s impacts on technical efficiency are quite different among the provinces.
    Keywords: Technical efficiency; panel data modeling; time-variant; persistent inefficiency; individual heterogeneity; model comparison; cotton production; Iran.
    JEL: C23 D24 Q12
    Date: 2016–04–06
  34. By: Sitko, Nicholas J.; Chisanga, Brian
    Abstract: African agrifood systems are being transformed by an influx of multinational capital. Research on this transformation focuses primarily on the rise of supermarkets and demand for African land. An under-appreciated facet of this transformation is multinational investment in African grain trading. This paper uses basic descriptive statistical data and qualitative evidence to examine the implications of the recent multinational investment wave into cereal and oilseed trading in Zambia.
    Keywords: Agricultural and Food Policy, Demand and Price Analysis, International Development,
    Date: 2016–02
  35. By: Jorge Álvarez (Programa de Historia Económica y Social, Facultad de Ciencias Sociales, Universidad de la República)
    Abstract: New Zealand and Uruguay were typical settler economies and were alike in many ways throughout their histories but there were also big differences in how they developed. They were similar as regards size of population, surface area, markets, natural resource endowments, production and trade specialization patterns and the fact that they both attained high levels of income per capita in the early 20th century. They differed in that they had divergent patterns of economic growth and different agricultural productivity growth rates for their main products (wool, meat, dairy produce and leather), which accounted for around 70% of their exports in the hundred years from 1870 to 1970. The main aim of this paper is to use a systematic case-oriented comparison and the evolutionary theoretical approach to technological change to understand the development of the technological trajectories that boosted productivity in the two countries’ pastoral systems in the long-term (1870-2010). I will analyse this in interaction with geographical environment, intensity of resource use (extensive or intensive) and the institutional environment in which technological innovations to raise land productivity were produced, disseminated and adapted. My main results show that in the 19th century Uruguay had more favourable conditions for pastoral production than New Zealand and, up to the 1930s, higher production volumes per hectare. New Zealand had higher growth rates in all livestock physical productivity indicators from 1870 to 1970 and overtook Uruguay’s levels by the mid 20th century. As regards increased land productivity, New Zealand changed completely from an extensive to an intensive pastoral system. This process required technology to improve the soil, thus increasing capital and job investment and changes to the original production function of the pastoral system. In Uruguay livestock rearing was based on natural pasture, extensive production systems and low capital investment, and this stable model remained the same for a relatively long time. This inertia meant that in the long run Uruguay’s technological trajectory lagged far behind New Zealand’s in the development of soil-improvement technologies. I argue that these differences have, through different channels, conditioned the export performance and the economic growth of both countries.
    Keywords: settler economies, technological change, pastoral production, productivity growth
    JEL: N56 N57 O13 O33
    Date: 2015–12
  36. By: Daniel Rais
    Abstract: Abstract This paper outlines the interlinkages between the water policies integration objective and the decarbonisation objective. It concludes that low-carbon renewable electricity policy scenario may have negative externalities on the water body under the existing regulatory framework in the EU. The analysis is mainly dealt within the framework of the European Union’s Renewable Energy Directive of 2009 (RES Directive).
    Date: 2015–02–09
  37. By: Steven A. Block; William A. Masters; Prajula Mulmi; Gerald E. Shively
    Abstract: Environmental conditions in early life have known links to later health outcomes, but mechanisms and potential remedies have been difficult to discern. This paper uses the Nepal Demographic and Health Surveys (DHS) of 2006-2011, combined with earlier NASA satellite observations of variation in vegetation density (NDVI) at each child's location and time of birth, to identify the trimesters of gestation and infancy during which climate variation can be linked to heights attained between 12 and 59 months of age. We find significant difference by sex of the fetus: males are most affected by conditions in their second trimester of gestation, and females in their first trimester after birth. Each 100 point difference in NDVI at those times is associated with a difference in height-for-age Z-score (HAZ) of 0.088 for boys and 0.054 for girls, an effect size that is similar to moving within the distribution of household wealth by one quintile for boys, and one decile for girls. The entire seasonal change in NDVI from peak to trough is on the order of 200-300 points, implying a seasonal effect of HAZ similar to 1-3 quintiles of household wealth. This effect is observed only in households without toilets; with toilets there is no seasonal fluctuation, implying protection against climatic changes in disease transmission. We also use data from the Nepal Living Standards Surveys on district-level agricultural production and marketing, and find a vegetation effect on child growth only in districts where households' food consumption comes primarily from own production. Robustness tests find no evidence of selection effects, and placebo regressions reveal no significant artefactual correlations. Our findings regarding timing and sex-specificity offer a novel population-scale confirmation of previous work, while the protective effect of sanitation and markets is a novel indication of the mechanisms by which households can gain resilience against adverse climatic conditions.
