nep-agr New Economics Papers
on Agricultural Economics
Issue of 2019‒03‒25
twenty-one papers chosen by
Angelo Zago
Università degli Studi di Verona

  1. Unraveling local preferences and willingness to pay for different management scenarios: A choice experiment to Biosphere Reserve management By Nekane Castillo-Eguskitza; David Hoyos; Miren Onaindia; Mikolaj Czajkowski
  2. Contract Farming and Rural Transformation: Evidence from a Field Experiment in Benin By Aminou Arouna; Jeffrey D. Michler; Jourdain C. Lokossou
  3. Food security and the functioning of wheat markets in Eurasia: A comparative price transmission analysis for the countries of Central Asia and the South Caucasus By Svanidze, Miranda; Götz, Linde; Duric, Ivan; Glauben, Thomas
  4. Farm performance and investment decisions: evidence from the French (Brittany) dairy sector By Loïc Levi; Laure Latruffe; Aude Ridier
  5. Navigating pathways to reform water policies in agriculture By Guillaume Gruère; Hélène Le Boëdec
  6. Examining Objectives-Based Learning in ABM 100: Decision Making in the Agri-Food System By Cheney, Laura Martin; Hughes, Megan
  7. Ineficient water pricing and incentives for conservation By Chakravorty, Ujjayant; Dar, Manzoor H.; Emerick, Kyle
  8. Trends in policy indicators on trade and environment By Grégoire Garsous
  9. Trade and dietary diversity in Eastern Europe and Central Asia By Krivonos, Ekaterina; Kuhn, Lena
  10. Influencing GVCs through Agro-Food Policy and Reform By Jared Greenville; Kentaro Kawasaki; Dorothee Flaig; Caitlyn Carrico
  11. The Evolution of the Treatment of Agriculture in Preferential Trade Agreements By Clara Thompson-Lipponen; Jared Greenville
  12. Park Life: Assessing the need to Understand User Group Needs when Balancing Commercial Enterprise with Biodiversity Conservation By Mike Brock; Joel Russell
  13. Metric and Scale Effects in Consumer Preferences for Environmental Benefits By Pleshcheva, Vlada
  14. International spillovers and carbon pricing Policies By Geoffroy Dolphin; Michael G. Pollitt
  15. Main land-use patterns in the EU within 2015-2030 By Carolina Perpina Castillo; Boyan Kavalov; Chris Jacobs-Crisioni; Claudia Baranzelli; Filipe Batista e Silva; Carlo Lavalle
  16. Structural Change and the Fertility Transition By Ager, Philipp; Herz, Benedikt
  17. Impacts of Chinese Tariff on World Soybean Markets By Sabala, Ethan; Devadoss, Stephen
  18. The economics of air pollution from fossil fuels By David Newbery
  19. Unintended consequences: The snowball effect of energy communities By Ibrahim Abada; Andreas Ehrenmann; Xavier Lambin
  20. Nitrates and Property Values By Emmanuelle Lavaine; Henrik Anderson
  21. Encouraging policy change for sustainable and resilient fisheries By Claire Delpeuch; Barbara Hutniczak

  1. By: Nekane Castillo-Eguskitza (Faculty of Science and Technology, University of the Basque Country UPV/EHU); David Hoyos (Faculty of Economics and Busines, University of the Basque Country UPV/EHU; Research Group on Ecological Economics and Political Ecology); Miren Onaindia (Faculty of Science and Technology, University of the Basque Country UPV/EHU); Mikolaj Czajkowski (Faculty of Economic Sciences, University of Warsaw; Charles University, Environmental Center, Prague)
    Abstract: Economic valuation of ecosystem services has emerged as a valuable tool to promote conservation and sustainable land management. Our study adds to this literature, by reporting the results of a discrete choice experiment used to analyse local population preferences and willingness-to-pay for selected ecosystem services resulting from different management scenarios in the Urdaibai Biosphere Reserve (Biscay, Spain). The ecosystem services considered include quality of water bodies, agricultural production, native forest protection, biodiversity, and recreation. The results indicate that the local population is willing to financially support a new management plan focused on the improvement of ecosystem health and landscape multifunctionality and sustainability, with recreation being the least valued ecosystem service. These findings may be used to inform conservation and management policies to maximize social well-being. They can also help to prioritize investments and allocation of funding and hence minimise land use conflicts.
