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on Agricultural Economics |
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Issue of 2020‒02‒10
24 papers chosen by |
| By: | Gwendolen DeBoe (OECD) |
| Abstract: | This report reviews the evidence base on how agricultural policies impact environmental sustainability and productivity of the agriculture sector, including the potentially contradictory signals policies may send. It considers impacts for specific policy types, classified according to the OECD’s Producer Support Estimate (PSE) classification for agricultural support. At the farm level, key pathways for environmental impacts identified in the literature are firstly incentivising a change in agricultural production at the intensive margin, extensive margin or entry-exit margin, and secondly the dynamic impacts of land use choice. Beyond this, policies can also affect agriculture’s environmental performance by stimulating (or stifling) the provision of environmental services. Environmental impacts from agricultural policy depend on several factors. Individual responses to economic incentives created by agricultural policies vary, producing variations in environmental impacts. Variation also occurs due to location-specific physical factors, including landscape characteristics, as well as the cumulative effects of decisions across actors and across time. Finally, impacts may differ across scales. |
| JEL: | Q15 Q18 |
| Date: | 2020–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:141-en&r=all |
| By: | Hansen, Henning Otte |
| Abstract: | The agricultural treadmill describes how technological advances create productivity gains for the benefit of progressive farmers, but where the result is also increased supply, falling prices, economic problems for laggard farmers and thus the need for new achievements in technology. In order to escape from this treadmill, farmers are trying to differentiate and diversify into new more attractive segments. Agro-tourism and organic agriculture are examples of differentiation. The elements and processes in the treadmill are described and supported by empirical time series. Possibilities of delaying or stopping the treadmill are discussed. The question is raised whether organic farming is able to escape the treadmill. The question is answered from both a theoretical and an empirical point of view. The empirical analysis is based on examples from Danish agriculture, which has a significant organic agricultural production. The conclusion is, that the structural and productivity developments and the price trends - which are important elements in the treadmill - are almost identical in the organic and conventional agriculture. |
| Keywords: | treadmill, organic agriculture, differentiation, productivity, Blue Ocean |
| JEL: | N5 Q1 Q12 |
| Date: | 2019–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:98210&r=all |
| By: | Qinxin Guo (Graduate School of Economics, Kobe University, Japan); Junyi Shen (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan) |
| Abstract: | In this study, a stated choice survey was conducted in Anhui Province, China. The best-worst scaling method, an alternative method to the discrete choice experiment, was used to value rural residents' attitude toward agri-environmental policy. Using the multinomial logit and random parameter logit model, the results showed that respondents thought the best policy included protecting underground water quality as the objective, straw recycling as the method, technological support provided by the government, a supervision level of 30% of farmers, and a 6,000 RMB subsidy directly disbursed by the government. Conversely, respondents thought the worst policy included protecting biodiversity as the objective, purchasing pesticides and fertilizers from the prescribed list as the method, no technological support provided by the government, an increased supervision level of 50% of farmers, and a 4,500 RMB subsidy requiring a contract with the government. The results of the latent class logit model suggested the respondents who are older, have fewer children under middle school age, less agree with the rural environment will have a large impact on agriculture production, have more knowledge of agricultural and environmental 2 protection would show more sensitivity to the attributes of agri-environmental policies. |
| Keywords: | Agri-environmental policy; Best-worst scaling; Latent class model; Random parameter logit model; Multinomial logit model |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:kob:dpaper:dp2020-01&r=all |
| By: | OECD |
| Abstract: | This report synthesises the key findings and policy messages from recent OECD work on global value chains (GVCs) in agriculture and food. The food and agriculture sector is increasingly organised within GVC around a number of global hubs. Agro-food GVCs have broadened the gains from specialisation and trade through stronger sector and employment growth. Openness to trade, especially services trade, can positively influence domestic value added creation in agro-food GVCs. However, trade protection and distorting agricultural support policies can reduce the gains from GVC participation and impose costs along the value chain. Government policies need to focus on facilitating participation in GVCs and helping to manage any adjustments across the food and agriculture sectorKeywords: Agro-food, value added, employment, policy reform, trade. |
