nep-agr New Economics Papers
on Agricultural Economics
Issue of 2017‒04‒23
thirty papers chosen by
Angelo Zago
Università degli Studi di Verona

  1. The Value of Biodiversity as an Insurance Device By Emmanuelle Augeraud-Véron; Giorgio Fabbri; Katheline Schubert
  2. Secondary towns, agricultural prices, and intensification: evidence from Ethiopia By Joachim Vandercasteelen; Seneshaw Tamru Beyene; Bart Minten; Jo Swinnen
  3. Analysis of the animal feed to poultry value chain in Zambia By Paul C. Samboko; Olipa Zulu-Mbata; Antony Chapoto
  4. Economic impacts of developing a biofuel industry in Mozambique By Faaiqa Hartley; Dirk van Seventer; Emilio Tostão; Channing Arndt
  5. Distributional Impacts of Climate Change and Food Security in Southeast Asia By Srivatsan V. Raghavan; Jiang Ze; Jina Hur; Liu Jiandong; Nguyen Ngoc Son; Sun Yabin; Liong Shie-Yui
  6. Water Scarcity: Impacts on Food security at Macro, Meso and Micro levels in Pakistan. By Fahim, Amir
  7. Evaluation of the Financial Sustainability of the Agricultural Insurance Programs of the Philippine Crop Insurance Corporation By Virola, Romulo A.
  8. Relationship Between Level of Firm Performances and Risk in Food and Beverages Industry: Empirical Analysis on Khee San Berhad By Erizal, Nurulhidayu
  9. Agro-processing and horticultural exports from Africa By Emiko Fukase; Will Martin
  10. Constraints to biofuel feedstock production expansion in Zambia By Paul C. Samboko; Mulako Kabisa; Giles Henley
  11. The expansion of regional supermarket chains and implications for local suppliers: A comparison of findings from South Africa, Botswana, Zambia, and Zimbabwe By Reena das Nair; Shingie Chisoro
  12. Dynamic agricultural household bio-economic simulator (DAHBSIM) model description: biosight project technical report By Guillermo Flichman; Hatem Belhouchette; Adam M. Komarek; Sophie Drogue; James Hawkins; Roza Chenoune; Siwa Msangi
  13. Economic impact assessment of food waste on European countries throughout Social Accounting Matrices By Pilar Campoy-Muñoz; CARDENETE, MANUEL ALEJANDRO; DELGADO, MARIA CARMEN
  14. Assessing the Role of Land Use Consolidation for Consumption Growth in Rwanda By Nilsson, Pia
  15. Estimation of climate change damage functions for 140 regions in the GTAP9 database By Martina Sartori; Roberto Roson
  16. Agricultural research impact assessment: issues, methods and challenges By Pierre Benoit Joly; Laurence Colinet; Ariane Gaunand; Stephane Lemarié; Mireille Matt
  17. Communal violence in the Horn of Africa following the 1998 El Niño By Stijn van Weezel
  18. Modern Agricultural Science in Transition: A Survey of U.S. Land-Grant Agricultural and Life Scientists By Barham, Bradford L.; Foltz, Jeremy D.; Agnes, Maria Isabella R.; van Rijn, Jordan
  19. Irrigation, Collectivism and Long-Run Technological Divergence By Johannes C. Buggle
  20. Evolution of the New Zealand Emissions Trading Scheme: Linking By Catherine Leining; Judd Ormsby; Suzi Kerr
  21. Recent changes in food labelling regulations in Latin America: the cases of Chile and Peru By Barreda, Rocio; Boza, Sofía; Espinoza, Macarena; Guerrero, Monica
  22. A review of social issues for biofuels investment in Mozambique By Emílio Tostão; Giles Henley; Joel Tembe; Aristides Baloi
  23. The impact of hosting refugees on the intra-household allocation of tasks: A gender perspective By Isabel Ruiz; Carlos Vargas-Silva
  24. Structural Transformation and Income Distribution: Kuznets and Beyond By Kanbur, Ravi
  25. Pro-environmental behavior: On the interplay of intrinsic motivations and external conditions By Mariateresa Silvi; Emilio Padilla Rosa
  26. Impact of soil conservation adoption on intrahousehold allocations in Zambia By Conor Carney; Monica Harber Carney
  27. Gender divide in agricultural productivity in Mozambique By João Morgado; Vincenzo Salvucci
  28. Technology and Knowledge Transfers in Production Networks: Case Study on Philippine Food Manufacturing Firms By Rosellon, Maureen Ane D.; Del Prado, Fatima Lourdes E.
