nep-agr New Economics Papers
on Agricultural Economics
Issue of 2019‒04‒22
twenty-one papers chosen by

  1. Drivers of farmers’ willingness to adopt extensive farming practices in a globally important bird area By Mikołaj Czajkowski; Katarzyna Zagórska; Natalia Letki; Piotr Tryjanowski; Adam Wąs
  2. Sons of the soil conflict in Africa: institutional determinants of ethnic conflict over land By Boone, Catherine
  3. Impacts of extreme events on technical efficiency in Vietnamese agriculture By Yoro Diallo; Sébastien Marchand; Etienne Espagne
  4. Micro-Climate Engineering for Climate Change Adaptation in Agriculture By Trilnick, Itai; Gordon, Benjamin; Zilberman, David
  5. A meta-analysis of the price and income elasticities of food demand By Femenia, Fabienne
  6. On the optimal setting of protected areas By Sonia Schwartz; Johanna Choumert-Nkolo; Jean-Louis Combes; Pascale Combes Motel; Éric Nazindigouba Kere
  7. Natural Disasters, Cascading Losses, and Economic Complexity: A Multi-layer Behavioral Network Approach By Naqvi, Asjad; Monasterolo, Irene
  8. Choosing between Hail Insurance and Anti-Hail Nets: A Simple Model and a Simulation among Apples Producers in South Tyrol By Marco Rogna; Günter Schamel; Alex Weissensteiner
  9. Welfare effects of land market liberalization scenarios in Ukraine: Evidence-based economic perspective By Kvartiuk, Vasyl; Herzfeld, Thomas
  10. GHG Cap-and-Trade: Implications for Effective and Efficient Climate Policy in Oregon By Schatzki, Todd; Stavins, Robert N.
  11. Evaluating the effectiveness of the rural minimum living standard guarantee (Dibao) programme in China By Nanak Kakwani; Shi Li; Xiaobing Wang; Mengbing Zhu
  12. The complementarity of education and productive inputs among smallholder farmers in Africa By Kirui, Oliver Kiptoo
  13. Sustainability of agricultural sub-sectors in Bulgaria By Bachev, Hrabrin; Ivanov, Bodjidar; Toteva, Dessislava
  14. Forecasting Bordeaux wine prices using state-space methods By Stephen Bazen; Jean-Marie Cardebat
  15. Sustainability of agro-ecosystems in Bulgaria By Bachev, Hrabrin; Ivanov, Bodjidar; Toteva, Dessislava
  16. The Low but Uncertain Measured Benefits of US Water Quality Policy By Shapiro, Joseph S
  17. Real Effects of Climate Policy: Financial Constraints and Spillovers By Bartram, Sohnke M.; Hou, Kewei; Kim, Sehoon
  18. The importance of consumer taste in trade By Bee Yan Aw; Yi Lee; Hylke Vandenbussche
  19. Demand Responses to Nutrition Labels ConsideringStrategic Supply Responses By Villas-Boas, Sofia B; Kiesel, Kristin; Berning, Joshua; Chouinard, Hayley; McCluskey, Jill
  20. Is there a generational divide in environmental optimism? By OECD
  21. Resident and Nonresident Hunter and Angler Expenditures, Characteristics, and Economic Effects, north Dakota, 2017-2018 By Ndembe, Elvis; Bangsund, Dean A.; Hodur, Nancy M.

