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on Agricultural Economics |
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Issue of 2019‒06‒24
sixty-one papers chosen by |
| By: | Ben-Othmen, Marie Asma; Ostapchuk, Mariia |
| Abstract: | Grasslands are a crucial component of the agricultural landscape of most French regions. They contribute to human well-being through the provision of a wide range of ecosystem services such as ruminantfeeding. In this way, they have an impact upon the quality of animal production. Grasslands also support biodiversity conservation by promoting pollination, climate regulation, water quality regulation, landscape quality, etc. Despite these multiple benefits, grassland areas have been rapidly and constantly shrinking over the last 50 years in the face ofthe extension of forage corn considered a more profitable crop. Agri-environmental schemes (AES) have been identified to date as playing a pivotal role in the promotion of a more sustainable and environmentally friendly agricultural practices within the European Union. In this paper, through the application of the Choice Experiment (CE) method, we intend to analyze the factors that influence farmers’ preferences and motivations to join or not an AES involving grasslands restoration in Normandy. We estimate the relative weight of these factors, and we evaluate the willingness to accept changes related to each factor. In addition to the evaluation of the financial contribution, our objective lies in highlighting the role of the collective participation, the technical support and the area of the farm enrolled in the AES. Hence, our study contributes to a better understanding of factors that might alter famers’ behaviour towards new restoration practices. Potential policy implications that emerged from our data are briefly discussed. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa172:289701&r=all |
| By: | Huy Quynh Nguyen; Peter Warr |
| Abstract: | This paper studies whether land consolidation – reduction of land fragmentation – promotes or hinders the Vietnamese government’s policy objectives of encouraging agricultural mechanization and stimulation of the off-farm rural economy. It does this by viewing land consolidation as a form of technical change, making it possible to apply the insights developed in the economic literature on technical change. This treatment reveals that the impacts of land consolidation depend partly on its factor bias and partly on the degree to which labor is substitutable in production for other factors. At a theoretical level, if a technical change is factor neutral, it will reduce off-farm labor supply and slow rural structural transformation away from agriculture; if it is labor-augmenting and the elasticity of substitution between factors is low enough, the opposite effects are predicted. The paper studies these issues empirically for rice production in Vietnam, focusing on the impact that consolidation of rice land has on rice production, machinery use, and labor allocation. The findings confirm that land consolidation raises both farm productivity and farm income and stimulates increased machinery use. It also reduces farm labor supply, lowers labor intensity in farming, and thereby releases more farm labor to off-farm development, consistent with government policy objectives. Based on these findings, the paper concludes that land consolidation should be encouraged through development of land ownership rights and the promotion of land rental markets. |
| Keywords: | Land consolidation, factor-biased technical change, rural diversification, machinery use |
| JEL: | Q15 N65 O13 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pas:papers:2018-25&r=all |
| By: | Kan, Iddo; Reznik, Ami; Kimhi, Ayal; Kaminski, Jonathan |
| Abstract: | This paper combines a structural estimation of vegetative-agriculture supply, based on a farmland-allocation model, with a market-level partial equilibrium demand model, to simulate the effects of climate change on agricultural production and food prices. The supply estimation accounts for corner solutions associated with disaggregate land-use data, enabling the treatment of prices as exogenous. The explicit formulation of production and output prices enables linkage to the demand, as well as the exploitation of market-level data so as to assign production interpretation to the estimated coefficients of the land-use model. We use the model to assess climate-change impacts in Israel, where agriculture is protected by import tariffs. We find that the projected climate changes are beneficial to farmers, particularly due to the positive impact of the forecasted large temperature rise on field-crop production. Fruit outputs are projected to decline, and reduce consumer surplus, but to a lower extent than the increase in total agricultural profits. Nearly 20% of the profit rise is attributed to farmers’ adaptation through land reallocation. Adaptation to the projected reduction in precipitation by increasing irrigation is found to be warranted from the farmers’ perspective; however, it is not beneficial to society as a whole. Abolishing import tariffs effectively transfers surpluses from producers to consumers, but the impact of this policy on social welfare becomes positive only under scenarios of large climate change. |
| Keywords: | Demand and Price Analysis, Environmental Economics and Policy, Production Economics |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ags:huaedp:290059&r=all |
| By: | Donnellan, Trevor M; Hanrahan, Kevin F; Lanigan, Gary J |
| Abstract: | As part of its international obligations, Ireland faces emission reduction targets with respect to greenhouse gases (GHG). These reduction targets are to be achieved both in the short term and over the coming decades. Agriculture is a substantial source (33%) of Ireland’s GHG emissions. Whereas the economic welfare of farmers has been the dominant force in shaping agriculture policy for several decades, there has been a notable increase in environmental concerns and a gradual emergence of environmental policies which are relevant to agriculture, particularly in the last 10 years. The future evolution of the agri-food sector in Ireland must therefore be seen in the context of both the economic growth objectives of national agricultural policy, as well as national environmental policy objectives arising from international obligations. In light of the recent proposals with respect to the EU Common Agricultural Policy (CAP) post-2020 (EC, 2018), environmental objectives will become an increasingly important subset of the CAP objectives and the implementation of the CAP in Ireland. The EU Effort Sharing Decision (ESD) requires that Ireland reduce its non-ETS GHG emission by 20% by 2020 relative to the 2005 level. The reduction target for the non-ETS sector for 2030 is 30%, but incorporates so called flexibility mechanisms designed to make the achievement of this target less onerous. A partial equilibrium model of Irish agriculture is used to explore differing future outcomes in terms of the sector’s size and associated GHG emissions to 2030. The scenario analysis employed demonstrates the implications of different future pathways for bovine (dairy and beef) agriculture, the dominant sector in Irish agriculture and the principal source of its GHG emissions. Mitigation actions are then factored in to provide measures of future levels of emissions inclusive of this mitigation capacity. While technical mitigation actions are largely grounded in interventions that are based on science, the scenario analysis makes clear that the scale of the ultimate challenge in mitigating agricultural GHG emissions will be determined by the overall size of the agriculture sector and the intensity of production per hectare. The dairy and beef sectors in Ireland are noteworthy for their contrasting levels of profitability; dependence on support payments; and farm income. Now that the EU milk quota has been eliminated, from the perspective of economic development, an increase in the size of the dairy sector and entry into the dairy sector are desirable economic policy objectives. However, the paper demonstrates the strong contrast between dairy and beef farms, not just in terms of income but also in terms of intensity of production per hectare and the associated level of emissions produced. It follows that a transition from beef production to dairy production, while desirable from the point of view of farm income, could have adverse consequences for emissions. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa172:289828&r=all |
| By: | Cossar, Frances |
| Abstract: | Mechanization is accompanied by changes in the quantity and type of labour required for an activity. Agricultural mechanization is often touted by policy makers as reducing the drudgery associated with agricultural work and as increasing the productivity of the farming system, especially in contexts where traditional technologies appear to be stagnant. For good or for ill, mechanization is expected to replace labour in agriculture. This can either create unemployment, in a pessimistic scenario, or release labour for more productive work outside of the agriculture sector. However, little rigorous analysis has examined the impacts of agricultural mechanization on labour use in agriculture. This is partly due to the challenge of measuring these impacts in a well-identified setting. It can be difficult to attribute changes in production systems and household welfare to the use of mechanized technology, rather than to more general changes in agricultural conditions and associated infrastructures. This paper considers these claims and provides evidence of a more complex set of impacts. By reducing labour use in some activities and at certain points in the growing season, agricultural mechanization can actually increase demand for labour in other activities and at other seasons. In northern Ghana, tractor use allows for shortening the length of time required for land preparation, making it possible for farmers to grow maize in locations where the crop would otherwise be marginal at best. Because maize cultivation is relatively labour-using, compared to other agricultural activities, mechanization of land preparation leads to an increase in the overall demand for agricultural labour. In this context in Ghana, small- and medium-scale farmers access mechanized plowing technology via a service market, rather than through individual ownership of machines. This paper bases its causal identification on a government scheme that generated plausibly exogenous positive shocks to the supply of machinery services at the district level. Bearing in mind the methodological difficulties and limitations of the approach, evidence is presented of the short-term impact on a range of variables relating to the farming system and household welfare. Findings indicate that for these marginal users of agricultural machinery, mechanized plowing does not significantly reduce the labour used for land preparation, and in fact increases labour use for other operations. The area cultivated increases, with proportionate increases in maize cultivation and an increased proportion of land controlled by women. I propose that these results are consistent with tractor plowing alleviating a time constraint for farmers, which enables cultivation of more timesensitive crops and increases the expected returns to subsequent production activities. |
| Keywords: | Agricultural and Food Policy, Production Economics |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289657&r=all |
| By: | Viira, Ants-Hannes; Ariva, Jelena |