    Keywords: Sesonality, climate, health, agriculture, resilience
    JEL: I15 O13 Q12
    Date: 2016
  38. By: Hussain, Safdar; Ahmed, Wasim; Rabnawaz, Ambar; Jafar, Rana Muhammad Sohail; Akhtar, Haseeb; JianZhou, Yang
    Abstract: Fujian and Taiwan has shared a strong cross-strait agricultural relation, and the government is keen to further strengthen the trade between the two. There has been substantial growth in the Fujian trade with Taiwan in agricultural goods that has increased more than $ 2.7 billion in 2013 for a year-on-year growth of 70%. This study adopted secondary data collection method to obtain information for the research. The research was mainly qualitative to acquire in-depth information on the matter under study. The findings showed that with the help of e-commerce both Fujian and Taiwan have been benefited with low transaction costs and efficient supply chain management to ensure effective trade.
    Keywords: Supply Chain Management, Agriculture, E-Commerce, Trade
    JEL: O3
    Date: 2015
  39. By: Berger, Thomas
    Keywords: food security, climate impacts, mixed rain-fed agriculture, multi-agent systems, Environmental Economics and Policy, Food Security and Poverty, C61, Q54, C63, Q12, D12,
    Date: 2015
  40. By: Adam Rabinowitz (University of Connecticut); Rigoberto A. Lopez (University of Connecticut)
    Abstract: During the second quarter of 2014 Connecticut dairy farmers continued to receive historically high milk prices amid steady but higher cost of producing milk. A new all-time high statistical uniform price of $25.36/cwt. was reached in April 2014, with declines in May and June
    Keywords: Connecticut, milk, production
    Date: 2014–08
  41. By: Demont, Matty; Zossou, Esperance; Van Mele, Paul
    Abstract: The impact of information as an extrinsic quality cue on consumers’ valuation of intrinsic food quality attributes can be captured by incorporating ‘information treatments’ in experimental auctions. We combine ‘exogenous’ information treatments such as a video broadcast and a radio transcript on the benefits of an improved rice processing technology with an ‘endogenous’ information treatment which elicits word-of-mouth exchange among consumers to assess the combined effect of exogenous and endogenous information on consumers’ valuation of improved parboiled rice in two urban markets in Benin. We find that exogenous information increases market share of the locally improved product by 14% to the expense of imported rice, an effect which is further amplified by 10–11% through endogenous information. Endogenous information has a dampening effect on value though; while video and radio transferred 6–12% of value from imported to local rice, word-of-mouth redistributed 2% of the value back to the competing product.
    Keywords: Experimental Auction, Willingness to Pay, Collective Induction, Word-of-Mouth, Benin, Agricultural Finance, O33, Q130, Q160,
    Date: 2015
  42. By: Miguel A. Carriquiry (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Walter E. Baethgen (International Research Institute for Climate and Society, The Earth Institute at Columbia University (United States))
    Abstract: Seasonal climate forecasts and insurance are two instruments with potential to help manage risks in agricultural production. While both instruments play a distinct role in practice, they interact among themselves and with other production decisions. In particular, we contend that the progress in climate science in providing increasingly accurate seasonal forecasts has implications for the design of agricultural insurance. Early information regarding likely growing conditions will result in shifts in the expected distribution of crop yields, and the payouts associated with an insurance contract. The magnitude of these effects is illustrated using a combination of crop simulation models, and Monte Carlo techniques.