| Keywords: | agricultural trade, employment, global value chains, policy reform, services, trade in value added |
| JEL: | Q17 F60 F14 |
| Date: | 2020–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:139-en&r=all |
| By: | Gwendolen DeBoe (OECD) |
| Abstract: | This report reviews the literature on the effects of agri-environmental policies on environmental sustainability and economic performance in agriculture. Examining these twin impacts is essential for understanding the scope for “win-win” policies which improve both types of performance, and where trade-offs between economic and environmental objectives may arise. The review considers findings on several underlying questions: i) whether agri-environmental policy instruments successfully deliver on their objectives to improve the environmental performance of agriculture, and ii) whether agri-environmental policy instruments slow down productivity growth or if they contribute to stimulating productivity growth and improved environmental outcomes. As part of this latter question, this review considers the impacts of agri-environmental policies on innovation, economic performance and structural change in agriculture. It brings together literature from across a range of disciplines, including evidence from over 160 papers. As a whole, the reviewed literature identifies significant “room for improvement” in both the effectiveness of agri-environmental policies for improving agricultural sustainability and their economic efficiency, particularly in relation to hybrid instruments (e.g. cross-compliance) and voluntary agri-environmental schemes (AES). |
| Keywords: | AES, agri-environmental policy, economic performance, environmental sustainability, innovation, Porter Hypothesis |
| JEL: | Q15 Q18 |
| Date: | 2020–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:140-en&r=all |
| By: | Key, Nigel; Burns, Christopher; Lyons, Greg |
| Abstract: | Recent economic conditions and the financial health of the U.S. farm sector have raised concerns among farm policy stakeholders. After peaking around 2012, farm sector income declined while farm debt continued to rise. Farm real estate stopped rapidly appreciating in value, and land prices declined in some regions. Between 2016 and early 2019, interest rates rose—increasing the cost of borrowing for some farmers. Lower commodity prices in the near future would make it more difficult for some farmers to meet their loan obligations and pay for production expenses. Farmers who made substantial investments in machinery or land when commodity prices and farm incomes were high could face elevated risks of financial insolvency. This study compares recent sectoral and farm-level measures of financial performance relative to historic levels to better understand the severity of the current downturn in the agricultural economy. Using data from USDA’s Agricultural Resource Management Survey, researchers disaggregate farm-level measures of financial health across farm types to identify the types of farms that are under the greatest financial stress. To provide additional perspective on the financial health of the sector, the study uses data from agricultural lenders to compare current agricultural loan delinquencies to levels in the recent past. Finally, model results on the effects of a hypothetical decline in gross farm income are used to evaluate the types of farm operations that would be most vulnerable to a further downturn in the agricultural economy. |
| Keywords: | Agricultural and Food Policy, Agricultural Finance, Farm Management, Financial Economics, Land Economics/Use, Production Economics |
| Date: | 2019–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersib:301076&r=all |
| By: | Conte, Bruno; Piemontese, Lavinia; Tapsoba, Augustin |
| Abstract: | This paper estimates the causal impact on child health of a locust plague that occurred in Mali during the mid 2000s. Using a Difference-in-Differences strategy, we show that children who were exposed in utero to the plague suffer major health setbacks. Affected children have, on average, a height-for-age Z-score 0.33 points lower than non-exposed children. We argue that, in this type of agricultural economy, locust invasions could have an impact on child health mainly through two channels: first, a speculative/anticipatory price effect that kicks in during the plague itself, followed by local crop failures effect that would constitute an income shock for affected farmers and a local food supply shock for markets. We find that children exposed only to the speculative price effect in utero suffer as much as those exposed to the actual crop failure effect. |
| Keywords: | Child Health; Plagues; Agricultural Shocks; Differences-in-Differences. |
| JEL: | I15 O12 Q12 Q18 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:123984&r=all |
| By: | François Bareille; Alexandre Gohin |