  1. By: Mikołaj Czajkowski (Faculty of Economic Sciences, University of Warsaw); Katarzyna Zagórska (Faculty of Economic Sciences, University of Warsaw); Natalia Letki (Faculty of Political Science and International Studies, University of Warsaw); Piotr Tryjanowski (Poznań University of Life Sciences, Institute of Zoology); Adam Wąs (Warsaw University of Life Sciences, Faculty of Economic Sciences)
    Abstract: Agri-environmental schemes have become an integral tool of land use management policies in ecologically valuable river valleys, that are commonly recognized as very important bird habitats. When high adoption of extensive agricultural practices is not only a political goal, but also a necessary condition for conservation of vulnerable ecosystems, understanding of farmers’ preferences is utterly important. Therefore, we use the case of Biebrza Marshes – a wetland complex and one of the largest wildlife refuges in Europe, which is located in northeastern Poland – and employ stated preference methods to investigate farmers’ preferences for adopting several agricultural practices, such as precision fertilization, crop diversification, catch crops, peatland protection, extensive use of meadows, and the reduction of livestock stocking density. Farmers’ willingness to participate in selected practices is explained using farms’ and farmers’ characteristics, subjectively and objectively measured farmers’ environmental knowledge, as well as by experimentally controlled information treatments about environmental benefits of agri-environmental contracts. The results provide new insights into the sources of farmers’ preference heterogeneity and show how different motivations relate to participation in agri-environmental schemes. Based on the results and consultations with local stakeholders, we make recommendations for a more efficient design and targeting of land use management instruments, including future agri-environmental schemes.
    Keywords: agri-environmental schemes, farmers’ preferences, choice experiments, agrobiodiversity protection, agri-environment, payments for ecosystem services
    JEL: Q18 Q12
    Date: 2019
  2. By: Boone, Catherine
    Abstract: Can the political science literature on sons-of-the-soil (SoS) conflict and civil war explain patterns of ethnic conflict over land in sub-Saharan Africa? Sons-of-the-soil terminology, developed with reference to conflicts in South Asia, has been used to describe some of Africa's most violent or enduring conflicts, including those in in eastern DRC, northern Uganda, the Casamance Region of Senegal, and southwestern Côte d'Ivoire. Is Africa becoming more like South Asia, where land scarcity has often fueled conflicts between indigenous land owners and in-migrants? This paper argues that political science theories that focus on rural migration and land scarcity alone to explain outbreaks of SoS conflict in Asia fall short in Africa because they are underdetermining. The paper proposes a model of structure and variation in land tenure institutions in sub-Saharan Africa, and argues that these factors are critical in explaining the presence of absence of SoS conflict over land. This conceptualization of the problem highlights the strong role of the state in structuring relations of land use and access, and suggests that the character of local statebacked land institutions goes far in accounting for the presence or absence, scale, location, and triggering of large-scale SoS land conflict in zones of smallholder agriculture. A meta-study of 24 subnational cases of land conflict (1990-2014), drawn from secondary and primary sources and field observations, generates case-based support for the argument. The study suggest that omission of land-tenure institution variables enfeebles earlier political science theory, and may inadvertently lead policy makers and practitioners to the erroneous conclusion that in rural Africa, primordial groups compete for land in an anarchic state of nature.
    Keywords: ethnic conflict; land; land tenure; Africa; institutions; property rights; migration
    JEL: Q15
    Date: 2017–08–01
  3. By: Yoro Diallo (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Sébastien Marchand (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Etienne Espagne (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech, AFD - Agence française de développement, CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The aim of this study is to examine farm household-level impacts of weather extreme events on Vietnamese rice technical efficiency. Vietnam is considered among the most vulnerable countries to climate change, and the Vietnamese economy is highly dependent on rice production that is strongly affected by climate change. A stochastic frontier analysis is applied with census panel data and weather data from 2010 to 2014 to estimate these impacts while controlling for both adaptation strategy and household characteristics. Also, this study combines these estimated marginal effects with future climate scenarios (Representative Concentration Pathways 4.5 and 8.5) to project the potential impact of hot temperatures in 2050 on rice technical efficiency. We find that weather shocks measured by the occurrence of floods, typhoons and droughts negatively affect technical efficiency. Also, additional days with a temperature above 31°C dampen technical efficiency and the negative effect is increasing with temperature. For instance, a one day increase in the bin [33°C-34°C] ([35°C and more]) lessen technical efficiency between 6.84 (2.82) and 8.05 (3.42) percentage points during the dry (wet) season.