  29. Informal Risk-Sharing Cooperatives: The Effect of Learning and Other-Regarding Preferences By Victorien Barbet; Renaud Bourlès; Juliette Rouchier
  30. The expansion of regional supermarket chains: Implications for local suppliers in Zambia By Francis Ziba; Mwanda Phiri

  1. By: Emmanuelle Augeraud-Véron (Mathématiques, Image et Applications (MIA), Université de La Rochelle); Giorgio Fabbri (Aix-Marseille Univ. (Aix-Marseille School of Economics), CNRS, EHESS and Centrale Marseille); Katheline Schubert (Paris School of Economics, Université Paris 1 Panthéon-Sorbonne)
    Abstract: This paper presents a benchmark endogenous growth model including biodiversity preservation dynamics. Producing food requires land, and increasing the share of total land devoted to farming mechanically reduces the share of land devoted to biodiversity conservation. However, the safeguarding of a greater number of species is associated to better ecosystem services – pollination, flood control, pest control, etc., which in turn ensure a lower volatility of agricultural productivity. The optimal conversion/preservation rule is explicitly characterized, as well as the value of biological diversity, in terms of the welfare gain of biodiversity conservation. The Epstein-Zin-Weil specification of the utility function allows us to disentangle the effects of risk aversion and aversion to fluctuations. A two-player game extension of the model highlights the effect of volatility externalities and the Paretian sub-optimality of the decentralized choice.
    Keywords: collective decibiodiversity, stochastic endogenous growth, insurance value, recursive preferences
    JEL: Q56 Q58 Q10 Q15 O13 O20 C73
    Date: 2017–03
  2. By: Joachim Vandercasteelen; Seneshaw Tamru Beyene; Bart Minten; Jo Swinnen
    Abstract: Urbanization is happening fast in the developing world and especially so in sub-Saharan Africa where growth rates of cities are among the highest in the world. While cities and, in particular, secondary towns, where most of the urban population in sub-Saharan Africa resides, affect agricultural practices in their rural hinterlands, this relationship is not well understood. To fill this gap, we develop a conceptual model to analyze how farmers’ proximity to cities of different sizes affects agricultural prices and intensification of farming. We then test these predictions using large-scale survey data from producers of teff, a major staple crop in Ethiopia, relying on unique data on transport costs and road networks and implementing an array of econometric models. We find that agricultural price behavior and intensification is determined by proximity to a city and the type of city. While proximity to cities has a strong positive effect on agricultural output prices and on uptake of modern inputs and yields on farms, the effects on prices and intensification measures are lower for farmers in the rural hinterlands of secondary towns compared to primate cities.
    Keywords: urbanization, cities, secondary towns, Ethiopia, sub-Saharan Africa, agricultural prices, intensification
    Date: 2017–04
  3. By: Paul C. Samboko; Olipa Zulu-Mbata; Antony Chapoto
    Abstract: Rapid population growth, urbanization, and income growth are triggering increased demand for high-value agricultural products across Southern Africa with scope for gains from trade and regional integration. We analyse the animal feed to poultry value chain in Zambia focusing on the industry capabilities with a view to enhancing its competitiveness and production for the regional market. The industry has exhibited rapid growth with investments, which has increased competition to consumers’ benefit. However, challenges remain if it is to contribute to the regional market; animal feed input production and productivity remain low despite improvements. Similarly, produced poultry is in low quantities. Consequently, there is limited export of products due to higher prices. Enhancing value chain capabilities will require technology investments and public expenditure allocations that enhance productivity and production of animal feed inputs, and limited government intervention in maize marketing and trade which adversely impacts on maize prices.
    Date: 2017
  4. By: Faaiqa Hartley; Dirk van Seventer; Emilio Tostão; Channing Arndt
    Abstract: Mozambique is one of the most promising African countries for producing biofuels and the national biofuel policy of 2009 identifies measures to incentivize biofuel production. Demand for biofuels in the Southern African Development Community is expected to increase over the next few years as 7 of its 15 member states have implemented or proposed the implementation of blending mandates by 2020. South Africa is one of these countries. Using a dynamic recursive computable general equilibrium (CGE) model, we estimate the impacts of expanding biofuel production in Mozambique under both commercial and smallholder-type farming models, including and excluding bagasse cogeneration.
