nep-agr New Economics Papers
on Agricultural Economics
Issue of 2016‒07‒23
28 papers chosen by
Angelo Zago
Università degli Studi di Verona

  1. An economic assessment of GHG mitigation policy options for EU agriculture (EcAMPA 2) By Ignacio Pérez Domínguez; Thomas Fellmann; Franz Weiss; Peter Witzke; Jesús Barreiro-Hurlé; Mihaly Himics; Torbjörn Jansson; Guna Salputra; Adrian Leip
  3. The Reconstruction of the Border Roads and Household Welfare in Nigeria: A Gender Study By Efobi Uchenna
  4. Multidimensional Nature of Climate Change. Why is the Climate Change a Social Issue? By Nicoleta CARAGEA; Antoniade Ciprian ALEXANDRU
  5. Emerging Opportunities in the West African Food Economy By Thomas ALLEN; Philipp HEINRIGS
  7. Cross-Country Comparison of Farm Size Distribution By Raushan Bokusheva; Shingo Kimura
  8. Estimating Water Demand Elasticity at the Intensive and Extensive Margin By Daniel A. Brent
  9. New consumers behaviours in the sharing economy: an experimental analysis on food waste reduction By Andrea Morone; Enrica Imbert; Marcello Morone; Pasquale Falcone; Piergiuseppe Morone
  10. Global Food Prices and Business Cycle Dynamics in an Emerging Market Economy By Holtemöller, Oliver; Mallick, Sushanta
  11. Water Use and Conservation in Manufacturing: Evidence from U.S. Microdata By Randy A. Becker
  12. The regional dispersion of income inequality in nineteenth-century Norway By Jørgen Modalsli
  13. Regional differences in the level of consumption of mineral fertilizers in Poland By Arkadiusz Zalewski
  14. Inclusive Insurance Sector: An Innovation business model for Microinsurance Delivery in Sri Lanka By Heenkenda, Shirantha
  15. New evidence for explosive behavior of commodity prices By Jeanne Diesteldorf; Sarah Meyer; Jan Voelzke
  16. Evidence from a Randomized Evaluation of the Household Welfare Impacts of Conditional and Unconditional Cash Transfers Given to Mothers or Fathers By Richard Akresh; Damien de Walque; Harounan Kazianga
  17. Building an English wheat annual series in an intriguing era (1645-1761): Methodology, Challenges and Opportunities. A first assessment from the relationship between Landrace seeds and the Agrarian Revolution By José Luis Martínez-González
  18. Solar off-grid markets in Africa: Recent dynamics and the role of branded products By Grimm, Michael; Peters, Jörg
  19. Economic Impact of ban on GMOs in animal feed in Poland By Krzysztof Hryszko
  20. Reducing vulnerability, preventing disasters, and adapting to climate variability and climate change. By Roberto Sanchez Rodriguez
  21. How Green are Economists? By Carattini, Stefano; Tavoni, Alessandro
  22. 2014 Michigan Dairy Farm Business Analysis Summary By Wittenberg, Eric; Wolf, Christopher
  23. Renewable Technology Adoption and the Macroeconomy By Ted Temzelides; Borghan Narajabad; Bernardino Adao
  24. Determinants of Consumer Price Inflation versus Producer Price Inflation in Asia By Jongwanich, Juthathip; Wongcharoen, Petchtharin; Park, Donghyun
  25. Are Land Values Related to Ambiet Air Pollution Levels? Hedonic Evidence from Mexico City By Lopamudra Chakraborti; David Ricardo Heres; Danae Hernández Cortés
  26. Network-Constrained Risk Sharing in Village Economies By Pau Milan
  27. Tissue plant culture as a novel industrial strategy to produce biopharmaceuticals from endangered plants By Julieta Echeverri Del Sarto; María Celeste Gallia; Ana Ferrari; GUILLERMINA A. BONGIOVANNI
  28. Growing up in Auckland? Mapping drivers of residential land growth By Lees, Kirdan

  1. By: Ignacio Pérez Domínguez (European Commission – JRC); Thomas Fellmann (European Commission – JRC); Franz Weiss (European Commission – JRC); Peter Witzke (EuroCARE GmbH); Jesús Barreiro-Hurlé (European Commission – JRC); Mihaly Himics (European Commission – JRC); Torbjörn Jansson (Swedish University of Agricultural Sciences); Guna Salputra (European Commission – JRC); Adrian Leip (European Commission – JRC)
    Abstract: The project 'Economic Assessment of GHG mitigation policy options for EU agriculture (EcAMPA)' is designed to assess some aspects of a potential inclusion of the agricultural sector into the EU 2030 climate policy framework. In the context of possible reductions of non-CO2 emissions from EU agriculture, the scenario results of the EcAMPA 2 study highlight issues related to production effects, the importance of technological mitigation options and the need to consider emission leakage for an effective reduction of global agricultural GHG emissions.
