nep-agr New Economics Papers
on Agricultural Economics
Issue of 2019‒02‒04
eighteen papers chosen by
Angelo Zago
Università degli Studi di Verona

  1. The Cost- Benefit Analysis for Resilience in the Sahel Enhanced on Vulnerable households in Burkina Faso and Niger. By Glenn P. Jenkins; Mikhail Miklyaev; Brian Matanhire; Primrose Basikiti; Shahryar Afra; Mostafa Shahee
  2. Agricultural Growth and Environmental Quality in Cameroon: Evidence from ARDL Bound Testing Approach By Noubissi Domguia, Edmond; Njangang, Henri
  3. European Innovation Partnerships: How Successful Have They Been in Promoting Innovation in the EU? By Rumen Dobrinsky
  4. The effects of natural disasters and weather variations on international trade: A review of the empirical literature By Osberghaus, Daniel
  5. Public perceptions and responses to climate change in France By Zakaria Babutsidze; Graham Bradley; A. Chai; Thomas Dietz
  6. Risk prevention of land flood: A cooperative game theory approach. By Álvarez, Xana; Gómez-Rúa, María; Vidal-Puga, Juan
  7. Determinants of food price inflation: evidence from Malaysia based on linear and nonlinear ARDL By Hasan, Amiratul Nadiah; Masih, Mansur
  8. An empirical examination of reducing status quo bias in heterogeneous populations: evidence from the South African water sector By Murwirapachena, Genius; Dikgang, Johane
  9. Tropical Storms and Mortality under Climate Change By Pugatch, Todd
  10. Does climate influence households’ thermal comfort decisions? By Enrica De Cian; Filippo Pavanello; Teresa Randazzo; Malcolm Mistry; Marinella Davide
  11. International crop trade networks: The impact of shocks and cascades By Rebekka Burkholz; Frank Schweitzer
  12. Urbanization and dietary change By Cockx, Lara; Colen, Liesbeth; De Weerdt, Joachim
  13. Organic agriculture in Africa: a source of innovation for agricultural development By Hubert De Bon; Ludovic Temple; Éric Malézieux; Pauline Bendjebbar; Fouilleux Eve; Pierre Silvie
  14. Market Transparency in Food Supply Chain: Goals, Means, Limits By Claude Menard
  15. Industrialization Led Growth in Tanzania: Running with Two Legs in the 21st Century? By Lars Osberg
  16. Organizing global supply chains: input costs shares and vertical integration By Berlingieri, Giuseppe; Pisch, Frank; Steinwender, Claudia
  17. Boosting social entrepreneurship and social enterprise development in the Netherlands: In-depth policy review By Lou Aisenberg; Stina Heikkilä; Antonella Noya; Filipe Santos
  18. Accuracy of Food Preference Predictions in Couples By Benjamin Scheibehenne; Jutta Mata; David Richter

  1. By: Glenn P. Jenkins (Department of Economics, Queen's University, Kingston, Canada and Eastern Mediterranean University, North Cyprus); Mikhail Miklyaev (Department of Economics, Queen’s University, Canada and Senior Associate/ Economist Cambridge Resources International Inc.); Brian Matanhire (Financial Analyst / Economist Cambridge Resource International Inc.); Primrose Basikiti (Financial Analyst / Economist Cambridge Resource International Inc.); Shahryar Afra (Financial Analyst / Economist Cambridge Resource International Inc.); Mostafa Shahee (Economist Cambridge Resource International Inc.)
    Abstract: The CBA for Burkina Faso and Niger, evaluated the projects for the interventions implemented in agriculture, poultry, and small ruminant value chains (VCs). The interventions, investment costs, and the number of beneficiaries in the VC for this CBA were such that agricultural VC interventions, Resilience and Economic Growth in the Sahel – Accelerated Growth (REGIS-AG’s) beneficiaries were 41,224 and 61,254 farmers respectively. This program assessed the “Sustainable Livelihoods Component” with a focus on Conservation Farming (CF). This encompasses the use of an assortment of climate-adapted farming practices to intensify agricultural productivity in the cowpea, millet, and sorghum VCs, with the objective of increasing the income of households and access to food. CF was introduced to 58,670 farmers in Burkina Faso and 24,280 farmers in Niger. The beneficiaries from the cowpea VC were 21,700 and 23,322 for the poultry VC, which was on chicken production the intervention reached 13,157 and 13,801 beneficiaries in Burkina – Faso and Niger, respectively.