    Keywords: Weather shocks,Technical efficiency,Rice farming,Vietnam
    Date: 2019–03–22
  4. By: Trilnick, Itai; Gordon, Benjamin; Zilberman, David
    Abstract: Can farmers adapt to climate change by altering weather conditions on their fields? We define the concept of ``Micro-Climate Engineering'' (MCE), where farmers change the effective temperatures on their crops by means of shading or heating, and document such implementation by California pistachio growers. With rising winter temperatures and declining winter chill portions, pistachio growers in California could face adverse climatic conditions within 20 years. Treating dormant trees with a chemical mix, acting as a shading technology, has shown to increase winter chill count to acceptable levels. Modeling a market with heterogeneous sub-climates, we run simulations to estimate potential gains from MCE in the year 2030 for California pistachio. Our results show an expected yearly welfare gain ranging between $1-4 billion. While positive in total, profits gains are highly heterogeneous given the differences in baseline climates. Market power drives gains up, pointing to a less explored intersection of IO, agriculture, and climate change.
    Keywords: Social and Behavioral Sciences, Climate Change, Agriculture, Micro-Climate Engineering, Innovation, Pistachio
    Date: 2018–02–13
  5. By: Femenia, Fabienne
    Abstract: Food demand elasticities are crucial parameters in the calibration of simulation models used to assess the impacts of political reforms or to analyse long-term projections, notably in agricultural sectors. Numerous estimates of these parameters are now available in the economic literature. The main objectives of this work are twofold: we seek first to identify general patterns characterizing the demand elasticities of food products and second to identify the main sources of heterogeneity between the elasticity estimates available in the literature. To achieve these objectives, we conduct a broad literature review of food demand elasticity estimates and perform a meta-regression analysis. Our results reveal the important impacts of income levels on income and price elasticities both at the country (gross domestic product-GDP) and household levels: the higher the income is, the lower the level of elasticities. Food demand responses to changes in income and prices appear to follow different patterns depending on the global regions involved apart from any income level consideration. From a methodological viewpoint, the functional forms used to represent food demand are found to significantly affect elasticity estimates. This result sheds light on the importance of the specification of demand functions, and particularly of their flexibility, in simulation models.
    Keywords: Agricultural and Food Policy, Demand and Price Analysis
    Date: 2019
  6. By: Sonia Schwartz (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Johanna Choumert-Nkolo (EDI - Economic Development Initiatives Limited); Jean-Louis Combes (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Pascale Combes Motel (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Éric Nazindigouba Kere (BAD - Banque africaine de développement / African Development Bank)
    Abstract: This paper analyses the determinants of the optimal size of protected areas and what conducts neighboring effects. We investigate in which measure the infrastructure effect and the scarcity effect matter. We obtain several results. The size of protected area mainly depends on preferences toward forest, on the firms' production costs and on the relation between municipalities. As far as total deforestation is concerned asymmetric regulation is better than no regulation. The infrastructure effect always leads to smaller protected areas than the scarcity effect. Under the infrastructure effect, centralized decisions do not always work in favor of larger protected areas than decentralized decisions contrary to the scarcity effect. We also show that decentralized decisions can reach the first best under the infrastructure effect without public intervention. A study of protected areas in the Brazilian Legal Amazônia corroborates our theoretical results.