    Keywords: greenhouse gas emissions, agriculture, mitigation policy, climate policy, EU, CAPRI model, agricultural markets, emission leakage
    JEL: Q18 Q58 Q02 Q11
    Date: 2016–06
  2. By: Olga Christopoulou (Department of Planning and Regional Development, University of Thessaly); Athanassios Sfougaris (Department of Agriculture Crop Production and Rural Environment, University of Thessaly)
    Abstract: The Lesser Kestrel (Falco naumanni) is classified as Vulnerable on the IUCN Red List and the Red Data Book of Greece and listed in Annex I of the EU Wild Birds Directive. The species is a migratory small falcon wintering in Africa, south of Sahara and breeding from south Europe, through Balkans and Turkey, to central Asia. It breeds colonially in buildings inside the villages and feeds on insects (mainly large Orthoptera) in farmland, grasslands, meadows and fallow land. The main part of its population in Greece breeds in the villages of Thessaly plain. It interacts with inhabitants in the nesting sites and farmers and livestock breeders in farms and grasslands/meadows, receiving the effects of applied farming practices. Species ecology depends on the activities of the local population, so their actions and opinions are critical to its conservation and survival. Purpose of the study was to investigate the awareness and attitudes of farmers, livestock breeders and local people regarding practices affecting the conservation of the species. The study took place in villages hosting the most numerous colonies of the species. A number of 250 farmers, livestock breeders and local people were interviewed through a questionnaire structured on 25 questions, 5 of which were asking personal information, while the rest 20 the following data: a) awareness about the species protection status, b) adoption of particular rules on agricultural and livestock practices set by the Life Project concerning the Lesser Kestrel, c) voluntary contribution to conservation activities for the species. Out of 250 questionnaires distributed, 210 were valid. The general conclusion was that the majority of the people interviewed was aware of the species breeding and feeding needs and has a positive attitude to the presence of the species in their farms and buildings. Moreover, they are willing to apply practices that contribute to securing further favourable conditions for the species.
    Keywords: Lesser kestrel, farmers, views, attitudes
    JEL: Q19
  3. By: Efobi Uchenna (Covenant University, Nigeria)
    Abstract: This study provides an ex-ante analysis of the welfare effect from the improvement of border road infrastructure in Nigeria. It starts by describing the income distribution in the Nigerian states contained in the sample. It then analyses the relationship between income, household food expenditures, and household expenditures on imported rice. it is aimed at assessing how changes in the price of food commodities induced by border road improvements would affect different types of households. Finally, it investigates how simulated changes in local transportation costs stemming from road improvements would affect local prices of imported rice taking into consideration the simulated price changes effect on household welfare across household head gender and household area (rural and urban households). Results indicate that policies aiming to improve border roads and thereby lower transportation costs, and subsequently the price of imported rice, would be more beneficial for rural than urban households. Such policies would likely produce larger welfare gains for poorer households than richer households, and would be more beneficial for the poorest female-headed households than their male counterparts.
