|
on Agricultural Economics |
|
Issue of 2019‒01‒14
fifteen papers chosen by |
| By: | Glenn P. Jenkins (Department of Economics, Queen's University, Kingston, Canada and Eastern Mediterranean University, North Cyprus); Mikhail Miklyaev (JDINT’L Executive Programs Department of Economics, Queen’s University, Kingston, Ontario, Canada, and Senior Associate/ Economist Cambridge Resources International Inc.); Shahryar Afra (Financial Analyst / Economist Cambridge Resource International Inc.); Primrose V. Basikiti (Project Appraisal Analyst Cambridge Resource International Inc.) |
| Abstract: | The Cost-Benefit Analysis (CBA) conducted in this program was aimed at reducing rural poverty and that will increase the incomes and food security looking at the value chain on beef and dairy for farmers producing in small scale and also to improve their hygiene and nutritional practices and building the capacity that will enhance agricultural development. The results of the cost- benefit analysis (CBA). It shows that annual income for beef cattle farmers would increase by USD419. The financial returns are driven by the significant increase in the costs associated with adopting Good Animal Husbandry Practices (GAHPs). The Veterinary Costs will increase by 475% while feeding and labor costs increased by an estimated to be 169% and 148% respectively. There also will be an increase in employment as a result of the increase in labour cost in the Value Chain. |
| Keywords: | Zimbabwe, CBA, USAID, Livestock Development, Value Chain. |
| JEL: | D61 D62 Q12 Q13 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:qed:dpaper:3007&r=all |
| By: | Glenn P. Jenkins (Department of Economics, Queen's University, Kingston, Canada and Eastern Mediterranean University, North Cyprus); Mikhail Miklyaev (JDINT’L Executive Programs Department of Economics, Queen’s University, Kingston, Ontario, Canada, and Senior Associate/ Economist Cambridge Resources International Inc.); Brian Matanhire (Financial Analyst / Economist Cambridge Resource International Inc.); Gift Khozapi (Senior Analyst Cambridge Resources International Inc.) |
| Abstract: | The primary objective of this project is to enhance a sustainable reduction of rural poverty, and to improve the food security, nutrition, and hygiene of households on irrigation schemes and dry land sites. Trainings were provided for farmers to increase agricultural productivity to increase the volume of marketed surplus of cash and food crops, and improve the nutrition and hygiene of beneficiary households. The project concentrated on maize, groundnuts, green mealies, and tomatoes value chains. The CBA of these four crops cover two high- value crops of green mealies and tomatoes; and two staple food crops of maize and groundnuts. The project targeted doubling crops yields of horticultural produce. |
| Keywords: | CBA, Zimbabwe, value chain (CV), economic net present value (ENPV) |
| JEL: | D61 E2 Q13 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:qed:dpaper:406&r=all |
| By: | Ourens, Guzman (Tilburg University, Center For Economic Research) |
| Abstract: | This paper documents that growth in the extensive margin is on average lower in the agricultural sector than in other activities. I introduce this new fact into a simple model of trade with expanding-variety growth, to show its relevance for regions specialized in the lagging sector. Diversity-loving consumers endogenously reduce the share of their expenditure devoted to that sector. The region specialized in it receives a decreasing share of world income, which results in diverging income and welfare trajectories with respect to the rest of the world. Appropriating a decreasing share of world value pushes downward the relative wage of the agricultural region and lowers the price of its exports relative to that of its imports, resulting in terms of trade deterioration. The prediction of falling terms of trade for the region specialized in the lagging agricultural sector is supported by empirical evidence and separates the results of my theory from those obtained in a similar model of uneven output growth between sectors. I present empirical evidence for the main testable results of the model. This theory is the first replicating these facts without the need of heterogeneous consumers or products, nor resorting to political or institutional explanations. |
| Keywords: | diversification; agricultural economies; growth; welfare |
| JEL: | F43 O13 Q17 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:e2d4736c-7faa-4eee-a860-348503401da1&r=all |
| By: | Buchholz, Matthias; Peth, Denise; Mußhoff, Oliver |
| Abstract: | Pesticides are one of the most important inputs in modern agriculture. However, intensive use of pesticides is also related to adverse effects on the environment and human health. While implementation of pesticide taxes with the intent to reduce pesticide applications has been widely discussed, green nudges are considered as innovative policy tools to foster environmental friendly behaviour. To date, little is known about the effects of these policy tools at the farm level. With this in mind, we use a business management game to investigate how a pesticide tax and a green nudge affect crop, tillage and pesticide decisions for a "virtual" farm. Results from a sample of German agricultural students reveal that both policies are able to reduce the amount of pesticides applied. However, implementation of the pesticide tax also involves a substantial profit loss. Unlike in the green nudge treatment, participants under pesticide tax adjust their cropping and tillage strategies which could involve unintended ecological effects. |
| Keywords: | pesticide policies,pesticide tax,green nudge,policy impact analysis,business management game |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:daredp:1813&r=all |
| By: | Mehmet Balcilar (Department of Economics, Eastern Mediterranean University); Festus Victor Bekun (Department of Economics, Eastern Mediterranean University) |