    Keywords: Protected areas,Deforestation,Nash equilibrium,Environmental federalism,Brazilian Legal Amazônia
    Date: 2019–03–12
  7. By: Naqvi, Asjad; Monasterolo, Irene
    Abstract: Assessing the short-term socio-economic impacts of climate-led disasters on food trade networks requires new bottom-up models and vulnerability metrics rooted in complexity theory. Indeed, such shocks could generate cascading socio-economic losses across the networks layers where emerging agents¿ responses could trigger tipping points. We contribute to address this research gap by developing a multi-layer behavioral network methodology composed of multiple spatially-explicit layers populated by heterogeneous interacting agents. Then, by introducing a new multi-layer risk measure called vulnerability rank, or VRank, we quantify the stress in the aftermath of a shock. Our approach allows us to analyze both the supply- and the demand-side dimensions of the shock by quantifying short-term behavioral responses, the transmission channels across the layers, the conditions for reaching tipping points, and the feedback on macroeconomic indicators. By simulating a stylized two-layer supply-side production and demand-side household network model we find that, (i) socio-economic vulnerability to climate-led disasters is cyclical, (ii) the distribution of shocks depends critically on the network structure, and on the speed of supply-side and demand-side responses. Our results suggest that such a multi-layer framework could provide a comprehensive picture of how climate-led shocks cascade and how indirect losses can be measured. This is crucial to inform effective post-disaster policies aimed to build food trade network resilience to climate-led shocks, in particular in more agriculture-dependent bread-basket regions.
    Keywords: complexity economics, multi-layer networks, behavioral economics, food trade, climate-led shocks, vulnerability rank, post-disaster policy
    Date: 2019–04
  8. By: Marco Rogna (Free University of Bolzano‐Bozen, Faculty of Economics and Management, Italy); Günter Schamel (Free University of Bolzano‐Bozen, Faculty of Economics and Management, Italy); Alex Weissensteiner (Free University of Bolzano‐Bozen, Faculty of Economics and Management, Italy)
    Abstract: There is a growing interest in analysing the diffusion of agricultural insurance, seen as an effective tool for managing farm risks. Much atten- tion has been dedicated to understanding the scarce adoption rate despite high levels of subsidization and policy support. In this paper, we analyse an aspect that seems to have been partially overlooked: the potential competing nature between insurance and other risk management tools. We consider hail as a single source weather shock and analyse the potential competing effect of anti-hail nets over insurance as instruments to cope with this shock by presenting a simple theoretical model that is rooted into expected utility theory. After describing the basic model, we perform some comparative static analysis to identify the role of individual elements that are shaping farmers' decisions. From this exercise it results that the worth of anti-hail nets compared to insurance is an increasing function of the overall risk of hail damages, of the farmers' level of risk aversion and of the worth of the agricultural output. Finally, we develop a simulation model using data related to apple production in South Tyrol, a Northern-Italian province with a relatively high risk of hail. The model generally confirms the results of the comparative static analysis and it shows that, in this region, anti-hail nets are often superior than insurance in expected utility terms.
    Keywords: Actuarial soundness, Agricultural insurance markets, Antihail nets, Hail, Expected utility
    JEL: Q12 Q18
    Date: 2019–04
  9. By: Kvartiuk, Vasyl; Herzfeld, Thomas
    Abstract: [Introduction] When Ukraine adopted the 2002 Land Code, it chose to follow a liberal path of agricultural land relations, but failed to create the necessary conditions for the land market to function fully. The moratorium on land sales, implemented directly after the adoption of the Land Code, prohibited 6.92 million owners of land shares (16 % of the population) from fully exercising their property rights. Initially intended as a temporary measure, the moratorium has, to date, been extended eight times. As such, many landowners have passed away without ever being able to fully exercise their property rights. Economic losses caused by the prohibition of land sales are considerable. First, inability to transfer land from less to more efficient producers contributes to a situation where tenancy insecurity substantially reduces incentives to invest in technologies improving land use productivity. As a result, growth of the agricultural sector is substantially lower than it could have been with a free land market. Second, current management of land lease contracts incurs high transaction costs, which could be lowered if land users were able to buy plots. Third, one quarter of Ukrainian agricultural land is still owned by the government. Privatization of 10.5 million ha could generate substantial financial resources for newly reformed local governments. In addition, land sales market has a potential to expand respective tax base and improve the collection of land tax. Resources from privatization and improved tax revenues could substantially help restore the dilapidated rural infrastructure. In sum, due to gains in agricultural production and land privatization, Ukrainian experts estimate that liberalization could lead to a 3-9 % increase in the annual growth rate of the GDP.