    Keywords: ECOWAS; Gender; Household; Nigeria; Poverty; Trade; Welfare
    JEL: D1 D6 F1 F2 R2
    Date: 2016–07
  4. By: Nicoleta CARAGEA (Faculty of Economics, Ecological University of Bucharest); Antoniade Ciprian ALEXANDRU (Faculty of Economics, Ecological University of Bucharest)
    Abstract: Climate Change is a process of a global nature facing humanity in this century in terms of environmental protection. Are we doing enough? Will we do enough? The climate change must be analyzed in multidimensional approach, not only as the economic and environmental dimensions of sustainable development, but the social one as well. This paper describes the impact of climate change on one the most important social dimension: the employment. One economic sector, agriculture, will be looked at in particular and a special focus is put on employment. The case study is Romania, a very traditional agricultural country, where one third of the employed population works in agriculture. Data on employment in Romania are provided from Labour Force Survey carried quarterly by National Institute of Statistics; data source on relationship between Europeans and agriculture within the EU is Eurobarometer: Europeans, agriculture and the Common Agricultural Policy (2016).
    Keywords: climate change, sustainable development, employment, environment
    JEL: J41 Q51
    Date: 2015–11
  5. By: Thomas ALLEN; Philipp HEINRIGS
    Abstract: Driven by urbanisation and income growth, the West African food economy has radically changed over the past 60 years. The food economy, including all activities involved in producing food, from production to processing, transport and distribution totalled USD 178 billion in 2010, equal to 36% of the regional GDP. Forty percent of the value added in the food economy is generated by non-agricultural activities. Post-harvest activities are rapidly developing and are expected to grow more quickly in coming decades than other segments of the food value chain. Policies and monitoring systems need to adjust to these changes to leverage the emerging opportunities in agricultural development, employment and value creation. This paper estimates the size and structure of this new food economy, and explores major policy implications.
    Keywords: food policy, agricultural transformation, value chain, urbanisation, West Africa, food systems
    JEL: Q13 Q18
    Date: 2016–07–01
  6. By: Mishra, Khushbu; Gallenstein, Richard; Miranda, Mario J; Sam, Abdoul G; Toledo, Patricia T
    Abstract: The majority of the world’s poor live in rural areas and rely on agriculture for their income. Therefore, increasing agricultural efficiency via technology adoption is critical to reducing poverty in developing agrarian economies such as those in Sub-Saharan Africa (SSA). Despite its apparent advantages, SSA has one of the lowest adoption rates. Accordingly, the objective of this paper is to investigate if the availability of meso-and micro-level insurance encourages access to credit by relaxing demand side and supply side constraints. We further disaggregate the effects by gender of the farmer to see if any differential impacts exist over female versus male farmers. Using a randomized control trial and difference-in-difference estimation, we find that availability of meso-level insurance, when the banks are the policy holders, increases the likelihood of agricultural loan approvals for smallholder farmers. Gender level analysis shows that the likelihood increases for both female and male farmers.
    Keywords: agricultural technology adoption, credit access, insurance, panel data, Ghana, Food Security and Poverty, International Development, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty,
    Date: 2016
  7. By: Raushan Bokusheva; Shingo Kimura
    Abstract: This report summarises selected measures of the farm size distribution for fourteen OECD countries: Canada, Estonia, France, Germany, Ireland, Italy, Japan, Korea, Latvia, the Netherlands, Norway, Sweden, the United Kingdom (England) and the United States over the period 1995-2010. The farm size statistics are presented for four major production systems: crop, dairy, cattle and pig farming. The report documents consolidation of agricultural production in large-scale farms in most countries and sub-sectors covered by the report. Nevertheless, farm size growth rates show substantial differences across countries and periods which underlines the importance of country-specific natural, social, and economic conditions and the regulatory and policy environment for the evolution of farm structures. Increased inequality in farm size distributions, as captured using Gini coefficients, indicates a trend towards more polarized farm structures.
    Keywords: agriculture, structural change, farm size distribution
    JEL: D30 L11 Q12 Q18
    Date: 2016–07–14
  8. By: Daniel A. Brent
    Abstract: I exploit a unique panel dataset of monthly water metering records and annual land- scape choices from satellite data for more than 170,000 households over 12 years to estimate price elasticity at the intensive and extensive margin. Higher water prices significantly increase the probability of adopting water conserving landscapes. The extensive margin only accounts for 2-3% of total elasticity in the short run and this increases to 6-24% in the long run. As cities transition away from water-intensive landscapes aggregate demand becomes less elastic and future conservation in the face of droughts becomes more challenging.