    Keywords: Ecosystem services, discrete choice experiment, social preferences, economic valuation, Urdaibai Biosphere Reserve
    JEL: Q51 Q15 Q24 Q25 Q26 Q28 Q57 Q58
    Date: 2019
  2. By: Aminou Arouna; Jeffrey D. Michler; Jourdain C. Lokossou
    Abstract: In recent decades contract farming has emerged as a popular mechanism to encourage vertical coordination in developing country agriculture. The goal of such coordination is to better integrate smallholder farmers into the modern agricultural food system, fostering rural transformation. We use panel data from a randomized control trial to quantify the impact of different contract attributes on rural transformation and welfare of smallholder rice farmers in Benin. We vary the terms of contract, with some farmers being offered a contract that only guarantees a price, while other contracts add extension training or input loans. While all three types of contracts had positive and significant effects, we find that contracts which only included an agreement on price had nearly as large of an impact as did contracts with additional attributes. This suggests that once price uncertainty is resolved, farmers are able to address other constraints on their own.
    JEL: C93 L14 O13 Q12
    Date: 2019–03
  3. By: Svanidze, Miranda; Götz, Linde; Duric, Ivan; Glauben, Thomas
    Abstract: We investigate wheat price relationships between the import-dependent countries in Central Asia and the South Caucasus and the Black Sea wheat exporters to assess wheat market efficiency which is crucial for ensuring availability and access to wheat and for reducing food insecurity. Results of linear and threshold error correction models suggest strong influence of trade costs on market integration in Central Asia, while those costs are of minor importance in the South Caucasus. In particular, wheat trade in Central Asia is characterized not only by higher transportation costs but also unofficial payments play a large role. In addition, wheat price volatility is substantially higher in the wheat importing countries of Central Asia compared to the South Caucasus. To foster market functioning, wheat trade should be facilitated by policies reducing trade costs. This includes investments in grain market infrastructure, eliminating unofficial payments, but also resolving geopolitical conflicts. However, wheat trade in this region is characterized by large distances, low scope for import diversification and repeated export restrictions by Black Sea exporters. Therefore, trade enhancing policies should be complemented with policies increasing wheat self-sufficiency to enhance food security.
    Keywords: Crop Production/Industries, Demand and Price Analysis, Food Security and Poverty
    Date: 2019
  4. By: Loïc Levi; Laure Latruffe; Aude Ridier
    Abstract: The objective of this paper is to investigate the role of farm performance in farmers’ investment decisions with a theoretical model accounting for adjustment costs and performance. The model is estimated on a balanced sample of specialised dairy farms in Brittany (western France) between 2005 and 2014. Two types of farms are considered: with high and with low capital intensity. The results show that spreading investment over time is, on average, an optimal strategy for maintaining performance in the presence of adjustment costs. In addition, the effect of performance on investment behaviour differs between the two farm types.
    Keywords: farm investment, performance, adjustment cost model, dairy sector, France
    JEL: Q12 D92
    Date: 2019
  5. By: Guillaume Gruère (OECD); Hélène Le Boëdec (Sciences Po, Paris)
    Abstract: This report offers a guide on potential reform pathways towards sustainable agriculture water use, based on a thorough review of selected past water and agriculture reforms and extensive consultation with policy experts. A theory of change is developed that emphasises the importance of flexibility in the timing and design of reform processes to achieve practical and effective policy changes. Governments should prepare future reforms, via continued research, education, and governance efforts, to help take advantage of reform opportunities when the timing is right. Five necessary conditions are identified for a successful reform process: (i) support evidence-based problem definition, objective setting and evaluations; (ii) ensure that governance and institutions are aligned with the policy change; (iii) engage stakeholders strategically and build trust; (iv) rebalance economic incentives to mitigate short run economic losses; and (v) define an adjustable smart reform sequencing that provides flexibility in the long run. These conditions are found to be necessary to implement four challenging policy changes: charging water use in agriculture; removing subsidies that negatively impact water resources, regulating groundwater use and addressing nonpoint source pollution. But the relative effort that governments need to devote to fulfilling each of the five conditions will vary depending on the policy change.