    Date: 2016
  5. By: Srivatsan V. Raghavan; Jiang Ze; Jina Hur; Liu Jiandong; Nguyen Ngoc Son; Sun Yabin; Liong Shie-Yui
    Abstract: Climate and agriculture are closely linked, as weather and climate are the primary factors in agricultural production. Due to high levels of CO2, future projections of climate change indicate increasing temperatures and varied rainfall, both which will have major impacts on the agricultural sector. In this context, this paper assesses food security with respect to climate changes over Southeast Asia, with a focus on southern Viet Nam. This multidisciplinary study integrates regional climate modelling, agricultural science-crop modelling and risk assessments, which form the base for the creation of regional/local information products that will have direct societal applications. This study is useful for assessing socio-economic risks and leads to opportunities for interdisciplinary collaboration, which will bring direct benefits to the Southeast Asian/Association of Southeast Asian Nations region to develop adequate adaptive practices towards risk management, food security, diversification, and planning.
    Keywords: Climate Change, Floods, Droughts, Risk Management, Food Security, Policy
    JEL: Q18 Q54
    Date: 2017–03
  6. By: Fahim, Amir
    Abstract: This paper aims to assess the impact of water scarcity on food security at macro, meso and micro levels. The data of food security and water availability has been taken from Pakistan where water scarcity is fast approaching with a substantial decline from 1950’s until now. A series of models have been created to capture the impact of water scarcity on food security at macro, meso and micro levels. The models have employed Logistic regression equations and simultaneous equations to catch the effect of growing water scarcity on three components of food security (food access, food absorption and food availability) separately. The equations have traced an adverse impact of water scarcity on food security at macro, meso and micro levels. The findings so obtained may help in proposing the policy guidelines for overcoming the water scarcity and handling with food insecurity caused by looming water scarcity.
    Keywords: Water scarcity, Water demand, Water supply, Food security, Macro, Meso and Micro
    JEL: Q1 Q18
    Date: 2017–04–17
  7. By: Virola, Romulo A.
    Abstract: The Philippine Crop Insurance Corporation (PCIC) started implementing the Agriculture Insurance Program (AIP) of the Philippines in 1981. Since then, the AIP has expanded its coverage from palay and corn to other crops and to other services including life and accidental death insurance to farmers and their families. As with most AIPs in other countries, the program provides premium subsidy that averaged 61 percent of gross premiums from 1981 to 2014 for palay and corn farmers. The paper finds that from 1987 to 2013, the penetration rate for the AIP has not been impressive: 4.5 percent for palay and 0.9 percent for corn; some regions have been underserved; and operating costs had been high with a historical average of 50 percent of premiums. Moreover, the AIP incurred an average loss ratio of 61 percent from 1981 to 2013 and the insurance coverage share of palay and corn farmers has shrunk over the years with the biggest share now going to Term Insurance Packages. While clear improvements have been incorporated in the program, such as the subsidized coverage of the Registry System for Basic Sectors in Agriculture beneficiaries and the streamlining of PCIC operations, the paper notes various areas of concern that need to be addressed toward improving the AIP: increasing penetration rate and expanding the coverage of marginalized farmers, rationalizing the subsidized coverage of even big-time farmers; extending coverage to underserved regions especially those prone to typhoons and flooding; introducing innovative insurance products that can reduce operating costs; reviewing the premium and premium subsidy structure including differentials across regions; irregular or unsustained actuarial inputs in assessing the actuarial solvency of the AIP; and the need for regulatory oversight on PCIC insurance operations.
    Keywords: Philippines, farmers, Philippine Crop Insurance Corporation, Agricultural Insurance Program, PCIC, premium rates, claims, loss ratio, penetration rate, insurance coverage
    Date: 2017
  8. By: Erizal, Nurulhidayu
    Abstract: The main objective of this study was to identify the relationship between risk management and its impaction in the profitability of food and beverage industry. Specifically, this study examined liquidity risk, credit/counterparty risk, operating risk and leverage and how risk will affect to the profitability. For the profitability was measured with using Return on Asset (ROA). In this study it found that a strong relationship exists between the risk management practices under study and the firm’s profitability. The result of this study indicate that consideration firms’ in risk management will give good impact to the firm profitability.
    Keywords: credit risk, liquidity risk, market risk, leverage and profitability risk.
    JEL: G0 G2
    Date: 2017–04–17
  9. By: Emiko Fukase; Will Martin
    Abstract: Sub-Saharan African exports of horticultural and processed agricultural products are growing in line with the major shift towards these products in world markets. Continued growth in these exports may be vitally important for expanding returns from African agriculture and for increasing its overall exports. Policy reforms such as reductions in the tariff escalation facing Africa, improvements in the productivity of agricultural processing, and reductions in trade barriers within Africa and beyond would all further stimulate exports of processed agriculture. While essential, expansion of these exports should be regarded as complements to—rather than substitutes for—development of other dynamic export sectors.