| Abstract: | The applications of synthetic pesticides by farmers generate fierce debates in France. This paper offers an original macroeconomic quantification of their economic and environmental impacts. We first reveal the statistically significant influence of the prices of crops and pesticides on these application. This influence is lower for cereals than other crops. We then simulate some economic and environmental impacts of future potential French policies. We find, as expected, that a simple tax policy reduces pesticide use and hurts the economic situation of French farmers and food processors. The French livestock sectors are also negatively impacted. We also find that such a simple policy will increase nitrogen pollution and greenhouse gas emissions due to global land use changes. Finally, policy insights regarding these macroeconomic results are discussed. |
| Keywords: | agriculture, pesticide taxation scheme, land-use change, carbon emissions Agriculture |
| JEL: | Q11 Q18 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:rae:wpaper:202003&r=all |
| By: | Woldegebrial Zeweld; Guido Van Huylenbroeck, Girmay Tesfay, Stijn Speelman |
| Abstract: | The introduction of sustainable practices is considered a win-win strategy for low-income countries because of its potential to simultaneously improve food security and address environmental issues. Despite the numerous studies that focus on the adoption of technological innovations, little work has been done on the socio-psychological behaviour of farmers with regard to sustainable practices. This study investigates smallholder farmers' intentions towards two practices: minimum tillage and row planting. The decomposed theory of planned behaviour is used as a theoretical framework to analyse the intentions. The findings reveal that attitudes and normative issues positively explain farmers' intentions to adopt both practices. Perceived control also has a positive significant effect on the intention to apply minimum tillage. When the intention is formed, farmers are expected to carry out their intention when opportunities arise. Moreover, perceived usefulness, social capital, and perceived ease of operation are also significant predictors of farmers' attitudes. Furthermore, social capital and training are factors that positively affect the normative issue, which in turn also positively mediates the relationship between training, social capital and intention. Finally, it is shown that neither the perceived resources nor information from the media significantly affect farmers' intentions. This paper thus confirms that social capital, personal efficacy, training and perceived usefulness play significant roles in the decision to adopt sustainable practices. In addition, willingness to adopt seems to be limited by negative attitudes and by weak normative issues. Therefore, to improve adoption of sustainable practices by smallholder farmers, attention should be given to socio-psychological issues. This could lead to improvements in farm productivity and enhance the livelihoods of smallholders. |
| JEL: | C4 D1 Q1 R2 |
| Date: | 2020–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:jmp:jm2020:pze115&r=all |
| By: | Annelies Deuss (OECD); Marcel Adenauer (OECD) |
| Abstract: | In 2016, the People’s Republic of China removed its support prices for maize and started destocking its large public reserves of maize. This paper investigates what would happen if China were to also eliminate its support prices for rice and wheat and reduce its public stocks of these two commodities. The analysis examines domestic and international market impacts over the next ten years by comparing a baseline (or business-as-usual scenario) with three scenarios that each assume support prices are eliminated but incorporate different assumptions about China’s import policies. To account for the uncertainty about China’s actual stock levels, the baseline and three scenarios are conducted under a minimum and maximum stock level assumption. The results show that the impacts will be most pronounced during the first years when temporary public stocks are depleted, with strong drops in domestic prices and reduced production. Over the medium term, domestic prices are projected to recover but will remain below baseline levels. The analysis also shows that even though the actual size of stocks has no significant impact over the medium term, its impact can be substantial during the first years a new policy is implemented, which underscores the importance of transparency when reporting on stock levels and stockholding policies. |
| Keywords: | agricultural policy reform, cereals, China, partial equilibrium model, stocks, TRQ |
| JEL: | F13 F14 Q11 Q17 Q18 |
| Date: | 2020–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:138-en&r=all |
| By: | Jacopo Bonan (Politecnico di Milano); Harounan Kazianga (Oklahoma State University); Mariapia Mendola (Università Milano Bicocca) |
| Abstract: | Adoption rate of profitable agricultural technologies in Africa remains low and variations in adoption choices across farmers are yet to be fully understood. This paper studies Ugandan subsistence smallholders’ decisions to adopt profitable cash crops (oilseeds) that can allow them to transition to commercial farming. More specifically, we exploit the randomized roll-out of a national extension service program in order to investigate the role of farmers’ expectations in crop take–up decisions as well as the extent to which ex-ante beliefs about crop profitability explain adoption. We find that, randomly assigned extension services lead to an increase of oilseeds adoption by 15%, and farmers who under-estimate the oilseeds price at baseline are the most likely to adopt new crops. By testing how farmers update their beliefs after being randomly provided with extension services, our results point towards changes in expectations as an important driver of agricultural technology take-up. |
