nep-agr New Economics Papers
on Agricultural Economics
Issue of 2018‒01‒15
fifteen papers chosen by
Angelo Zago
Università degli Studi di Verona

  1. Food Trade, Biodiversity Effects and Price Volatility By Cecilia Bellora; Jean-Marc Bourgeon
  2. Property Rights, Land Misallocation and Agricultural Efficiency in China By A.V. Chari; Elaine Liu; Shing-Yi Wang; Yongxiang Wang
  3. Land Tenure Insecurity as an Investment Incentive: The Case of Migrant Cocoa Farmers and Settlers in Ivory Coast. By Catherine Bros; Alain Desdoigts; Hugues Kouassi Kouadio
  4. The Effects of Land Markets on Resource Allocation and Agricultural Productivity By Chaoran Chen; Diego Restuccia; Raül Santaeulàlia-Llopis
  5. The Long-Run Effects of Agricultural Productivity on Conflict, 1400-1900 By Iyigun, Murat; Nunn, Nathan; Qian, Nancy
  6. Cost-benefit analysis for flood risk management and water governance in the Netherlands; an overview of one century By Bos, Frits; Zwaneveld, Peter
  7. How well targeted are soda taxes? By Dubois, Pierre; Griffith, Rachel; O'Connell, Martin
  8. Climate-sensitive Decisions and Use of Climate Information: Insights from selected La Trinidad and Atok, Benguet Agricultural Producers By Reyes, Celia M.; Domingo, Sonny N.; Agbon, Adrian D.; Olaguera, Ma. Divina C.
  9. The Horns of a Dilemma in Colonial Policies:Rice, Rubber and Living Standards in the Malay Peninsula By Kostadis J. Papaioannou
  10. Eficiencia técnica en la producción de café en Nicaragua: Un análisis de fronteras estocásticas By Urbina, Jilber
  11. Review of High-Value Agriculture in the Philippines with Comprehensive Subsectoral Focus: Livestock Industries By Domingo, Sonny N.; Olaguera, Ma. Divina C.
  12. Estimation of Environmental Kuznets Curve for CO2 Emission: Role of Renewable Energy Generation in India By Sinha, Avik; Shahbaz, Muhammad
  13. Agriculture Multifunctionality debates: A Review By Archimède Mbogning Genang
  14. Scenarios for modelling trade policy effects on the multifunctionality of European agriculture By Janet Dwyer; David Baldock; Hervé Guyomard; Jerzy Wilkin; Dorota Klepacka
  15. Enlarging the collective model of household behaviour: a revealed preference analysis By d’ASPREMONT Claude; DOS SANTOS FERREIRA Rodolphe

  1. By: Cecilia Bellora (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Jean-Marc Bourgeon (Department of Economics, Ecole Polytechnique - Polytechnique - X - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Biotic factors such as pests create biodiversity effects that increase food production risks and decrease productivity when agriculture specializes. Under free trade, they reduce the specialization in food production that otherwise prevails in a Ricardian two-country setup. Pesticides allow farmers to reduce biodiversity effects , but they are damaging for the environment and for human health. When regulating farming practices under free trade, governments face a trade-off: they are tempted to restrict the use of pesticides compared to under autarky because domestic consumption partly relies on imports and thus depends less on them, but they also want to preserve the competitiveness of their agricultural sector on international markets. Contrary to the environmental race-to-the-bottom tenet, we show that at the symmetric equilibrium under free trade restrictions on pesticides are generally more stringent than under autarky. As a result, trade increases the price volatility of crops produced by both countries, and, depending on the intensity of the biodiversity effects, of some or all of the crops that are country-specific.
    Keywords: food prices,agricultural trade,agrobiodiversity,pesticides
    Date: 2017–12–20
  2. By: A.V. Chari (University of Sussex); Elaine Liu (University of Houston); Shing-Yi Wang (University of Pennsylvania); Yongxiang Wang (University of Southern California)
    Abstract: This paper examines the impact of a property rights reform in rural China that allowed farmers to lease out their land. We find the reform led to increases in land rental activity in rural households. Consistent with a model of transaction costs in land markets, our results indicate that the formalization of leasing rights resulted in a redistribution of land toward more productive farmers. Consequently, the aggregate productivity of land increased significantly. We also find that the reform increased the responsiveness of land allocation across crops to changes in crop prices.