| Abstract: | This article contributes to the existing empirical literature by examining the spillovers across price inflation and agricultural commodity prices in the case of Nigeria. To achieve this objective, we employ the Diebold and Yilmaz (2012) spillover index. Subsequently, we examine the directional spillover, total spillover, and net spillover indexes. Further analysis to capture cyclical and secular movements were addressed with 40 months of subsamples via the rolling window analysis. Our empirical results, based on the monthly frequency data from January 2006 to July 2016 show that the total spillover effect was about 75%. This suggests a high interconnectedness of the selected agricultural commodity prices and inflation. Our study further reveal that inflation, sorghum, soybeans, and wheat were net receivers while cocoa, barley, groundnut, maize, rice were net givers. We find a negative net spillover for price inflation, implying a net positive spillover from commodity prices to price inflation These outcomes have inherent policy implications for the government administrators, farmers, investors and all stakeholders. |
| Keywords: | CO2 emissions; Agricultural commodity prices; inflation; VAR model; forecast error variance; price spillover; Nigeria. |
| JEL: | C32 Q02 Q43 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:emu:wpaper:15-42.pdf&r=all |
| By: | Sophie van Huellen (Department of Economics, SOAS University of London, UK) |
| Abstract: | The paper develops a price discovery model for commodity futures markets that accounts for two forms of limits to arbitrage caused by transaction costs and noise trader risk. Four market regimes are identified: (1) effective arbitrage, (2) transaction costs but no noise trader risk, (3) no transaction costs but noise trader risk and (4) both transaction costs and noise trader risk. It is shown that commodity prices are driven by both market fundamentals and speculative trader positions under the latter two regimes. Further, speculative effects spill over to the cash market under regime (3) but are confined to the futures market under regime (4). The model is empirically tested using data from six grain and soft commodity markets. While regime (4) is rare and short lived, regime (3) with some noise trader risk and varying elasticity of arbitrage prevails. |
| Keywords: | commodity futures, index investment, price discovery, speculation |
| JEL: | D84 G13 Q02 Q11 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:soa:wpaper:213&r=all |
| By: | Peters, Jörg; Sievert, Maximiliane; Toman, Michael A. |
| Abstract: | Recent debates on how to provide electricity to the roughly one billion still unconnected people in developing countries have identified mini-grids as a promising way forward. High upfront costs of transmission lines are avoided, and unlike home-scale solar, mini-grids can provide sufficient electricity for productive uses. This note outlines the challenges the mini-grid sector faces to achieve that potential. To date, few examples of sustainably working mini-grid programs exist. We identify regulatory issues, low electricity demand in rural areas, high payment default rates and over-optimistic demand projections as among the key challenges. Business models that account for high transaction costs in rural areas and are based on realistic demand forecasts could considerably increase the commercial viability of village grids. |
| Keywords: | public infrastructure,rural electrification,energy planning systems |
| JEL: | H54 O13 O21 Q48 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:781&r=all |
| By: | Maria Marino; Benedetto Rocchi; Simone Severini |
| Abstract: | In this paper we first discuss the several empirical challenges that researchers had to face when considering the farm income problem. Therefore, we offer a brief but systematic review of the empirical literature on the farm problem since the seminal Gardner's paper of 1992. Taking into consideration the state of the art, we use data for the European countries from EU-SILC (Statistics on Income and Living Conditions) survey for the period 2005 - 2015 to carry out an empirical evaluation of the farm income problem in the European Union using a longitudinal panel approach to estimation and considering alternative definitions of the group of farm households. Similar to previous studies we don't find a strong evidence for the farm income problem in the European Union. The only exception is the group Central Eastern countries, where farm households are poorer that the rest of the population but only when they are defined according to a broad definition. Conversely, families mainly relying on farming as a source of income (narrow definition of agricultural households) show income levels similar to the rest of the population both at the EU level and across different geographic areas. |
| Keywords: | Farm income problem, European Union, EUSILC, Panel estimation |
| JEL: | D31 Q12 Q18 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpaper:wp2018_29.rdf&r=all |
| By: | Sareeya WICHITSATHIAN (Institute of Social Technology, Suranaree University of Technology, Thailand Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective - The objectives of this research include: (1) to identify working capital investment policy and working capital financing policy, (2) to study the effect of working capital investment policy on profitability, and (3) to study the effect of working capital financing policy on profitability. Methodology/Technique - 41 firms in the agro-food industry listed on the Stock Exchange of Thailand are examined in this study. Secondary data was collected and analyzed within a 5-year period between 2013-2017. Findings - The results show that the most frequently employed working capital investment policy is the aggressive approach (46.30%), and the most frequently employed financial policy is the moderate approach (82.90%). According to the inferential statistics, it is concluded that: (1) profitability is significantly affected by the choice of working capital investment policy and a moderate investment policy results in the greatest profitability, and (2) profitability is not affected by the choice of working capital financing policy. Novelty - As a result, firms should focus on the selection of a moderate working capital investment policy when seeking to maximize profits. On the other hand, any type of working capital financing policy (aggressive, conservative, or moderate approach) is appropriate. |