    Date: 2016
  10. By: Paul C. Samboko; Mulako Kabisa; Giles Henley
    Abstract: World biofuel production has been increasing to improve energy security and mitigate global warming. Southern Africa’s bioenergy demand could increase with South Africa’s planned fuel blending mandates, triggering increased demand for feedstocks and agricultural land. Ensuring sustained production will require a full understanding of the constraints to production expansion, considering the tradeoffs that may be generated in rural areas, as has been observed for large-scale land acquisitions. We analyse the social and biophysical constraints to biofuel production expansion in Zambia. Previously social constraints have received limited attention even though they may prove more problematic. Results indicate that Zambia is at least moderately suitable for bioenergy investments with biophysically suitable areas largely coinciding with the socially suitable areas. However, existing gaps in compensatory procedures may inhibit large-scale projects’ access to development finance if not aligned with internationally acceptable practices, and generate negative outcomes if safeguards are not in place.
    Date: 2017
  11. By: Reena das Nair; Shingie Chisoro
    Abstract: Since the early 2000s, there has been rapid growth in the number and spread of supermarkets in southern Africa. This paper is a synthesis of key findings of studies undertaken in Botswana, South Africa, Zambia, and Zimbabwe on the expansion of supermarkets and the impact this has had on suppliers and the competitive landscape in the region. Supermarkets are driving trade patterns in processed foods and household consumables within the region, opening up large markets for suppliers. If supermarkets are to become a key route to regional markets for suppliers, national policies and laws that currently exist need to be harmonized across the region with a wider view of developing regional value chains. Among key findings of the studies, supermarket procurement and sourcing strategies as well as buyer power are seen to affect the participation of suppliers in supermarket value chains, and affect the development of their capabilities. The impact on the competitive landscape of the spread of supermarkets in each country is also assessed, highlighting concerns of strategic behaviour that dominant supermarkets can engage in to exclude rivals.
    Date: 2016
  12. By: Guillermo Flichman (CIHEAM - International Centre for Advanced Mediterranean Agronomic Studies); Hatem Belhouchette (CIHEAM - International Centre for Advanced Mediterranean Agronomic Studies); Adam M. Komarek (International Food Policy Research Institute); Sophie Drogue (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); James Hawkins (International Food Policy Research Institute); Roza Chenoune (CIHEAM - International Centre for Advanced Mediterranean Agronomic Studies); Siwa Msangi (International Food Policy Research Institute)
    Abstract: DAHBSIM is a dynamic, bio-economic model of agricultural households that was designed to be applied to a rural, developing country-setting, for the purpose of addressing questions around the biophysical constraints to on-farm agricultural productivity, and the whole-farm implications of alternative strategies to sustainable agricultural intensification. The model links socio-economic and biophysical aspects, in order to better illustrate the environmental and human welfare implications of different agricultural production practices, as they are influenced by policy-driven changes in prices of inputs or outputs, or by changes in the physical environment.
    Keywords: gender,markets,nutrition,health,dynamic model,environmental control,modèle dynamique,système de production,ménage agricole,productivité,analyse socio-économique,environnement biophysique,marché agricole,protection de l'environnement
    Date: 2016
    Abstract: Food waste is becoming a major global issue, which threats a sustainable food system and generates negative externalities in environmental terms. From an economic perspective, studies focus on estimating the amount and monetary value of the wasted food by households and along the supply chain, in order to highlight the associated cost to the society. In this paper we adopt a different point of view, assessing the effects of food waste reduction on national economies in terms of total output, GDP and employment. To assess th effects of food waste reduction, we use linear multiplier models based on Social Accounting Matrices with a highly disaggregated agricultural account for the year 2007. The results show the greatest impacts are due to a reduction on the avoidable portion of the wasted food by household across the countries.
    Keywords: The proposed methodology is applied to a sample of European countries with different economic structure, i.e. Spain, Germany and Poland., Impact and scenario analysis, Regional modeling
    Date: 2016–07–04
  14. By: Nilsson, Pia (Jönköping International Business School, Discipline of Economics, Finance and Statistics, CEnSE (Centre for Entrepreneurship and Spatial Economics))
    Abstract: This paper studies the effects of land use consolidation on consumption growth of farm households in Rwanda. Data on 1 920 households, observed in two time periods, are used to estimate a first-differenced model using an instrumental variables estimator, which allow the analysis to account for selection bias and placement effects. Results show no significant effect of land use consolidation on consumption growth and the results are robust to changes in model specification and estimation method. Rather, the results point to the importance of factors such as education, rural infrastructure and market linkages in the consumption growth process. These results highlight the need to consider that alternative public investments, that reduce households’ transaction costs, may be better able to target rural farmers that operate under conditions such as land scarcity, high population pressure and high risk linked to rapidly changing climate conditions.