    Keywords: China, land reform
    JEL: Q15
    Date: 2017–12
  3. By: Catherine Bros (ERUDITE - Université Paris-Est); Alain Desdoigts (IEDES - Université Paris 1 Panthéon Sorbonne); Hugues Kouassi Kouadio (École nationale supérieure de statistiques et d'économie appliquée (ENSEA) Abidjan)
    Abstract: This study sets forth a positive relationship between tenure insecurity and investments over dierent time horizons among cocoa farmers in Ivory Coast. This positive relationship stands in stark contrast to results found in many related studies. We argue this dierence stems from the type of crops considered and, in particular, whether one considers annual and/or perennial crops. Given that cultivating perennial crops such as cocoa requires large upfront investments over a long period of time, it is of paramount importance to retain control over the land in the long run, especially when the trees reach full maturity. According to some theoretical arguments, investing is a way to retain such control when the farmer does not have administrative rights. Our results show that cocoa farmers whose status remains precarious in terms of tenure security (migrants) have a higher propensity to invest, especially when the tree is about to yield substantially. This study thus underlines the need to account for the life cycle of crops and the associated revenue streams when assessing the relationship between tenure (in-)security and investment.
    Keywords: Tenure security, investment time horizons, crop life cycle, outsiders, Ivory Coast.
    JEL: Q15 O13 O17 O55 D23
    Date: 2017–10
  4. By: Chaoran Chen; Diego Restuccia; Raül Santaeulàlia-Llopis
    Abstract: We assess the role of land markets on factor misallocation in Ethiopia -where land is owned by the state- by exploiting policy-driven variation in land rentals across time and space arising from a recent land certification reform. Our main finding from detailed micro data is that land rentals significantly reduce misallocation and increase agricultural productivity. These effects are nonlinear across farms -impacting more those farms farther away from their efficient operational scale. The effect of land rentals on productivity is 70 percent larger when controlling for non-market rentals -those with a pre-harvest rental rate of zero. Land rentals significantly increase the adoption of new technologies, especially fertilizer use.
    Keywords: productivity, agriculture, land markets, rentals, misallocation, micro data
    JEL: E02 O11 O13 O55 Q1
    Date: 2017–12
  5. By: Iyigun, Murat (University of Colorado, Boulder); Nunn, Nathan (Harvard University); Qian, Nancy (Northwestern University)
    Abstract: This paper provides evidence of the long-run effects of a permanent increase in agricultural productivity on conflict. We construct a newly digitized and geo-referenced dataset of battles in Europe, the Near East and North Africa covering the period between 1400 and 1900 CE. For variation in permanent improvements in agricultural productivity, we exploit the introduction of potatoes from the Americas to the Old World after the Columbian Exchange. We find that the introduction of potatoes permanently reduced conflict for roughly two centuries. The results are driven by a reduction in civil conflicts.
    Keywords: conflict, natural resources, long-run development
    JEL: D74 O13 Q34
    Date: 2017–11
  6. By: Bos, Frits; Zwaneveld, Peter
    Abstract: The Netherlands is a global reference for flood risk management. This reputation is based on a mix of world-class civil engineering projects and innovative concepts of water governance. For more than a century, cost-benefit analysis has been important for flood risk management and water governance in the Netherlands. It has helped to select the most effective and efficient flood risk projects and to coordinate and reconcile the interests of various policy areas, levels of government and private stakeholders. This paper provides for the first time an overview of this well-developed practice. This includes the cost-benefit analysis in the 1901 act for enclosure of the Zuiderzee, van Dantzig’s famous formula for the economically optimal strength of dikes and a whole set of cost-benefit analyses for More room for rivers and the Delta Program for the next century. Dutch practice illustrates how cost-benefit analysis can support and improve flood risk management and water governance; other countries may learn from this. Rough calculations indicate that investing in cost-benefit analysis has been a highly profitable investment for Dutch society.