    Keywords: Agricultural risk; Index insurance, Insurance, Seasonal climate forecast
    JEL: Q1 G22 Q54
    Date: 2016–04
  43. By: Medhi Ben Slimane; Marilyne Huchet-Bourdon; Habid Zitouna
    Abstract: The ability of a country to import food depends on several factors. Considering food security as a priority issue, we focus in this paper on the FDI inflows and the energy price as determinants of food import dependency. Indeed, on the one hand FDI as a substitute/complement to trade flows could impact the depending nation. On the other hand, energy price affects production and transport costs, thereby impacting international trade in food productions. To investigate this relationship, we follow the methodology of Love and Zicchino (2006) by estimating a panel vector autoregressive model (PVAR) of 40 developing countries for the period between 1990 and 2012. The panel is split into two sub-samples. We found that FDI inflows explain food import dependency in low and lower middle-income countries and the energy price proxy influences food import dependency in upper-middle income countries. The impulse response functions’ results are close to those from panel VAR, where an increase in FDI inflows or in energy price leads to more food import dependency in low and lower-middle income countries or in upper-middle income countries, respectively.
    Keywords: FDI, energy price, food security, Panel VAR, developing countries, food import dependency
    JEL: F1 Q4 O1
    Date: 2016
  44. By: Ferrer, Rosa; Perrone, Helena
    Abstract: This paper investigates how consumers react to product safety threats when there are no close substitutes for the unsafe product. Our main goal is to study the total costs of the crisis to consumers including the utility losses associated with substituting away from their favorite products, and to derive policy implications. Using data from an ideal setting related to mad cow disease, we estimate a full demand model for meat and identify the utility parameters that weight the importance of product safety relative to other product characteristics. We find that the consumers' response leads to utility losses and nutritional costs due to changes in the composition of the food basket. Counterfactual exercises isolate the different drivers of the consumers' reaction, measuring the contributions of these factors and identifying conditions that would have intensified the decline in demand. Based on our results, public intervention can play a stronger role in terms of complementing market incentives when the threat affects products for which consumers' response is costlier.
    Keywords: consumer welfare; Demand estimation; scanner data
    JEL: K13 L66
    Date: 2016–05
  45. By: Rasch, Sebastian; Heckelei, Thomas; Oomen, Roelof
    Abstract: Livestock production on South Africa’s commons strongly contributes to livelihoods of communal households offering status, food and income. Management innovations are generally top-down and informed by commercial practices such as rotational grazing in combination with conservative stocking. Implementations often ignore how the specific socio-ecological context affects outcomes and the impact on equity. Science now acknowledges that rangeland management must be context specific and a universally agreed-upon recommendation for managing semi-arid rangelands does not exist. We present a socio-ecological simulation model derived from a case study in South Africa. It is used to assess the socio-ecological effects of rotational vs. continuous grazing under conservative and opportunistic stocking rates. We find that continuous grazing under conservative stocking rates is best suited for the system under investigation. However, past legacy under apartheid and participants’ expectations render its successful application unlikely.
    Keywords: Land Economics/Use, Livestock Production/Industries, Q15, Q58, Q13,
    Date: 2015
  46. By: Michael Kirchler; Stefan Palan
    Abstract: Reciprocation of monetary gifts is well-understood in economics. In contrast, there is little research on reciprocal behavior following immaterial gifts like compliments. We close this gap and investigate how employees reciprocate after receiving immaterial and material gifts. We purchase (1) ice cream from fast food restaurants, and (2) durum doner, a common lunch snack, from independent vendors. Prior to the food's preparation, we either compliment or tip the salesperson. Salespersons reciprocate compliments with higher product weight than in a control treatment. This reciprocal behavior grows over repeated transactions. Tips have a stronger level effect which marginally decreases over time.
