nep-agr New Economics Papers
on Agricultural Economics
Issue of 2017‒08‒20
nine papers chosen by

  1. To analyse the suitability of a set of soical and economic indicators that assesses the impact on SI enhancing advanced technological inputs by farming households in Punjab Pakistan By Bilal, Muhammad; Barkmann, Jan; Jaghdani, Tinoush Jamali
  2. Trade-related aspects in the current context of sustainable development By Florentina Viorica Gheorghe; Artur Emilian Simion
  3. Commodity Price Co-movement: Heterogeneity and the Time Varying Impact of Fundamentals By Byrne, Joseph P; Sakemoto, Ryuta; Xu, Bing
  4. Free riding and rebates for residential energy efficiency upgrades: A multi-country contingent valuation experiment By Olsthoorn, Mark; Schleich, Joachim; Gassmann, Xavier; Faure, Corinne
  5. Does the energy-environmental Kuznets curve hypothesis sustain in the Asia-Pacific region? By Aruga, Kentaka
  6. The Impact of Road Development on Household Welfare in Rural Papua New Guinea By Martin Wiegand; Eric Koomen; Menno (M.) Pradhan; Christopher Edmonds
  7. 40 years of JEEM: Research trends and influential publications in environmental and resource economics By Kube, Roland; Löschel, Andreas; Mertens, Henrik; Requate, Till
  8. Impact of Foreign Tourists on Productivity in the Accommodation Industry: A panel data analysis By MORIKAWA Masayuki
  9. The rise of buyer-driven sustainability governance: Emerging trends in the global coffee sector By Janina Grabs