    Date: 2019
  10. By: Schatzki, Todd (Analysis Group, Inc.); Stavins, Robert N. (Harvard Kennedy School)
    Abstract: Like many other states, Oregon has begun to pursue climate policies to attempt to fill the gap created by the lack of effective climate policy at the Federal level. After adopting a variety of policies to address climate change and other environmental impacts from energy use, Oregon is now contemplating the adoption of a greenhouse gas (GHG) cap-and-trade system. However, interactions between policies can have important consequences for environmental and economic outcomes. Thus, as Oregon considers taking this step, reconsidering the efficacy of its other current climate policies may better position the state to achieve long-run emission reductions at sustainable economic costs.
    Date: 2018–11
  11. By: Nanak Kakwani; Shi Li; Xiaobing Wang; Mengbing Zhu
    Abstract: China’s rural minimum living standard guarantee programme (Dibao) is the largest social safety-net programme in the world. Given the scale and the popularity of rural Dibao, rigorous evaluation is needed to demonstrate the extent to which the programme meets its intended objective of reducing poverty. This paper develops new methods and uses data from the 2013 Chinese Household Income Project (CHIP2013) to examine the targeting performance of the rural Dibao programme. The paper has found that the rural Dibao programme suffers from very low targeting accuracy, high exclusion error, and inclusion error, and yields a significant negative social rate of return. It discusses possible causes and argues that the fundamental mechanism has to be redesigned to increase the effectiveness of the programme. The paper makes some recommendations to reform Dibao that will significantly improve targeting and reduce the cost of running the programme, thereby helping China to achieve its goal of eradicating extreme poverty by 2020.
    Date: 2018
  12. By: Kirui, Oliver Kiptoo
    Abstract: This study seeks to assess the complementarity of education and use of use of agricultural inputs–improved seeds, fertilizers, access to credit facilities (loans)), and the incremental effects of education on intermediate to longer-term economic outcomes (consumption expenditure and poverty) among smallholder farmers in four countries in SSA Africa (Ethiopia, Malawi, Nigeria and Tanzania). We apply a multinomial endogenous treatment model with education as our ‘treatment’ variable (variable of interest) with four possible levels (no-schooling, primary, secondary, post-secondary). The empirical model jointly estimates ‘treatment’ and selection effects and by this corrects for selection into one or the other education level. Using nationally representative LSMS panel data allows us to comprehensively assess the impact of education on the outcome variables. Overall results suggest that higher education (secondary and post-secondary level) significantly increases the use of improved seed varieties and fertilizers, access to credit services, and per capita consumption expenditure and consequently reduces household poverty. Specifically, findings suggests that post primary education (secondary and post-secondary levels) is by far the most important factor in use of productive inputs than mere introductory literacy and primary learning. For instance, having completed post-secondary education – compared to secondary level of education – increases access to credit services by 49% in Ethiopia, 41% in Nigeria and a whopping 126% in Tanzania. Similarly, completing secondary level of education (compared to primary level) would increase log per capita consumption expenditure by 14% in Ethiopia, 22% Malawi, 9% in Nigeria and 21% in Tanzania but completing tertiary level would further increase household per capita consumption expenditure by about 14% in Ethiopia, 20% in Malawi, 15% in Nigeria, and 45% in Tanzania. These findings augment the conclusion that schooling have positive impacts for the farmers and their households’ well-being. Our findings are of policy relevance to most SSA countries currently grappling with rising urbanization, high youth unemployment, and acute skills shortage.