    Keywords: History of cost-benefit analysis in the Netherlands, management of natural resources, optimal strength of dikes, value of statistical life, biodiversity, Lely, Tinbergen, van Dantzig, Eijgenraam, Zuiderzee Works, Delta Works, More room for rivers, Delta Program for the next century
    JEL: A1 B0 C44 D61 H54 Q5
    Date: 2017–08
  7. By: Dubois, Pierre; Griffith, Rachel; O'Connell, Martin
    Abstract: Soda taxes aim to reduce excessive sugar consumption. Their effectiveness depends on whether they target individuals for whom the harm of consumption is largest. We estimate demand and account for supply-side equilibrium pass-through. We exploit longitudinal data to estimate individual preferences, which allows exible heterogeneity that we relate to a wide array of individual characteristics. We show that soda taxes are effective at targeting young consumers but not individuals with high total dietary sugar; they impose the highest monetary cost on poorer individuals, but are unlikely to be strongly regressive if we account for averted future costs from over consumption.
    Keywords: preference heterogeneity; discrete choice demand; pass-through; soda tax
    JEL: D12 H31 I18
    Date: 2017–12
  8. By: Reyes, Celia M.; Domingo, Sonny N.; Agbon, Adrian D.; Olaguera, Ma. Divina C.
    Abstract: Valuing climate information is now an important discourse in mainstream economic thinking with the development of the von Neumann-Morgenstern utility hypothesis and of the refinement of decision theory under uncertainty. This discourse is important in valuing weather information and climate-related decision support, particularly among agricultural stakeholders. The need to understand better the use and value of climate information and climate-sensitive decisions among smallholder farmers in selected farmers in Atok and La Trinidad Benguet, Philippines is the aim of this paper. Measures implemented to mitigate the effects La Nina and El Nino include changing the timing of planting and crop shifting and changing the location of crops. Farmers rely to indigenous knowledge when it comes to frost forecasting. On the average, 300 truckers from the trading post transport commodities outside the province on a daily basis. But during typhoons, many traders prefer to delay their deliveries. Farmers shared that weather/climate information is a major factor taken into consideration in their planning and crop decision making. Climate date for the rainy and or dry season was considered as the most important information they need. Given the unique microclimatic condition of the province, farmers need a localized forecast from PAGASA.
    Keywords: climate, climate information, climate-sensitive decisions, weather information, Benguet
    Date: 2017
  9. By: Kostadis J. Papaioannou (London School of Economics)
    Abstract: The effects of colonial policies on the living standards of smallholder farmers have been widely debated. The ‘dependency’ view of local farmers becoming increasingly vulnerable due to exposure to international market volatility has been contrasted with the neo-classical view that suggests that this exposure was counteracted by an increase in surplus revenues generated by export crop specialization. The controversy becomes even fiercer when the debate is centred around the impact of the Great Depression on the material conditions of rural households. This article addresses this controversy by studying the most important agricultural policy in the British Malay Peninsula around the years of the Great Depression (1924-1937), using new fine-grained data on harvest yields, mortality and hospitalization rates at the district level. On March 1, 1931, the colonial government enacted the New Rice Policy, encouraging local farmers to substitute rubber cultivation with rice fields. This new policy was not implemented at the same time throughout the Malay Peninsula, nor was it enacted in all districts. We build our empirical approach around this temporal and spatial variation of the new law, and compare the mortality and morbidity responses to harvest failures before and after the New Rice Policy was in effect. The adverse effects of harvest failures were reduced in districts where the new rice policy was enforced, and remained largely unaffected in districts where the new rice policy was never implemented. Our findings underscore the decisive impact of the New Rice Policy in achieving widespread food security for local farmers while securing the general health of the population. To address potential endogeneity concerns, we also use rainfall variability as an instrumental variable to proxy for harvest fluctuations and harvest failures.
    Keywords: Agricultural History; Living Standards; Health Outcomes; Rice; Commodity Trade; Colonial History; Southeast Asia; Colonial policies; Food Security.