    Keywords: land consolidation; consumption; Rwanda; first-difference
    JEL: O12 Q15 Q18
    Date: 2017–04–06
  15. By: Martina Sartori; Roberto Roson
    Abstract: This paper provides a summary of results from a series of meta-analyses aimed at estimating parameters for six specific climate change damage functions, referring to: sea level rise, agricultural productivity, heat effects on labor productivity, human health, tourism flows and households' energy demand. All parameters of the six damage functions are estimated for each of the 140 countries and regions in the GTAP9 dataset. a new set of climate change damage functions has been presented, improving earlier estimates in several ways. First, functions and parameters are provided with a large regional disaggregation (140 countries) and in a format which, by referring to the latest GTAP social accounting matrix, makes them easily employable in many CGE and CGE-based models. Information from new, recently available studies, typically from the non economic literature, has been processed in such a way that parameter values for economic variables, like labor productivity, can be estimated. To illustrate the salient characteristics of our estimates, we approximate the change in real GDP for the different effects, in all regions, corresponding to an increase in average temperature of +3°C. After considering the overall impact, we highlight which factor is the most significant one in each country, and we elaborate on the distributional consequences of climate change. In addition to tourism income, variations in agricultural and labor productivity are also very relevant in many countries. Sea level rise, on the other hand, never appears as the primary factor, because of its limited incidence on total land and the relative small share of land income on GDP. Our findings confirm that the negative effects of climate change will be mainly borne by developing countries, located in tropical regions.
    Keywords: Worldwide, Modeling: new developments, Impact and scenario analysis
    Date: 2016–07–04
  16. By: Pierre Benoit Joly (LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Société - INRA - Institut National de la Recherche Agronomique - UPEM - Université Paris-Est Marne-la-Vallée - ESIEE Paris - CNRS - Centre National de la Recherche Scientifique); Laurence Colinet (Collège de Direction - INRA - Institut National de la Recherche Agronomique); Ariane Gaunand (Délégation à l'évaluation - INRA - Institut National de la Recherche Agronomique); Stephane Lemarié (GAEL - Laboratoire d'Economie Appliquée de Grenoble - INRA - Institut National de la Recherche Agronomique - Université Grenoble Alpes - Grenoble 2); Mireille Matt (GAEL - Laboratoire d'Economie Appliquée de Grenoble - INRA - Institut National de la Recherche Agronomique - Université Grenoble Alpes - Grenoble 2)
    Abstract: The Research Impact Assessment (RIA) is expected to increase the efficiency with which public funds are used, and to improve more broadly the functioning of the research and innovation system and its contribution to address a wide range of socio-economic and environmental issues. Both standard economic approaches, which aim to estimate the economic benefits of research investments, and case-study approaches, which aim to analyse the processes of impact generation, have been applied to agricultural research in practice. Standard economic approaches generally focus on public research as information on private efforts in agricultural research is limited, and on economic impacts such as productivity growth. Case studies provide richer information, through a narrative, and highlight the complex relationships among the various variables, events and actors, but it is difficult to standardise results and scale them up. The challenge for RIA is to take into account broader impacts that go beyond science and economic impacts, and to improve knowledge on impact-generating mechanisms. This has become more difficult as agricultural research and innovation systems are increasingly open and complex, and changing quickly. Observation of practices applied to agricultural research in five selected organisations confirms the difference found in RIA between academic research and in practice. In both, the assessment systems pursue the same objectives: 1) Learning: enhance the know-how to produce an environment conducive to socio-economic impact; 2) Capacity building: spread the culture of socio-economic impact to its researchers; and 3) Reporting to stakeholders: from accountability purposes to advocacy targeted to various audiences. The accountability objective, including estimating returns on the financial investment, poses complex challenges and is in tension with the learning and capacity building objectives. The future of RIA will depend on the capacity to improve estimation methods and gather quality information (which also takes into account non-economic impacts) and the sharing of good practices.