    Keywords: gift exchange, reciprocity, natural field experiment
    JEL: D01 D03
    Date: 2016–05
  47. By: Robert J.R. Elliott (University of Birmingham); Toshihiro Okubo (Faculty of Economics, Keio University)
    Abstract: The need for developed countries to take a lead in the global fight against climate change is generally acknowledged and was intrinsic to the recent Paris climate change agreement. An understanding of the way in which environmental policy in advanced nations has developed and which policies had a significant impact on the reduction in the emissions of various pollutants may yield important policy prescriptions relevant to the current climate change negotiations. In this paper we consider how Japan's little known environmental interest rate policy and voluntary pollution control agreements contributed to Japan's ecological modernisation and how these policies compared to the more traditional regulatory approach. Our results show that Japan's use of an environmental interest rate policy was an effective policy as a complement to the more traditional regulatory approach.
    Keywords: Environmental regulations
    JEL: O13 O31 H2 H23
    Date: 2016–03–29
  48. By: Borman, Julia; Vergara, Oscar; Sasanian, Sid; Ward, Katie
    Keywords: Agricultural and Food Policy,
    Date: 2016–03
  49. By: Wolfe, Elijah; Popp, Michael; Bazzani, Claudia; Nayga Jr, Rudolfo; Danforth, Diana; Popp, Jennie; Chen, Pengyin; Seo, Han-Seok
    Keywords: Edamame, non-hypothetical experimental auction, sensory test, willingness to pay, Agribusiness, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing, Q12, D12,
    Date: 2016
  50. By: Sonia Bhalotra; Abhishek Chakravarty; Dilip Mookherjee; Francisco J. Pino
    Abstract: While land reforms are typically pursued in order to raise productivity and reduce inequality across households, an unintended consequence may be increased within-household gender inequality. We analyse a tenancy registration programme in West Bengal, and find that it increased child survival and reduced fertility. However, we also find that it intensified son preference in families without a first-born son to inherit the land title. These families exhibit no reduction in fertility, an increase in the probability that a subsequent birth is male, and a substantial increase in the survival advantage of subsequent sons over daughters.
    Date: 2016–05
  51. By: Eberhardt, Markus; Vollrath, Dietrich
    Abstract: Labor productivity and labor share in the agricultural sector are key determinants of living standards across countries. We show that differences in agricultural technology -- the coefficients on factor inputs in the production function -- account for a substantial portion of cross-country differences in agricultural labor productivity, agricultural labor share, and per capita income. In a panel of 100 countries we document differences in technology estimates associated with major crops, and then illustrate the quantitative implications for development. Counterfactually eliminating crop-type technology heterogeneity reduces variance in log income per capita by 25%, and raises the median by 60%.
    Keywords: agricultural development; crop type; structural change; technology heterogeneity
    JEL: C23 F63 O11 O47 Q16
    Date: 2016–04
  52. By: Su Thet Hninn (Graduate School for International Development and Cooperation, Hiroshima University); Keisuke Kawata (Graduate School for International Development and Cooperation, Hiroshima University); Shinji Kaneko (Graduate School for International Development and Cooperation, Hiroshima University); Yuichiro Yoshida (Graduate School for International Development and Cooperation, Hiroshima University)
    Abstract: This study evaluates the potential surplus gain of a water improvement policy and the causal effects of its components on choice probabilities for the floating people on Inlay Lake, Myanmar, based on a randomized conjoint field experiment. In our experimental design, respondents rank three options: two alternative policies and one status quo. We then present a method that enables us to estimate the minimum willingness-to-pay for a policy in the form of compensating variations under a set of weak assumptions using this conjoint data. Results show inter alia that the provision of toilet facilities and a collective wastewater treatment, and joint implementation of the policy by the government and local NGOs have a positive effects on the choice probabilities. Results also show that the surplus gain from a water-quality improvement policy is at least as large as 22.9% of the average annual per-capita income of those on the lake.
    Keywords: eutrophication, randomized conjoint experiment, nonparametric welfare analysis, envirodevonomics
    JEL: Q53 Q56 Q58
    Date: 2016–05
  53. By: M. Shahe Emran (IPD, Columbia University); Dilip Mookherjee (Boston University); Forhad Shilpi (DECRG, World Bank); M. Helal Uddin (University of Dhaka)
    Abstract: In March 2011, Delivery Order traders (DOTs) in the edible oils market in Bangladesh were banned. The reform provides a natural experiment to test alternative models of marketing intermediaries. We develop three models and derive testable predictions about the intercept of the margin equation and pass-through of international price. A difference-in-difference analysis shows that the reform led to higher marketing margins and lower pass-through. The evidence rejects models based on pure double-marginalization-of-rents, and provision of low cost credit by DOTs, but supports a model where DOTs relax binding credit constraints faced by wholesale traders.