  9. By: Andrea Morone; Enrica Imbert; Marcello Morone; Pasquale Falcone; Piergiuseppe Morone
    Abstract: Food security, along with growing population and the associated environmental concerns, make food waste and loss a central topic in economic analysis. While food losses occur mostly at the production, postharvest and processing phases of the supply chain, food waste takes place mainly at the end of the chain and therefore concerns primarily the habits and behaviour patterns of retailers and consumers. Many solutions and practices have been proposed and oftentimes implemented in order to "keep food out of landfills", thus reducing food waste at the source. However, little attention has been paid to the possible sharing of consumer-side food surplus. In this context, food sharing could represent an effective way to tackle food waste at the consumers' level, with both environmental and economic potential positive effects. Currently, several initiatives and start-ups are being developed in the US and Europe, involving the collection and use of the excess of food from consumers and retailers and the promotion of collaborative consumption models (e.g. Foodsharing, Growington, Feastly, etc.). Nevertheless, there is still little empirical evidence testing the effectiveness of introducing sharing economy approaches to reduce food waste. This study seeks to fill this gap through a framed field experiment. We run two experimental treatments; in the control treatment students were asked to behave according to their regular food consumption habits, and in the food sharing treatment the same students were instructed to purchase food, cook and consume it collectively. Preliminary results showed that the adoption by households of food sharing practices do not automatically translate into food waste reduction. A number of factors (environmental and economic awareness, domestic skills and collaborative behaviors) might act as 'enablers' to make sharing practices effective.
    Date: 2016
  10. By: Holtemöller, Oliver; Mallick, Sushanta
    Abstract: This paper investigates a perception in the political debates as to what extent poor countries are affected by price movements in the global commodity markets. To test this perception, we use the case of India to establish in a standard SVAR model that global food prices influence aggregate prices and food prices in India. To further analyze these empirical results, we specify a small open economy New-Keynesian model including oil and food prices and estimate it using observed data over the period from 1996Q2 to 2013Q2 by applying Bayesian estimation techniques.
    Keywords: commodity prices,food prices,New-Keynesian macroeconometric model,inflation,India,structural vector autoregressive model
    JEL: C32 E31 Q02
    Date: 2015
  11. By: Randy A. Becker
    Abstract: Water can be a scarce resource, particularly in certain places at certain times. Understanding both water use and conservation efforts can help ensure that limited supplies can meet the demands of a growing population and economy. This paper examines water use and recirculation in the U.S. manufacturing sector, using newly recovered microdata from the Survey of Water Use in Manufacturing, merged with establishment-level data from the Annual Survey of Manufactures and the Census of Manufactures. Results suggest that water use per unit of output is largest for larger establishments, in part because larger establishments use water for more purposes. Larger establishments are also found to recirculate water more — satisfying demand (water use) without necessarily increasing water intake. Various costs also appear to play a role in water recirculation. In particular, the water circulation rate is found to be higher when water is purchased from a utility. Relatively low (internal) prices for self-supplied water could suppress the incentive to invest in recirculation. Meanwhile, establishments with higher per-gallon intake treatment costs also recirculate more, as might be expected. The cost associated with water discharge – due to regulation or otherwise – also increases circulation rates. The aridity of a locale is found to have little effect on circulation rates.
    Keywords: water use, water recirculation, U.S. manufacturing
    JEL: Q25 L6
    Date: 2016–06
  12. By: Jørgen Modalsli (Statistics Norway)
    Abstract: This paper documents, for the first time, municipality- and occupation-level estimates of income inequality between individuals in a European country in the nineteenth century, using a combination of several detailed data sets for Norway in the late 1860s. Urban incomes were on average 4.5 times higher than rural incomes, and the average city Gini coefficient was twice the average rural municipality Gini. All high- or medium-income occupation groups exhibited substantial withinoccupation income inequality. Across municipalities, income inequality is positively associated with manufacturing, average crop, and historical land inequality, and is negatively associated with distance to the nearest city, pastoral agriculture, and fisheries. The income Gini for Norway as a whole is found to have been 0.546, slightly higher than estimates for the UK and US in the same period.