| Abstract: | This paper studies the role of market driven structural changes, and changes in agricultural policy in reconversion of permanent grassland to cropland in Estonia. Data on parcels of agricultural land and beneficiaries of direct payments in Estonia, from 2013 to 2016, and logistic regression is used in the analysis. It is argued that as a result of crisis in milk market in 2015 and 2016 some of the dairy farms changed their specialisation to cereals, oilseeds and protein crops and reconverted some of their permanent grasslands to cropland. At the same time, dairy farms who quit milk production and became specialised in cattle, sheep and goats preserved their permanent grasslands. In 2015 and 2016 the cheapest maintenance practice of permanent grassland, grass chopping, was restricted on a beneficiary’s permanent grasslands that exceeded 10 ha. This stimulated changes in land market. Some of the permanent grasslands that were preserved by passive land owners were transferred to cereals, oilseeds and protein crops farms, and cattle farms. As an adverse effect, this increased likelihood that permanent grasslands were reconverted to cropland. It is concluded that since passive land owners and cereal, oilseeds and protein crops farmers also contribute to maintenance of permanent grasslands, the cheapest maintenance practices should not be restricted. At the same time, it is crucial to improve resilience of grassland farms that contribute the most to permanent grasslands preservation. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa172:289717&r=all |
| By: | Kan, Iddo; Slater, Yehuda; Reznik, Ami; Finkelshtain, Israel |
| Abstract: | This paper incorporates the detrimental agronomic effects of irrigation-water salinity into an empirical economy-wide dynamic hydro-economic model to study the interactions between salinity, agricultural policies and optimal long-run water-allocation policies and water-infrastructure plans. Application to the case of Israel indicates economic viability of large-scale delivery of desalinated water for agricultural irrigation during a 30-year period (2016–2045). We explain this finding by the large share of salinity-sensitive crops in the total irrigation-water consumption and production value of the Israeli vegetative agriculture sector, which stems from the historical policy to protect local agriculture. On average, the annual damage caused by the presence of salts in Israel’s water sources is evaluated at nearly $4,500 per hectare of arable land, comprising deadweight loss in both the water and agricultural economies. Overlooking salinity’s agronomic effects in the design of water infrastructures entails an annual welfare loss of nearly $1,360/hectare, and income redistributions wherein the profits of water suppliers increase significantly at the expense of the economic surpluses of urban water users, farmers, and consumers of agricultural products. |
| Keywords: | Agricultural and Food Policy, Farm Management, Resource /Energy Economics and Policy |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ags:huaedp:290061&r=all |
| By: | Buschmann, Christoph; Röder, Norbert |
| Abstract: | Growing evidence suggests that biodiversity in the agricultural landscape is declining sharply. Farmland birds are particularly affected, e.g. the lapwing (Vanellus vanellus) population has been decreasing strongly in Germany and Europe. Up to now the European Union has tried to tackle the problem of biodiversity loss mainly with voluntary (second pillar) agri-environmental schemes financed by the European Agricultural Fund for Rural Development (EAFRD). However, only a small fraction of the agricultural land is enrolled in such programs. We analyse different schemes promoting lapwings in order to identify drivers and inhibitors of acceptance. The analysis is based on a discrete choice experiment with 270 arable farmers in Germany. Results show that those scheme attributes associated with EAFRD compliance, the type of sanctioning and a minimum participation period of five years, markedly reduce the farmers’ acceptance. The results have several policy implications. First, it shows clearly that the maximum support rates for agri-environmental and climate measures according to Art. 28 of EU 1305/2013 laid down in Annex 2 are set too low to achieve an effective implementation of the measure. Second, Eco-Schemes which are an element of the European Commission’s legislative proposal for the Common Agricultural Policy (CAP) could be a valid option to address some of the identified caveats. Eco-Schemes that shall be part of the future direct payments will presumably produce higher participation rates since they offer greater flexibility due to the minimum period of only one year and the late timing of the farmers’ decision until mid-May of the running year. In addition, they could provide additional basic income support and not just compensate for the income loss associated with the protection measure. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa172:289824&r=all |
| By: | Kimhi, Ayal; Reznik, Ami |
| Abstract: | The dairy branch is one of the most regulated branches of agriculture in Israel. The dairy farm policy reform, initiated in 1999, enabled Israeli dairy farmers, for the first time, to trade production quotas, and encouraged capital investments through financial incentives. The consequence was a rapid exit of producers, an increase in the size of existing producers either through purchasing quotas or through mergers, and an improvement of production efficiency and milk quality. This paper employs Data Envelopment Analysis (DEA) to estimate the changes in production efficiency, using data from the dairy farm profitability surveys of 2003, 2005, 2007 and 2009. We found that dairy farms have become larger and more efficient during the reform period. Results also suggest that scale efficiency has increased over time for small family farms. Meta Production Frontier analysis showed that relatively small Moshav farms were able to catch up with the technology used by the most efficient farms in the industry, and this may explain the gradual increase in their scale efficiency. Larger Moshav farms, on the other hand, were not able to catch up with the technology used by the most efficient farms. Continued policies aimed at further concentration of production in fewer and larger farms are not necessarily the most effective approach to increase dairy farm efficiency. Efforts should focus on helping less efficient farmers to utilize the best available production methods and adopt more efficient production techniques. |
| Keywords: | Agricultural and Food Policy, Livestock Production/Industries, Production Economics |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:huaedp:290056&r=all |
| By: | Schreiner, Julia Anette; Latacz-Lohmann, Uwe |
| Abstract: | This paper reports the results of two identical surveys designed to elicit farmers’ and non-farmers’ representative views and opinions on the future direction of the Common Agricultural Policy (CAP). The surveys applied Q-methodology to investigate how farmers (survey 1) and citizens without a background in agriculture (survey 2) would like to see the CAP develop after the current reform concerning six different topics, among others: direct payments, structural change in agriculture and services of societal interest. Q methodology combines the strength of qualitative and quantitative research in order to explore and classify subjective views. The existing literature on farmers’ and citizens’ views on the CAP focuses particularly on attitudes of one or the other group. Five opinion groups among the farmers surveyed and seven opinion groups among the non-farming participants were identified. The largest opinion group among farmers – 42 % of respondents – represented “protectors of vested rights” who in essence want the current CAP to continue, supplemented by other support instruments. Only a relatively small share of the interviewed citizens (10%) were of similar opinion, which means that there will presumably be little support among the general public of “more of the same” in agricultural policy. However, the study also revealed some clear similarities between the two stakeholder groups. The largest group in the sample of citizens (29%) was characterized by their market skepticism and desire for agricultural payments to be focused on smallholder and organic farms. Respondents belonging to this group find that the CAP should support the production and marketing of local food products rather than promoting international competitiveness and export. This opinion group could also be found in the sample of farmers (24 %). |
| Keywords: | Agricultural and Food Policy, Consumer/Household Economics |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289663&r=all |
| By: | Adenaeuer, Lucie; Hayden, Anne; Breen, James |
| Abstract: | With the Food Harvest 2020 and Foodwise 2025, Ireland has published two national food strategies to chart the direction of agri-food, forestry and fisheries for what will come after the EU milk quota abolishment and to develop a strong and sustainable ‘green’ pillar of the Irish economy up to 2025. Next to this agricultural development strategy, Ireland has Greenhouse Gas emission targets set, which since 2009, not only contain the EU’s Emission Trading Scheme sector but also the non-ETS sector. In the absence of any mitigation, agricultural GHG emissions in Ireland are projected to increase by 9% by 2030 relative to the 2005 base year due to strong growth of the agriculture sector. Marginal Abatement Cost Curves (MACCs) estimated by the Teagasc Working Group on GHG emissions have projected the total technically feasible mitigation potential for the Irish agriculture, forestry and land use (AFOLU) sector up to 2030. Existing Irish studies on the real term realisation of mitigation measures identify, through the use of either probit or logit models, farmers’ attitudes and farm structures that influence the level of adoption of abatement tools. This study adjusts the MACC abatement potential by applying the identified uptake rates of these Irish case studies. The adjusted mitigation potential for the AFOLU sector appears to lie 29% below the potential projected through the MACC approach. From the results, it can be inferred that policy measures need to be implemented in order to increase the abatement potential of the AFOLU sector, to substantially help bring the nexus between agricultural development and GHG emission targets in Ireland closer together. One main factor influencing the uptake rate of mitigation measures is the farmers’ understanding of the issues and measures available to tackle these. Therefore, the behavioural changes of farmers need to be understood and to reduce agricultural GHG emissions,polices are needed that remove the barriers to behavioural change. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa172:289672&r=all |
| By: | Sasu-Boakye, Yaw; Valin, Hugo; Wirsenius, Stefan; Havlik, Petr; Hedenus, Fredrik; Frank, Stefan; Herrero, Mario |