    Keywords: Burkina – Faso, Niger, interventions, Agriculture, CBA, VC, Conservative Farming
    JEL: Q12 Q13 Q18
    Date: 2018–10
  2. By: Noubissi Domguia, Edmond; Njangang, Henri
    Abstract: The purpose of this study is to examine the two-way relationship between agricultural growth and the quality of the environment. Agriculture is considered a key sector and of great importance in the Cameroonian economy. But its sensitivity to climate fluctuations has created a great deal of concern about its ability to meet the food needs of the entire population as a result of climate change. Moreover, its contribution to the deterioration of the quality of the environment is far from being marginal. Thus, the analysis of the links between agricultural income and the quality of the environment was made in the framework of this study using the environmental curve of Kuznets and the Ricardian model. The results of the study show that there is a U-shaped relationship between agricultural growth and environmental quality (CO2). This shows that it is difficult to make agricultural production believe without having a negative effect on the quality of the environment. We finally show that rising temperatures have a U-shaped impact on farm income.
    Keywords: Agricultural Growth, Kuznets approach, Ricardian approach, Environmental quality, ARDL
    JEL: Q01 Q51 Q56
    Date: 2019–01–25
  3. By: Rumen Dobrinsky (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: The paper presents an analytical assessment of the implementation of European Innovation Partnerships (EIPs) launched as one of the commitments of the EU Flagship Initiative Innovation Union with the aim to achieve innovative breakthroughs addressing major societal challenges. The EU launched five EIPs to address important societal challenges (1) Active & Healthy Ageing; (2) Water; (3) Agricultural Productivity and Sustainability; (4) Raw Materials; and (5) Smart Cities and Communities. The paper reviews the rationale of introducing the EIPs as a policy intervention aimed at promoting innovation in the EU and traces the organic evolution and governance structures of the newly emerging formations. It then provides an analytical evaluation of this EU policy initiative based on factual analysis of its implementation experiences and a comparison of its objectives and actual outcomes. In particular, the paper analyses the role of the EIPs as drivers of systemic change in the European innovation ecosystem and catalysts of new innovation activity in Europe. This critical assessment serves as the basis for drawing some conclusions about the strengths and weaknesses of the EIPs as a new policy approach to foster innovation activity in Europe. One central conclusion is that while the EIPs have been very efficient in promoting collaboration among innovation stakeholders they have fallen short of breeding innovation activity of the expected scope and scale. The paper analyses the reasons for this weakness and formulates some recommendations that could serve as possible remedies.
    Keywords: Innovation Union, innovation partnerships, innovation systems and ecosystems, innovation policy, innovation governance
    JEL: O25 O32 O38
    Date: 2019–01
  4. By: Osberghaus, Daniel
    Abstract: This review summarizes the empirical literature on the effects of natural disasters and weather variations on international trade flows. A first result is that the body of literature is actually not as small as previously suggested. In total, I summarize 19 studies of 18 independent research teams and show that there is a large diversity in terms of motivations, data sets used, methodologies, and results. Still, some overarching conclusions can be drawn. Increases in average temperature seem to have a detrimental effect on export values (less on imports), mainly for manufactured and agricultural products. Given climate change, this is an important finding for projecting long-term developments of trade volumes. Imports seem to be less affected by temperature changes in the importing country. Findings on the effects of natural disasters are more ambiguous, but at least it can be said that exports seem to be affected negatively by occurrence and severity of disasters in the exporting country. Imports may decrease, increase, or remain unaffected by natural disasters. Regarding heterogeneous effects, small, poor, and hot countries with low degrees of institutional quality and political freedom seem to face the most detrimental effects on their trade flows. Possible directions of future research include analyzing spillover effects in-depth (in terms of time, space, and trade networks), considering adaptation, and using more granular data.