    Keywords: research impact evaluation,agricultural research,research impact assessment,RIA,public research,agronomic research,recherche publique,recherche agricole,recherche agronomique,évaluation de l'impact,politique de la recherche,impact économique
    Date: 2016
  17. By: Stijn van Weezel
    Abstract: This study exploits a shift in Spring precipitation patterns in the Horn of Africa following the 1998 El Niño to examine the effect of climate change on conflict. Using data for Ethiopia and Kenya and focusing on communal conflict the regression analysis links districts that have experienced drier conditions since 1999 relative to 1981-1998 with higher conflict levels. However, the magnitude of the estimated effect is low and the direction of the effect is as likely to be positive as negative. Moreover the results are sensitive to model specification, not robust to using another outcome variable, and do not generalise well to out-of-sample data. The cross-validation illustrates that the model linking droughts with conflict has a relatively poor predictive performance. The results also show that districts with substantial shares of pastoralism experience higher levels of communal violence, something that is well documented in the qualitative literature, but don’t face higher risks following decreases in precipitation levels.
    Keywords: Horn of Africa; Climate change; Rainfall; Communal conflict
    JEL: D74 Q54 O55
    Date: 2016–12
  18. By: Barham, Bradford L. (University of WI); Foltz, Jeremy D. (University of WI); Agnes, Maria Isabella R. (University of WI); van Rijn, Jordan (University of WI)
    Abstract: This Summary Report analyzes the current state of the land-grant agricultural research system and the attitudes, background, productivity and research performance of its current scientists. Specifically, the report summarizes the survey responses of agricultural and life science faculty regarding demographic characteristics, educational background and academic appointments, allocation of time across different activities, sources of research funding, important factors for selecting research topics, research collaboration and outputs, linkages between universities and private industry, and attitudes regarding reward systems and incentives. Some of the outcomes are quite positive in terms of productivity and potential for improving the scientific contribution of university researchers, while others are troubling with respect to their potential effects on morale and scientist effort. Also, noteworthy across the time period is the consistency of many faculty attitudes and activity patterns with respect to doing science mostly for the joy of discovery and not for commercialization purposes.
    Date: 2017–01
  19. By: Johannes C. Buggle
    Abstract: This paper explores the historical origins of collectivist cultural norms and their longterm economic consequences. In its first part, I test the hypothesis that collectivism emerged historically in pre-industrial agricultural economies in which group effort was crucial for subsistence. I find a positive and significant association between the traditional use of irrigation - a production mode that required extensive collaboration and coordination within groups of farmers - and collectivist norms today. Instrumenting traditional irrigation by the environmental suitability for irrigated agriculture lead to similar results that point at a causal interpretation of the findings. I find that the effects persist in migrants, and investigate factors that hinder the transmission of collectivism. The second part of the paper shows that by affecting culture, past irrigated agriculture continues to influence contemporaneous innovation at the national and individual level. While irrigated agriculture is associated with greater technological progress in pre-modern societies, this relationship is reversed in the long-run. In addition, by favoring attitudes towards obedience, past irrigation also predicts patterns of job specialization and selection into routine-intensive jobs of countries and individuals.
    Keywords: Agriculture; Culture, Collectivism, Persistence, Innovation, Job Tasks
    JEL: N00 O10 O30 Z10
    Date: 2017–04
  20. By: Catherine Leining (Motu Economic and Public Policy Research); Judd Ormsby (Motu Economic and Public Policy Research); Suzi Kerr (Motu Economic and Public Policy Research)
    Abstract: The New Zealand Emissions Trading Scheme (NZ ETS) was conceived as New Zealand’s gateway to the international carbon market with two objectives: assisting New Zealand to meet its international climate change obligations and reducing domestic net emissions below business-as-usual levels. Underlying these objectives was the principle of least-cost compliance for both the New Zealand government and NZ ETS participants. Uniquely among ETS to date, from 2008 through mid-2015 the NZ ETS operated with buy-and-sell linkages to the Kyoto market that did not constrain domestic emissions and were used to set the domestic price. As international Kyoto unit prices plunged from 2011 onward, so did New Zealanders’ incentives to invest in higher-cost domestic mitigation. Instead, NZ ETS participants complied by purchasing large numbers of Kyoto units. In November 2012, the government announced it would take its post-2012 commitment under the UNFCCC, not the Kyoto Protocol. NZ ETS participants responded by surrendering low-cost Kyoto units and banking NZUs which were expected to remain usable in the longer term. In mid-2015, the NZ ETS delinked from the Kyoto market. Although the New Zealand government has explored bilateral ETS linkages, none has come to fruition to date. As of 2017, the NZ ETS operates as a stand-alone system with a substantial participant-held NZU bank as the legacy of past linking. The government now faces important decisions about the future of unit supply in the NZ ETS and linkages to international markets. This paper examines New Zealand’s experience with linking and de-linking its ETS to capture lessons that could be of value to policy makers in New Zealand and other countries. It finds that the considerable opportunities to a small ETS market from linking can be negated if the environmental, economic and political risks are not managed strategically. It also highlights some of the technical and political challenges of negotiating bilateral linking agreements. New Zealand’s future policy on ETS linking, and more generally support for international mitigation as part of our global contribution, should ensure the integrity of New Zealand’s contribution to global mitigation and support strategic domestic decarbonisation in the longer term.