| Abstract: | The European Parliament recently adopted a plan for a European strategy for the promotion of protein crops for food and feed. While the motivation is to reduce further deepening of the dependence on third-party imports, it is also anticipated that increased sourcing of protein feed from the EU will contribute to reduce deforestation and lower GHG emission footprint from EU livestock production. However, a significant part of the protein meals currently sourced from the EU is the result of a different policy, the Renewable Energy Directive, that promotes the use of vegetable oil for fossil fuel substitution in the EU transportation sector. This paper compares two different strategies to decrease reliance of the EU feed protein market to imports - direct support to oilseed production, and incorporation targets for biodiesel in transport. We assess GHG emission impacts of these scenarios using GLOBIOM, a partial equilibrium model of agriculture and land use, enriched with detailed representation of the oilseed supply chains. The results show that direct substitution of soybean feed with protein meal from rapeseed and sunflower decreases deforestation related GHG emissions even though increased demand for agricultural land contributes to higher GHG emissions from agricultural production. Direct substitution of soybean feed leads to net savings if the protein crops are sourced from Europe. However, when a demand for vegetable oil-based biofuel is introduced as the primary driver of feed substitution, the land-use emissions go in opposite direction, with net increase in overall GHG emissions, partly due to additional imports of palm oil from Southeast Asia. Therefore, a supply-oriented policy targeting domestic protein and oil crops appear environmentally preferable to sponsoring demand of vegetable oil for energy use, which shows the importance of connecting better the discussions on the Renewable Energy Directive and the European strategy for the promotion of protein crops for food and feed. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa172:289709&r=all |
| By: | Bakari, Sayef; Sofien, Tiba |
| Abstract: | Since the beginning of the third millennium, the Chinese agricultural exports increase at a strong pace. In this context, this paper aims to answer the question if the agriculture trade promotes Chinese economic growth by employing the ARDL bounds testing for the study period from 1984 to 2017. In the long-run, our highlights reported that domestic investment and agricultural exports have a positive effect on economic growth. However, agricultural imports have a significant negative impact on growth. In the short-run, our insights reported a positive and significant effect of domestic investment, agricultural imports and agricultural exports on economic growth. The positive impact of agriculture exports on growth is due to the importance of agriculture in terms of creating jobs and opportunities for the economy as a whole. Also, sufficient national investment in the agriculture sector leads to enlarging these opportunities and then improves the Chinese economic growth. |
| Keywords: | Agricultural trade; economic growth; ARDL bounds testing |
| JEL: | F11 F14 O47 O53 Q17 Q18 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:94614&r=all |
| By: | Matthews, K.B.; Blackstock, K.L.; Waylen, K.A.; Juarez-Bourke, A.; Rivington, M; Miller, D.G.; Wardell-Johnson, D; Cabello, V.; Kovacic, Z.; Renner, A.F.; Ripa, M.; Giampietro, M. |
| Abstract: | This paper contributes to the conference discussions of (1) “what are the trade-offs and synergies between the economic, environmental and social dimensions of the Common Agricultural Policy (CAP) as a policy geared towards sustainability”; and (2) how to measure the performance of agriculture at a range of scales. Specifically, we assess whether there are tensions for CAP policy between enhancing productivity and the provision of public goods. Our insights are derived from an EU Horizon 2020 project, Moving Towards Adaptive Governance in Complexity: Informing Nexus Security (MAGIC) exploring the robustness of policy narratives in the water, energy, food and environment nexus. As highlighted in the conference objectives, assessing the role of the CAP in delivering sustainability requires taking multiple, non-equivalent perspectives (e.g. geographical scales or structural hierarchies). The conduct of these multi-perspective studies is guided by the concepts of societal metabolism analysis. The analytical focus is thus on understanding the mix of biophysical and socio-economic resources needed to maintain social-ecological systems (e.g. food and farming systems) and the degree to which these are met locally, highlighting where there may be dependencies on other systems or externalised impacts. We conducted transdisciplinary research with policy makers using Quantitative Story Telling (QST). The QST process has a phase of qualitative analysis of the institutional and semantic framings of CAP policy narratives, followed by formal quantification of the robustness of policy narratives using the MuSIASEM toolkit for societal metabolism analysis. Interpretation of these formal analyses, with stakeholders in DG Agri and other EU institutions, closed the loop. The results of this analysis (and of other analyses for Biodiversity, Circular Economy, Energy Efficiency, and Water Framework Directive) are available via the MAGIC document repository. From the semantic qualitative phase, the narrative selected as the basis for formal analysis was: “CAP aims to ensure European agricultural competitiveness in the world market and aims to deliver public goods such as biodiversity conservation, water quality and climate change mitigation. These aims are in opposition”. The formal societal metabolism analysis was pan-EU, focusing on key aspects of EU farming systems. These characterized imports and exports of agricultural commodities, the relative intensities of inputs use in production systems and the aggregate impacts of production systems on environmental indicators. Farm Accountancy Data Network (FADN) data and Eurostat CAP impact metrics already include variables that can support these pan-EU societal metabolism analyses. Adding more bio-physical quantities to those existing within FADN, particularly for inputs and outputs, would enhance its analytical value, particularly for identifying externalisation and pressures on the environment. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa172:289806&r=all |
| By: | Galarza, Monserrath Ximena Lascano |
| Abstract: | This research aims at investigating the impacts of food assistance programmes on the resilience to food insecurity of the beneficiary household under the World Food Programme (WFP) and Oxfam America’s (OA) project “The R4 Rural Resilience Initiative” implemented in rural and vulnerable areas of Malawi during the period 2015-2016. The empirical analysis uses the Resilience Index Measurement and Analysis II (RIMA-II) methodology of the Food and Agriculture Organization (FAO) and a reflexive method for impact evaluation. RIMA II analysis reveals positive relationships between programme interventions and higher levels of food security and resilience. The impact analysis shows positive impacts of the R4 rural initiative, demonstrating an improvement of the resilience, food security, access to loans and insurance, and in savings. The final conclusion is that food assistance programmes enhanced the beneficiary households’ resilience to food insecurity. |
| Keywords: | Agricultural and Food Policy, Consumer/Household Economics, Food Security and Poverty |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289674&r=all |
| By: | Bozzola, Martina; Smale, Melinda |
| Abstract: | This paper investigates the effects of crop genetic diversity on farm income and production risk using a large panel dataset of rural households in Kenya. We consider three different metrics of in situ crop diversification (richness, evenness and concentration) and test the effects of each strategy on crop income and crop income vulnerability. We apply a comprehensive econometric approach that differentiates climatic shocks, weather and climate change. Welfare implications of diversity are evaluated using a partial moments-based approach. The results suggest that the benefits from higher diversification in terms of enhanced land productivity and lower production costs surpass the foregone benefit from higher efficiency in more concentrated production systems. Crop richness and evenness each reduce exposure to risk, especially for more vulnerable farmers producing below the expected revenue threshold. Farmers relying on greater crop specialisation, on the contrary, are more exposed to risk. In the absence of financial insurance for hedging, crop diversification may be a useful adaptation strategy. |
| Keywords: | Crop Production/Industries, Farm Management |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289670&r=all |
| By: | Brey, Björn; Hertweck, Matthias S. |
| Abstract: | This paper examines the dynamic effects of monsoon rainfall shocks on yield, wages, and prices in the Indian agricultural sector. We distinguish between positive and negative rainfall shocks and explicitly consider their spatial dimension (local/regional). We find that particularly negative regional shocks exert adverse effects. The enormous drop in agricultural yield is short-lived, but elicits a persistent decline (increase) in wages (food prices). Negative local shocks affect only wages, but not prices. This indicates that, in the food market, intra-regional trading mitigates the impact of local shocks. However, in the labour market, the arbitrage mechanism through migration appears substantially weaker. |
| Keywords: | rainfall shocks,agricultural yield,wages,food prices |
| JEL: | C33 E32 O13 Q11 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdps:182019&r=all |
| By: | Bakari, Sayef; Sofien, Tiba |
| Abstract: | One of the major unresolved research issues in agriculture is the question as to whether agricultural investments still a promoter of economic growth at the regional and local levels. The concern is not with the agricultural benefits, principally measured as food security, but whether there are additional development benefits from these investments. In this paper, we have developed a new approach to study the impact of agricultural investment on economic growth. By taking the case of China, this study is based on the Auto-Regressive Distributive Lags (ARDL) approach that is proposed by Pesaran et al (2002). The empirical estimate yields interesting results. In the short and long terms, agricultural investment has a positive effect on economic growth. The findings of this research have important implications for further policy designs that seek to maintain the agricultural sector in China in the future. |
| Keywords: | Agricultural Investment, Economic Growth, China, ARDL. |
| JEL: | C18 C5 O13 O47 O53 Q1 Q10 Q18 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:94552&r=all |
| By: | Lan, Hao |
| Abstract: | This paper investigates responses of domestic food prices to world commodity markets regarding current concern of the UK commodity-driven food inflation. In the empirical analysis, we extend existing studies by using monthly data covering major developed (the US, the UK and Australia) and emerging markets (BRICS and Pakistan) for various commodities over the last 30 years. We also contribute to the literature by considering endogenous structural break in the pass-through analysis. Our results brings useful facts for further discussion and comparison. Regarding agricultural-type commodities, strong pass-through is found in major emerging markets except India, where China and Pakistan shows relatively large pass-through. While the US pass-through is similar to the one in the literature, the UK is found to have a much smaller and weakly significant pass-through. Differently, Australia food price responds to non-agricultural commodities instead. Considering structural break has a mixed impact on the estimated pass-through coefficients but the main conclusions are generally unchanged. The results are vital for a country’s monetary policy and target of food inflation from both short- and long-term perspective. |
| Keywords: | Demand and Price Analysis, International Development |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289659&r=all |
