nep-agr New Economics Papers
on Agricultural Economics
Issue of 2016‒08‒07
fourteen papers chosen by

  1. Import substitution in the wake of food embargo By Uzun Vasily; Shagaida Natalia; Gataulina Ekaterina; Yanbykh Renata
  2. New consumers behaviours in the sharing economy: An experimental analysis on food waste reduction By Piergiuseppe Morone; Pasquale Marcello Falcone; Enrica Imbert; Marcello Morone; Andrea Morone
  3. The land use change time-accounting failure By Marion Dupoux
  5. Efficiency in South African Agriculture: A Two-Stage Fuzzy Approach By Goodness C. Aye; Rangan Gupta; Peter Wanke
  6. The determinants of selling through a short food supply chains: an application to the French case By Magali Aubert
  8. Indonesia Country Water Assessment By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  10. Worldwide Opportunities on Organic Farms (WWOOF) as part of the existing care economy in Canada By Lans, Cheryl
  11. Global value chains, large-scale farming, and poverty: long-term effects in Senegal By Goedele Van den Broeck; Johan Swinnen; Miet Maertens
  12. External Validity in a Stochastic World By Mark Rosenzweig; Christopher Udry
  13. Ambiguity and the precautionary principle in climate change policies: a note By Elettra Agliardi
  14. How green are economists? By Stefano Carattini; Alessandro Tavoni

  1. By: Uzun Vasily (Gaidar Institute for Economic Policy); Shagaida Natalia (Gaidar Institute for Economic Policy); Gataulina Ekaterina (Gaidar Institute for Economic Policy); Yanbykh Renata (RANEPA)
    Abstract: In 2015 the war of sanctions and the shutting down of access to Russian food markets for countries included in the sanction list[1] created favourable conditions for domestic farm producers. The limiting factor was the drop of ruble exchange rate that dramatically lifted prices for many farm inputs, both imported (hybrid seeds, pesticides, breeder stock, etc.) and exported (fertilizers, fuels). Therefore, there were fears that farmers would fail to benefit from the shutting down of markets and to increase domestic agricultural output. However, farm producers did not reduce areas sown in all major crops as compared with the previous year.
    Keywords: Russian economy, import substitution, food embargo, sanctions, counter sanctions
    JEL: Q13 Q14 Q15 Q16 Q17 Q18
    Date: 2016
  2. By: Piergiuseppe Morone (University of Rome & Unitelma Sapienza, Italy); Pasquale Marcello Falcone (University of Ancona, Italy); Enrica Imbert (University of Rome & Unitelma Sapienza, Italy); Marcello Morone (Independent); Andrea Morone (Università degli Studi di Bari, Italy & LEE-Department of Economics, Universitat Jaume I, Castellón, Spain)
    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.
    Keywords: Food waste, sharing economy, food sharing, framed field experiment
    JEL: C93 L66 Q50
    Date: 2016
  3. By: Marion Dupoux
    Abstract: Land use change (LUC) is the second human-induced source of greenhouse gases (GHG). This paper warns about the LUC time-accounting failure in internalizing GHG impacts in economic appraisal (within policies). This emerges from (i) relative carbon prices commonly following the Hotelling rule as if climate change were regarded as an exhaustible resource problem and (ii) a uniform annualization (i.e. constant flows over time) of LUC impacts supported by most energy policies. First, carbon prices time evolution should account for the climate change framework specificities (natural carbon absorption, uncertainty), which makes a departure from the Hotelling rule necessary. Second, there is a carbon dynamic after land conversion: GHG impact flows are strictly decreasing over time. With a theoretical framework, I show that the employment of the uniform annualization, within a benefit-cost analysis, enhances both the discounting overwhelming effect and the carbon price increase, whatever the type of impact (emissions or sequestrations). It results in skewed values of LUC-related projects as long as relative carbon prices deviate from the Hotelling rule. I apply this framework to global warming impacts of bioethanol in France and quantify this bias. In particular, carbon profitability payback periods under the uniform approach do not reflect the LUC effective carbon investment. This potentially modifies the conclusions regarding a project’s achievement of imposed environmental criteria.
