nep-agr New Economics Papers
on Agricultural Economics
Issue of 2018‒05‒28
sixteen papers chosen by

  1. Soil resource and the profitability and sustainability of farms: A soil quality investment model By Alice Issanchou; Karine Daniel; Pierre Dupraz; Carole Ropars-Collet
  2. Land Cover Change and Conversions: Methodology and Results for OECD and G20 Countries By Ivan Haščič; Alexander Mackie
  3. Synergies and trade-offs between adaptation, mitigation and agricultural productivity: A synthesis report By Jussi Lankoski; Ada Ignaciuk; Franck Jésus
  4. Farmland Tenure and Transaction Costs By Christine Léger-Bosch
  5. Governance and Land Reform in the Palm Oil Value Chain in the Philippines By Caroline Hambloch
  6. Selecting Sustainable Development Criteria for Effective Watershed Governance By Reza Javidi Sabbaghian
  7. Reducing construction phase greenhouse gas emissions of detached houses through material supply chain management By Jani Laine
  8. Complexity and the economics of climate change : a survey and a look foreward By Tomas Balint; Francesco Lamperti; Antoine Mandel; Mauro Napoletano; Andrea Roventini; Sandro Sapio
  9. Traditional Agricultural Practices and the Sex Ratio Today By Alesina, Alberto; Giuliano, Paola; Nunn, Nathan
  10. Unconditional cash transfers do not prevent children's undernutrition in the Moderate Acute Malnutrition Out (MAM'Out) cluster-randomized controlled trial in rural Burkina Faso By Jean-François Huneau; Freddy Houngbe; Audrey Tonguet-Papucci; Chiara Altare; Myriam Ait-Aissa; Lieven Huybregts; Patrick Kolsteren
  11. Water Content in Trade: A Regional Analysis for Morocco By Eduardo A. Haddad; Fatima Ezzahra Mengoub, Vinicius A. Vale
  12. Slamming the door on trade policy discretion? The WTO Appellate Body’s ruling on market distortions and production costs in EU—Biodiesel(Argentina) By Meredith A. Crowley; Jennifer A. Hillman
  13. Targeting farmers in institutional procurement programmes: case study of the PAA Africa Programme in Senegal By Rosana Pereira de Miranda; Abdoulaye Thiam; Israel Klug
  14. Success of Community Management Based on the Collaboration: Lesson Learned for Environmental Crisis Solutions By Nathdanai Pratuangboriboon
  15. Geographic Environmental Kuznets Curves: The Optimal Growth Linear-Quadratic Case By Raouf Boucekkine; Giorgio Fabbri; Salvatore Federico; Fausto Gozzi
  16. The Role of Demand in Land Re-Development By Felipe Carozzi

  1. By: Alice Issanchou; Karine Daniel; Pierre Dupraz; Carole Ropars-Collet
    Abstract: There is a growing public concern for soils and the maintenance or enhancement of soil quality. Actually, soil resource plays a central role in issues regarding food security and climate change mitigation. Through their practices, farmers impact the physical, biological and chemical quality of their soils. However, in a strained economic environment, farmers face a trade-off between short term objectives of production and profitability, and a long term objective of soil resource conservation. In this article, we investigate the conditions under which farmers have a private interest to preserve the quality of their soil. We also characterize the optimal management strategies of soil quality dynamics. We use a simplified theoretical soil quality investment model, where farmers maximise their revenues under a soil quality dynamics constraint. In our production function, soil quality and productive inputs are cooperating production factors. In addition, productive inputs have a detrimental impact on soil quality dynamics. It appears that in some cases, farmers have a private and financial interest in preserving the quality of their soil at a certain level, since it is an endogenous production factor cooperating with productive inputs. However, situations can occur wherein the cooperative production benefits of soil quality and productive inputs are smaller than the marginal deterioration of soil quality due to productive inputs. In this case, one cannot draw conclusions about the existence of an equilibrium.