    Keywords: Emissions trading, environmental economics, climate change, greenhouse gases, linking emissions trading schemes, environmental public policy, history
    JEL: Q50 Q54 Q58 N5 N57
    Date: 2017–04
  21. By: Barreda, Rocio; Boza, Sofía; Espinoza, Macarena; Guerrero, Monica
    Abstract: SECO Working Paper 4/2017 by Sofia Boza, Monica Guerrero, Roccio Barreda and Macarena Espinoza
    Abstract: In Latin American countries, economic growth has been reflected in a generalized change of eating patterns, transforming in a few decades from high rates of under-nutrition to frequent obesity problems in the population. This overweight crisis raises the propensity of suffering important health issues. Changes in food labelling regulations, with the aim of giving the consumer more information, have been part of the proposed strategy to fight against this overweight problem in some Latin American countries. The objective of this paper is to present Chilean and Peruvian food labeling regulations, as well as the review of the evolution hitherto of their discussion within national industry and especially multilateral trade forums.
    Date: 2017–03–13
  22. By: Emílio Tostão; Giles Henley; Joel Tembe; Aristides Baloi
    Abstract: This study discusses the potential for expanding cultivation of biofuel feedstock in Mozambique from several angles. Taking the case of sugarcane, it explores the potential to expand production, through exploring both biophysical factors and patterns of existing investment. We review recent literature on trends in land allocation and practices of resettlement in Mozambique to highlight opportunities and constraints that current plans for biofuel production should consider. While resource availability suggest opportunities exist to expand cultivation, minimizing social risks when doing so depends on the processes followed to transfer land from existing users, and compensation in the short and long term.
    Date: 2016
  23. By: Isabel Ruiz; Carlos Vargas-Silva
    Abstract: This paper examines whether the presence of refugees alters the intra-household allocation of tasks across genders in the hosting population. Using panel data (pre- and post-refugee inflow) from Kagera, a rural region of Tanzania, we find that the refugee shock led to women being less likely to engage in employment outside the household and more likely to engage in household chores relative to men. This is probably the result of the environmental degradation that accompanied the arrival of refugees and the additional competition for natural resources such as wood and water. However, the results differ by (pre-shock) literacy and maths skill. For women who could read and perform simple written mathematical operations the refugee shock resulted in a higher likelihood of engaging in outside employment. On the other hand, higher exposure to the refugee shock resulted in illiterate women being more likely to engage in farming and household chores.
    Date: 2017
  24. By: Kanbur, Ravi (Cornell University)
    Abstract: This paper explores the question of structural transformation and income distribution through the eyes of the pioneer in such analysis, Simon Kuznets. It argues that his 1955 paper stands the test of time in providing insights which are relevant to understanding current phenomena like the evolution of Chinese inequality. The paper shows how the Kuznetsian framework can be used, for example, in predicting the differential relationship between urbanization and inequality in India versus China, in assessing the detail of the contribution of sectoral mean and inequality evolution to overall inequality change, and in linking the recent inequality of opportunity literature to rural-urban migration. Thus the original Kuznets framework has the seeds of getting us beyond Kuznets as sometimes (mis)understood in the literature on structural transformation and income distribution.
