nep-agr New Economics Papers
on Agricultural Economics
Issue of 2017‒07‒23
twenty-six papers chosen by

  1. Changing Scenario of Pulses in India: An Analysis of its Growth and Instability in Eastern States By Singh, Pushpa; Singh, K.M.; Ahmad, Nasim; Shahi, Brajesh
  2. The expansion of modern agriculture and global biodiversity decline: An integrated assessment By Bruno Lanz; Simon Dietz; Tim Swanson
  3. A mixed-methods study of Bambara farming in Mtwara, Tanzania By Basile Boulay
  4. Indigenous knowledge for sustainable livelihoods: Lessons from ecological pest control and post-harvest techniques of Baduy (West Java) and Nguni (Southern Africa) By Korina, Leeja C.; Habiyaremye, Alexis
  5. Spatial differences in stunting and household agricultural production in South African: (re-)examining the links using national panel survey data By Otterbach, Steffen; Rogan, Michael
  6. A Study on Maize Production in Samastipur (Bihar): An Empirical Analysis By Kumar, Amalendu; Singh, K.M.
  7. Land Trade and Development: A Market Design Approach By Bryan, Gharad; de Quidt, Jonathan; Wilkening, Tom; Yadav, Nitin
  8. Shrinking Net Sown Area and Changing Land Use Pattern in Bihar: An Economic Analysis By Sinha, D.K.; Ahmad, Nasim; Singh, K.M.
  9. How Tight are Malthusian Constraints? By T. Ryan Johnson; Dietrich Vollrath
  10. Willingness to pay for agricultural risk insurance as a strategy to adapt climate change By Mekonnen, Tigist
  11. Farm Household Incomes and Reforming the CAP By Bruno Henry de Frahan; Tharcisse Nkunzimana; Rembert De Blander; Frédéric Gaspart; Daniel A. Sumner
  12. Forest Loss and Economic Inequality in the Solomon Islands: Using Small-Area Estimation to Link Environmental Change to Welfare Outcomes By John Gibson
  13. Role of socio-economic variables in adoption of crop insurance: A Discriminant Function Approach By Kumari, Mrinali; Singh, K.M.; Sinha, D.K.; Ahmad, Nasim; Mishra, R.R.
  14. Development models, agricultural policies, and agricultural growth: Peru, 1950-2010 By Jackeline Velazco; Vicente Pinilla
  15. An exploratory research on income dynamics, inequality, determinants & policy implications for sustainable livelihoods of tribal community in eastern India By Meena, M.S.; Singh, K.M.; Singh, R.K.P.; Kumar, Anjani; Kumar, Abhay
  16. Rural "Italies" and the great crisis. Provincial clusters in italian agriculture between the two world wars By Francesco Chiapparino; Gabriele Morettini; Fabrizio Muratore
  17. TTIP and the Environmental Kuznets Curve By Pascalau, Razvan; Qirjo, Dhimitri
  18. Estimating the impact of sericulture adoption on farmer income in Rwanda: an application of propensity score matching By Habiyaremye, Alexis
  19. Towards a comprehensive approach to climate policy, sustainable infrastructure, and finance By Bak, Céline; Bhattacharya, Amar; Edenhofer, Ottmar; Knopf, Brigitte
  20. Environmental impact assessment for climate change policy with the simulation-based integrated assessment model E3ME-FTT-GENIE By J-F Mercure; H. Pollitt; N. R. Edwards; P. B. Holden; U. Chewpreecha; P. Salas; A. Lam; F. Knobloch; J. Vinuales
  21. Building Climate Coalitions on Preferential Free Trade Agreements By Thomas Kuhn; Radomir Pestow; Anja Zenker
  22. State and Federal Tax Policy toward Nonprofit Organizations By James Alm; Daniel Teles
  23. Evaluating the effectiveness of the Rural Minimum Living Standard Guarantee (Dibao) program in China By Nanak Kakwani; Shi Li; Xiaobing Wang; Mengbing Zhu
  24. Inequality of opportunity and household education expenditures: Evidence from panel data in China By Yang Song; Guangsu Zhou
  25. Table Stakes: Congress Will be Sitting across from Canada at the NAFTA 2.0 Negotiations By Christopher Sands
  26. Structural experimentation to distinguish between models of risk sharing with frictions in rural Paraguay By Ligon, Ethan; Schechter, Laura

  1. By: Singh, Pushpa; Singh, K.M.; Ahmad, Nasim; Shahi, Brajesh