| Keywords: | Working Capital Policy; Profitability; Agro and Food Industry; Thailand. |
| JEL: | M10 M40 M41 |
| Date: | 2018–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr166&r=all |
| By: | Philippe Le Coent (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Raphaële Preget (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Sophie Thoyer (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier) |
| Abstract: | This article analyses the role played by social norms in farmers' decisions to enroll into an agri-environmental scheme (AES). First, it develops a simple theoretical model highlighting the interplay of descriptive and injunctive norms in farmers' utility functions. Second, an empirical valuation of the effect of social norms is provided based on the results of a stated preference survey conducted with 98 wine-growers in the South of France. Proxies are proposed to capture and measure the weight of social norms in farmers' decision to sign an agri-environmental contract. Our empirical results indicate that the injunctive norm seems to play a stronger role than the descriptive norm. |
| Keywords: | agri-environmental contracts,behaviour,social norms |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01936004&r=all |
| By: | Ilaria Brunetti (CMAP - Centre de Mathématiques Appliquées - Ecole Polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique); Mabel Tidball (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Denis Couvet (MNHN - Muséum National d'Histoire Naturelle) |
| Abstract: | Agriculture is one of the main causes of biodiversity loss. In this work we model the interdependent relationship between biodiversity and agriculture on a farmed land, supposing that, while agriculture has a negative impact on biodiversity, the latter can increase agricultural production. Farmers act as myopic agents, who maximize their instantaneous profit without considering the negative effects of their practice on the evolution of biodiversity. We find that a tax on inputs can have a positive effect on yield since it can be considered as a social signal helping farmers to avoid myopic behavior in regards to the positive effect of biodiversity on yield. We also prove that, by increasing biodiversity productivity the level of biodiversity at equilibrium decreases, since when biodiversity is more productive farmers can maintain lower biodiversity to get the same yield. |
| Keywords: | cleansing dictator game licensing moral in(consistency taking game. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01936005&r=all |
| By: | Catherine Closson; Estelle Fourat; Laurence Holzemer; Marek Hudon |
| Abstract: | This paper explores challenges a consumer food cooperative must address to combine social inclusion and embeddedness in its urban environment with the food quality standards it targets. While the difficulty in making alternative food networks (AFNs) socially accessible is well documented, little is known about organizational practices that foster inclusion in AFNs. Our research—based on over 100 participant observations of meetings held at the cooperative and on food activities with members of community organizations—has generated insight on how a participative process—through collective decisions, knowledge exchanges and workslot commitments—could facilitate or restrain social inclusion. Our results suggest that promotion of the value of equality for the largest number is hindered by differences in food, material and consumer cultures between cooperative members and non-members. The value of equality for the largest number is pragmatically applied through social inclusion regarding food supply and voluntary work participation. |
| Keywords: | Alternative food network; Participatory action research; Consumer food cooperative; Social inclusion; Accessibility; Food democracy |
| JEL: | Q18 Q01 M10 |
| Date: | 2019–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/280933&r=all |
| By: | Camille Dezécache (ECOFOG - Ecologie des forêts de Guyane - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - AgroParisTech - UG - Université de Guyane - CNRS - Centre National de la Recherche Scientifique - UA - Université des Antilles); Jean-Michel Salles (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Bruno Hérault (CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement, INP-HB - Institut National Polytechnique Félix Houphouët Boigny de Yamoussoukro) |
| Abstract: | Background: REDD+ is being questioned by the particular status of High Forest/Low Deforestation countries. Indeed, the formulation of reference levels is made difficult by the confrontation of low historical deforestation records with the forest transition theory on the one hand. On the other hand, those countries might formulate incred‑ibly high deforestation scenarios to ensure large payments even in case of inaction. Results: Using a wide range of scenarios within the Guiana Shield, from methods involving basic assumptions made from past deforestation, to explicit modelling of deforestation using relevant socio‑economic variables at the regional scale, we show that the most common methodologies predict huge increases in deforestation, unlikely to happen given the existing socio‑economic situation. More importantly, it is unlikely that funds provided under most of these scenarios could compensate for the total cost of avoided deforestation in the region, including social and economic costs. Conclusion: This study suggests that a useful and efficient international mechanism should really focus on removing the underlying political and socio‑economic forces of deforestation rather than on hypothetical result‑based pay‑ments estimated from very questionable reference levels. |