    Keywords: optimal control, soil quality, endogenous production factor
    JEL: D90 Q10 Q24
    Date: 2018
  2. By: Ivan Haščič (OECD); Alexander Mackie (OECD)
    Abstract: Changes in the biophysical characteristics of natural habitats – that can be measured with data on land cover – are the best proxy to monitor pressures on ecosystems and biodiversity. This paper presents a suite of indicators that track land cover change over time in a globally consistent manner. The indicators, including an OECD Green Growth headline indicator, represent the Organisation's most recent effort to monitor pressures on ecosystems and biodiversity, using state-of-the-art data and techniques. Results are presented for OECD and G20 countries over 1992-2015 using global multi-period datasets.
    Keywords: biodiversity, Earth observation, ecosystems, habitat loss, land cover, remote sensing, satellite data
    JEL: Q2 Q24 Q28 Q57 Q58 R11 R14 R52
    Date: 2018–05–24
  3. By: Jussi Lankoski (OECD); Ada Ignaciuk (OECD); Franck Jésus (OECD)
    Abstract: This report develops quantitative and qualitative frameworks to test the possibility of systematically assessing a range of policies and their intended and unintended effects. The analysis spans the three policy objectives of enhanced productivity, climate change mitigation, and climate change adaptation. The preliminary findings and lessons learned are drawn from two applications of a qualitative framework (France and the Netherlands), where information was gathered through a wide-ranging questionnaire, and from two applications of a quantitative modelling framework which was tested using data from Finland and from selected sites in one region of the United States.
    Keywords: adaptation, agricultural policy, greenhouse gas emissions, mitigation, Productivity
    JEL: Q18 Q54 Q58
    Date: 2018–05–28
  4. By: Christine Léger-Bosch (UMR Territoires - UMR Territoires - Clermont Auvergne - AgroParisTech - VetAgro Sup - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - UCA - Université Clermont Auvergne - INRA Auvergne/Rhône-Alpes - Institut national de la recherche agronomique [Auvergne/Rhône-Alpes])
    Abstract: This article explores to what extent farming preservation or development initiatives from public authorities and/or Non-Governmental Organizations (NGOs) resting upon Long-term and Full Rights Acquisitions (LFRA) of land succeed in preserving farmland. The line adopted is to assess whether this mode of access to land use decreases farm profitability. With this aim, we compare ex ante transaction costs and some other costs and benefits incurred by farmers with access to land use, in the case of LFRAs, with the corresponding costs and benefits associated with the two other major coordination mechanisms, namely, conventional lease arrangements and purchasing transactions. The comparison rests on original data on costs obtained in a survey of farmers within a French region. We find that these farmers incur fewer ex ante exchange costs than by purchasing land and higher ex ante exchange costs than by leasing to an individual owner relative to the total cost of accessing land use. This difference is due to negotiation costs, which are nearly twice as high as in conventional lease arrangements. Our results imply that LFRAs would improve their efficiency by limiting the period and the intensity of tenant involvement in their own implementation without reducing their understanding of tenants’ expectations.
    Keywords: Land tenure, Transaction costs, Farmland, Agriculture, Public and collective owners
    Date: 2018–04–23
  5. By: Caroline Hambloch (Department of Economics, SOAS, University of London, UK)
    Abstract: The chain literature (Global Commodity Chains/Value Chains/Production Networks) have remained surprisingly silent about the role of land as a factor of production. I use fieldwork experience from the palm oil industry in Agusan del Sur, Philippines to illustrate the way in which the buyer-driven nature of the chain interacts with a major institutional change, namely the redistributive land reform, Comprehensive Agrarian Reform Program (CARP). I argue that the CARP has not resulted in the desired redistribution of power from the landed to the landless, but reinforces the unequal distribution of power between plantation/milling companies and beneficiaries, producing economic and social downgrading trajectories for reform beneficiaries and farmworkers.