    Keywords: Crop Production/Industries, Farm Management, Research and Development/Tech Change/Emerging Technologies
    Date: 2019–04–15
  13. By: Bachev, Hrabrin; Ivanov, Bodjidar; Toteva, Dessislava
    Abstract: In Bulgaria, like in most countries, the comprehensive assessments on agrarian sustainability are mostly at sectoral or farm levels while there is practically no in-depth study on sustainability at sub-sector (industry) level. This paper tries to fill the gap and assess the sustainability of different sub-sectors in Bulgarian agriculture. First a holistic hierarchical framework for assessing integral, economic, social and ecological sustainability of Bulgarian agriculture is suggested including 17 principles, 35 criteria, and 46 indicators and reference values. After that, an assessment is made on the overall and aspects sustainability of major crop, livestock and mixed subsectors of Bulgarian agriculture. The assessment is based on first-hand information collected though in-depth interviews with the managers of “typical” farms in analysed industries. The study has found out that there is a considerable differentiation in the level of integral and aspects sustainability in individual sub-sectors in Bulgaria, with mixed livestock-breeding, mixed crop-growing, and perennial crops sub-sectors having the highest integral sustainability, while pigs, poultry and rabbits; vegetables, flowers and mushrooms, and mixed livestock-crops subsectors the lowest one. There are also substantial variations in the levels of economic, social and ecological sustainability of different agricultural sub-sectors and individual indicators with the highest and lowest values showing (critical) factors enhancing and deterring particular or overall sustainability of evaluated agro-industries. Results on the integral agrarian sustainability level of this study based on the micro sub-sector (farm) data are similar to the previous assessment based on the aggregate sectoral (statistical, etc.) data.
    Keywords: sub-sectors, agriculture, sustainability, economic, social, ecological, Bulgaria
    JEL: Q12 Q13 Q18 Q2 Q20
    Date: 2019–04–15
  14. By: Stephen Bazen (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - EHESS - École des hautes études en sciences sociales, AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Jean-Marie Cardebat (Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - Université Montesquieu - Bordeaux 4)
    Abstract: Generic Bordeaux red wine (basic claret) can be regarded as being similar to an agricultural commodity. Production volumes are substantial, they are traded at high frequency and the quality of the product is relatively homogeneous. Unlike other commodities and the top-end wines (which represent only 3% of the traded volume), there is no futures market for generic Bordeaux wine. Reliable forecasts of prices can to large extent replace this information deficiency and improve the functioning of the market. We use state-space methods with monthly data to obtain a univariate forecasting model for the average price. The estimates highlight the stochastic trend and the seasonality present in the evolution of the price over the period 1999 to 2016. The model predicts the path of wine prices out of sample reasonably well, suggesting that this approach is useful for making reasonably accurate forecasts of future price movements.
    Keywords: forecasting,Wine prices,state-space methods,forecasting JEL CLASSIFICATION C53,L66,Q11
    Date: 2018–10
  15. By: Bachev, Hrabrin; Ivanov, Bodjidar; Toteva, Dessislava
    Abstract: Ecosystem approach has been increasingly incorporated in the management and evaluation of sustainability levels. Despite huge progress in the theory and practice of this new area, still there is no consensus on how to assess the sustainability of agro-ecosystems due to diverse understandings, approaches, methods, employed data, etc. In Bulgaria there are practically no deep studies on sustainability level of diverse agro-eco-systems. This paper tries to fill the blank and assesses the sustainability level of agro-ecosystems of different type in Bulgaria. First a holistic hierarchical framework for assessing integral, economic, social and ecological sustainability of agro-ecosystems in Bulgaria is suggested including 17 principles, 35 criteria, and 46 indicators and reference values. After that, an assessment is made on overall and aspects sustainability of large (agro)ecosystems in North-Central, South-Eastern, South-Central and South-Western geographic regions, and particular main and specific types of agro-ecosystems of the country - mountainous, plain-mountainous, plain, riparian (Struma, Maritza, Yantra), southern Black Sea, mountainous area with natural constraints, non-mountainous area with natural constraints, protected areas and reserves, Western Thracian Plain, Middle Danube Plain, Dupnitsa and Sandansko-Petrich Valley, Sredna Gora Mountains and Western Rila Mountains. The assessment is based on first-hand information collected though in-depth interviews with the managers of “typical” farms in the respective ago-ecosystems. The study has found out that there is a considerable differentiation in the level of integral sustainability in agricultural ecosystems of different types. Furthermore, there are substantial variations in the levels of economic, social and ecological sustainability of agro-ecosystems of different type, and the critical indicators enhancing or deterring overall and particular sustainability of individual agro-ecosystems. Results of the integral agrarian sustainability level of this study, based on the micro agro-ecosystem (farm) data, are similar to the previous assessment based on the aggregate sectoral (statistical, etc.) data. There are large differences in the impact of socio-economic, institutional, behavioral, international, natural, etc. factors and individual public policy instruments on the sustainability of farming enterprises of different types and agro-ecosystems. Having in mind the importance of holistic assessments of this kind for improving agrarian sustainability, farm management and agrarian policies, they are to be expended and their precision and representation increased.