    Keywords: Marketing Intermediary, Trader Margin, Commodity Prices, Market Power, Double Marginalization, Supplier Credit, Credit Rationing, International Prices, Passthrough, Policy Experiment, Edible Oils, Bangladesh
    JEL: O12 L13 Q13
  54. By: Halkos, George; Petrou, Kleoniki Natalia
    Abstract: Nowadays waste has become a vital part of our economy, as a by-product of economic activity. It originates from businesses, the government and households and following appropriate management techniques, it can be used as an input to economic activity for instance through material or energy recovery. Waste is produced by all activities and although it is a locally arising problem it has both local and global effects. Societies need to dispose their waste products creating a source of environmental pollution. Sustainable waste management requires the combination of skills and knowledge of physical sciences and engineering together with economics, ecology, human behaviour, entrepreneurship and good governance. This paper discusses extensively the policy framework and the legislative background around waste and its management in the EU and worldwide. In this way, it focuses on the treatment options for waste under the Circular Economy approach having in mind the idea of closing the loop and hence achieving a more efficient use of resources.
    Keywords: Municipal solid waste; waste management; resources; circular economy; waste infrastructure.
    JEL: O13 O5 O50 O52 Q50 Q53 Q56 R11
    Date: 2016–05–21
  55. By: Sonia Bhalotra (University of Essex); Abhishek Chakravarty (University of Essex); Dilip Mookherjee (Boston University); Francisco J. Pino (University of Chile)
    Abstract: While land reforms are typically pursued in order to raise produc tivity and reduce inequality across households, an unintended consequence may be increased within-household gender inequality. We analyse a tenancy registration programme in West Bengal, and find that it increased child survival and reduced fertility. However, we also find that it intensified son preference in families without a first-born son to inherit the land title. These families exhibit no reduction in fertility, an increase in the probability that a subsequent birth is male, and a substantial increase in the survival advantage of subsequent sons over daughters.
    Keywords: Land reform, property rights, gender, infant mortality, sex ratio, fertility
    JEL: I14 I24 J71 O15
  56. By: Kröll, Markus; Rustagi, Devesh
    Abstract: We examine the role of motivation for honesty for cheating in informal milk markets with asymmetric information in India. Using a novel experimental design that combines a die task with Bluetooth technology, we contrast reported with actual outcomes to construct precise measures of motivation for honesty at the level of an individual milkmen. We then buy milk from the same milkmen to obtain objective measures of the percentage of water added to the milk sold. Our findings reveal that dishonest milkmen cheat by adding much more water to milk than honest milkmen, which widens with the degree of dishonesty. Additionally analyses reveal that difficulties in ex-post verification of milk quality limit the scope of reputation and product differentiation in mitigating cheating and that market structure allows for the co-existence of honest and dishonest milkmen. Our study offers a new tool to measure precisely motivation for honesty, as well as its importance in mitigating cheating in markets that are vital for human health and nutrition.
    Keywords: motivation for honesty,asymmetric information,cheating,informal markets,die game,milk,India
    JEL: C93 D82 O12 O17
    Date: 2016
  57. By: Mogas Amorós, Joan
    Abstract: The costs of reducing carbon dioxide (CO2) emissions or their sequestration have received a great deal of attention. On the other hand, the benefits of the reduction or sequestration have been limited to avoided costs, which in general do not reflect the social benefits. Knowing the benefits to the whole society would help to make rational economic decisions on the amount of resources devoted to carbon sequestration or emission reductions. This article presents the methods based on increasing the amount of carbon stored in the system but it reflects the social value of the society instead of the cost of sequestering carbon. Keywords: Social cost of carbon, Non-market valuation, Forest attributes.
    Keywords: Anhídrid carbònic, Emissions atmosfèriques -- Aspectes econòmics, 33 - Economia, 504 - Ciències del medi ambient,
    Date: 2016

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.