    Keywords: agribusiness; flex crops; land reform; oil palm; Philippines; value chains
    JEL: O53 P14 P16 P48 Q15 Q33
    Date: 2018–05
  6. By: Reza Javidi Sabbaghian (Hakim Sabzevari University, Sabzevar)
    Abstract: Recently, inappropriate governance within the watersheds have caused to qualitative and quantitative degradation of water resources and unbalanced allocation of resources amongst the beneficiaries. Therefore, one of the most important challenges for stakeholders is the selection of final sustainable development criteria, which affects the planning and management for water supply scenarios and leads to effective watershed governance. Selection of final criteria depends on the stakeholders’ preferences and the decision-making risk attitudes. The risk attitudes related to the importance of viewpoints associated with stakeholders’ number within the watershed. This paper has developed a comprehensive approach based on the risk analysis to calculate the group weights and the group consensus measurements of criteria, which leads to selecting final decision-making criteria. Accordingly, in the first step, the initial criteria are determined by the group of DMs. In the second step, the group criteria weights have been calculated and in the third step, the group consensus measurements of criteria have been measured in several risk attitudes using the Hybrid Weighted Averaging (HWA) operator and the distance-based group consensus method. Finally, the most important criteria have been selected from the initial criteria based on the group consensus measurements, compared with an acceptable threshold level. This approach has been developed for the Kashafrud watershed, to select the final sustainable criteria in 2040. The results showed that the number of the final criteria depends on the risk attitudes of decision-making. Development of this method is recommended for watershed governance in the world.
    Keywords: Sustainable Development Criteria, Effective Watershed Governance, Group Consensus, Risk Analysis, Hybrid Weighted Averaging Operator
    Date: 2018–03
  7. By: Jani Laine
    Abstract: Construction phase greenhouse gas emissions are most important emission sources of new buildings from the perspective of climate change targets. Energy efficiency improvements have highlighted the role of such emissions. Although living environment of detached houses have been criticized from the greenhouse gas perspectives, it is shown that this may not be justified. In addition, detached houses offer a great way for major reduction of construction phase emissions of buildings. In the study it is presented that through building material supply chain management of detached houses, it is possible to achieve the construction emission level of below 40%in relationship to average emission level of new buildings.
    Keywords: Construction phase; detached houses; greenhouse gasses; sustainable cities
    JEL: R3
    Date: 2017–07–01
  8. By: Tomas Balint (Université Paris 1 Panthéon-Sorbonne); Francesco Lamperti (Université Panthéon-Sorbonne - Paris 1 (UP1)); Antoine Mandel (Ecole d'Économie de Paris - Paris School of Economics); Mauro Napoletano (Observatoire français des conjonctures économiques); Andrea Roventini (Laboratory of Economics and Management (LEM)); Sandro Sapio (Universita degli studi di Napoli "Parthenope" [Napoli])
    Abstract: Climate change is one of the most daunting challenges human kind has ever faced. In the paper, we provide a survey of the micro and macro economics of climate change from a complexity science perspective and we discuss the challenges ahead for this line of research. We identify four areas of the literature where complex system models have already produced valuable insights: (i) coalition formation and climate negotiations, (ii) macroeconomic impacts of climate-related events, (iii) energy markets and (iv) diffusion of climatefriendly technologies. On each of these issues, accounting for heterogeneity, interactions and disequilibrium dynamics provides a complementary and novel perspective to the one of standard equilibrium models. Furthermore, it highlights the potential economic benefits of mitigation and adaptation policies and the risk of under-estimating systemic climate change-related risks.
    Date: 2017–08
  9. By: Alesina, Alberto (Harvard University); Giuliano, Paola (University of California, Los Angeles); Nunn, Nathan (Harvard University)
    Abstract: We study the historical origins of cross-country differences in the male-to-female sex ratio. Our analysis focuses on the use of the plough in traditional agriculture. In societies that did not use the plough, women tended to participate in agriculture as actively as men. By contrast, in societies that used the plough, men specialized in agricultural work, due to the physical strength needed to pull the plough or control the animal that pulls it. We hypothesize that this difference caused plough-using societies to value boys more than girls. Today, this belief is reflected in male-biased sex ratios, which arise due to sex-selective abortion or infanticide, or gender-differences in access to family resources, which results in higher mortality rates for girls. Testing this hypothesis, we show that descendants of societies that traditionally practiced plough agriculture today have higher average male-to-female sex ratios. We find that this effect systematically increases in magnitude and statistical significance as one looks at older cohorts. Estimates using instrumental variables confirm our findings from multivariate OLS analysis.