    Keywords: Income inequality; economic development; rural-urban differences; economic history
    JEL: N33 D31 O15
    Date: 2016–07
  13. By: Arkadiusz Zalewski (Institute of Agricultural and Food Economics National Research Institute)
    Abstract: The article studied regional differences in the level of fertilization in Poland. Analyzed the potential factors influencing the differences in fertilization between voivodeships. In order to study regional differentiation in mineral fertilizers used cluster analysis (Ward's method). As a result of grouping objects received five clusters of of voivodeships. A group of of voivodeships differed in terms of the proposed features, while the voivodeships within the group were characterized by similar values of variables. The voivodship with the highest level of mineral fertilization characterized by the largest area of farms, the largest share of sowings in the agricultural area, the largest share of farms specializing in field crops and the largest level of calcium fertilization. It may be assumed that the farmers of these voivodeships have obtained the best results from agricultural activities, which favored investing in agricultural inputs.
    Keywords: consumption, mineral fertilizers, agricultural
  14. By: Heenkenda, Shirantha
    Abstract: The main objective of this study is to explore the feasibility of farmers’ organizations (FOs) as a vehicle for microinsurance delivery for paddy crop cultivated by small-scale (peasant) farmers in Sri Lanka. Ampara district, on Sri Lanka’s eastern plain was selected to conduct the field survey. Factor Analysis is used to elicit the group dynamic and capacity of FOs as a stakeholder of the insurance supply chain. The results show that the farmers’ organization is most widespread and very close institutional setup for paddy farmers. FOs are capable of handling financial activities with transparency, and have healthy financial habits and those farmers participate actively in farmers’ organization activities. This study provided clear policy insights into the design of institutions channel that foster cooperation, and of the characteristics of FOs. To assist in the FOs financial activities, the postal network can act as financial intermediaries in circumstances where the commercial insurers do not have an outlet or branch networks in their target area. For developing the linkages between farmers and insurers, the public-private partnership model can be used for microinsurance supply to paddy farmers in Sri Lanka. In this context, multi-stakeholder partnerships should be made imperative for paddy farmers’ insurance delivery aimed at widespread coverage or large-scale implementation.
    Keywords: Farmers’ Organizations, Financial Intermediaries, Insurance Delivery, Microinsurance
    JEL: G2 G22
    Date: 2016–02–14
  15. By: Jeanne Diesteldorf; Sarah Meyer; Jan Voelzke
    Abstract: Over the past decade, the academic literature has engaged in a lively discussion about speculative bubbles in commodity markets. A number of papers have empirically investigated explosive behavior, albeit employing different econometric approaches that examine univariate time series for the existence of bubbles. Largely, these individual tests have been applied on a set of univariate time series such as stock indices or commodity prices, ignoring the multiple testing nature of the problem. Departing from there, we examine explosive behavior in commodity futures markets, by employing a panel-data set containing the ten most liquid agricultural futures contracts traded in the US to conduct the Generalised Sub-ADF test by Phillips et al. (2015). We aggregate individual test-results using a stagewise rejective multiple test procedure. Overall, our results show evidence for several periods of explosive behavior in the markets for wheat, cattle, cocoa, coffee and cotton over the past 35 years. Our paper is the first to employ this approach on a panel data set, thereby solving econometric shortcomings of previously published work in the extant literature.
    Keywords: Speculative bubbles, Derivatives, Commodity markets, Panel-test, GSADF-test
    Date: 2016–07
  16. By: Richard Akresh; Damien de Walque; Harounan Kazianga
    Abstract: We conducted a randomized control trial in rural Burkina Faso to estimate the impact of alternative cash transfer delivery mechanisms on education, health, and household welfare outcomes. The two-year pilot program randomly distributed cash transfers that were either conditional or unconditional and were given to either mothers or fathers. Conditionality was linked to older children enrolling in school and attending regularly and younger children receiving preventive health check-ups. Compared to the control group, cash transfers improve children's education and health and household socioeconomic conditions. For school enrollment and most child health outcomes, conditional cash transfers outperform unconditional cash transfers. Giving cash to mothers does not lead to significantly better child health or education outcomes, and there is evidence that money given to fathers improves young children's health, particularly during years of poor rainfall. Cash transfers to fathers also yields relatively more household investment in livestock, cash crops, and improved housing.