    Keywords: Benefit-cost analysis, Discounting, Global warming, Land use change, Relative carbon price
    JEL: D61 H43 Q15 Q16 Q48 Q54
    Date: 2016–07–19
  4. By: Pavneet Kaur; Naresh Singla
    Abstract: The emerging institutional arrangements such as CF are promoted on the plea that these share production and marketing risks of the producers and in a way these are seen as a tool to diversify the Indian agriculture and making the farmers’ viable. However, a reality check on the CF arrangements with the farmers points a gloomy picture. The present models are not completely integrating the small and marginal farmers in the system. Most of the studies show that the companies prefer to work with mainly medium and large farmers in contracts. Key words: Farming, contract, contract farming
    Date: 2016–06
  5. By: Goodness C. Aye (Department of Economics, University of Pretoria, Pretoria); Rangan Gupta (Department of Economics, University of Pretoria, Pretoria); Peter Wanke (COPPEAD Graduate Business School, Federal University of Rio de Janeiro)
    Abstract: This paper presents an efficiency assessment of agricultural production in South Africa from 1970-2014, using an integrated two-stage fuzzy approach. More precisely, Fuzzy TOPSIS is used to assess the relative efficiency of agriculture in South Africa over the course of the years. In the second stage, fuzzy regressions based on different rule-based systems are used to predict the impact of socio-economic and demographic variables on agricultural efficiency. They are confronted with the bootstrapped truncated regressions with conditional α-levels proposed in Wanke et al. (2016a). The results reveal that R&D, land quality, health expenditure-population growth ratio have a significant, positive impact on efficiency levels, besides the GINI index. Specifically in terms of accuracy, fuzzy regressions outperformed the bootstrapped truncated regressions with conditional α-levels. Policy implications are derived.
    Keywords: Agriculture, South Africa, Fuzzy TOPSIS, Fuzzy Regression, Performance
    JEL: C6 D24 Q10 Q28
    Date: 2016–07
  6. By: Magali Aubert (UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - INRA Montpellier - Institut national de la recherche agronomique [Montpellier] - CIHEAM - Centre International des Hautes Études Agronomiques Méditerranéennes)
    Abstract: A Short Food Supply Chain is a marketing channel whose developments answers the emerging demand of both public policy and consumers’ requirement mainly in terms of quality. Based on the exhaustive census of all French farms in 2010, the aim of the article is to understand what are the individual and structural determinants of selling through a short food supply chain for producers: are there some factors leading to adopt such marketing channel? To answer this question, the resource-based view is mobilized. This theory highlights the relationship between the diversification of marketing channels and the individual characteristics of farmers and the structural characteristics of their farm. Since the choice observed is a dichotomous one, a logit model is implemented to identify determinants of short food supply chain adoption. This analysis lets underline differences observed between farmers who never sell though a short supply chain from the others in terms of both individual and structural specificities. Econometric results highlight that selling through this marketing channel is a commercial strategy implemented by younger and more educated farmers. Moreover, these farmers are installed on smaller farms. Even smaller, the implementation of a short food supply chain requires relatively more workforce. As a matter of fact, implementing such marketing channel translates into a need of workforce that is higher than for others farms and more precisely permanent workforce.
    Keywords: short food supply chain,2010 agricultural census,adoption,resource-based view
    Date: 2015–12–10
  7. By: Krupa Mehta
    Abstract: The store brands, otherwise known as private labels, are changing the future of modern trade outlets in India. Started on a low key profile, such as low price, low quality and limited movement, the store brands have gone a long way in establishing its credentials. The private labels have 50 % or more than 50% market share in many parts of the developed world. The private labels are pervasive in personal care, home care, processed food, groceries and consumer durables etc. Key words: FMCG, Grocery, Private brands, Retail chains
    Date: 2016–06
  8. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (Southeast Asia Department, ADB); Asian Development Bank (ADB) (Southeast Asia Department, ADB); Asian Development Bank (ADB)
    Abstract: The Country Water Assessment (CWA) evaluates the balance between reliable and available water supplies and future demands for sustainable economic development in Indonesia. Articulated around the water,food, and energy nexus, the CWA explores technical, institutional, and policy options to improve planning, management, and development of water resources. The 2015–2019 midterm government development policy guides the priorities covered under the CWA. This assessment intends to provide a platform for dialogue to advance water reforms across Indonesia, focusing on Java, Sumatera, and Sulawesi—the country’s three main economic regions.