    Abstract: Despite of deceleration in area and marginal rise in production due to higher productivity growth rate but gross decline in area and production is perceived to be a major threat towards future food and nutritional security of the country as well as the Eastern states.Framing strategies to overcome the present gloomy situation may be considered as a greatest ever challenge faced by policy makers as well as agricultural scientists. The present situation necessitates long term planning to augment production. The strategies for stepping up domestic production must include development and adoption of modern technology including high yielding varieties, better monetary incentives to farmers to make pulses cultivation more remunerative than competitive crops, assured market which will motivate farmers to allocate more land for pulses cultivation. The minimum support price should be greater coordination with farm harvest price and market price. The Inputs constraints particularly quality seeds, fertilizers and lifesaving irrigation growth are not enough as compared to rice and wheat crops. Liberalized and subsidized import of pulses of India helps to meet demand-supply gaps,which have occurred because of stagnation in the area under cultivation, very slow growth in yield, poor increase in production and speedy increase in population. Ban on export and re-export of pulses make the closure of Indian pulses processing units. Problems of pulses economy can be solved with the increase the sources of production. Effective and continuous efforts are needed to increase the area under cultivation with better technological and logistic support.
    Keywords: Pulses, Eastern India, Production of Pulses, Growth
    JEL: O13 Q1 Q11 Q16 Q18
    Date: 2017–04–14
  2. By: Bruno Lanz; Simon Dietz; Tim Swanson
    Abstract: The world is banking on a major increase in food production, if the dietary needs and food preferences of an increasing, and increasingly rich, population are to be met. This requires the further expansion of modern agriculture, but modern agriculture rests on a small number of highly productive crops and its expansion has led to a significant loss of global biodiversity. Ecologists have shown that biodiversity loss results in lower plant productivity, while agricultural economists have linked biodiversity loss on farms with increasing variability of crop yields, and sometimes lower mean yields. In this paper we consider the macro-economic consequences of the continued expansion of particular forms of intensive, modern agriculture, with a focus on how the loss of biodiversity affects food production. We employ a quantitative, structurally estimated model of the global economy, which jointly determines economic growth, population and food demand, agricultural innovations and land conversion. We show that even small effects of agricultural expansion on productivity via biodiversity loss might be sufficient to warrant a moratorium on further land conversion.
    Keywords: Agricultural productivity; biodiversity; endogenous growth; food security; land conversion; population
    JEL: N10 N50 O31 O44 Q15 Q16 Q57
    Date: 2017–07
  3. By: Basile Boulay
    Abstract: Economic research tends to focus on a reduced set of crops, leaving a vast array of crops under-researched. However, these ‘marginal crops’ have typically been farmed for centuries and are better suited for the local environment in which they are grown than crops prioritized within existing research. As such, they can contribute towards a less intensive and productivist mode of farming while at the same time help achieving important sustainable development goals. Our mixed-methods study conducted in Tanzania contributes to advancing knowledge of one such marginal crop, the Bambara nut. On the quantitative side, we surveyed 270 farmers across 16 villages in the Mtwara rural district to gather socio-economic and agricultural data. On the qualitative side, we ran focus groups in four villages to enquire about village norms and constraints surrounding the farming of Bambara. We show that Bambara is often seen as a vital crop for food consumption and food security, as it is easy to grow and has a strong nutritional content. However, despite selling at a high price, its market is not well developed due to lack of availability of improved seeds and unreliable marketing channels. We argue that developing the economic potential of indigenous crops constitutes a path towards greater agricultural sustainability as these crops are suited to local environments, need little chemical inputs, are drought resilient and extremely nutritious. Doing so would constitute a first step towards changing the existing and highly problematic agricultural paradigm and reducing farmers’ dependency on input and output markets.