| By: | Chemeris, Anna; Ker, Alan P. |
| Abstract: | Innovation in the agricultural sector will determine our ability to reduce food insecurity and feed nine billion people by 2050. Concomitantly, most of the world's agricultural crop production is produced under heavily subsidized insurance. Changes in food security will be largely driven by the nexus of innovation, climate change, and the policy institutions under which production agriculture operates. In the United States, crop insurance subsidies increased from 30% to 60% between 1994 and 2000, bringing about a significant increase in program participation. We use this increase as a natural experiment (event) to empirically estimate the impact of insurance subsidies on rates of technological change and measures of yield resiliency in corn (maize) yields. Our event results indicate that subsidies caused an increase in the rates of technological change and, more surprisingly, an increase in yield resiliency measures. However, point identification fails if there exist any confounding variables. Therefore, we use the spatial heterogeneity in our estimated event parameters to identify causal effects from three sources: introduction of genetically modified seeds, changing climate, and insurance subsidies themselves. Quite interestingly, the increase in the rates of technological change dissipates and the yield resiliency effect is reversed (consistent with theory). Furthermore, we find that the positive effects of genetically modified seeds dominate the effects from both changing climate and increased subsidies. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2019–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uguiwp:290308&r=all |
| By: | Rahmani, Djamel; Loureiro, Maria; Escobar, Cristina; Gil, Jose Maria |
| Abstract: | A labelled discrete choice experiment (DCE) combined with a blinded wine tasting was conducted among 180 Catalans red wine drinkers to assess their preferences and willingness to pay (WTP) for three different wines: conventional, organic, and selected vintage organic wines in the context of habitual purchase. The DCE was carried out before and after wine tasting and a comparison between pre and post responses was undertaken to measure the effect of wine taste on wine repurchase. Facial expression analysis was conducted to test whether different wine typologies evoke different emotions and if these emotions influence consumers’ wine choices and WTP. Moreover, we tested for hypothetical bias in the DCE subjecting half of the sample to a hypothetical DCE and the other half to a nonhypothetical DCE. Results show that consumers’ preferences for the three wine typologies in both hypothetical and nonhypothetical DCE were not statistically different. However, consumers’ preferences were significantly influenced by wine taste, evoked emotions and actual liking. Our findings showed that there was a positive and significant association between wine evoked emotions (positive experience) and wine choices, especially in the case of organic and selected vintage organic wine. However, wine evoked emotions did not affect significantly consumers’ WTP for each of the three wine typologies. Our findings also showed that organic or selected vintage organic wines were preferred by women and participants with high environmental involvement. Our findings improved our understanding of wine choices, contributed to the application of DCEs for eliciting preferences and provided useful information to winemakers. |
| Keywords: | Consumer/Household Economics, Crop Production/Industries |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289662&r=all |
| By: | Angela Cheptea (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST); Catherine Laroche-Dupraz (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST) |
| Abstract: | A recent trend of literature investigates how international trade compensates or accentuates the differences in countries' endowments in water resources and whether trade regulation should be used to improve the use of water resources at the global level. In this paper, we develop a simple model establishing a positive link between the demand for irrigation water of agricultural producers and the international price of irrigated goods. Unlike previous works, that focus on the cost of water resources, we emphasize the price of traded goods as a key element of the shadow value of water used in agriculture. We test our model empirically using data on 159 irrigated crops exported by 183 countries, and find that countries' irrigation behavior is strongly linked to the global price of crops. This indicates that agricultural producers internalize the price of irrigation water. The export price effect is stronger when countries are net exporters of irrigated crops and weaker for internationally traded crops that constitute a pillar of most countries' domestic food security, such as cereals. Our results provide elements for the broader issue of the economically efficient use of water resources in agriculture. |
| Abstract: | Des travaux récents dans la littérature analysent comment le commerce international attenue ou renforce les différences de dotation en eau entre les pays et si la réglementation du commerce pourrait être utilisée pour améliorer l'utilisation des ressources en eau au niveau mondial. Dans ce papier nous développons un modèle simple identifiant un lien positif entre la demande en eau d'irrigation des producteurs agricoles et le prix international des produits irrigués. Contrairement aux travaux précédents qui s'intéressent au coût des ressources en eau, nous mettons en avant le prix des biens échangés comme un élément central du prix virtuel de l'eau d'irrigation. Nous testons en suite notre modèle à l'aide des données sur 243 produits irrigués exportés par 185 pays et trouvons un lien fort entre le comportement des pays en matière d'irrigation et le prix mondial des produits irrigués. Ce résultat indique que les producteurs agricoles internalisent dans leur décisions le prix de l'eau d'irrigation. L'effet du prix à l'exportation est plus fort lorsque les pays sont des exportateurs nets de cultures irriguées et plus faible pour produits essentiels pour assurer la sécurité alimentaire, tels que les céréales. Nos résultats enrichissent la discussion sur la question plus large de l'utilisation rationnelle d'un point de vue économique des ressources en eau dans l'agriculture. |
| Keywords: | eau virtuelle,water resources,virtual water,international trade,agri-food product,irrigation,ressource en eau,commerce international,produit agroalimentaire,rrigation |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02154603&r=all |
| By: | Kankwamba, Henry; Kornher, Lukas |
| Abstract: | Ending extreme hunger requires interaction of both household and community level infrastructural investments. When communities and households are capital infrastructure constrained, effects of extreme events such as droughts can fetter consumption growth and food security. This paper assesses the impact of household shocks on daily per capita food consumption in Malawi. Secondly, the study assesses the impact of community level public infrastructural investment on household food security. The study uses fixed effects regression combined with propensity score matching techniques on a Malawian panel data collected between 2010 and 2016. The study uses three indicators for food security namely food consumption expenditure, the Berry Index of dietary variety and number of days a household went without food. To measure idiosyncratic and covariate shocks, self-reported survey and high-resolution weather station-based data used. To measure infrastructure, survey data, triangulated with remote sensed night time lights, were used to construct an infrastructure index. Results show that while a standard deviation deficit in the one to three-month interval drought reduces consumption by over 80%, access to infrastructure increased consumption by a factor of two during shocks. |
| Keywords: | Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Food Security and Poverty |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289660&r=all |
| By: | Burney, Shaheer |
| Abstract: | Obesity is inordinately prevalent among food insecure households in the US. Some researchers have identified the consumption of unhealthy food a major source of this seemingly paradoxical relationship. One of the goals of the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is to encourage healthy eating behavior among low-income households. However, literature lacks conclusive evidence for the success of the program in achieving that goal. This paper exploits an underutilized source of variation, the early-2000s recession in the US, to determine the impact of SNAP participation on household Food Away From Home (FAFH) expenditures. A Difference in Difference model is constructed using high post-recession growth in SNAP caseloads as treatment. The results show that households in the treatment cohort significantly decrease consumption of FAFH relative to households in the control group. This provides evidence that SNAP participation leads households to make healthier eating choices. |
| Keywords: | Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Food Security and Poverty |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ucozwp:290127&r=all |
| By: | Olagunju, Kehinde Oluseyi; Patton, Myles; Feng, Siyi |
| Abstract: | The distorting effect of agricultural subsidies on production decisions has been a major topic of debate in agricultural policy analysis for several decades. In light of the 2003 and the 2013 Common Agricultural Policy (CAP) reforms in the EU which delinked payments from current production, this paper examines the impact of decoupled payments on farm production in Northern Ireland using a farm-level panel dataset for the 2008 – 2016 period. An instrumental variable fixed effect model is employed, which allows important sources of endogeneity to be controlled for. Empirical results reveal that decoupled payments had significant positive effects on production outcomes but with differential impacts across sectors. The findings suggest that decoupled payments still maintain a significant effect on agricultural production. One likely explanation for this is that farmers may still be using decoupled payments to partly subsidise unprofitable farm production. |
| Keywords: | Agricultural and Food Policy, Production Economics |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289665&r=all |
| By: | Ollikainen, Markku; Kosenius, Anna-Kaisa; Punttila, Eliisa; Ala-Harja, Venla; Ekholm, Petri |
| Abstract: | This paper describes the development of a new and efficient agri-environmental measure, gypsum amendment of arable fields, and its inclusion as a voluntary measure in national agricultural support schemes. Gypsum reduces erosion and both particulate and dissolved reactive phosphorous loads to surface waters, thus having high potential in the Finnish agriculture in contributing Finland to meet phosphorous reduction targets set by the HELCOM Baltic Sea Action Plan. Gypsum amendment suits clayey soils located also in other Baltic Sea countries. A large scale gypsum pilot was organized in Southwest Finland, along the Savijoki River that flows to the Baltic Sea. Structured surveys and discussions in workshop explored how 55 farmers adopted gypsum amendment and gathered experience from spreading gypsum and its impacts on soils, yields and aquatic systems. Gypsum amendment is an investment in nutrient load reduction that entails high upfront costs to farmers and requiring, in case of large farms, a public tendering. As these may hinder large-scale adoption of an efficient measure, the paper suggests to include a completely new option to CAP framework: national environmental protection investments that facilitate ex-ante payment schemes to overcome the financial challenge to farmers. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa172:289698&r=all |