    Date: 2016
  17. By: José Luis Martínez-González (Universitat de Barcelona and Universitat Pompeu Fabra, Spain)
    Abstract: This article presents a new methodology to elaborate various British wheat annual series, in physical units, during an intriguing period: 1645-1761. Under this perspective, it can be proved that the recent agrarian GDP which appears in the literature is very precise. Davenant’s Law follows the logic of a minor crop variability in the long term, but it is also in keeping with the yield obtained from probate inventories, farm accounts and weather changes. This takes us to consider the idea that it was a common rule, not just intellectual speculation. Income was not a factor of decision of consumption until the middle of the 18th century. However, it gradually became more and more important since then.Lengthening the series until 1884 we observe a period of stagnation of production in the second half of the 18th century followed by a spectacular take off. Under a physical and environmental perspective, the timing of the Agrarian Revolution seems to be a phenomenon prior to 1750 and later than 1800. In a first practical assessment of the series with the example of the landrace seeds, everything seems to indicate that their improvement might have been one of the keys of the first wave of the agrarian change.
    Keywords: Wheat annual series, England, Early Modern Age, Davenant’s Law, Agrarian Revolution, Seeds, Climate
    JEL: N53 Q11 Q54
    Date: 2016–06
  18. By: Grimm, Michael; Peters, Jörg
    Abstract: Solar off -grid technologies have become a lower-cost alternative to grid-based electrification in rural Africa. As a contribution to the United Nations' electricity for all goals, policy currently promotes branded solar products based on the assumption that high-quality standards are necessary. We provide evidence suggesting that nonbranded technologies have already made widespread inroads to rural households. Quality is not necessarily worse, in particular if the considerably lower end-user prices are accounted for. A justification of branded solar promotion programs can thus not only be based on energy access arguments, but rather on environmental concerns related to electronic waste. Moreover, we show that if poorer strata are to be reached, end-user subsidies are required.
    Keywords: rural electrification,energy access,energy poverty,technology adoption
    JEL: O13 O33 Q41
    Date: 2016
  19. By: Krzysztof Hryszko (Institute of Agricultural and Food Economics - National Research Institute)
    Abstract: In Poland, there is a limited range of produced protein feed which could constitute a valuable component for the production of animal feed. Rapeseed meal is of key importance. Its annual production amounts to 1.4-1.5 million tonnes. Also the importance of high-protein plants (legumes) has been increasing while their production, despite the additional financial aid, is still relatively low and does not exceed 350 thousand tonnes. The supply from domestic production covers the increasing demand for high-protein components only partially (24-28%). The occurring deficiencies are covered by supplies obtained from import, which in the 2014/2015 season reached 3.29 million tonnes, including 2.08 million tonnes of soybean meal. In a large majority (95-98%) this is GM soybean meal obtained chiefly from South America and the US. The share of imported raw materials in the structure of their consumption is 72-76%, including soybean meal amounting to approximately 56%. The share of fodder legumes in the structure of high-protein feed consumption does not exceed 8-9%, and in the protein equivalent it is even lower. The possible prohibition of using GMO feed applied by the authorities would be evidently negative since it would generate an increase in the costs of production and a reduction of farming income in important branches of agricultural production. It can also be the cause for a critical situation in the poultry industry, resulting in a decrease of production and export of poultry livestock as well as bankruptcy of some farms. In terms of the production of pork livestock, the prohibition of using GMO feed would deteriorate the already low profitability and effectiveness of production in Poland, which at this point is insufficiently competitive. This prohibition would contribute to worsening competition in the feed industry as well as the important branches of agricultural production.