    Keywords: agriculture, underutilised crops, mixed-methods, sustainability JEL Classification: O13, Q01, Q12, Q18, Q19
    Date: 2017
  4. By: Korina, Leeja C. (Universitas Padjadjaran); Habiyaremye, Alexis (Human Sciences Research Council, South Africa)
    Abstract: With the impending threat of global climate change, the last decades have witnessed an increasing recognition of the potential contribution of indigenous knowledge to tackling global challenges of environmental sustainability. The sources and wisdom of indigenous knowledge have however much more to contribute to global knowledge, well beyond environment conservation and traditional medicine. This paper uses the examples of swidden cultivation, pest control and rice preservation techniques of the Baduy in West Java (Indonesia) and comparable grain pits utilisation by Nguni tribes in Southern Africa to discuss how indigenous sources of knowledge can be an inspiration for greater social cohesion and sustainable livelihoods. It also draws lessons showing that combining indigenous knowledge systems with modern scientific methods can make it possible to achieve results that neither system can do alone.
    Keywords: indigenous knowledge systems, sustainable livelihoods, Baduy community, Nguni tribes grain pits
    JEL: O13 F64 Q15 Q57
    Date: 2017–06–07
  5. By: Otterbach, Steffen; Rogan, Michael
    Abstract: One explanation for the increasing prevalence of stunting in South Africa over the past 15 years while other development indicators have improved is that Big Food retail chains have been contributing to a low quality diet across the country, particularly in poor urban households. We thus use nationally representative longitudinal data (2008-2014) to trace 6 years of stunting's evolution among South African children, adolescents, and young adults aged 0-19, with particular attention to how the prevalence of under-nutrition differs between urban and rural areas and how the drivers of poor nutrition vary spatially. The results of our random-effects logistic regressions on the nutritional impact of household agricultural production suggest that, conditional on household income, subsistence farming is associated with a lower probability of stunting. Even more important, although under-nutrition retains a strong spatial component, once observable differences in living standards are controlled for, the higher tendency for children in deep rural households to suffer from (severe) stunting reverses.
    Keywords: stunting,height for age,malnutrition,anthropometric measures,subsistence farming,nutritional inequality,South Africa
    JEL: I14 I15 O15 O18 O55
    Date: 2017
  6. By: Kumar, Amalendu; Singh, K.M.
    Abstract: Maize is an important cereal crop in the world. It has several important uses for industrial purposes, human food and animal feed. It is grown under variety of agro-ecological conditions and posses highest yield potential above 80 quintal per hectare among the food grain crop. The demand of maize is growing globally due to multiple uses and need to increase production continuously. This crop has tremendous potential for increase in productivity, profitability and sustainability in agriculture. But the drawback is that it is cultivated mostly under stress condition. In this backdrop the present study has plan to access the maize production and utilization system in Samastipur district of Bihar with objectives of maize production system prevails in the area, opportunities for utilization of maize and constraints thereon is the main focus of the paper. The study is based on primary data collected through 120 different categories of house hold from six villages falls under two blocks in Samastipur district. The main findings emerged from the analysis that in study area farmers were growing maize extensively in rabi season only. In kharif season flood and water logging condition is the main problem from August to January almost every year. Due to high risk involved in kharif and summer season farmers were found growing maize generally local variety with less input use. The farmers were reported that adoption of hybrid maize during risk situation avoids and uses open pollinated varieties (OPVs). Due to lacks of good quality maize seed varieties particularly for stress situation of flood, and droughts, bad marketing facilities, storage facilities etc. are the factors which limits the increase in productivity and production of maize in the areas. The hybrid variety of maize during the rabi season was extensively grown for commercial purpose not for consumption of human is the main drawback of utilization. The study also finds that due to high risk involve in kharif and summer season farmer were kept their cultivated land fallow. The paper suggests that more research and development is required for increase production and productivity particularly in abiotic stress conditions in the study area with development of suitable hybrid varieties of maize for human consumption. This is important for food and nutritional security to the economically poor families in the study area.
    Keywords: Abiotic stress, agro-ecological, hybrid maize, open pollinated varieties (OPV)
    JEL: Q12 Q16 Q18
    Date: 2017–01–14
  7. By: Bryan, Gharad; de Quidt, Jonathan; Wilkening, Tom; Yadav, Nitin
    Abstract: Small farms and fragmented plots are hallmarks of agriculture in less-developed coun- tries, and there is evidence of high returns to land consolidation and reallocation. Complementarities, holdout and asymmetric information mean that private trade will be slow to reallocate land, and imply that market design has the potential to contribute to the development process. Complexity concerns are, however, paramount. We present results from a framed field experiment with Kenyan farmers, comparing the performance of several continuous-time land exchanges. Farmers are able to achieve high degrees of efficiency, and to comprehend and gain from a relatively com- plicated package exchange.