| Keywords: | Technology Adoption; Commercial Farming; Randomized Controlled Trial; Uganda |
| JEL: | O13 O33 Q14 Q15 Q16 |
| Date: | 2019–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:458&r=all |
| By: | Olivia Bertelli (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine, DIAL - Développement, institutions et analyses de long terme) |
| Abstract: | One of the reasons for the persistent low agricultural productivity in Sub-Saharan Africa isthe lack of adoption of protable agricultural technologies. Yet, what is protable in a controlledexperimental setting may not be protable in a real-world setting. Estimating the returns to asingle input is, in fact, challenging as farmers may respond to adoption by re-optimizing the useof other inputs. This paper explores farmers behavioral response to a positive random shockon future productivity by disentangling inputs returns from farmers' response. Using a uniquehousehold panel dataset collected in rural Uganda, I proxy a future productivity shock with thebirth of a female calf against that of a male calf. Calves have no technical returns, but femalecalves will become cows producing milk, providing a stable source of income, while bulls andoxen are of little use in this context. The main OLS and difference-in-differences results showthe existence of a crowd-in effect. Farmers react to the birth of a female calf by increasinginputs' expenditures. They invest more on their cattle's health, increase hired labor and aremore willing to pay for cattle-related investments but not for other activities. This increase ininvestments leads to an increase in milk production and revenues that lasts over time. Furtherresults show that economies of scale associated with the number of female animals seem toexplain this behavioral response. |
| Abstract: | L'une des raisons de la faible productivité agricole persistante en Afrique Sub-saharienne estle manque d'adoption de technologies agricoles rentables. Cependant, ce qui est rentable dansun cadre expérimental contrôlé peut ne pas l'être une fois appliqué sur le terrain. En fait, ilest difficile d'estimer les retours d'une seule technologie, car les agriculteurs peuvent réagir àl'adoption en re-optimisant l'utilisation d'autres facteurs de production. Cet article explore laréponse comportementale des agriculteurs a un choc aléatoire positif sur la productivité futureen dissociant les retours des facteurs de production à la réponse des agriculteurs. En utilisantdes données de panel de ménages uniques collectées dans des zones rurales ougandaises, je mesure un choc sur la productivité future par la naissance d'un veau femelle par rapport àcelle d'un veau m^ale. Les veaux n'ont pas de rendements techniques, mais les veaux femellesdeviendront des vaches productrices de lait, offrant une source de revenu stable, tandis queles taureaux et les boeufs sont très peu rentables dans ce contexte. Les principaux résultatsobtenus par des estimateurs MCO et de Double Différences montrent l'existence d'un eetde crowd-in. Les agriculteurs réagissent à la naissance d'un veau femelle en augmentant lesinvestissements productifs. Ils investissent davantage dans la santé de leurs animaux, augmententla main-d'oeuvre embauchée et ont une disposition à payer plus élevée pour des dépenses liéesau bétail, mais pas pour d'autres activités. Cette augmentation des investissements entraîne uneaugmentation de la production de lait et des revenus qui dure dans le temps. D'autres résultatsmontrent que les économies d'échelle associées au nombre d'animaux femelles semblent expliquercette réaction comportementale. |
| Keywords: | cattle,investments,Sub-Saharan Africa,bétail,investissements,Afrique Sub-Saharienne |
| Date: | 2020–01–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02446820&r=all |
| By: | Hildegart Ahumada; Magdalena Cornejo |
| Abstract: | Climate econometrics is a new field which is providing a fruitful approach to give a rigorous basis for many hypotheses related to climate change. With this aim, this chapter illustrates how econometrics can help understand the effects of climate change on the time behavior of crop yields at a country-level scale. We discuss different issues which empirical studies should address such as the non-stationarity nature of climate variables, the exogeneity of the variables used for modelling crop yields, the existence of non-linearities, the presence of extreme events, disentangling short and dealing with long-run effects of climate change, and collinearities in a multivariate framework. The incorporation of new lands to production or the rise of crop yields on existing lands to meet increasing demand for food and energy may be threatened by global climate change. However, there are several factors that have reduced the harmful impacts of climate change: adaptation, trade, the declining share over time of agriculture in the economy and carbon fertilization. In particular, the CO2 fertilization eect should be taken into account for certain crops. As an example, we focus on soybeans in the main producer and exporter countries: Brazil and United States, and particularly in Argentina, as an interesting case of mitigation and adaptation processes due to global and local climate changes. |