    Keywords: water sector, Indonesia, water resources, country water assessment, water, food, energy nexus, nexus
    Date: 2016–04
  9. By: Benjamin Eden (Vanderbilt University)
    Abstract: I use the Prescott (1975) hotels model to explain variations in price dispersion across items sold by supermarkets in Chicago. The effect of demand uncertainty on price dispersion is highly significant and quantitatively important: My estimates suggest that more than 40% of the cross sectional standard deviation of log prices is due to demand uncertainty. I also find that price dispersion measures are negatively correlated with the average price but are not negatively correlated with the revenues from selling the good (across stores and weeks) and with the number of stores that sell the good. Temporary sales are modeled as a reaction to "unwanted inventories" that are accumulated when the realization of demand is low. The effect of demand uncertainty on the frequency of temporary sales is also highly significant and quantitatively important: Items with more demand uncertainty tend to accumulate "unwanted inventories" more often and tend to have temporary sales more often.
    Keywords: Price Dispersion, Demand Uncertainty, Sequential Trade, temporary sales.
    JEL: D4 E3
    Date: 2016–08–04
  10. By: Lans, Cheryl
    Abstract: This review paper discusses the program called Worldwide Opportunities on Organic Farms (WWOOF), in North America, as an example of a subset of the care economy in which volunteers contribute to farm care. Human care is partly direct (some childcare, kitchen duties and other housework), but mostly indirect, in that farm families get time off. This review expands on previous work that considered farms in Ontario, Canada as spaces of care and farmwomen as the carers. It critiques other research that claims WWOOFers do not replace local labor and that WWOOF represents an idealistic and ethical space potentially corrupted by tourists.
    Keywords: WWOOF; Organic farms; Volunteers; Caring economy
    JEL: Q12
    Date: 2016–05–31
  11. By: Goedele Van den Broeck; Johan Swinnen; Miet Maertens
    Abstract: This paper is the first to present panel data evidence on the longer-term impact of expansion of global value chains and large-scale export-oriented farms in developing countries. Using panel data from two survey rounds covering a seven-year period and fixed effects regression, we estimate the longer-term income effects of wage employment on large-scale farms in the rapidly expanding horticultural export sector in Senegal. In addition to estimating average income effects, we estimate heterogeneous income effects using fixed effects quantile regression. We find that poverty and inequality reduced much faster in the research area than elsewhere in Senegal. Employment in the horticultural export sector significantly increases household income and the income effect is strongest for the poorest households. Expansion of the horticultural export sector in Senegal has been particularly pro-poor through creating employment that is accessible and creates substantial income gains for the poorest half of the rural population. These pro-poor employment effects contrast with insights in the literature on increased inequality from rural wage employment.
    Keywords: globalisation, hogh-value supply chains, rural wage employment, quantile regression, panel data, long-term effects
    Date: 2016–07
  12. By: Mark Rosenzweig (Economic Growth Center,Yale University); Christopher Udry (Economic Growth Center, Yale University)
    Abstract: We examine the generalizability of internally valid estimates of causal effects in a fixed population over time when that population is subject to aggregate shocks. This temporal external validity is shown to depend upon the distribution of the aggregate shocks and the interaction between these shocks and the casual effects. We show that returns to investment in agriculture, small and medium enterprises and human capital differ significantly from year to year. We also show how returns to investments interact with specific aggregate shocks, and estimate the parameters of the distributions of these shocks. We show how to use these estimates to appropriately widen estimated confidence intervals to account for aggregate shocks.
    Keywords: returns to investment, heterogeneity, treatment effect
    JEL: C93 O1 O13 O14 O15
    Date: 2016–07
  13. By: Elettra Agliardi (Department of Economics, University of Bologna, Italy; The Rimini Centre for Economic Analysis, Italy)
    Date: 2016–08
  14. By: Stefano Carattini; Alessandro Tavoni
    Abstract: The market for voluntary carbon offsets has grown steadily in the last decade, yet it remains a very small niche. While 10% of greenhouse gas emissions generated by transportation are related to civil aviation, the use of offsets in this industry remains marginal for both leisure and business traveling. 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 focus on the effect of objecting to the use of offsets and discuss the implications for practitioners and policy-makers. Based on our findings, we suggest that ecological and environmental economists should be more involved in the design and use of carbon offsets.
    Date: 2016–07

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