    JEL: C93 D47 O13 Q15
    Date: 2017–07
  8. By: Sinha, D.K.; Ahmad, Nasim; Singh, K.M.
    Abstract: Land is vital natural resource for any developmental activity. The judicious use of land is an earnest demand of time as the increasing demand for food and shelter is rapidly increasing with the burgeoning population. Bihar shares about 8.63% of the total population in the country while the share in total land area of India is only 2.86%. There are about 1.61 crore farm holdings of which 91% is marginal still about 68 percent of population earns their livelihood from agriculture and allied sector. Agriculture holds a vital role in food and nutrition security of the state in addition to overall development. Land is an important input for the agriculture sector.Hence, any change or changes in land use pattern has significant implication in food security for the state in particular and nation in general. This paper is based on secondary data published by Government of Bihar. An attempt has been made to investigate agro-climatic zone wise land use of the state and state as a whole. The study reveals that the net sown area has declined both on zonal level and also at state level. Decline in net sown area in agro-climatic zone-III is more pronounced than that of zone-I & zone-II. Being centre of the state, urbanization has taken place in faster way in the zone-III. The other reasons for changes undergoing in land use pattern may be increasing population, fragmentation of land holdings and declining water table in this region. Zone-I & zone-II come under flood prone area, farmers put their land as current fallow due to devastating flood threat causing damage to their crops. Land under trees and groves have also witnessed positive percentage change over the decade and also in growth rate, this may be the other reason for decline in net sown area in the state. Shrinking of net sown area is of great concern to feed the up warding growth of population. Motivating farmers to increase productivity to protect growing population and serving their demand for food and nutritional security, we have to make such kind of strategies which may lead to enhance the income of the cultivators as well as fulfill the food demand of growing population, keeping in mind the fast changing climatic conditions all over the world and protecting wasteful and careless use of natural resources for betterment of coming generation.
    Keywords: Land use pattern, Net sown area, Agro-climatic zone, nutritional security, Compound Growth Rate (CGR)
    JEL: Q01 Q1 Q15 Q18
    Date: 2017–05–14
  9. By: T. Ryan Johnson (University of Houston); Dietrich Vollrath (University of Houston)
    Abstract: We provide a methodology to estimate the elasticity of agricultural output with respect to land - the Malthusian constraint - using variation in rural densities across different locations. We use district-level data from around the globe on rural densities and inherent agricultural productivity to estimate the elasticity for various sub-samples. We find the elasticity is highest in areas that are suitable for temperate crops such as wheat or rye, and loosest in areas suitable for (sub)-tropical crops such as cassava or rice. We show theoretically that a higher elasticity results in greater sensitivity of non-agricultural employment and real income per capita to shocks in population size and productivity, and confirm this with evidence from the post-war mortality transition.
    Keywords: land constraints, Malthusian stagnation, agriculture, land elasticity
    JEL: O1 O13 O44 Q10
    Date: 2017–06–28
  10. By: Mekonnen, Tigist (UNU-MERIT, and Maastricht University)
    Abstract: Agricultural production is subject to high risk associated with environmental and agro-ecological conditions. Farmers continuously make decisions to mitigate the various adversities. This study evaluates farm households’ willingness to pay for agricultural risk insurance intervention introduced in Ethiopia in 2009. A bidding game approach is used to elicit willingness-to-pay. We use a unique data collected on farmers’ willingness to pay for production risk insurance covering 1500 farm households. The result from the first willingness to pay response model shows that on average, farmers are willing to pay a premium of 55 Ethiopian Birr. By increasing the efficiency of our estimation, a double-bounded dichotomous choice model is estimated in the follow-up willingness to pay response question. It indicates that farmers are willing to pay about 67 Ethiopian Birr to insurance coverage. The use of modern agricultural technologies such as high-yielding variety and inorganic fertilizer, low rainfall, large family size, and high rainfall type are potential indicators that determine farmers’ decision to adopt financial insurance. We also found farmer’s demand for insurance increases due to the changing extreme weather events. Therefore, the study provides information to agricultural policy makers and private companies to promote agricultural insurance and set the premium and enrollment unit.