| By: | Ojo, Mathew Paul; Ayanwale, Adeolu Babatunde |
| Abstract: | One of the factors affecting availability of productive capital and exacerbating farmers’ vulnerability to climate change risks, is that they lack access to formal safety nets to which they could turn in times of need as most smallholder farmers lack capital and are unable to access credit. This study used a multi-stage sampling procedure to obtain a cross-sectional data from 300 plantain farmers in Southwest Nigeria and estimated their financing gap as a measure of their vulnerability to climate change hazards. Collected data were analysed using the Stochastic frontier function, the Harold-Dorma equation and the Foster Geer-Thorbecke (FGT) to determine the degree of farmers’ vulnerability. The Probit regression model was also used to examine factors affecting climate change adaptation methods in the study area. Results showed that with the vulnerability line at $409.6, more than two-third (84%) of the plantain farmers were vulnerable to climate change risks due to financial constraints, with 36% of the farmers being severely vulnerable. It required an average amount of $225.28 to get a farmer out of financial vulnerability. Also, the Probit result showed that access to credit, climate insurance and climate information were the major determinants of the use of climate change adaptation methods in the study area. The financing gap approach enabled the determination and extent of each farmer’s vulnerability. Measures aimed at bridging the financing gap of individual farmer through increased access to credit and improved climate change information services should therefore be vigorously pursued, to reduce vulnerability in the study area. |
| Keywords: | Agricultural Finance, Environmental Economics and Policy |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289671&r=all |
| By: | Vincent Chatellier (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST); Pierre Dupraz (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST) |
| Abstract: | The European Union (EU) has, since a long time, an important role in the international livestock industry chains, both in terms of production and trade. In spite of a strong restructuring movement, mainly due to factor productivity gains, European livestock brings together farms that are still very heterogeneous in terms of productive combinations, size, social structuring, intensification and economic performance. To document this, data from the Farm Accountancy Data Network (FADN) is used to analyze the diversity of structural and economic situations of farms specializing in the production of milk, beef and pigs/poultry, for the ten most productive EU Member States in animal production. This step is necessary for identifying the main levers for improving the economic performance of European animal productions. Two types of levers are distinguished. The first concerns the « cost competitiveness ». It refers successively to the substitution of production factors, economies of scale, the geographical concentration of production, the structuring of production chains and the impact of agricultural policies. The second concerns the « non-cost competitiveness ». It covers the sanitary quality of animal productions, the differentiation of products and production processes, and the required conditions for farmers to capture some of the generated value-added. |
| Keywords: | livestock,livestock production,competitiveness,economic performance,FADN,livestock farms,farm accountancy data network,élevage,production animale,performance économique,rica,compétitivité |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02154561&r=all |
| By: | Kimhi, Ayal; Siminovich, Ortal |
| Abstract: | We analyze the responses of dairy farmers in Israel to an institutional reform that allowed, for the first time, for buying and selling of production quotas, and provided financial incentives for such quota trading. Larger producers were less likely to sell quota and exit but also less likely to expand, indicating that the incentives were most effective for smaller farms who had to choose between exit and expansion. The existence of a successor reduced the exit probability, while farmers working off the farm were more likely to expand by buying additional quota. |
| Keywords: | Agricultural and Food Policy, Livestock Production/Industries |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ags:huaedp:290058&r=all |
| By: | Zhu, Chen; Lopez, Rigoberto A.; Liu, Xiaoou |
| Abstract: | Consumers often rely on product quality disclosures to make their purchase decisions. Voluntary nutrition labeling (VNL), a means of nutrition quality disclosure, was introduced in the last decade by leading food manufacturers and selected food retailers. To the extent that consumers make inferences based on VNL disclosures as they consider buying non-VNL food products, information spillovers occur. However, previous studies on the effectiveness of VNL programs have not considered information spillover effects. In this study, we examine consumer responses to VNL by incorporating both product participation and information spillover effects. Empirical results from the U.S. ready-to-eat cereal market confirm a positive participation effect of VNL and a strong negative spillover effect on non-VNL products (non-participating food products), especially those that are relatively unhealthy (high in sugar, saturated fat and/or sodium). These findings indicate that ignoring the effects of VNL information spillovers in models of consumer choices may lead to underestimation of the impact of VNL on consumer valuation of participating products and overestimation of consumer valuation of non-participating products, suggesting that an incentive in a firm’s voluntary participation in self-regulated labeling programs may be to avoid negative treatment externalities. Overall, this article shows the importance of including spillover effects in the evaluation of VNL programs and that VNL could play a positive role in improving the healthiness of consumer choices. |
| Keywords: | Consumer/Household Economics, Food Consumption/Nutrition/Food Safety |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ucozwp:290131&r=all |
| By: | Kym Anderson |
| Abstract: | Despite favourable growing conditions, Australia’s production or exports of wine did not become significant until the 1890s. Both grew in the 1920s, but only because of government support. Once that support was removed in the late 1940s, production plateaued and exports diminished: only 2% of wine production was exported during 1975-85. Yet over the next two decades Australia’s wine production quadrupled and the share exported rose to two-thirds – before falling somewhat in the next ten years. This paper explains why it took so long for Australia’s production and competitive advantage in wine to emerge, why it took off spectacularly after the mid-1980s and why it fell in the ten years to 2015. It concludes that despite the recent downturn in the industry’s fortunes, the country’s international competitiveness is now firmly established and commensurate with its ideal wine-growing climate, notwithstanding the likelihood of further boom-slump cycles in the decades ahead. |
| Keywords: | boom-plateau wine cycles; comparative advantage; wine competitiveness; wine trade specialization |
| JEL: | D12 F15 L66 N10 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pas:papers:2018-22&r=all |
| By: | Ambali, Omotuyole Isiaka; Areal, Francisco Jose; Geogantzis, Nikolaos |
| Abstract: | Improved agricultural innovation is a panacea to economic development yet the level of adoption of the available improved agricultural technology is mixed in most developing countries. While attempts have been made to identify extrinsic factors in adoption decisions, less attention is given to the intrinsic variables. This study examines the roles of farmers‟ risk preferences and spatial dependence in the decisions to adopt higher yielding rice varieties. We utilize experimental and survey data from Nigeria and estimated instrumental probit model in two stages: risk model first, and adoption decisions model second. We account for the spatial heterogeneity in adoption and found the spatial lags of the risk attitude variables as significant instruments for unobserved variables like environmental factors. More importantly, risk preference is a significant endogenous determinant of adoption decisions. Correlation between spatial dependence and risk preference is an indication of the existence of social interaction and learning effects suggesting the diffusion of HYV may be enhanced through farmers‟ neighbours, because social interaction is an effective tool for information dissemination in the rural areas. Specific attention should not only be given to farmers‟ individual factors but also the group attributes like spatial aspects in decision making. |
| Keywords: | Crop Production/Industries, Risk and Uncertainty |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289678&r=all |
| By: | Devilliers, Esther; Carpenter, Alain |
| Abstract: | Reducing the use of pesticides and more generally of chemical inputs is a topical issue for governments. Economists generally advocate taxation for reducing polluting input uses. While econometric models tend to show that the pesticides price elasticity is low, these models mostly consider short-term adjustments. Mid-term adjustments of variable input uses are expected to be larger as reducing such uses require farmers to change their cropping management practices (CMPs). CMP is a notion closely related to the economists' production functions and used by agricultural scientists for characterizing crop production technologies. Yet, data lacking on farmers' CMPs prevents direct empirical analyses of CMPs' performances and adoption processes. The main objective of this paper is to propose original approaches for identifying farmers' CMPs in farm accountancy panel datasets with cost accounting. We consider that each CMP is characterized by a specic production function and propose approaches for identifying farmers' CMPs and the related production functions either sequentially or simultaneously. We demonstrate the relevance of our approaches through an empirical application based on a French arable crop farm accountancy unbalanced panel dataset covering the 1998-2014 period. Albeit preliminary, our empirical results demonstrate that our approaches perform relatively well. Indeed, they enable us to identify two wheat CMPs used by farmers: a low input CMP and a high yielding CMP. |
| Keywords: | Crop Production/Industries, Farm Management |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289655&r=all |
| By: | Tsur, Yacov |
| Abstract: | The water prices that implement the optimal water policy are derived. These prices contain the supply cost components and two shadow price terms: one reflecting the in situ value of natural water and the other representing the scarcity of recycled water. The former accounts for the scarcity, extraction cost and instream value of natural water, and has a pronounced effect on the onset and extent of desalination along the optimal policy. The latter accounts for the scarcity of recycled water, stemming from the limit imposed on its supply by the sewage discharge, and acts as a tax on users of recycled water and as a subsidy for domestic and industrial users that contribute to the supply of recycled water (via the sewage they discharge). Special attention is given to implications of the public good role of environmental water allocation. An example based on Israel’s water economy is presented. |