    Keywords: Agriculture policy, groundwater, irrigation, nonpoint source pollution, reform process, water governance, water policy, water prices, water subsidies
    JEL: P48 Q18 Q25 Q28 Q52 Q58
    Date: 2019–03–20
  6. By: Cheney, Laura Martin; Hughes, Megan
    Abstract: The method of achieving desired learning outcomes via the use of structured learning objectives is taking a more prevalent role in the United States education system. As this trend approaches post-secondary education, it becomes necessary to develop a method for evaluating whether students obtain base proficiency in the various course learning objectives. In this study, researchers assessed proficiency in the learning objectives set forth in a Michigan State University College of Agriculture and Natural Resources introductory course, ABM 100: Decision Making in the Agri-Food System. Data was analyzed from the spring 2016 final exam. The results of the final exam were evaluated to determine if students met or exceeded proficiency in the learning objectives set for the course. Results indicate that base proficiency was met for three out of the course’s five primary objectives. The objective in which students demonstrated the highest proficiency was that relating to defining and understanding the players and functions of the agri-food system. Students struggled the most with the learning objectives focused on basic economic principles.
    Keywords: Agribusiness, Farm Management, Teaching/Communication/Extension/Profession
    Date: 2019–03–01
  7. By: Chakravorty, Ujjayant; Dar, Manzoor H.; Emerick, Kyle
    Abstract: We use two randomized controlled trials in Bangladesh to study a simple water conservation technology for rice production called "Alternate Wetting and Drying (AWD)." Despite proven results in agronomic trials, our first experiment shows that AWD only saves water and increases profits in villages where farmers pay a marginal price for water, but not when they pay fixed seasonal charges. The second RCT randomly distributed debit cards that can be used to pay volumetric prices for irrigation water. This low-cost, scalable intervention causes farmers to place more value on the water-saving technology. Demand for the technology becomes less price-sensitive.
    Date: 2019–03–14
  8. By: Grégoire Garsous (OECD)
    Abstract: Addressing the relationship between domestic environmental regulations and international trade policies is essential to better understand the need for consistency and complementarity between these areas. The set of trade and environment indicators developed by the OECD aims to provide insights on this relationship by shedding light on topical debates regarding the interactions between trade and environmental policies. Issues covered include: carbon emissions embodied in trade; embodied raw materials in trade; the volume of trade in environmentally-related goods; tariffs on environmentally-related goods; support measures for fossil fuels; enabling policy and regulatory environment for renewable energy; the volume of trade in waste and scrap; and nutrient balances of exported grains. Although initial insights are provided for these indicators, no detailed analyses is developed at this stage. Rather, these indicators are building blocks to analyse, for instance, the determinants of identified trends or to allow for a better understanding of the issues at hand. Possible avenues for further policy-relevant investigations using the indicators are identified and discussed for each topic covered.
    Keywords: environmental regulations, Trade policies
    JEL: F14 F18 Q17 Q56 Q58
    Date: 2019–03–01
  9. By: Krivonos, Ekaterina; Kuhn, Lena
    Abstract: In public and academic debates, the linkages between agricultural markets and nutrition across the world are vividly discussed. This paper contributes to the ongoing debate by analyzing the relationship between greater openness to trade and dietary diversity. It focuses on the post-communist countries of Eastern Europe and Central Asia where trade reforms as part of the economic and political transition provide a natural experiment for studying the effects of trade openness on agricultural markets and consumer behaviour. Reduction in trade barriers, for instance in the context of the accession to the WTO and the EU, and the gradual integration with world markets after 1991 had implications for diets through changes in production, prices and incomes. We utilize country-level panel data for 26 post-communist countries in the period 1996-2013 to assess the effects of trade costs, openness to trade and incomes on dietary diversity measured by the Shannon entropy index. The results arising from fixed effects and instrumental variables estimation are consistent with previous findings that income growth affects dietary diversity positively and provide novel evidence that trade barriers reduce variety of products available in domestic markets, in particular fruits and vegetables.