  1. By: Bilal, Muhammad; Barkmann, Jan; Jaghdani, Tinoush Jamali
    Abstract: Increase in agricultural production in industrialized and developing countries are based on the adoption of new and improved technologies. Farming household's social and economic conditions greatly determines the adoption of new technologies. Particularly in developing countries majority of farming community comprises by small farming households. Pakistan is very interesting case in developing countries as its economy is based on agriculture and smallholder's production system is the salient characteristics of its farming community. The study in hand is conducted to examine the role of social and economic indicators which assesses the adoption of sustainable intensification-enhancing advance technologies in Pakistan. The study was conducted in Punjab province because it is the major contributor in agricultural GDP. The logit model is employ for the empirical findings of initial survey. A logit estimate shows that both social and economic indicators have statistically significant association with the adoption decision.
    Keywords: sustainable intensification,smallholders,adoption decision,Punjab
    Date: 2017
  2. By: Florentina Viorica Gheorghe (The Romanian Academy, National Institute of Statistics); Artur Emilian Simion (The Romanian Academy, National Institute of Statistics)
    Abstract: According to the 2030 Agenda and its Sustainable Development Goals (SDGs), countries should consider achieving all of the three dimensions of sustainable development, namely, economic, social and environmental. In this context, the external trade is acknowledged as a „mean of implementation” for the achievement of the SDGs, facilitating countries progress towards the achievement of sustainable development. However, evaluation of its contribution to sustainable development is a challenge. This paper intend to explore contribution of external trade of Romania to several key objectives of the 2030 Agenda, trying to capture, through specific or proxy statistical indicators, some trade-related aspects of the goals, as for example relationship tradeeconomic growth, evolution of trade exchanges by countries in different development stages, agro-food products trade, trade by technologies and trade with environment goods. When relevant, comparisons with other EU Member States and territorial decomposition by Romania’s counties or regions are presented to highlight aspects related to reducing inequalities.
    Keywords: trade, deficit, export, import, county, sustainable development goals, environment
    JEL: F14 F18 F31 Q56
    Date: 2017–04
  3. By: Byrne, Joseph P; Sakemoto, Ryuta; Xu, Bing
    Abstract: This paper extends the topical literature on the co-movement and determinants of primary commodity prices, by considering heterogeneity in commodities and time variation in the impact of fundamentals. We account for heterogeneity by employing a dynamic hierarchical factor model, which decomposes commodities into global and sectoral factors. Using a time varying parameter factor augmented VAR model, we shock global and sector-specific factors over time. We present plausible impulse responses to demand shocks, real interest rate shocks, and to elevated risks during the global financial crisis. We also identify that materials, food and metals respond heterogeneously to these shocks.
    Keywords: Commodity Prices; Co-movement; Dynamic Hierarchical Factor Models; Time Varying Parameter Factor Augmented VAR.
    JEL: E3 F3 F4 G1
    Date: 2017–07–12
  4. By: Olsthoorn, Mark; Schleich, Joachim; Gassmann, Xavier; Faure, Corinne
    Abstract: The cost-effectiveness of energy technology upgrade programs critically depends on free riding. This paper assesses ex ante the effects of free riding on the cost-effectiveness of a rebate program that promotes the adoption of energy-efficient heating systems, relying on contingent valuation choice experiments carried out through identical representative surveys in eight EU Members States. The anal-ysis distinguishes between strong and weak free riders: strong free riders already plan to adopt a new heating system in the next five years; weak free riders decide to purchase once propositioned with an attractive technology package (and there-fore do not require a rebate to adopt). The reservation rebates for incentivized adopters (those who decide to adopt because of a rebate) differ substantially across countries. On average, they amount to approximately 40% of the heating system's purchasing price, suggesting generally high opportunity costs for prem-ature upgrades. The reservation rebate and weak free-ridership vary with income, risk and time preferences, and environmental identity. At a rebate level that cor-responds to half the purchase price of the offered heating system, the estimated share of free riders exceeded 50% for most countries, with a typically higher share of weak free riders than strong free riders. Specific rebate cost estimates (in €/tCO2) differ considerably across countries, suggesting that cooperation can yield budgetary benefits.
    Keywords: free rider,subsidies,energy efficiency,contingent valuation
    JEL: Q41 Q48 Q51
    Date: 2017
  5. By: Aruga, Kentaka
    Abstract: As mitigating the effects of energy consumption on the environment is a crucial issue for the Asia-Pacific region, this study investigates the energy-environmental Kuznets curve (EEKC) hypothesis among the 19 Asia-Pacific regions. The study also test the hypothesis for the low-, middle-, and high-income groups of the region. The panel regression and cointegration models are used for this purpose. Both models suggest that the EEKC hypothesis does sustain for the whole Asia-Pacific region. However, the test performed on the income groups revealed that the hypothesis only holds for the high-income group and the low- and middle-income groups do not satisfy the hypothesis. This is likely indicating that the transition in the energy consumption along the EEKC is only occurring in the developed countries of the Asia-Pacific region.
    Keywords: Energy-environmental Kuznets curve, energy consumption, GDP per capita, Asian-Pacific region, panel regression model, panel cointegration model
    JEL: O53 Q56
    Date: 2017–08–08
  6. By: Martin Wiegand (VU Amsterdam); Eric Koomen (VU Amsterdam); Menno (M.) Pradhan (VU Amsterdam; University of Amsterdam, the Netherlands; Tinbergen Institute, The Netherlands); Christopher Edmonds (Tokyo International University)
    Abstract: In this paper we estimate the impact of road development on household welfare in rural Papua New Guinea over the period between 1996 and 2010, using two cross-sectional household surveys and corresponding road maps. To deal with endogenous placement of road infrastructure programs we employ a correlated random effects model that corrects for location-specific changes in road quality. We also use a newly developed quantile regression method to investigate whether road works are pro-poor. Estimates show that investments in sealing roads to nearest towns led to higher consumption levels and housing quality, and to less reliance on subsistence farming. Effects are stronger among poor, less educated, and female-led households.
    Keywords: roads; infrastructure; impact evaluation; household welfare; developing country; Papua New Guinea
    JEL: H54 O18
    Date: 2017–08–07
  7. By: Kube, Roland; Löschel, Andreas; Mertens, Henrik; Requate, Till
    Abstract: This paper analyzes the way the content of the Journal of Environmental Economics and Management (JEEM) has developed over the last 40 years. We have classified the articles in the journal into five dimensions: content, methods, environmental media (pollutants and resources), cross-cutting issues and the regional dimension of studies. Up to about 10 years ago, non-market valuation and cost-benefit analysis, natural resource economics and environmental policy instruments were the subjects regularly representing the lion's share of the articles published in the journal. Thereafter we register a significant shift towards a more diversified array of research areas, with climate change and energy issues finding their way into the journal. In addition, increasing methodological plurality becomes apparent, reflected in a significant shift away from economic theory and towards empirical approaches. We also analyze key distinctions between the major environmental economics journals. To this end, we compare the 100 most frequently cited articles in JEEM, Ecological Economics, Land Economics, Environmental & Resource Economics, and the American Journal of Agricultural Economics. Here we find that non-market valuation studies play an important role in all the journals considered. Econometric studies are also widely represented in all of them, with theoretical models particularly strong in JEEM. Finally, we use citations as a criterion for analyzing JEEM's external influence on leading general economics (A+) journals. A regression analysis shows that a focus on market-based environmental policies and policy comparisons plus the use of econometric and statistical methods or experimental approaches correlates positively with an A+ citation. If we leave self-citations out of account, A+ citations are also positively correlated with a focus on air pollution and negatively correlated with a focus on water pollution and other pollutants.
    Date: 2017
  8. By: MORIKAWA Masayuki
    Abstract: Recently, the number of foreign tourists visiting Japan has been rapidly increasing, and the overseas travel balance has drastically changed. By using micro panel data, this study empirically analyzes the effects of this increase on productivity in the accommodation industry. The novelty of this study is represented by the use of a physical productivity measure to document an unexplored channel through which service trade contributes to increasing the productivity in the domestic service industry. The estimation results show that an increase in the number of foreign guests significantly improves the measured total factor productivity (TFP) of the accommodation facilities, although the effect of foreign presence is quite heterogeneous across facilities.
    Date: 2017–08
  9. By: Janina Grabs (Universität Münster, Institut für Politikwissenschaften)
    Abstract: The coffee industry connects millions of smallholder farmers with global markets and has historically been a frontrunner in sustainability efforts. Yet, the governance of this value chain and its sustainability depends on the distribution of power between market actors. This paper applies a Global Value Chain approach (Gereffi, 1999) to characterize the current distribution of power and opportunities in the coffee sector, and examines how this characterization has influenced the sector’s non-state market-driven (NSMD) sustainability governance structure (Bernstein and Cashore, 2007). The study finds that in a strongly buyer-driven chain, the reinterpretation of sustainability as supply chain management has led to the emergence of more company-owned standards and direct-impact projects as alternatives to third-party certification schemes, as well as their coordination in pre-competitive sectoral platforms. The simultaneous rise of producing-country definitions of sustainability points to a continued fragmentation of sustainability governance and a loss of authority of traditional NSMD channels.
    Keywords: Sustainability governance, non-state market-driven governance, Global Value Chain, coffee, Corporate Social Responsibility, sustainability
    Date: 2017–08

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.