    Keywords: International Trade,Climate Change,Natural Disasters
    JEL: Q17 Q54 Q56 F14 F18
    Date: 2019
  5. By: Zakaria Babutsidze (Observatoire français des conjonctures économiques); Graham Bradley (Griffith University); A. Chai (University of Malaya); Thomas Dietz (Michigan State University)
    Abstract: Responding to climate change is the greatest challenge facing humanity today (IPCC 2014). Climate change poses risks for human and natural systems via processes such as water scarcity, land degradation, habitat and biodiversity loss, and extreme weather events. In Southern France, climate change has been directly linked to recent flooding and is projected to increase the future frequency of storms and heatwaves (Beniston et al. 2007). Understanding how citizens perceive and psychologically adapt to climate change is of great importance to developing a coherent and effective strategy to reduce carbon emissions and greater climate resilience. This national survey represents the most comprehensive survey of national climate change attitudes in France to date. It presents and discusses national survey findings from a collaborative and cross-national research project undertaken by the Université Côte d'Azur and Griffith University (Australia) examining public risk perceptions, understanding and responses to the threat and unfolding impacts of climate change in France. The national survey was undertaken between June 5th and July 17th, 2017 and involved a representative, geographically and demographically stratified national sample of 3480 respondents across France. The results provide an up-to-date and comprehensive profile of current French attitudes and beliefs about climate change, their concerns about the impact it may have on their economic well-being, health and natural surroundings, and the ways in which they are responding psychologically and behaviorally to this threat. This report also uncovers how economic conditions and natural weather events impact the evolution of climate change perceptions and attitudes. These results highlight that the design of public communication strategies in relation to climate change adaptation should take into account the nature of these public perceptions of climate change.
    Date: 2018–06
  6. By: Álvarez, Xana; Gómez-Rúa, María; Vidal-Puga, Juan
    Abstract: Protection against flood risks becomes increasingly difficult for economic and hydrological reasons. Therefore, it is necessary to improve water retention throughout catchment with a more comprehensive approach. Strategies in the land use and measures that are designed to prevent flood risks involve land owners. So, justice issues appear. This paper studies the application of game theory through a cooperative game in order to contribute the resolution of possible agreements among owners and to establish cost / benefit criteria. It is a methodological contribution where land use management for flood retention is analyzed. Specifically, we concentrate on enhancing upstream water retention focusing on the role that forests have as natural water retention measures. This study shows a framework for allocating the compensations among participants based on cooperative game theory and taking into account a principle of stability. We show that it is possible to establish distribution rules that encourage stable payments among land owners. This contribution shows the suitability of this method as a flood risk management tool and as a guide to help decision-making. Compensations and benefits could be established to raise awareness and encourage land owners to cooperate.
    Keywords: game theory, land management, flood mitigation, land use, compensations, decision-making.
    JEL: C7
    Date: 2019
  7. By: Hasan, Amiratul Nadiah; Masih, Mansur
    Abstract: Given the adverse impact of growing inflation on food prices and the importance of policymakers to keep the food price inflation stable, this study aims to investigate the determinants of food price inflation. This study contributes to the existing literature by employing Nonlinear ARDL (NARDL) technique to identify whether the relationship between the focused variables is linear and symmetric or not. This study finds that the variables are cointegrated in the long run. The error correction model VECM and the Variance Decompositions analysis found that the exchange rate is the most exogenous variable and the government has no control over it since it is determined by the external factors such as, supply and demand for Malaysia ringgit. Further, NARDL found that the relationship between the food price and exchange rate to be symmetric in the long run but asymmetric in the short run. Since the exchange rate is the most exogenous variable in this study and the fact that Malaysia in on flexible exchange regime, it makes it hard for the policy makers to control the fluctuations of the Malaysian exchange rate to control food price. Hence the adjustment and control of food price should be made through the reduction of the food import in order to minimise the exchange rate pass through effect on the food price inflation.
    Keywords: food price inflation, exchange rate, ARDL, Nonlinear ARDL, Malaysia
    JEL: C22 C58 E44
    Date: 2018–12–31
  8. By: Murwirapachena, Genius; Dikgang, Johane
    Abstract: Choice experiments typically include a status quo option, which often describes the current scenario. This is to secure the validity and applicability of choice experiments. People have a propensity to choose what they are familiar with, despite being presented with alternatives that seem better (i.e. the ‘status quo effect’). Various experiments have reliably demonstrated this effect. The tendency to prefer the current scenario disproportionally does not mimic real-life preferences; therefore, status quo bias is undesirable. In a split sample framework, we test for the effects of reducing status quo bias by considering a heterogeneous sample. We use generalised mixed logit models to carry out the tests. The tests reveal that presenting each split sample with a partially relevant status quo significantly reduces the status quo bias problem.