    Keywords: animal feed, GMO, protein feed, high-protein plants
  20. By: Roberto Sanchez Rodriguez (University of California Riverside, Department of Environmental Sciences)
    Abstract: Reducing vulnerability, preventing disasters and adapting to climate variability and climate change are receiving increasing attention by the international community. Contributions from the international scientific community have expanded knowledge and understanding of these problems, but experiences in communities in developed and developing countries illustrate the difficult transition from conceptual frameworks to successful operational approaches at the local level. This paper presents lessons learned from a recent project in a Mexican city seeking to prevent climate related disasters and to create adaptation to climate variability and climate change within the context of local development. The results of the project stress the importance of a detail and scientifically based analysis of social vulnerability to climate variability and climate change to reduce vulnerability, prevent disasters, and adapt to climate change. The dynamic involvement of local stakeholders along the project illustrates the value of inclusive approaches but also the huge importance of the institutional dimension of climate change adaptation. The presentation compares the lessons from this Mexican city with those in other cities around the world showing that institutional change is one of the major obstacle to adapt to climate change at the local level.
    Keywords: adaptation to climate change, preventing disasters, sustainable development
    JEL: Q54 R58 R14
  21. By: Carattini, Stefano; Tavoni, Alessandro
    Abstract: The market for voluntary carbon offsets has grown steadily in the last decade, yet it remains a very small niche. Most emissions from business travel are still not offset. This paper exploits a unique dataset examining the decision to purchase carbon offsets at two academic conferences in environmental and ecological economics. We find that having the conference expenses covered by one's institution increases the likelihood of offsetting, but practical and ethical reservations as well as personal characteristics and preferences also play an important role. We draw lessons from the effect of objections on the use of offsets and discuss the implications for practitioners and policy-makers. Based on our findings, we conclude that ecological and environmental economists should be more involved in the design and use of carbon offsets.
    Keywords: Voluntary Carbon Offsetting, Public Goods, Ecological Economics, Environmental Economics, Environmental Economics and Policy, D6, H8, Q4,
    Date: 2016–07–04
  22. By: Wittenberg, Eric; Wolf, Christopher
    Abstract: This report summarizes the financial and production records of 101 dairy farms from throughout Michigan in 2014. To be included, the farms must have produced at least 50 percent of gross cash farm income from milk and dairy animal sales. The records came from Michigan State University’s TelFarm system and the Farm Credit Service system in Michigan. The values were pooled into averages for reporting purposes. The average herd included here is larger than would be the average dairy herd in Michigan. Average values are reported in the summary tables and discussion that follows but one should be aware that considerable variation across herds exists in virtually every measure.
    Keywords: Agribusiness, Agricultural Finance, Farm Management, Financial Economics, Production Economics,
    Date: 2015–12
  23. By: Ted Temzelides (Rice University); Borghan Narajabad (Federal Reserve); Bernardino Adao (Banco de Portugal)
    Abstract: We study the adaptation of new technologies by renewable energy-producing firms in a dynamic general equilibrium model where energy is an input in the production of goods. Energy can come from fossil or renewable sources. Both require the use of capital, which is also needed in the production of final goods. Renewable energy firms can invest in improving the productivity of their capital stock. The actual improvement is subject to spillovers and comes at the cost of some renewable energy output. Together with spill-overs, this leads to under-investment in improving the productivity of renewable energy capital. In the presence of environmental externalities, the optimal allocation can be implemented through a Pigouvian tax on fossil fuel, together with a policy which promotes adaptation of new renewable technologies. We study numerical examples using world-economy data.
    Date: 2016
  24. By: Jongwanich, Juthathip (Thammasat University); Wongcharoen, Petchtharin (Thammasat University); Park, Donghyun (Asian Development Bank)
    Abstract: We empirically examine and compare the determinants of producer and consumer price inflation in 10 Asian economies during 2000–2015. In this connection, we also investigate the pass-through of global oil prices, global food prices, and exchange rates to domestic producer and consumer prices. Overall, we find that cost-push factors such as oil and food prices are more important in explaining producer price inflation than consumer price inflation in the 10 Asian economies. On the other hand, for consumer prices, demand-pull factors still explain much of the inflation. Finally, we find that the pass-through of global oil prices, global food prices, and exchange rates tend to be higher for producer prices than consumer prices in Asia.