    JEL: N55 Q17 F18 N35 Q18 N15
    Date: 2018–01
  10. By: Urbina, Jilber
    Abstract: This article analyses the technical efficiency of coffee production in Nicaragua. We apply a stochastic frontier model to estimate the technical efficiency which reaches 60%; this means that Nicaraguan coffee producers have chances to improve the way they get things done. This level of efficiency prevents Nicaragua from capturing 340 million dollars for coffee exports. At the end of 2015, revenues from coffee exports represented 3.09 percent of gross domestic product (GDP), if 100 percent productive efficiency had been achieved, the relative importance of this item would have represented 5.77 percent of GDP. A counterfactual analysis shows the gains that would be derived from achieving technical efficiency.
    Keywords: technical efficiency, coffee, stochastic frontier model, Nicaragua
    JEL: C12 C13 C24 C87 D24 Q00 Q18
    Date: 2017–03
  11. By: Domingo, Sonny N.; Olaguera, Ma. Divina C.
    Abstract: Enhancing the performance of the Philippine agriculture sector remains a key input to economic growth and inclusivity. Focus of development interventions in recent years have been on crops, particularly on the major grain staples. Shifting attention to more competitive and higher value commodities like livestock would do much in enhancing the livelihoods of smallholder farmers, as well as micro, small, and medium-sized enterprises within the sector. While the subsector presents a glimmer of light in local agriculture, its industries are beset with production and marketing issues. The main objective of this paper is to review the status and performance of the Philippine livestock sector. This review provides discourse on the livestock subsector's performance over the years and looks into ways of bettering outputs and competitive advantages both within domestic commodity systems and beyond.
    Keywords: Philippines, livestock sector, industry analysis
    Date: 2017
  12. By: Sinha, Avik; Shahbaz, Muhammad
    Abstract: The existing literature on environmental Kuznets curve (EKC) is mainly focused on finding out the optimal sustainable path for any economy. Looking at the present renewable energy generation scenario in India, this study has made an attempt to estimate the EKC for CO2 emission in India for the period of 1971-2015. Using unit root test with multiple structural breaks and autoregressive distributed lag (ARDL) approach to cointegration, this study has found the evidence of inverted U-shaped EKC for India, with the turnaround point at USD 2937.77. The renewable energy has found to have significant negative impact on CO2 emissions, whereas for overall energy consumption, the long run elasticity is found to be higher than short run elasticity. Moreover, trade is negatively linked with carbon emissions. Based on the results, this study concludes with suitable policy prescriptions.
    Keywords: India, CO2 emission, EKC, ARDL, Renewable energy
    JEL: A10
    Date: 2017–12–10
  13. By: Archimède Mbogning Genang (GREEA - Groupe de Recherche en Economie, Environnement et Agro-alimentaire - Université Yaoundé 2, LAREFA - Laboratoire de Recherche en Economie Fondamentale et Appliquée)
    Date: 2017–07–13
  14. By: Janet Dwyer (Independent); David Baldock (Independent); Hervé Guyomard (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique); Jerzy Wilkin (Independent); Dorota Klepacka (Inconnu)
    Abstract: Le document de travail propose différents scénarios "emboîtés" permettant d'analyser les impacts potentiels des réformes multilatérales des politiques agricoles à l'OMC sur la multifonctionnalité de l'agriculture européenne.
    Keywords: Production et marchés,POLITIQUE AGRICOLE COMMUNE,union européenne
    Date: 2017–09–26
  15. By: d’ASPREMONT Claude (Université catholique de Louvain, CORE, Belgium); DOS SANTOS FERREIRA Rodolphe (Université de Strasbourg)
    Abstract: We use a comprehensive model of strategic household behaviour in which the spouses’ expenditure on each public good is decomposed into autonomous spending and coordinated spending à la Lindahl. We obtain a continuum of semi-cooperative regimes parameterized by the relative weights put on autonomous spending, by each spouse and for each public good, nesting full cooperative and non-cooperative regimes as limit cases. Testing is approached through revealed preference analysis, by looking for rationalisability of observed data sets, with the price of each public good lying between the maximum and the sum of the hypothesized marginal willingnesses to pay of the two spouses. Once rationalised, an observed data set always allows to identify the sharing rule, except when both spouses contribute in full autonomy to some public good (a situation of local income pooling).
    Keywords: semi-cooperative household behaviour, revealed preference analysis, rationalisability, sharing rule identification
    JEL: D11 C72 H41
    Date: 2017–09–06

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