    Keywords: choice experiments, heterogeneous, generalised mixed logit, status quo bias.
    JEL: H41 Q25 Q51
    Date: 2018–12–07
  9. By: Pugatch, Todd
    Abstract: Extreme weather induced by climate change can have major consequences for human health. In this study, I quantify the effect of tropical storm frequency and severity on mortality using objective meteorological data and the universe of vital statistics records from a large developing country, Mexico. Using a measure of storm exposure that accounts for both windspeed dispersion and population density along the storm track, I project changes in past storm-related mortality under various scenarios of continued climate change, while holding population and income at current levels. I find that storm-related deaths would have risen under most climate change scenarios considered, with increases of as much as 52% or declines of as much as 10%, depending on the interplay between increasing storm severity and decreased frequency.
    Keywords: tropical storms,tropical cyclones,hurricanes,natural disasters,human mortality,human health,climate change,developing countries,Latin America,Mexico
    JEL: I15 J10 O13
    Date: 2019
  10. By: Enrica De Cian (Department of Economics, University Of Venice Cà Foscari and CMCC); Filippo Pavanello (Department of Economics, University Of Venice Cà Foscari); Teresa Randazzo (Department of Economics, University Of Venice Cà Foscari); Malcolm Mistry (Department of Economics, University Of Venice Cà Foscari and CMCC); Marinella Davide (Department of Economics, University Of Venice Cà Foscari and CMCC)
    Abstract: This paper investigates how households have been adapting to climate change through the use of two technologies important for thermal comfort, air conditioning and thermal insulation. Merging a global gridded dataset of historical temperatures with the 2011 OECD EPIC survey, we study the determinants of installing air conditioning or adopting thermal insulation in response to a warmer climate in eight countries. After controlling for a set of demographic, socio-economic and attitudinal variables, we apply a binary probit model and find that exposure to a warmer climate influences only air conditioning adoption whereas, climatic conditions seem not to affect thermal insulation decisions which, instead, mainly depends on household wealth, dwelling characteristics, age, household size and propensity to energy-saving behaviours. This study does not find any evidence of a possible joint decision for the two technologies.
    Keywords: Cross-section, climate change, adaptation, energy
    JEL: D12 O13 Q4
    Date: 2019
  11. By: Rebekka Burkholz; Frank Schweitzer
    Abstract: Analyzing available FAO data from 176 countries over 21 years, we observe an increase of complexity in the international trade of maize, rice, soy, and wheat. A larger number of countries play a role as producers or intermediaries, either for trade or food processing. In consequence, we find that the trade networks become more prone to failure cascades caused by exogenous shocks. In our model, countries compensate for demand deficits by imposing export restrictions. To capture these, we construct higher-order trade dependency networks for the different crops and years. These networks reveal hidden dependencies between countries and allow to discuss policy implications.
    Date: 2019–01
  12. By: Cockx, Lara; Colen, Liesbeth; De Weerdt, Joachim
    Abstract: Sub-Saharan Africa still evokes images of undernourished children in poor farming villages. And indeed, this is a region where one in every three children under 5 is stunted in their growth and in danger of irreversible physical and cognitive damage. As recently as 2017, parts of South-Sudan, Somalia and Nigeria experienced episodes of famine. However, the region is changing rapidly. While still mostly rural today, sub-Saharan Africa is the fastest urbanizing region in the world. The share of population living in urban areas rose from less than 15% in 1960 to nearly 39% in 2015 and is projected to reach 58% by 2050. At the same time the total population in Africa is growing, making for an even more impressive increase. As can be seen on the infographic below, the absolute number of people living in urban areas in Africa will almost triple over the next 30 years. This shift toward urban living is often put forward as an explanation for changing diets in the region. That is, traditional African staple foods such as maize, sorghum, cassava and pulses are increasingly complemented with and substituted by more processed food items, often with higher levels of sugar and fat. As such, urbanization is commonly linked to increasing rates of overweight and obesity. While undernutrition remains a major public health problem in sub-Saharan Africa, 39% of adult women in Africa were estimated to be overweight and sub-Saharan Africa was home to 6.4 million overweight children in 2017.