    Keywords: agro-ecosystem, sustainability, assessment, economic, social, ecological, Bulgaria agro-ecosystem, sustainability, assessment, economic, social, ecological, Bulgaria
    JEL: Q1 Q12 Q15 Q18 Q2 Q3
    Date: 2019–04–15
  16. By: Shapiro, Joseph S
    Abstract: U.S. investment to decrease pollution in rivers, lakes, and other surface waters has exceeded $1.9 trillion since 1960, and has also exceeded the cost of most other U.S. environmental initiatives. These investments come both from the 1972 Clean Water Act and the largely voluntary efforts to control pollution from agriculture and urban runoff. This paper reviews the methods and conclusions of about 20 recent evaluations of these policies. Surprisingly, most analyses estimate that these policies’ benefits are much smaller than their costs; the benefit/cost ratio from the median study is 0.37. Yet existing evidence is limited and undercounts many types of benefits. We conclude that it is unclear whether many of these regulations truly fail a benefit/cost test or whether existing evidence understates their net benefits; we also describe specific questions that when answered would help eliminate this uncertainty.
    Keywords: Social and Behavioral Sciences, Water pollution, Clean Water Act, cost-benefit analysis, cost-effectiveness analysis, environmental regulation
    Date: 2018–10–03
  17. By: Bartram, Sohnke M. (Warwick Business School - Department of Finance); Hou, Kewei (Ohio State University (OSU) - Department of Finance); Kim, Sehoon (University of Florida - Department of Finance, Insurance and Real Estate)
    Abstract: We document that localized policies designed to mitigate climate risk can lead to regulatory arbitrage by firms, resulting in unintended consequences. Using detailed plant level data, we investigate the impact of the most extensive regional climate policy in the United States, the California cap-and-trade program, on corporate real activities such as greenhouse gas emissions and plant ownership. We show that industrial plants governed by the policy reduce emissions in California when the parent company is financially constrained, but that these firms internally reallocate their emissions to plants located in other states. Similarly, constrained firms are more likely to reduce ownership in Californian plants and increase ownership in plants outside California. In contrast, unconstrained firms generally do not adjust plant emissions and ownership either in California or in other states. Overall, firms do not reduce their total emissions when part of their assets are affected by the regulation, but in fact increase them if financially constrained. The results document real spillover effects stemming from resource reallocations by constrained firms to avoid regulatory costs, undermining the effectiveness of localized policies. Our study has important implications for the current debate on global climate policy agreements.