    Keywords: sex ratio, gender roles, cultural transmission, historical persistence
    JEL: J1 N00 Z1
    Date: 2018–04
  10. By: Jean-François Huneau (PNCA - Physiologie de la Nutrition et du Comportement Alimentaire - INRA - Institut National de la Recherche Agronomique - AgroParisTech); Freddy Houngbe (Food Safety and Food Quality - UGENT - Ghent University [Belgium]); Audrey Tonguet-Papucci (Action contre la Faim); Chiara Altare (Action contre la Faim); Myriam Ait-Aissa (Association de Coordination Technique Agricole); Lieven Huybregts (IFPRI - International Food Policy Research Institute); Patrick Kolsteren (Food Safety and Food Quality - UGENT - Ghent University [Belgium])
    Abstract: Background: Limited evidence is available on the impact that unconditional cash transfer (UCT) programs can have on child nutrition, particularly in West Africa, where child undernutrition is still a public health challenge. Objective: This study examined the impact of a multiannual, seasonal UCT program to reduce the occurrence of wasting (weight-for-height, midupper arm circumference), stunting (height-for-age), and morbidity among children
    Keywords: Burkina Faso,children,morbidity,nutritional status,seasonal unconditional cash transfers
    Date: 2017
  11. By: Eduardo A. Haddad; Fatima Ezzahra Mengoub, Vinicius A. Vale
    Abstract: This paper reports the results of an application using an interregional input-output matrix for Morocco together with regional information on water consumption by sectors. We develop a trade-based index that reveals the relative water use intensities associated with specific interregional and international trade flows. We estimate, for each flow associated with each origin-destination pair, measures of trade in value added and trade in water that are further used to calculate our index. We add to the existing literature on virtual water flows by encompassing the subnational perspective in the case study of a country that shows a “climate divide†: while a great part of the southern territory is located in the Sahara Desert, with serious water constraints, the northern part is relatively more privileged with access to this natural resource. Furthermore, we compare that Trade-Based Index of Water Intensity to similar metrics related to the use of other natural resources.
    Keywords: Water accounting; integrated ecologic-economic modelling; interregional input-output.
    JEL: Q25 Q56 C67 D57 R15
    Date: 2018–05–21
  12. By: Meredith A. Crowley; Jennifer A. Hillman
    Abstract: This paper presents a legal-economic analysis of the Appellate Body’s decision that the WTO’s Anti-Dumping Agreement (ADA) precludes countries from taking into account government-created price distortions of major inputs when calculating anti-dumping duties, made in EU-Biodiesel (Argentina). In this case, the EU made adjustments to the price of biodiesel’s principal input – soybeans – in determining the cost of production of biodiesel in Argentina. The adjustment was made based on the uncontested finding that the price of soybeans in Argentina was distorted by the existence of an export tax scheme that resulted in artificially low soybean prices. The Appellate Body found that the EU was not permitted to take tax policy-induced price distortions into account in calculating dumping margins. We analyze the economic rationale for Argentina’s export tax system, distortions in biodiesel markets in Argentina and the EU, and the remaining trade policy options for addressing distorted international prices. We also assess whether existing subsidies disciplines would be more effective in addressing this problem and conclude that they would not.