| Keywords: | climate change; econometrics; crop yields; soybeans; Argentina |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:udt:wpgobi:201902&r=all |
| By: | Astill, Gregory; Minor, Travis; Thornsbury, Suzanne; Calvin, Linda |
| Abstract: | U.S. produce growers have faced increased demand for implementing additional food safety practices, prompted by a series of high-profile foodborne illness outbreaks. This report summarizes a series of open-ended discussions with produce growers and reveals the nuanced reasoning behind growers’ actions in response to evolving food safety standards in a complex market. Growers of five commodities in six regions reveal the long history of food safety standards in the industry, including voluntarily implemented standards developed by themselves, commodity organizations, and government agencies as well as those required by some commercial buyers and some States. Growers most confident in their ability to adapt to new food safety regulations—like the “Produce Rule” in the Federal 2011 Food Safety Modernization Act—had two key characteristics in common: a background and culture of food safety at their company and a well-developed food safety information network. Growers agreed that the adoption of food safety standards have been driven largely by commercial buyer requirements. Highly competitive markets force growers to weigh the hard-to-quantify benefits of risk-reducing practices against their significant costs. |
| Keywords: | Agricultural and Food Policy, Demand and Price Analysis, Food Security and Poverty, Production Economics |
| Date: | 2019–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersib:301075&r=all |
| By: | Siivari, Elina; Safrutin, Ilia; Mozaffari, Khalil; Käyhkö, Esa; Jouttijärvi, Risto |
| Abstract: | Biofuels are fuels made of biological materials and they can be used in cars, trucks and other engines. The EU's policy and regulatory framework for bioeconomy and biofuels is seen as a multi-layered and complex issue. Policies around biofuels have developed recently in the EU. Renewable Energy Directive II established a binding target for the use of renewable energy across the European Union by 2030 to be 32% of the total energy production. Finland is a country where the utilization of forest biomass has traditions ranging back centuries and continues in the present day with bioenergy holding a central role in the Finnish energy matrix. Our case study is focused on examining the public perceptions of biofuels in Finland and is linked to the discussion about climate change, global warming, and sustainable development. We used a stakeholder approach and mapped key stakeholders in the biofuel sector in Finland from six stakeholder categories: corporations, governmental actors, non-governmental organisations (NGOs), municipalities, universities, and the media. We selected 59 online publications for our analysis from a time period between 2010-2019. Frame analysis was conducted using three pairs of polarised frames: environmental positive and negative, economic positive and negative, and technological positive and negative. The results show that for the most part the framing of biofuel discussion in Finland is positive and emphasizes the environmentally and economically positive aspects. The negative aspects that came to front are especially in the notions of economic costs and in arguments for environmental calculations. The EU legislation itself is seen as a background to all this discussion and is itself not scrutinized extensively by the various stakeholders. |
| Date: | 2019–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:5u6yp&r=all |
| By: | Quang Tran, Tuyen; Van Vu, Huong |
| Abstract: | Our study provides evidence that land fragmentation has negative consequences for household income, possibly because of its negative effects on crop income in ruralVietnam. Notably, using the Instrumental Variables (IV) method, we find that the negative effect is much greater after addressing the endogeneity of land fragmentation. IV analysis, therefore, suggests that a conventional approach which often uses the Ordinary Least Squares (OLS) method is likely to underestimate the impact of land fragmentation on rural households. Also, the finding implies that reducing land fragmentation would minimize its negative consequences for household income by reducing its negative effect on crop income. |
| Keywords: | Cropland; Endonegeity; Land law 1993; Land reform; Fragmentation; Household income, rural Vietnam |
| JEL: | Q1 Q12 Q18 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:98171&r=all |
| By: | Generalova, Svetlana (Генералова, Светлана) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The article argues that small and medium-sized agricultural enterprises play an important role in ensuring food security in Russia. The forms of state support of small and medium-sized agricultural entrepreneurship in Russia are systematized. The article deals with some problems hindering the development of small and medium-sized businesses in the agricultural sector. The most optimal directions of development are offered. |