    Keywords: Risk, uncertainty, technologies, insurance, contingent valuation methods, Ethiopia
    JEL: D22 D81 G22
    Date: 2017–06–22
  11. By: Bruno Henry de Frahan; Tharcisse Nkunzimana; Rembert De Blander; Frédéric Gaspart; Daniel A. Sumner
    Abstract: Low and variable farm income has been a main rationale for heavy government intervention in agricultural markets and income transfers to farmers whether in Europe in response to disruptive agricultural imports and low world prices at the end of the 19th century or in the US in response to the Great Depression. While the future of the Common Agricultural Policy (CAP) is again discussed and new directions are examined, it is fundamental to know to what extent low and variable farm income is still a problem in contemporary European agriculture and a valid rationale for designing the new CAP. In this context, this paper first examines the income level and distribution of farm households compared to those of non-farm households for a selection of OECD countries. Second, the paper econometrically investigates whether explanations for low farm income given in the literature apply to the selected OECD countries for the 1980-2000 period. Third, the paper concludes with some policy implications. Both the descriptive and econometric analyses use the microeconomic dataset from the Luxembourg Income Study (LIS). This dataset contains socio-demographic, income and expenditure data that are collected at the household level through household-based budget surveys. These data are recorded in the LIS dataset in a harmonized way for the 30 countries that currently participate in the LIS. Average income levels as well as indicators of poverty and inequality are calculated for farm and non-farm households for the OECD countries that have at least three waves of data in the LIS dataset with a minimum of 30 identified farm households surveyed in each wave. Three sets of explanations for low farm household income drawn from the literature review of Gardner (1992) are successively investigated: (i) the commodity market conditions, (ii) the earning disequilibrium between sectors, and (iii) the compensating differential for skill differences and non-pecuniary aspects. Preliminary results confirm that in most of the 12 selected OECD countries the average farm household income is greater than the average non-farm household income. Lower average farm household income tends to occur sporadically for some years in only six of the 12 selected OECD countries. In five of the nine selected European countries, the average farm household incomes clearly tend to improve compared to the average non-farm household incomes during the 1985-95 period. They are well above the average household incomes. The incidence of poverty tends to be less severe among farm households than non-farm households except for two European countries. In contrast, the intensity of poverty tends to be more severe among farm households than non-farm households in most countries. This implies that in general there are relatively fewer poor farm households compared to non-farm households but the severity of their poverty is stronger. In addition, the income distribution is more equal among farm households than non-farm households in all countries.
    Keywords: farm household income,farm problem,LIS data,OECD countries
    Date: 2017–05
  12. By: John Gibson (University of Waikato)
    Abstract: To study welfare effects of environmental change, data from household surveys may be linked to remote sensing data. If linking uses spatial aggregation there is risk of ecological fallacy, since surveys are only representative for large areas that may not correspond to the spatial scale of the decision-making units. This paper uses survey-to-census imputation to estimate welfare indicators for small areas in order to study the effect of deforestation on subsequent inequality in the rural Solomon Islands. This country depends on logging for almost half of foreign exchange and one-sixth of government revenue, and most forested land remains under customary ownership. A sharp increase in log exports, to seven times the sustainable yield, and a major shift in export destinations as other countries withdrew from the tropical log trade represents an exogenous shock that helps to identify effects of deforestation on inequality rather than the reverse relationship. Using data for rural wards, that have about 400 households each, a standard deviation increase in the rate of forest loss over 2000 to 2012 raises the Gini index for household consumption in 2013 by one-third of a standard deviation. This precisely estimated effect would not be apparent using more spatially aggregated data.