| Keywords: | Demand and Price Analysis, Resource /Energy Economics and Policy |
| Date: | 2019–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:ags:huaedp:290060&r=all |
| By: | Jouan, Julia; Heinrichs, Julia; Britz, Wolfgang; Pahmeyer, Christoph |
| Abstract: | Legumes can contribute to a more sustainable agriculture by limiting N fertilisation, diversifying crop rotation and substituting imported protein-rich feed. However, their production remains low in the European Union, which had led to specific policies. For instance, following the reform of the Common Agricultural Policy, France established Voluntary Coupled Support (VCS) scheme for legumes. Germany did not introduce a VCS, but provides more favourable implementation of the Nitrates Directive (ND) for legumes by allowing spreading manure on these crops. Our study quantifies economic and environmental impacts of the VCS and measures of the ND affecting legume production in France and Germany. We employ the bio-economic model FarmDyn, parameterised for a typical dairy farm in France and Germany, to analyse different levels of VCS per hectare and to compare the French versus the German implementation of the ND. Results suggest that VCS leads to a significant increase in legume production. The implementation of the German ND can foster legume production due to the possibility of spreading manure on legumes. The policy induced increase in legume production is lower in the German farm due to higher opportunity costs of legumes. In both farms, the profit slightly increases but the share of VCS in the profit rises. Environmental indicators are overall improved. Thus, VCS, coupled with an adapted implementation of the Nitrate Directive, is an effective policy to foster environmental benefits from increased legume production. However, the effectiveness of these policies highly depends on the opportunity costs of legumes in each country. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa172:289765&r=all |
| By: | Fadare, Olusegun; Akerele, Dare; Mavrotas, George; Ogunniyi, Adebayo |
| Abstract: | Food insecurity and malnutrition are being worsened in countries that are exposed to armed conflict. Nigeria has witnessed a decade of protracted armed conflict and civil unrest. Many civilians have died and some farming communities have been sacked as a result. This study uses fixed-effect and random-effect models on a nationally-representative household panel data–Nigeria Living Standard Measurement Survey and Armed Conflict and Event Location Data, to examine the linkages between conflict, food price shocks, and calorie intake and acute malnutrition (wasting) among children. The prevalence of calorie intake inadequacy and wasting increase across the years in conflict-prone areas. Empirical results suggest that increases in food prices, especially staples have a depressing effects on calorie intake and increasing influence on wasting prevalence. Surprisingly, there appears to be a decrease likelihood of wasting among households in conflict-prone areas despite relatively low level of calorie intake. This result may be indicative of access to certain nutrition-related non-food factors capable of reinforcing the available calorie intake in the areas. Although sensitively guided food pricing policy and prevention of conflicts are critical for improve calorie intake and nutrition outcome, greater reduction in wasting prevalence may be achieved if other nutrition-related factors are considered. |
| Keywords: | Demand and Price Analysis, Food Security and Poverty |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289676&r=all |
| By: | Munonye, J. O.; Moses, P. |
| Abstract: | The study examined snail production in Imo State, Nigeria using cross-sectional data. It was guided by five specific objectives: describe snail production system in the study area; determine costs and return of snail production; determine the factors that affect snail production in the study area. Questionnaire was the instrument of data collection. Purposive sampling technique was used to sample fifty snail farmers who constituted the respondents for the study. Data were analyzed using descriptive, inferential statistics and costs and return analysis. Results showed that the business of snail farming required low capital investment and was highly profitable with gross margin and net profit of N612, 130.00 and N609, 630.00 per snail per one cycle respectively. The return on investment was N3.04. This showed that snail production is profitable and would boost the farmers’ income and thereby improve their livelihood. Quantity of snails and gender positively and significantly influenced the profit realized. Inadequate funds and religious bias were the major constraints to increase production. |
| Keywords: | Agricultural Finance, Livestock Production/Industries, Productivity Analysis |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289661&r=all |
| By: | Garg, Teevrat (University of California, San Diego); Gibson, Matthew (Williams College); Sun, Fanglin (University of California, San Diego) |
| Abstract: | How do people in developing countries respond to extreme temperatures? Using individual-level panel data over two decades and relying on plausibly exogenous variation in weather, we estimate howextreme temperatures affect time use in China. Extreme temperatures reduce time spent working, and this effect is largest for female farmers. Hot days reduce time spent by women on outdoor chores, but we find no such effects for men. Finally, hot days dramatically reduce time spent on childcare, reflecting large effects on home production. Taken together, our results suggest time use is an important margin of response to extreme temperatures. |
| Keywords: | time use, extreme weather, gender |
| JEL: | Q54 O13 H53 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12372&r=all |
| By: | Boberg-Fazlic, Nina (University of Southern Denmark); Sharp, Paul (University of Southern Denmark) |
| Abstract: | Despite the growing literature on the impact of immigration, little is known about the role existing migrant settlements can play for knowledge transmission. We present a case which can illustrate this important mechanism and hypothesize that nineteenth century Danish-American communities helped spread knowledge on modern dairying to rural America. From around 1880, Denmark developed rapidly and by 1890 it was a world-leading dairy producer. Using a difference-in-differences strategy, and data taken from the US census and Danish emigration archives, we find that counties with more Danes in 1880 subsequently both specialized in dairying and used more modern practices. |
| Keywords: | Dairying, immigration, knowledge spillovers, technology JEL Classification: F22, J61, N11, N31, N51, O33, Q16 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:420&r=all |
| By: | Schütte, Rebekka; Guzmán, Gema; Plaas, Elke; Gómez, José Alfonso |
| Abstract: | Vine cultivation on slopes causes serious erosion with significant losses of nutrients, organic matter and water, followed by an overall loss of soil biodiversity and ecosystem services (ES). Cover crops (CC) in inter-rows can reduce these effects, but are often renounced by winegrowers due to economic causes. Soil erosion rates which were obtained from field data and simulations with ORUSCAL (Orchard RUSle CALibration) lay the basis for comparing three different scenarios of soil management; conventional tillage (CT), temporary cover crops (TCC) and permanent cover crops (PCC). We use the Policy Analysis Matrix (PAM) to include on- and off-side costs of erosion and to demonstrate their economic implications. The scenarios are calculated for two different European wine regions, Montilla-Moriles (Spain) and Carnuntum (Austria). Results from ORUSCAL show that erosion is decreased in most cases with increasing use of vegetation cover. Overall, the consideration of erosion costs in the budget of farmers has only minor effects on their competitiveness and additional costs for CC are not covered by private erosion cost savings. However, if social erosion costs are added, CC are cost-effective in both regions. This is even without the valuation of non-marketed ecosystem services such as cultural and aesthetic aspects which most likely will increase social costs of erosion. Furthermore, our results show that higher revenues are of greater importance for management decisions than lower input prices. Therefore, CC should be rewarded either through a higher willingness to pay from consumers or government support. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa172:289710&r=all |
| By: | Mark R. Rosenzweig; Christopher R. Udry |
| Abstract: | The livelihoods of the majority of the world's poor depend on agriculture. They face substantial risk from fluctuations in weather conditions. Better risk, credit and savings markets can improve productivity and welfare in rural areas but entail high administrative costs. We consider a classic public good with benefits that theoretically exceed those of perfect insurance contracts – improving the skill of long-run weather forecasts. We use an equilibrium model of agricultural production and labor migration, and a variety of Indian panel datasets to assess quantitatively the effects of improvements in seasonal forecasts of monsoon weather. We find that in areas where the forecast is accurate (has “skill”) that investment, migration and rural wages respond to forecasts. We calculate that if such skill were pervasive across India, the total value of an accurate forecast for farmers and wage workers is in the tens of billions of rupees. |
| JEL: | O1 Q12 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25894&r=all |
| By: | Hayden, Anne; Adenaeuer, Lucie; Jansson, Torbjörn;; Höglind, Lisa; Breen, James |
| Abstract: | The Luxembourg agreement of 2005 marked a new direction for EU agriculture with the decoupling of direct support payments for production. Under the CAP reform of 2013, Member States had the option to retain an element of coupled support for agriculture. Building on a previous study from Jansson et al. (2018), this study analyses the regional effects for beef production resulting from a redistribution of voluntary coupled supports (VCS) through area payments in the national budgets. The redistribution of VCS payments is projected to result in a modest reduction in the income from beef production, the EU beef herd size as well as the total Greenhouse Gas (GHG) Emissions form EU beef production. However, these impacts vary across EU regions with some regions marginally increasing their beef production levels while other regions are projected to significantly reduce their beef meat activities. Especially Member States which had retained some form of VCS, a reduction in beef herd size and income is likely while those countries that had opted to fully decouple payments in 2005 are projected to show a slight increase in herd size and income. Generally, this leads to a decrease of the total GHG emissions, yet, an increase in GHG emission per livestock unit is seen due to a change in herd composition, production or feed intensity. From the results, it can be inferred that VCS payments for the beef sector have the potential to encourage beef production in regions where it may be less profitable to do so (negative income before the redistribution of VCS in the national budgets). Therefore, the decoupling of the remaining coupled supports within the CAP would likely lead to a minor restructuring of beef production within the EU. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2019–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa172:289735&r=all |