    JEL: G18 G31 G32 Q52 Q54 Q58
    Date: 2018–12
  18. By: Bee Yan Aw; Yi Lee; Hylke Vandenbussche
    Abstract: This paper documents the importance of consumer taste in trade flows using Belgian firm-product customs data by destination. We identify consumer taste through the use of a control function approach and estimate it jointly with other demand parameters using a very flexible demand specification. Consumer taste is identified for every trade ow. The results show that taste decreases in distance but this relationship is not monotonic. The contribution of consumer taste to actual export revenue ranges between 1-31% depending on the product category in the food industry. Overall, the demand shifters, taste and product quality explain twice as much of the variation in export revenues than cost.
    Keywords: tastes, quality, productivity, exports, firm-product
    JEL: F12 F14
    Date: 2019
  19. By: Villas-Boas, Sofia B; Kiesel, Kristin; Berning, Joshua; Chouinard, Hayley; McCluskey, Jill
    Keywords: Social and Behavioral Sciences
    Date: 2019–01–22
  20. By: OECD
    Abstract: Problems associated with the environment loom large over the future well-being of young generations. A previous issue of PISA in Focus (PISA in Focus 87) shows that in 2015 many 15-year-old students believed that the future – their future – was going to be worse, environmentally, than the present. In particular, only a minority of students (fewer than one in five, on average across OECD countries) believed that problems related to air pollution, the extinction of plants and animals, clearing forests for land use, water shortages and nuclear waste would improve over the next 20 years. But are teenagers more or less pessimistic than their parents?
    Date: 2019–04–24
  21. By: Ndembe, Elvis; Bangsund, Dean A.; Hodur, Nancy M.
    Abstract: The purpose of this study was to estimate the economic effects of hunting and fishing activities during the 2017-2018 season on the North Dakota economy, and to compare current information to previous studies to identify trends in hunting and angling activities. A mail survey of 24,451 resident hunters and anglers and 7,914 nonresident hunters and anglers was conducted to solicit information on 19 hunting and fishing activities during the 2017-2018 season. Total spending by hunters and anglers in North Dakota during the 2017-2018 season was estimated at $974.4 million, excluding purchases of licenses. Resident hunter and angler expenditures were estimated at $846.8 million, and nonresident hunter and angler expenditures were estimated at $127.6 million. Hunting expenditures were estimated at $186.6 million, and fishing expenditures were estimated at $787.8 million. Residents spent a total of $486.4 million in rural areas while nonresidents spent $89.6 million. Total direct expenditures ($974.4 million) from hunting and fishing in North Dakota generated $1,139.1 million in secondary economic effects. Gross business volume (direct and secondary effects) of hunting and fishing in North Dakota was estimated at $2.1 billion. Hunting and fishing activities were estimated to generate $48.2 million in general state tax collections and support 3,263 full-time equivalent jobs throughout the state. As a result of increased average per person spending in most hunting and fishing activities and increased number of participants in some activities, total spending in North Dakota increased by $267.3 million or 38 percent from 2011-12 to 2017-2018. Total spending by resident hunters and anglers increased by $290.2 million or 52 percent, while nonresident spending increased by $41.4 million or 48 percent over the period. Hunter expenditures adjusted for inflation decreased by $52.7 million or 22 percent decline, while angler expenditures increased by $320.0 million or 68 percent over the period. Gross business volume from all hunting and fishing activities increased by $595.9 million (39 percent) over the period. Despite the loss of a substantial amount of wildlife habitat since the previous study (2011/2012), collective spending by hunters and anglers is larger than previous estimates and remains an economically important industry in North Dakota. Key observations from this study are that hunters are spending less money afield—primarily driven by fewer opportunities linked to large declines in deer populations—but collectively hunters are spending more on equipment and gear than observed in previous studies despite diminished in-state hunting opportunities. The number of anglers has increased substantially (both resident and nonresident) as well as the per-person spending on gear and equipment. The increase in fishing expenditures, both open water and ice fishing, has completely offset reductions in hunting expenditures.
    Keywords: Environmental Economics and Policy, Land Economics/Use, Public Economics
    Date: 2019–01–23

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.