    Keywords: deforestation; inequality; poverty; small-area estimation
    JEL: O15 Q23
    Date: 2017–07–19
  13. By: Kumari, Mrinali; Singh, K.M.; Sinha, D.K.; Ahmad, Nasim; Mishra, R.R.
    Abstract: This study examined the influence of the respondents’ socio-economic characteristics on their adoption of crop insurance schemes. Discriminant analysis based on the criteria values of standardized canonical coefficient and correlation matrix identified that educational level, farm size, satisfaction level, awareness and access to source of credit were positive discriminators while negative coefficients were obtained for age, income level and number of earning members. Awareness about crop insurance scheme, satisfaction level of farmer respondent with respect to the insurance scheme and access to source of credit were the highest discriminant variables. The study made it amply clear that socio-economic characteristics of farmers exert a significant influence on their adoption of crop insurance schemes. Taking into cognizance the findings of the discriminant analysis it can be inferred that awareness about the schemes and their benefits have to be created among the farmers in order to motivate them to go for insurance of their crops.
    Keywords: Socio-economic, crop insurance, discriminant analysis, adoption
    JEL: O33 Q00 Q1 Q12 Q14 Q38
    Date: 2017–06–14
  14. By: Jackeline Velazco; Vicente Pinilla
    Abstract: Throughout its history, Peru, as a small open economy, has undergone cycles of crisis and recovery, usually linked to fluctuations in the international market. The Peruvian economy has always been an exporter of primary products and an importer of manufactured goods This paper has a two-fold aim: to identify the salient characteristics of the development models and policies affecting Peruvian agriculture since the mid-twentieth century, and to identify what effect they have had on agricultural production and productivity based on an estimation of total-factor productivity (TFP) for the 1950-2010 period.Development strategy models have ranged from the diversification of primary exports, to import-substitution industrialisation, and the promotion of non-traditional exports, which is the current model. These strategies have determined the outcome for agriculture.
    Keywords: Peruvian economic history, Peruvian agriculture, development models, Latin American economic history, agricultural growth
    JEL: N56 O47 Q54 Q10
    Date: 2017–07
  15. By: Meena, M.S.; Singh, K.M.; Singh, R.K.P.; Kumar, Anjani; Kumar, Abhay
    Abstract: A village level in-depth study was undertaken to measure the income dynamics, inequality, determinants, and policy implications for sustainable livelihoods of tribal households in Jharkhand. Data were solicited from 160 households during 2011-12. Study shows vast gap in annual income of tribal households i.e. 8,493, while non-farm activities dominated (37.19 to 63.67%) over other sources. Highest income inequality observed among labour class (Gini ratio 0.55). Study reveals that education, family size, non-farming income and adoption of high yielding varieties were found main income determinants. Study has important policy implications; need to generate more non-farm incomes through public works that could lead the better infrastructure facilities and rural livelihoods. Providing labour opportunities outside agricultural activities can serve manifolds, and trim down income inequalities. Livestock sector could be revived through technical interventions from research institutes, state agricultural universities & line departments. However, education could be an instrument for reducing inequality & poverty among tribes.
    Keywords: Income dynamics, income inequality, income determinants, tribal community, eastern India.
    JEL: O13 O33 O47 Q16
    Date: 2016–03–14
  16. By: Francesco Chiapparino (Universita' Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali); Gabriele Morettini (Universita' Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali); Fabrizio Muratore (Universita' Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)
    Abstract: This contribution aims to investigate the dynamics of Italian agriculture during the crisis of the Thirties, as well as related issues such as the role of some policies deployed to contain the recession and their consequences. To that end, the paper adopts a particular viewpoint based on the belief that Italy presents a large variety of rural environments, the result of its geography and history, and is characterized by different cultivations, features, conduction systems, productivity levels, and market orientations - in other words, diverse modes of production. Partitioning these "rural Italies" allows us to analyze their trends and prevents them from being bundled together in such a way as to compensate and sometimes even nullify each other. Moreover, the Fascist regime introduced active incentive and protectionist (even autarkic) policies to contrast the recession. Split into the plurality of its agrarian contexts, therefore, the country becomes a sort of kaleidoscope, through which it is possible to observe both the relatively wide set of effective changes brought about by the depression and the diverse impact of national policies.