| By: | NAPO, Fousséni |
| Abstract: | Abstract The objective of this work is to analyse the effect of financial inclusion on agricultural exports from UEMOA countries through the quality of institutions. The aim is to analyse the role of institutional quality in the coverage of decentralised financial services such as microfinance and banking services. We formulate hypotheses that are empirically tested using econometric estimates with a sample of seven (07) UEMOA countries over the period 2011-2016. The results of the analyses show that financial inclusion through microfinance credit positively affects agricultural exports. It also shows that improving the quality of institutions is the main channel through which financial inclusion indicators affect WAEMU countries' agricultural exports. It is up to governments and decision-makers to : (i) implement institutional quality mechanisms to improve the conditions for the development of rural financial services. (ii) improve land law and governance-based governance for accountability, transparency and corruption in rural areas. |
| Keywords: | Keywords Africa, Agricultural exports, Financial inclusion, Quality of institutions, Agricultural exports |
| JEL: | J24 O31 O55 Q14 Q17 |
| Date: | 2019–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:94203&r=all |
| By: | Burney, Shaheer |
| Abstract: | I estimate habit formation to dietary fat in two categories of common food products: ground meat and fluid milk. Products in each category display salient fat content information on the packaging and are identical in nearly all aspects other than fat content. This allows habit formation to be based on levels of fat content and eliminates bias arising from unobservable product attributes. I construct a dynamic AIDS model using scanner-generated household purchases of five ground meat products and four fluid milk products during the period 2004 to 2014. Results show strong habit formation to all products in the two categories. In addition, there is modest evidence of a positive association between habit formation and dietary fat for products in both categories. With the exception of fat-free milk, all high fat products exhibit stronger habit formation than low fat products in the ground meat and fluid milk category. |
| Keywords: | Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ucozwp:290133&r=all |
| By: | Toland, Gerald D. Jr.; Onyeaghala, Raphael O. |
| Abstract: | Samuel-Fitwi, et al. (2012) observe that global aquacultural production increased forty-times between 1957 and 2008. Advancing aquacultural technologies and management practices contributed to these dramatic increases. Rising global aquacultural output also necessitates producers to allocate limited resources to satisfy accelerating global fishery food demand. Gains in aquacultural output consequently generate market-external effects. Adverse externalities influence social, economic and environmental (ESE) welfare on a local, regional and global scale. Competitive aquacultural shrimp production practices include extensive, semi-intensive and intensive systems (Hatch and Tai, 1997). Our research examines the ESE sustainability of alternative shrimp production systems. Utilizing Valenti, et al.’s (2018) methodologies, we evaluate shrimp aquaculture systems across a range of ESE sustainability indicators. We also review a case study of an intensive system (known as trū® Shrimp) where advanced techniques and management practices alter the current and future ESE effects of shrimp production. We assess the efficacy of using sustainability-indices to investigate gains or shortfalls associated with alternative shrimp production-systems. We utilize our research results to suggest management practices for shrimp aquaculture that are economically, socially and environmentally sustainable. |
| Keywords: | Environmental Economics and Policy, Production Economics |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289658&r=all |
| By: | Barriga, Alicia; Fiala, Nathan |
| Abstract: | Improving agricultural output and food security is a major concern in sub-Saharan Africa, but many efforts to help farmers improve yields have failed. Recent research has shown that agriculture inputs are often of very low quality, which may explain suboptimal yields and low adoption of inputs. Researchers and policy makers have focused on two main explanations for this low quality: sellers purposefully faking or adulterating inputs, and poor storage processes along the supply chain. We present the results of testing seeds along the maize supply chain in Uganda for purity, germination and genetic similarity. We obtain two main results. First, we find no evidence that quality of seeds deteriorates along the supply chain. As soon as the seeds leave the breeders, the quality drops significantly and is the same across all geographic areas and types of suppliers, including wholesalers, retailers and major company outlets. Second, we do not find evidence of serious seed faking or adulteration. In fact, we find high levels of seed purity across all levels of the supply chain. Quality appears to be the main issue, not whether the seeds are pure. The results are consistent with mishandling and poor storage of seeds, possibly related to temperature control once the seeds leave the breeders. These results have potentially significant implications on agriculture policy and programming in sub-Saharan Africa, which has tended to focus on certification to reduce the possibility of adulteration rather than improve handling of inputs. |
| Keywords: | Agricultural and Food Policy, Crop Production/Industries, Industrial Organization |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ucozwp:290139&r=all |
| By: | PIET, Laurent; FEVRIER, Magali; LE CARO, Yvon; MICHEL, Philippe; PEREIRA, Vincent |
| Abstract: | In the frame of the socio-economic monitoring of the Bretagne-Pays-de-la-Loire high-speed line (LGV BPL), a dedicated working group has been set up to study the direct and indirect impacts of the infrastructure on the farming sector. Gathering all the concerned stakeholders, this group aims to coordinate and follow the progress of the various studies on the topic. Three of this studies are presented here in addition to a benchmark description of the main agricultural characteristics in the concerned area. Are so reported a study on the degree of farmland fragmentation, another one on the size change dynamics of farms, and a last one dealing with farmers’ adaptation strategies in reaction to such a large project. Even though these studies have not yet all produced operational results, we hope that they will all contribute to objectivize the debate which arose when the project was launched and the observatory was set up. |
| Keywords: | Agricultural and Food Policy, Land Economics/Use |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ags:inrasl:290306&r=all |
| By: | Benchekroun, H.; Ray Chaudhuri, A. (Tilburg University, Center For Economic Research); Tasneem, Dina |
| Abstract: | We consider a common-pool renewable resource differential game. We show that within this dynamic oligopolistic framework, free trade may lead to a lower discounted sum of consumer surplus and of social welfare than autarky. Trade restrictions may be supported based on both resource conservation and efficiency motives. A priori, this fi…nding is not straightforward; a move from Autarky to Free Trade causes industry output to fi…rst increase and then decrease over time. While producers are shown to be always worse off under free trade than under autarky, consumers are better off in the short run and worse o¤ in the long run. We determine the conditions under which the long-run effects outweigh the short-run effects of trade, leading to a decrease in the discounted sum of not only consumer surplus, but also social welfare. |
| Keywords: | renewable resources; international trade; fisheries; common property |
| JEL: | F10 Q20 Q22 Q27 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:41c456ca-4ff9-470d-a93b-40d648459ddb&r=all |
| By: | Paul Hindsley; David M. McEvoy; O. Ashton Morgan |
| Abstract: | Ethically-labeled products – those that address environmental and human-welfare issues – are increasingly prevalent in consumer decision-making. This research estimates the value consumers place on direct trade coffee, a relatively new and complex ethical product. Direct trade coffee is defined by having three attributes that differentiate it from standard coffee: (i) price premiums are paid directly to farmers; (ii) harvesting practices are sustainable; and (iii) the quality of the product is enhanced. The first two attributes of direct trade coffee lead to social benefits while the third is strictly a private benefit. Using a discrete-choice experiment, we find that consumers are willing to pay significant premiums for each of the three attributes, and are willing to pay slightly more for those attributes with social benefits. While we find evidence of heterogeneity in responses, cultural worldviews do not appear to play a significant role in shaping consumers’ values for direct trade coffee. Key Words: ethically-labeled products, impure public goods, direct trade coffee, discrete choice experiments, |
| JEL: | C72 C91 C92 D02 H41 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:19-09&r=all |
| By: | Olagunju, Kahinde Oluseyi; Angioloni, Simone; Wu, Ziping |
| Abstract: | The degree of capitalization of subsidies into land rents has been mainly determined by different payments implementation systems and land markets. The 2013 EU Common Agricultural Policy (CAP) reform introduces changes in the implementation of decoupled payments towards convergence of payments and associated payment conditions. Using a two-step dynamic system Generalized Methods of Moment (GMM) estimation technique, this paper investigates the effect of these changes on farmland rental rates in Northern Ireland(NI) where a short term conacre land rental system is dominant. The model is able to control for expectation error and unobserved heterogeneity, and endogenous covariates all at once. Our estimates suggest that the capitalization of decoupled payments into land rental prices increases as the payment subsidies converges towards flat rate. Specifically, on average, the marginal effect on rental rates of an additional pound of the SPS is 9 pence (21 pence), increasing to 18 pence (42 pence) following the 2015 reform in the short term (long term). Given that about one third of land are rented in NI, the increase of land capitalisation rate is of particular relevance in designing more efficient future subsidy policy. |
| Keywords: | Financial Economics, Land Economics/Use |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289666&r=all |
| By: | Khanal, Binod; Lopez, Rigoberto A.; Azzam, Azzeddine |
| Abstract: | This article provides the first set of estimates of the degree of local bias in food consumption, by adapting the international trade notion of home bias, which describes the tendency of consumers to favour domestic over imported goods, to local bias, which describes the tendency of consumers to favour local over nonlocal food. Using state boundaries to define local and household data on milk purchases from 2007 until 2016 in the New England region, estimates from the Armington model confirm bias for locally produced milk. |
| Keywords: | Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries |
| Date: | 2018–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ucozwp:290143&r=all |
| By: | Ghosh, sudeshna |
| Abstract: | This paper explores the ‘globesity’ hypothesis that is, it examines, the effect of globalization in its social and economic dimensions on the obesity of the nations. The study utilized a panel set of Asian countries dividing it into two groups based on the income classification. The annual time period of data series runs from 1985 to 2015. For the low and low middle income countries economic and social globalization positively affects obesity, implying the benefits of globalization leads to adverse impact on health. This is due to life style changes, availability of processed food and lack of public awareness. However, for the richer Asian nations globalization, particularly in its social dimension has negative impact on obesity. The study employs the Westerlund cointegrating techniques to investigate upon the long run causal association between obesity and globalization |
| Keywords: | Obesity; Health; KOF index; Social globalization; Economic globalization; Asia, Granger Causality. |
| JEL: | C1 I00 |
| Date: | 2017–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:94601&r=all |
| By: | Li, Na; Ker, Alan; Rude, James |
| Abstract: | Agricultural trade amongst and between the United States and China dominates world markets and has been complicated by rapid growth, significant changes in domestic farm policy, intermittent periods of considerable volatility, and, most recently, trade tensions. It is unlikely that a single GARCH process can adequately accommodate this vacillation. Not surprisingly, past literature has shown conflicting results depending on the period considered. We use mixture methods which let the data define the number of possibly heterogeneous volatility regimes. We model the price volatility transmissions for five commodities: soybeans, wheat, corn, sugar, and cotton. Specifically, we estimate, test, and find the presence of multiple regimes using a normal mixture multivariate GARCH model. We identify different economic structures across the regimes. While we find that the U.S. tends to play a leading role over China in terms of spillover effects, when the market state is unstable or highly volatile, we tend to find greater bidirectional volatility spillovers. Most importantly, we show that the standard approach of modelling spillover volatilities as a single regime is not valid. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2019–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uguiwp:290307&r=all |
| By: | Annika Tienhaara (Natural Resources Institute Finland (Luke)); Heini Ahtiainen (Natural Resources Institute Finland (Luke)); Eija Pouta (Natural Resources Institute Finland (Luke)); Mikołaj Czajkowski (Faculty of Economic Sciences, University of Warsaw) |
| Abstract: | The paper uses data from a discrete choice experiment to examine information effects on stated preferences for an unfamiliar environmental good, i.e. agricultural genetic resources. We define two groups of respondents based on their use of additional information provided in an internet survey, and model information use and its effect on individual preferences and scale using the logit and mixed logit models. Our findings indicate that both sociodemographic and attitudinal variables affect the use of information, with the respondent’s age, gender, familiarity and perceptions of stakeholder responsibilities having a significant effect. The results show individual preference heterogeneity, but no significant differences in scale between the information groups after allowing the mean coefficients for the attributes to differ. Those who have used the additional information derive higher utility from the changes in the protection of agricultural genetic resources. Our results highlight the importance of genetic resource conservation and controlling for the effects of information use in choice experiment models for unfamiliar goods. |
| Keywords: | Agricultural genetic resources; Discrete choice experiments; Environmental valuation; Information effects |
| JEL: | Q51 Q57 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2019-07&r=all |
| By: | Akinwehinmi, Oluwagbenga; Amos, Taiwo; Ogundari, Kolawole |
| Keywords: | Consumer/Household Economics, Crop Production/Industries, Demand and Price Analysis |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289677&r=all |
| By: | Mosadegh Sedghy, Bahareh; Tamini, Lota Dabio; Lambert, Remy |
| Abstract: | Aims: This study examines the supply response of corn in the province of Quebec. Study Design: A time series design is implemented. Place and Duration of Study: Our analysis covers the period from 1985 to 2013 and uses the data of corn production in the province of Quebec. Methodology: A generalised autoregressive conditional heteroskedasticity (GARCH) process is used to model output price expectations and its volatility. Results: We found that application of the Farm Income Stabilisation Insurance in Quebec neutralises the adverse effects of price volatilities on corn production and generates a market power for corn producers. The change in the producers' attitude towards risk is other implication of the insurance program. Conclusion: These results imply that implementation of the insurance program in the province of Quebec leads to an increase of corn production and consequently this increase in production can impose more compensation cost (paid by the insurance program) to governments. |
| Keywords: | Keywords: Price volatility; GARCH; corn supply response; effective price; market price, ASRA. |
| JEL: | Q11 |
| Date: | 2018–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:93816&r=all |
| By: | Suyong Song; Stephen S. Baek |
| Abstract: | We study the association between physical appearance and family income using a novel data which has 3-dimensional body scans to mitigate the issue of reporting errors and measurement errors observed in most previous studies. We apply machine learning to obtain intrinsic features consisting of human body and take into account a possible issue of endogenous body shapes. The estimation results show that there is a significant relationship between physical appearance and family income and the associations are different across the gender. This supports the hypothesis on the physical attractiveness premium and its heterogeneity across the gender. |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1906.06747&r=all |
| By: | Pierrick Piette (SAF - Laboratoire de Sciences Actuarielle et Financière - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon, LPSM UMR 8001 - Laboratoire de Probabilités, Statistique et Modélisation - UPD7 - Université Paris Diderot - Paris 7 - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | On the one hand, recent advances in satellite imagery and remote sensing allow one to easily follow in near-real time the crop conditions all around the world. On the other hand, it has been shown that governmental agricultural reports contain useful news for the commodities market, whose participants react to this valuable information. In this paper, we investigate wether one can forecast some of the newsworthy information contained in the USDA reports through satellite data. We focus on the corn futures market over the period 2000-2016. We first check the well-documented presence of market reactions to the release of the monthly WASDE reports through statistical tests. Then we investigate the informational value of early yield estimates published in these governmental reports. Finally, we propose an econometric model based on MODIS NDVI time series to forecast this valuable information. Results show that market rationally reacts to the NASS early yield forecasts. Moreover, the modeled NDVI-based information is signicantly correlated with the market reactions. To conclude, we propose some ways of improvement to be considered for a practical implementation. |
| Keywords: | NDVI,USDA reports,MODIS,Market information,Corn,Commodities market |
| Date: | 2019–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02149355&r=all |
| By: | Zheng, Yuqing; Dong, Diansheng; Burney, Shaheer; Kaiser, Harry M. |
| Abstract: | Sales taxes on both grocery food and restaurant food exist in almost every county in the United States. By combining county level sales tax data with USDA’s recent national household food acquisition and purchase survey, we examine how a food sales tax affects consumers’ expenditures on grocery and restaurant food. We find that a grocery tax reduces consumers’ grocery food expenditures and increases restaurant food expenditure, which has further public health implication because the latter is generally considered to be less healthy. A restaurant food sales tax increases consumers’ grocery food expenditures. Such result provide insight into the potential impact of “fat” taxes on fast food restaurants. In addition, we find no differential impacts from food sales taxes based on consumers’ income, participation status in Supplemental Nutrition Assistance Program, or sharing borders with lower taxed counties. Finally, our results provide evidence that many consumers are attentive to food sales taxes even though the taxes are added at the register and are not salient. |
| Keywords: | Financial Economics, Food Consumption/Nutrition/Food Safety |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ucozwp:290129&r=all |
| By: | Robert Stavins |
| Abstract: | There is widespread agreement among economists – and a diverse set of other policy analysts – that at least in the long run, an economy-wide carbon pricing system will be an essential element of any national policy that can achieve meaningful reductions of CO2 emissions cost-effectively in the United States. There is less agreement, however, among economists and others in the policy community regarding the choice of specific carbon-pricing policy instrument, with some supporting carbon taxes and others favoring cap and trade mechanisms. This prompts two important questions. How do the two major approaches to carbon pricing compare on relevant dimensions, including but not limited to efficiency, cost-effectiveness, and distributional equity? And which of the two approaches is more likely to be adopted in the future in the United States? This paper addresses these questions by drawing on both normative and positive theories of policy instrument choice as they apply to U.S. climate change policy, and draws extensively on relevant empirical evidence. The paper concludes with a look at the path ahead, including an assessment of how the two carbon-pricing instruments can be made more politically acceptable. |
| JEL: | Q40 Q48 Q54 Q58 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25912&r=all |
| By: | Chalmers, Neil; Revoredo-Giha, Cesar |
| Abstract: | Sustainable diets incorporate consumer acceptability whilst being nutritious and having a low carbon footprint. This paper estimated Exact Affine Stone Index (EASI) incomplete demand systems for different households using the Scottish section of Kantar Worldpanel data from 2010 to 2015. The resulting price elasticities were used within the Green et al (2015) quadratic programming diet model to estimate the quantities of food products which would constitute a sustainable diet. Four demographic groups were modelled and the results suggested that three of the groups could experience carbon emission reductions of between 30 to 55 per cent relative to baseline emissions. The diets would also likely offer an improvement in terms of nutritional quality as measured by the Mean Excess Ratio (MER). |
| Keywords: | Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc19:289675&r=all |