    Keywords: Agricultural and Food Policy, Consumer/Household Economics, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, International Relations/Trade
    Date: 2019
  10. By: Jared Greenville (OECD); Kentaro Kawasaki (OECD); Dorothee Flaig (OECD); Caitlyn Carrico (OECD)
    Abstract: Global value chains (GVCs) in agriculture and food sectors contribute to sector growth and development. However, agricultural trade is subject to significant distortions that limit trade which in turn impacts on its competitiveness world-wide. Using the OECD Metro model, this study analyses the impact of trade and domestic support policies on participation in agro-food GVCs and the benefits that flow from them. The results show that current market access barriers and distorting forms of domestic support have a negative effect not only on welfare, but also on the possible benefits from participation in agro-food GVCs. If barriers, i.e. tariffs and quotas, were removed this would offer the potential to increase welfare, increase exports of agro-food domestic value added from all countries, and promote trade by furthering GVC links through value added. This study also shows that regional trade agreements have the potential to deepen GVC linkages amongst members.
    Keywords: agricultural trade, agriculture, CGE modelling, Global value chains, regional trade agreements
    JEL: Q17 F14
    Date: 2019–02–22
  11. By: Clara Thompson-Lipponen (OECD); Jared Greenville (OECD)
    Abstract: Preferential trading agreements are becoming a more common feature of the global agro food trading environment, a trend that has increased since the early 2000s. While they increasingly cover the majority of trade worldwide, there remains a question as to the extent to which their treatment of agriculture has changed over time, and whether the liberalising elements contained in these agreements are increasingly addressing distortions in world agro-food markets. This paper presents findings on the evolution of the treatment of agriculture within preferential trade agreements. Changes in various aspects of liberalisation achieved through these agreements have been explored, such as provisions related to market access, export competition and domestic support. The report finds that agriculture appears to be increasingly treated in a similar manner to other goods trade, with expansion in the scope of agreements extending to agriculture. Agreements are delivering reduced tariffs among members across the majority of agricultural commodities – however, heterogeneity of rules of origin between agreements is likely to be undermining these benefits. Reflecting multilateral rules, provisions related to Sanitary and Phytosanitary measures and Technical Barriers to Trade have become a standard feature of agreements. Overall, preferential trade agreements are strongly influenced by the multilateral framework.
    Keywords: Agricultural trade, regional trade agreements
    JEL: Q17 F14
    Date: 2019–02–27
  12. By: Mike Brock (University of East Anglia); Joel Russell (University of East Anglia)
    Abstract: This report outlines and reviews the findings of a collaborative project between researchers at The University of East Anglia (UEA) and Brandon Country Park. The former were commissioned to undertake two surveys to elicit the opinions of current users and stakeholders regarding their perceptions of the park, with particular emphasis on how this improves their mental, physical and social well-being. Information was then used to identify how the facility might be improved. 200 surveys were conducted through July 2016, asking questions which referred to park usage, attitudes and socio-demographic status. These responses were combined with a qualitative focus group, and using these mixed-methods field experiment techniques provided an in-depth examination of user perspectives on how to best manage this woodland amenity. The overall results pinpoint some key interactions between the key mental and physical benefits of such a facility, and yet the trade-offs that these human sources of welfare may create for wider biodiversity conservation.
    Keywords: Collective Decision-Making; Local Public Goods; Forest Management; Environmental Sustainability, Biodiversity Conservation;
    JEL: D71 H4 Q23 Q26 Q28 Q57
    Date: 2018–01–30
  13. By: Pleshcheva, Vlada (Institut für Marketing Humboldt-Universität zu Berlin)
    Abstract: Xyz
    Keywords: choice architecture; environmental impact; framing effects; vehicle choice;
    JEL: D12 D90 M31 Q51
    Date: 2019–03–11
  14. By: Geoffroy Dolphin (Cambridge Judge Business School and Energy Policy Research Group, University of Cambridge); Michael G. Pollitt (Cambridge Judge Business School and Energy Policy Research Group, University of Cambridge)
    Keywords: international spillovers, trade, carbon pricing
    JEL: F18 Q56 Q58
    Date: 2018–01
  15. By: Carolina Perpina Castillo (European Commission – JRC); Boyan Kavalov (European Commission – JRC); Chris Jacobs-Crisioni (European Commission – JRC); Claudia Baranzelli (European Commission – JRC); Filipe Batista e Silva (European Commission – JRC); Carlo Lavalle (European Commission – JRC)
    Abstract: Changes in land use patterns do not occur homogeneously throughout Europe. Many environmental, economic and social phenomena take place at local scale. In this study a land use indicator is being proposed to illustrate the likely land evolution in the EU within 2015-2030 based on the projections in the JRC-LUISA Territorial Modelling Platform and its Reference Scenario 2017. The indicator is further disaggregated for built-up and forest & natural vegetated areas.