    Keywords: Crisis, Italy, (Agrarian) Clusters, Fascism, Yields
    Date: 2017–07
  17. By: Pascalau, Razvan; Qirjo, Dhimitri
    Abstract: This paper uses data on emissions per capita of ten air pollutants and municipal waste to investigate the potential impact of the Transatlantic Trade and Investment Partnership (TTIP) on the empirical validity of the Environmental Kuznets Curve (EKC). Using a dataset of the twenty-eight EU members and of the U.S. over a twenty-five year period, the results in this paper provide robust and statistically significant evidence consistent with the EKC argument for CO2, CH4, and HFCs/PFCs/SF6, respectively. Further, the paper finds a monotonically increasing relationship between income per capita and emissions per capita in the cases of GHGs, SF6, and NO2, respectively. In addition, this paper finds that the EKC’s turning point values of each pollutant are sensitive to the econometric approach and/or to the employed control variables. Finally, the study reports statistically significant evidence suggesting a U-shaped relationship between emissions per capita of SO2 or SOx and income per capita.
    Keywords: Free Trade; Environmental Kuznets Curve; TTIP.
    JEL: F18 F53 Q56
    Date: 2017–07–14
  18. By: Habiyaremye, Alexis (Human Sciences Research Council, South Africa)
    Abstract: The adoption of an agricultural technology is often seen as a way to overcome the constraints imposed by the existing resources and/or production methods. As a small landlocked country, Rwanda sought to develop the capability to produce silk, a high value-to-volume ratio product, as a means to overcome the constraints of high transportation cost of exports. Sericulture was also seen as a handy strategy to boost rural farmer income by putting previously less productive land to use for mulberry plantations. Because sericulture was not introduced randomly, this study relied on observational data and applied propensity score matching to estimate its income and poverty reduction effects in six rural districts. The results indicate that sericulture adoption had beneficial effects both on increasing income and reducing poverty. The strengthening of related skills development and the supporting infrastructure remains crucial for the sericulture to successfully diffuse and yield economic benefits commensurate with its potential.
    Keywords: Sericulture, Agricultural technology adoption, Propensity score matching
    JEL: C13 C15 O32 O38
    Date: 2017–06–07
  19. By: Bak, Céline; Bhattacharya, Amar; Edenhofer, Ottmar; Knopf, Brigitte
    Abstract: The authors propose a policy package of low-carbon growth stimulation through a steep increase in sustainable infrastructure, mobilizing sustainable finance, and adoption of carbon pricing to simultaneously achieve the objectives of the Paris Agreement and the Sustainable Development Goals.
    Keywords: Paris Agreement,climate change,infrastructure,carbon pricing,green finance
    JEL: D62 E62 H21 H22
    Date: 2017
  20. By: J-F Mercure; H. Pollitt; N. R. Edwards; P. B. Holden; U. Chewpreecha; P. Salas; A. Lam; F. Knobloch; J. Vinuales
    Abstract: A high degree of consensus exists in the climate sciences over the role that human interference with the atmosphere is playing in changing the climate. Following the Paris Agreement, a similar consensus exists in the policy community over the urgency of policy solutions to the climate problem. The context for climate policy is thus moving from agenda setting, which has now been established, to impact assessment, in which we identify policy pathways to implement the Paris Agreement. Most integrated assessment models currently used to address the economic and technical feasibility of avoiding climate change are based purely on engineering with a normative systems optimisation philosophy, and are thus unsuitable to assess the socio-economic impacts of realistic baskets of climate policies. Here, we introduce a fully descriptive simulation-based integrated assessment model designed specifically to assess policies, formed by the combination of (1) a highly disaggregated macro-econometric simulation of the global economy based on time series regressions (E3ME), (2) a family of bottom-up evolutionary simulations of technology diffusion based on cross-sectional discrete choice models (FTT), and (3) a carbon cycle and atmosphere circulation model of intermediate complexity (GENIE-1). We use this combined model to create a detailed global and sectoral policy map and scenario that achieves the goals of the Paris Agreement with 80% probability of not exceeding 2{\deg}C of global warming. We propose a blueprint for a new role for integrated assessment models in this upcoming policy assessment context.