    Keywords: WTO, anti-dumping, export tax, cost adjustment, government distortion, subsidy
    JEL: F13 F53
    Date: 2017–12
  13. By: Rosana Pereira de Miranda (IPC-IG); Abdoulaye Thiam (IPC-IG); Israel Klug (IPC-IG)
    Abstract: "Like other Sahel countries, Senegal experienced a succession of food and nutrition crises in 2005, 2008, 2010 and 2012. In 2012, severe food insecurity affected around 739,000 people, corresponding to 6.2 per cent of the Senegalese population. Nutrition surveys conducted in 2012 showed overall acute malnutrition rates ranging from 10 to 15 per cent, with 16 of the countrys 45 départements reaching the alert threshold. Moreover, severe acute malnutrition rates ranging from 2 to 4 per cent were recorded in eight départements and consequently regarded as a crisis phase (WFP 2011)". (?)
    Keywords: Targeting, farmers, institutional, procurement, programmes, case, study, PAA Africa, Programme, Senegal
    Date: 2017–07
  14. By: Nathdanai Pratuangboriboon (Lampang Rajabhat University, Thailand)
    Abstract: World change influences the changes in the economy, society, environment, way of life, culture, and traditions into slavery of capitalism, materialism, and consumerisms including modern trends all have a great impact on the country’s development. This is why “Society has problems and the development is not sustainable†while Ban Thung Sri Community, Moo 3, Thung Sri Subdistrict, Rong Kwang district, Phrae province, Thailand has been accredited by various institutions in community management in a variety of dimensions until the community is successful. When the study was conducted, the Lesson learned of community management for environmental crisis solutions, which the community believes is a sustainable solution to the environmental crisis and driven by community strategies. This can be an example that other communities can apply concretely
    Keywords: Community Management, Collaboration, Environmental Crisis Solutions
    Date: 2018–04
  15. By: Raouf Boucekkine (Aix-Marseille Univ., CNRS, EHESS, Centrale Marseille, AMSE; Iméra; and Institut Universitaire de France); Giorgio Fabbri (Univ. Grenoble Alpes, CNRS, INRA, Grenoble INP, GAEL); Salvatore Federico (Università degli Studi di Siena, Dipartimento di Economia Politica e Statistica); Fausto Gozzi (Dipartimento di Economia e Finanza, LUISS Guido Carli)
    Abstract: We solve a linear-quadratic model of a spatio-temporal economy using a polluting one-input technology. Space is continuous and heterogenous: locations differ in productivity, nature self-cleaning capacity and environmental awareness. The unique link between locations is transboundary pollution which is modelled as a PDE diffusion equation. The spatio-temporal functional is quadratic in local consumption and linear in pollution. Using a dynamic programming method adapted to our infinite dimensional setting, we solve the associated optimal control problem in closed-form and identify the asymptotic (optimal) spatial distribution of pollution. We show that optimal emissions will decrease at given location if and only if local productivity is larger than a threshold which depends both on the local pollution absorption capacity and environmental awareness. Furthermore, we numerically explore the relationship between the spatial optimal distributions of production and (asymptotic) pollution in order to uncover possible (geographic) Environmental Kuznets Curve cases.
    Keywords: growth, geography, transboundary pollution, infinite dimensional optimal control problems
    JEL: C61 C69 O44 R11
    Date: 2018–05
  16. By: Felipe Carozzi
    Abstract: Several governments throughout the world apply policies aimed to re-mediate and recover vacant or idle land for other uses. This paper provides estimates of the price sensitivity of redevelopment, a crucial parameter for the success of these policies. My cross-sectional estimates measure how prices affect long-run conversion of unused or underused previously developed land in England. In order to solve the classical problem in the estimation of supply elasticities from market outcomes, I exploit school quality information and school admission boundaries to obtain a demand-shifter that is orthogonal to re-development costs. Estimation is conducted using a boundary discontinuity design based on this instrument. Results show that the probability of re-development is effectively sensitive to housing prices. Estimates indicate that a 1% increase in housing prices leads to a 0.07 percentage point reduction in the fraction of hectares containing brownfield land. Back-of-the envelope calculations using these estimates suggest that a large increase of 21% in prices across locations, or an equivalent subsidy, would be required to eliminate most of these vacant or underused land plots.
    Keywords: re-development, supply elasticity, brownfields
    JEL: R14 R31
    Date: 2018–05

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