    Keywords: Land-use, built-up, forests, natural vegetated areas, LUISA territorial modelling platform
    Date: 2019–03
  16. By: Ager, Philipp; Herz, Benedikt
    Abstract: This paper provides new insights on the relationship between structural change and the fertility transition. We exploit the spread of an agricultural pest in the American South in the 1890s as plausibly exogenous variation in agricultural production to establish a causal link between earnings opportunities in agriculture and fertility. Households staying in agriculture reduced fertility because children are a normal good, while households switching to manufacturing reduced fertility because of the higher opportunity costs of raising children. The lower earnings opportunities in agriculture also decreased the value of child labor which increased schooling, consistent with a quantity-quality model of fertility.
    Keywords: Fertility Transition, Structural Change, Industrialization, Agricultural Income
    JEL: J13 N31 O14
    Date: 2019–03
  17. By: Sabala, Ethan; Devadoss, Stephen
    Keywords: Agricultural and Food Policy, Demand and Price Analysis, International Relations/Trade
    Date: 2019–02
  18. By: David Newbery (Energy Policy Research Group University of Cambridge)
    Keywords: Air pollution, particulates, fossil generation, transport, emissions trading
    JEL: H2 H23 H41 I18 Q51 Q54 Q58
    Date: 2017–05
  19. By: Ibrahim Abada (ENGIE); Andreas Ehrenmann (ENGIE, EPRG); Xavier Lambin (Toulouse School of Economics)
    Keywords: Energy communities, Cooperative game theory, Non-cooperative game theory, Decentralized power production, Consumer participation, Micro-grids
    JEL: C61 C71 C72 D61 O13 Q42 Q49
    Date: 2018–04
  20. By: Emmanuelle Lavaine (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); Henrik Anderson (TSE - Toulouse School of Economics - Toulouse School of Economics)
    Abstract: This paper examines the effect of properties being located in vulnerable zones interm of nitrates on the property prices using a change in the classification of vulnerablezones in France in 2012. Using an identification strategy based on a spatial difference-in-differences specification, we show that the revision of the classification significantlydecreased not only property prices in zones that became classified as vulnerable afterthe revision, but also those of properties already classified as vulnerable. However,the effect was stronger for the former, 10% vs. 5%, and this differences may reflect adifference in how zones are classified. The risks covered in the 2012 classification covera broader range of risks, and hence the larger price effect may reflect this additionalperceived risk exposure.
    Keywords: Hedonic Price Analysis,difference in difference
    Date: 2018–08–30
  21. By: Claire Delpeuch (OECD); Barbara Hutniczak (OECD)
    Abstract: How can policy makers successfully implement the policy changes needed to achieve greater economic, social, and environmental sustainability and resilience? This report combines lessons from the available literature, discussions with experts and stakeholders, as well as information on past policy change processes. Results suggest that, over the last decade, changes to fisheries policy have largely been triggered by the performance of the sector itself and how it is perceived, particularly with respect to resource management and to socio-economic outcomes. Other important factors stand out, in particular initiatives by people in charge of fisheries management and legal commitments to adopt changes. Macroeconomic and macro-political factors, however, appear to have had less impact on fisheries policy than on other policy domains. Key recommendations are proposed to facilitate policy change in the future through better use of data, commitment mechanisms, non-sectoral policies, and consultation processes.
    Keywords: Fisheries reforms, IUU
    JEL: Q22 Q28 D72 H83
    Date: 2019–03–18

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