| Keywords: | Baseline,Reference level,Spatial modelling,REDD+,Guiana Shield,HFLD countries,Deforestation |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01952492&r=all |
| By: | M. Shittu, Adebayo; Akerele, Dare; Haile, Mekbib |
| Abstract: | The dramatic global food price upsurges of 2007/2008 and the resurgence of 2010/2011 have kept the welfare effects of food price shocks at the epicentre of policy discussions worldwide. Studies have found heterogeneous impacts, but empiricallylittle is known in Nigeria. The key objectives of this study are to examine the welfare, i.e. food quantity consumption, dietary diversity, and economic welfare effects of food price spikes among households in Nigeria. Using the 2012/2013 and 2015/2016 Household Survey Panel Data, the linear individual (fixed) effects models were estimated while controlling for participation in safety net interventions and other factors to achieve the stated objectives. Findings suggest that higher spike in the price of cereals consistently has negative effect on food quantity (including calories) consumed, dietary diversity, and economic welfare of households, spikes of price of other staples, animal proteins, fats and oils, fruits and vegetables exert heterogeneous influence. Female headed households advance calorie consumption and dietary variety. Findings suggest that food distribution may be more effective in improving welfare of households than direct cash transfers.Efforts to mitigate extreme spikes in the prices of staples (especially cereals) are relevant for improved food security, nutrition and overall household welfare. However, if policy actions are complemented with food distribution and sensitively guided welfare related gender interventions, more improvementsfor livelihoods can be achieved. |
| Keywords: | Consumer/Household Economics, Food Security and Poverty |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:281274&r=all |
| By: | Stefano Farolfi (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - ENGREF - Ecole Nationale du Génie Rural, des Eaux et des Forêts - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - CEMAGREF - IRD [France-Sud] - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier); Dimitri Dubois (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - INRA Montpellier - Institut national de la recherche agronomique [Montpellier] - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Sylvie Morardet (Unité de recherche Irrigation - CEMAGREF); Imen Nouichi (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - AgroParisTech - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture - CIHEAM - Centre International des Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier); Serge Marlet (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - ENGREF - Ecole Nationale du Génie Rural, des Eaux et des Forêts - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - CEMAGREF - IRD [France-Sud] - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier) |
| Abstract: | Irrigation water is a crucial resource for economic and social development in Tunisia. In a context of decentralization and State devolution, the local associations for agricultural development or 'Groupements de Développement Agricole (GDA)' manage today a large share of irrigation water in the country. However, these institutions are experiencing a lack of acknowledgment by water users, resulting in a low willingness to pay (WTP) for water. In this article we study to what extent information provided to users on the functioning of the system (« institutional » information) and/or on the decisions taken by other users (« social » information) can affect their WTP. Our analysis is twofold. A field survey first revealed the farmers' demand for better information provision. A laboratory experiment allowed then to isolate the impact of the two types of information on subjects' decisions through a game with similar properties to those observed in the field. Data collected in the lab confirm the existence of a causality relation between information provided to users and their WTP for a common resource such as irrigation water. |
| Abstract: | L'eau d'irrigation est une ressource cruciale pour le développement économique et social en Tunisie. Dans un contexte de décentralisation et de dévolution du rôle de l'Etat, une part importante de la gestion de cette eau d'irrigation a été confiée aux Groupements de Développement Agricole (GDA). Ces groupements souffrent cependant d'un manque de reconnaissance de la part des usagers, qui se manifeste essentiellement par un faible consentement de leur part à payer les redevances. Dans cet article nous nous demandons dans quelle mesure l'information fournie aux usagers sur le fonctionnement du système (information « institutionnelle ») et/ou sur les décisions prises par les autres usagers (information « sociale ») peut impacter leur consentement à payer. Notre analyse s'est faite en deux temps. Nous avons commencé par une enquête sur le terrain, laquelle révèle effectivement une demande des irrigants en matière de diffusion d'informations. Nous avons ensuite élaboré une expérience permettant d'isoler l'impact de différents types d'information sur les décisions prises par les individus dans le cadre d'un jeu qui a des propriétés proches de la situation de terrain. Les données collectées en laboratoire confirment l'existence d'une relation de causalité entre l'information fournie aux usagers et leur consentement à payer pour une ressource commune comme l'eau d'irrigation. |
| Keywords: | information,irrigation,Tunisie,économie expérimentale,eau |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01952779&r=all |