    Date: 2017–07
  21. By: Thomas Kuhn (Department of Economics, Chemnitz University of Technology); Radomir Pestow; Anja Zenker (Department of Economics, Chemnitz University of Technology)
    Abstract: In this paper, we discuss the endogenous formation of climate coalitions in the tradition of the issue-linkage literature. In particular, we propose a preferential free trade agreement on which a climate coalition should be built. The basic idea is that the benefits of free trade provide strong incentives for free riders to join the coalition. As a framework, a multi-stage strategic trade model is used in which a country may discourage greenhouse gas emissions by setting an emissions cap effective on a permit market. In addition, a discriminatory import tariff is imposed on dirty goods. However, at the heart of our approach are the trade privileges granted to coalition members shifting the terms of trade favourably without prodiving incentives towards eco-dumping. As a main result, we find that trade liberalisation is much more effective in building climate coalitions than a single-issue environmental agreement. The parametrical simulation of the model in particular shows that participation in joint emission reduction is higher, consumption patterns are more environmentally friendly, and coalitional welfare is improved. As a policy implication, negotiations on climate treaties and free trade arrangements should be integrated.
    Keywords: Climate Change, International Environmental Agreements, Free Trade, Issue Linkage, Tradable Permits, Strategic Trade Policy
    JEL: Q54 Q56 F18 F15 Q58
    Date: 2017–07
  22. By: James Alm (Department of Economics, Tulane University); Daniel Teles (Department of Economics, Tulane University)
    Abstract: State and federal tax policy in the United States generally favors nonprofit organizations, and particularly nonprofits classified as 501(c)3 nonprofit charities. This favorable tax treatment comes from two types of tax policies. First, nonprofits are exempt from paying a variety of state and federal taxes. Second, individuals are encouraged to donate to nonprofit charities through favorable policies in the federal income tax, state income taxes, and the inheritance tax. This paper presents some basic material on the tax treatment of nonprofit organizations, and then examines what we know and what we do not know about state and federal tax policy toward nonprofit organizations.
    Keywords: Nonprofit organizations; 501(c)3 organizations; tax deductions; charitable donations; unrelated business income tax; tax price elasticity
    JEL: L3 H24 H31
    Date: 2017–07
  23. By: Nanak Kakwani (The University of New South Wales, Australia); Shi Li (Beijing Normal University, China); Xiaobing Wang (The University of Manchester, U.K.); Mengbing Zhu (Beijing Normal University, China)
    Abstract: China’s Rural Minimum Living Standard Guarantee program (Dibao) is the largest social safety-net program in the world. Given the scale and the popularity of Rural Dibao, it is necessary to rigorously evaluate it so that policymakers know the extent to which the program meets its intended objective of reducing poverty. This paper develops some new methods and uses data from the 2013 Chinese Household Income Project (CHIP2013) to examine the targeting performance of the rural Dibao program. The paper has found that the Rural Dibao program suffers from very low targeting accuracy, high exclusion error, and inclusion error, and yields a significant negative social rate of return. It discusses possible causes and argues that the fundamental mechanism has to be redesigned to increase the effectiveness of the program. The paper makes some recommendations to reform Dibao that will significantly improve targeting and reduce the cost of running the program. That will help China to achieve its goal of eradicating extreme poverty by 2020.
    Keywords: Dibao, policy effectiveness, poverty reduction, social rate of return.
    JEL: O11
    Date: 2017–05
  24. By: Yang Song (Renmin University of China); Guangsu Zhou (Nankai University, China)
    Abstract: This paper This paper offers the first empirical evidence on the impact of inequality of opportunity on household education investment by using the by using the by using the by using the by using the by using the panel data from China Family Panel Studies (CFPS) in three in three in three in three waves (2010, 2012 and 2014). Our result suggests that inequality of opportunity has a negative effect on household education expenditures. This result is robust to robustness checks. Furthermore, the disadvantaged households (whose householders with less education, income, and rural hukou status) seem to be affected more by inequality of opportunity within the county they live in. Higher inequality of opportunity in the comparison group may reduce their incentives to investment more on education. Policy suggestions to reduce inequality of opportunity may include reducing labor market discrimination based on gender and hukou, balancing education resources to create more equal educational opportunities, and offering children education subsidies in low-income families.
    Keywords: income inequality, inequality of opportunity, education expenditures, economic growth, China.
    JEL: J24 D33 O15 O53
    Date: 2017–05
  25. By: Christopher Sands
    Keywords: Trade and International Policy
    JEL: F1
  26. By: Ligon, Ethan; Schechter, Laura
    Keywords: Social and Behavioral Sciences
    Date: 2017–07–18

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