    Keywords: Asia; commodity price shocks; consumer price; exchange rate; inflation; monetary policy; pass-through; producer price
    JEL: E31 F43 O53
    Date: 2016–07–14
  25. By: Lopamudra Chakraborti (Division of Economics, CIDE); David Ricardo Heres (Division of Economics, CIDE); Danae Hernández Cortés (Division of Economics, CIDE)
    Abstract: The averange resident of Mexico City suffers unhealthy levels of air quality for the most part of the year. Nevertheless, the uneven distribution of firms and road traffic across the city, together with wind patterns and differences in microclimates generates localized pollution concentrations. The objective of this study is to investigate wheter residents of Mexico City value cleaner air taking advantage of the variation in pollution levels and land values observed across neighborhoods within the city. Contrary to most studies of this type, commonly focused in developed countries, ours is based on land values reported by external appraisals. The panel nature of our data and inclusion of time varying controls for neighborhood characteristics and local economic conditions allows for correction of potential endogeneity bias arising due to unobserved factors that influence both current pollution levels and property values. Our results suggets that air quality improvements lead to an increase in land values by approximately 3% in Mexico City which is equivalent to a marginal willingsess to pay of up to %178 (2010) pesos per m^2. Thus, we provide an estimate of the possible benefits of public policy dedicated to air quality improvements, measured as the value that Mexico City's residents have for cleaner air.
    Keywords: Air Quality, Hedonic Valuation, Willingness to Pay, Environmental amenities, Mexico City
    JEL: Q51 Q53 R14 R21
    Date: 2016–02
  26. By: Pau Milan
    Abstract: In this paper I investigate mutual insurance arrangements restricted on a social network. My approach solves for Pareto-optimal sharing rules in a situation where exchanges are limited within a given social network. I provide a formal description of the sharing rule between any pair of linked households as a function of their network position. I test the theory on a unique data set of indigenous villages in the Bolivian Amazon, during the years 2004 to 2009. I find that the observed exchanges across families match the network-based sharing rule, and that the theory can account for the deviation from full insurance observed in the data. I argue that this framework provides a reinterpretation of the standard risk sharing results, predicting household heterogeneity in response to income shocks. I show that this network-based variation in consumption behavior is borne out in the data, and that it can be interpreted economically in terms of consumption volatility.
    JEL: D12 D61 D85 O1 O12
    Date: 2016–07
    Abstract: Global natural antioxidants market is anticipated to grow on account of its increasing demand in food & beverages, cosmetics, pharmaceutical and animal feed. In this regard, we found high content of flavonoids and antioxidant activity (including antioxidant oligoelements) in the seeds of Araucaria araucana (piñones). However, bulk production of these antioxidants is ecologically non-viable since A. araucana is assessed as endangered species with increased extinction risk based in part by an extensive human harvesting of edible piñones. In this context, plant cell culture represents a useful production alternative to direct extraction of valuable secondary metabolites because: (a) a stable and uniform year-round supply of seed tissues or cells is guaranteed since biomass can be continuously produced in vitro, independent of seasonal variations, (b) selected compounds can be produced under controlled conditions, and moreover, (c) industrial production can be achieved while preserving the species. On the other hand, healthy plants can be easy obtained by micropropagation and then, the new plants can be acclimated to replant degraded areas of logged forest. At present, tissue and cell cultures from leaves and seeds, as well as plants, had been obtained in vitro from A. araucana and other native species. Furthermore, data of optimum conditions for in vitro production of antioxidants are being collected. The aim of these experiments is determine the varieties more adequate for the sustainable bio-based production of natural antioxidants by eco-efficient bio-processes and renewable bioresources.
    Keywords: Biotechnology, Sustainability, Conservation, Bioindustry, Bioeconomy
    JEL: O31 Q55 Q57
  28. By: Lees, Kirdan (New Zealand Institute of Economic Research)
    Abstract: In this paper we decomposed growth in residential land into population growth, household size, and land use per capita. We found that the growth in residential land between 1996 and 2013 was identical to the rate of population growth: 28%. Population density has not change significantly during that period. Auckland's urban regulations have pushed Auckland outwards, but not upwards.
    Keywords: land use; population growth
    Date: 2016–07–14

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