    Keywords: Kuznets curve, inequality and development, rural-urban migration, Chinese inequality, place of birth and equality of opportunity
    JEL: O41 O14 D31
    Date: 2017–03
  25. By: Mariateresa Silvi (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Emilio Padilla Rosa (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)
    Abstract: A key issue for ecological economics concerns the processes whereby people engage in ecologically responsible behavior and contribute to environmental quality even when they involve a personal cost for a shared benefit. This paper explores the relative impact of intrinsic motivation versus external conditions and economic incentives on eight pro-environmental behaviors (PEBs). Previous research has mostly focused on one of these two aspects or studied whether external incentives can crowd out moral motivation. More comprehensive accounts of the interplay of these factors are rare and mostly dated or report small-scale experiments and case studies. Using a data set measuring PEBs and environmental attitudes in the European Union’s 28 member states, this paper tests both sets of variables on a wider scale. It assesses the importance of intrinsic motivation as a dominant factor and shows how differing levels of intrinsic motivation influence the effectiveness of external conditions, such as monetary incentives and green infrastructures. External incentives are found to interact positively with intrinsic motivation. The findings also suggest that the influence of external factors varies depending on whether the behavior examined is cost neutral or implies costs or rewards. We further show that other non-strictly-related factors can affect the salience of an environmental norm and consequently the adoption of the corresponding behavior. Pressing economic preoccupations can distract individuals from behaving pro-environmentally, and PEBs are more likely to arise in individuals who care about the future. The results suggest that two-pronged policies, which take into account intrinsic motivation and external conditions, are needed to reach a high observance rate in the population in the short and in the long term. The wider significance of these results for environmental policy and policy guidance for each of the eight PEBs is discussed.
    Date: 2017–04
  26. By: Conor Carney; Monica Harber Carney
    Abstract: In this paper, we examine the impact of soil conservation adoption on gender-specific resource allocations within households in Zambia. The extension of funding of conservation farming (CF) training sessions in 2007 in specific districts in Zambia provides variation in CF takeup. We use this variation to implement a difference-in-differences strategy on a number of datasets. We show that expansion of funding for CF training sessions increased take-up of CF, increased female labour hours, and shifted household expenditures towards goods associated more strongly with female preferences than male preferences. These results stress the importance of understanding the impact of development programmes, specifically promotion of agricultural technologies, on household gender dynamics.
    Date: 2017
  27. By: João Morgado; Vincenzo Salvucci
    Abstract: In this study we analyze the gender gap in agricultural productivity in Mozambique applying the Oaxaca-Blinder decomposition approach on data from four agricultural surveys between 2002 and 2012. We find that female-headed households are on average substantially less productive (about 20 per cent) than male-headed households, and that differences are more pronounced in the centre-north compared to the south. The gap persists even though female-headed households are disproportionally found in relatively smaller plots, and a pronounced inverse-size productivity relation exists. We could identify some of the most important drivers of this divide linked to differences in endowments. However, a larger proportion is accounted for by the structural part, potentially linked to technical efficiency, pure discrimination, or other unobservable characteristics.
    Date: 2016
  28. By: Rosellon, Maureen Ane D.; Del Prado, Fatima Lourdes E.
    Abstract: This paper investigates firm-to-firm technology and knowledge sharing in firms from the food manufacturing sector. Traditionally driven by secret recipes and family-grounded procedures, food processing firms are naturally unwilling and indisposed to embrace collaborative undertaking and develop external ties due to perceived risks of leakage of company specific assets. This paper attempts to document the practical experiences of two manufacturing firms and their views on sharing technology and knowledge to their partners in the production network.
    Keywords: Philippines, technology transfer, knowledge transfer, production networks, knowledge sharing, food manufacturing
    Date: 2017
  29. By: Victorien Barbet (Aix-Marseille Univ. (Aix-Marseille School of Economics), CNRS, EHESS and Centrale Marseille); Renaud Bourlès (Aix-Marseille Univ. (Aix-Marseille School of Economics), CNRS, EHESS and Centrale Marseille); Juliette Rouchier (LAMSADE, CNRS)
    Abstract: We study the dynamics of risk-sharing cooperatives among heterogeneous agents. Based of their knowledge on their risk exposure and the performance of the cooperatives, agents choose whether or not to remain in the risk-sharing agreement. We highlight the key role of other-regarding preferences, both altruism and inequality aversion, in stabilizing less segregated (and smaller) cooperatives. Limited knowledge and learning of own risk exposure also contributes to reducing segregation. Our finding shed light on the mechanisms behind risk-sharing agreements between agents heterogeneous in their risk exposure.
    Keywords: Agent-based, cooperative, risk-sharing, Learning, altruism, other-regarding preferences
    Date: 2017–02
  30. By: Francis Ziba; Mwanda Phiri
    Abstract: The last two decades have seen rapid economic growth in Zambia and the proliferation of foreign supermarket chain stores. However, this growth has translated into neither significant job creation nor significant poverty reduction. Furthermore, while the expansion of supermarket chains in Zambia has continued, local processing firms’ participation in supermarket value chains remains limited. This paper assesses the hindrances to local processing firms’ participation in supermarket value chains and how those firms’ participation might stimulate growth through regional trade. Our results show that local processing firms’ participation in regional supermarket value chains is constrained by a number of factors that pose either strategic or structural barriers to entry.
    Date: 2017

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