    Keywords: Sub-Saharan Africa; food
    Date: 2019–01
  13. By: Hubert De Bon (CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement); Ludovic Temple; Éric Malézieux; Pauline Bendjebbar; Fouilleux Eve; Pierre Silvie
    Date: 2018–10
  14. By: Claude Menard (Centre d’Economie de la Sorbonne, Université de Paris (Panthéon-Sorbonne))
    Abstract: This report constitutes a compilation of the principal issues raised by the speakers at the workshop jointly organised by the Directorate-General for Agriculture and Rural Development and Joint Research Centre on ‘Market transparency’ held in Brussels between 30-31 May 2018.
    Keywords: Food chain; Market transparency; CAP
    JEL: L15 D82 Q18
    Date: 2018–11
  15. By: Lars Osberg (Department of Economics, Dalhousie University)
    Date: 2017–03–22
  16. By: Berlingieri, Giuseppe; Pisch, Frank; Steinwender, Claudia
    Abstract: We study whether and how the technological importance of an input – measured by its cost share – is related to the decision of whether to “make” or “buy” that input. Using detailed French international trade data and an instrumental variable approach based on self-constructed IO tables, we show that French multinationals vertically integrate those inputs that have high cost shares. A stylized incomplete contracting model with both ex ante and ex post inefficiencies explains why: technologically more important inputs are “made” when transaction cost economics type forces (TCE; favoring integration) overpower property rights type forces (PRT; favouring outsourcing). Additional results related to the contracting environment and headquarters intensity consistent with our theoretical framework show that both TCE and PRT type forces are needed to fully explain the empirical patterns in the data.
    Keywords: vertical integration; supply chains; direct requirements; input output relationship; intrafirm trade
    JEL: F10 F14 L16 L23 O14
    Date: 2018–11
  17. By: Lou Aisenberg; Stina Heikkilä; Antonella Noya; Filipe Santos
    Abstract: This report provides an in-depth analysis of the Dutch policy ecosystem in place for socialentrepreneurship and social enterprises. It identifies the country’s key strengths andchallenges and provides policy recommendations to support the development of a strongerpolicy ecosystem for social entrepreneurship and social enterprises in the country. Keypolicy issues analysed include: clarifying the conceptual framework (Chapter 2); formallyrecognising social enterprises and boosting social entrepreneurship (Chapter 3);promoting social impact measurement and reporting (Chapter 4); developing socialentrepreneurial capacity and skills (Chapter 5); improving access to markets and finance(Chapters 6 and 7); and ensuring sustainable institutional support for socialentrepreneurship and social innovation (Chapter 8).
    Keywords: local development, policy ecosystem, social economy, social enterprises, social entrepreneurship, social impact, social innovation
    JEL: L31 L33
    Date: 2019–01–29
  18. By: Benjamin Scheibehenne; Jutta Mata; David Richter
    Abstract: The goal of this study was to identify and empirically test variables that indicate how well partners in relationships know each other’s food preferences. Participants (n = 2,854) lived in the same household and were part of a large, nationally representative panel study in Germany. Each partner independently predicted the other’s preferences for several common food items. Results show that predictive accuracy was higher for likes and for extreme and stereotypical preferences as compared to dislikes and for moderate and idiosyncratic preferences. Accuracy was also higher for couples with a high similarity in preferences and with longer relationship duration but was independent of participants’ age after controlling for relationship duration. The data also show that relationship duration was accompanied by higher similarity in couples’ food preferences. There was a small positive correlation between partner knowledge and both partner similarity and satisfaction with family life, but no correlation between partner knowledge and general life satisfaction. The results reconcile both valence and base-rate accounts of preference prediction accuracy.
    Keywords: Socio-Economic Panel (SOEP), prediction accuracy, food preferences, romantic couples, perspective-taking
    Date: 2018

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