| Keywords: | small and medium-sized enterprises, agricultural sector, forms of state support |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:101902&r=all |
| By: | Carole Ropars-Collet (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST); Philippe Le Goffe (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST) |
| Abstract: | Catch-and-release (C&R) could be an interesting management tool in recreational fisheries as long as mortality remains low and the anglers' well-being does not drop. We used a choice experiment to examine the potential of C&R angling as a monitoring tool for the salmon recreational fishery in Brittany (France). Anglers were asked to choose between hypothetical fishing day trips differing in terms of their combination of relevant attributes and levels. From the analysis of respondents' trade-offs between the fishing trip's attributes, willingness-to-pay were estimated for each level of attribute. Our results show that anglers prefer unrestrictive regulations. All in all, the majority of the anglers nonetheless hold a positive valuation of a C&R fishing day, which could therefore be used to generate economic returns for the river once the TAC is reached. Lastly, the fishing season, and especially the level of river use, impact more on the value of fishing than C&R. |
| Abstract: | La remise à l'eau des prises peut être une mesure de gestion intéressante dans le cas de la pêche récréative tant que la mortalité demeure faible et que le bien-être des pêcheurs ne diminue pas. Une enquête a été conduite en 2017 auprès des pêcheurs de saumons des trois départements de l'ouest breton, dans le but de leur faire révéler leur consentement à payer pour différents paramètres de gestion de la pêche : saison, total autorisé de capture (TAC), mode de pêche, no-kill, fréquentation. Il était demandé aux pêcheurs de choisir entre des destinations de pêche hypothétiques différant par la combinaison des paramètres de gestion et la distance pour s'y rendre. En moyenne, on observe que le no-kill a un effet dépressif sur la valorisation de la journée de pêche. Cependant, certaines CSP valorisent positivement le no-kill. Au total, il faut retenir que la majorité des pêcheurs conservent néanmoins une valorisation positive de la journée de pêche en no-kill, ce qui permettrait donc de valoriser la rivière après la clôture du TAC. Enfin, la saison de pêche et surtout la fréquentation impactent davantage la valeur de la pêche que le no-kill. |
| Keywords: | recreational activity,salmon fishing,catch and release,choice experiment,activité récréative,pêche au saumon,no-kill,expérience de choix |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02441505&r=all |
| By: | Steven M. Smith (Division of Economics and Business, Colorado School of Mines) |
| Abstract: | How natural resources are measured and bounded within a property rights structure can influence their development and productivity. This is especially true for surface water given its fluid, fungible, and stochastic nature. Two alternatives have emerged: The prior appropriation doctrine provides absolute quantities to water allocated based on first use while proportional water rights distribute a set percentage of total water to owners. While theoretical differences have been identified, empirical tests are lacking due to the endogenous choice of water rights. I identify and utilize a natural experiment where acequias (Hispanic-rooted irrigation ditches) developed in Territorial New Mexico are later divided by the formation of Colorado, exogenously forcing that subset to be subject to the priority system while those in New Mexico continue to practice proportional division today. Drawing on a broad collection of archival, administrative, satellite, hydrological, and survey data, I find priority rights provide greater certainty to earlier arrivals, inducing more investment, but that the marginal product of water is generally lower under that right structure. This research is pertinent to understanding how distinct property right systems may react to changing conditions and influence the development of newer resources, such as wind. |
| Keywords: | property rights, irrigation, acequias |
| JEL: | P48 K11 Q15 Q25 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:mns:wpaper:wp201908&r=all |
| By: | Olivier Beaumais (LISA - Lieux, Identités, eSpaces, Activités - UPP - Université Pascal Paoli - CNRS - Centre National de la Recherche Scientifique); Anne Briand (LASTA - Laboratoire d'Analyse des Sociétés, Transformations et Adaptations - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université); Katrin Millock (PSE - Paris School of Economics); Céline Nauges (LERNA-INRA - TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We estimate willingness to pay (WTP) for better quality of tap water on a unique cross-section sample from 10 OECD countries. On the pooled sample, households are willing to pay 7.5% of the median annual water bill to improve the tap water quality. The highest relative WTP for better tap water quality was found in the countries with the highest percentage of respondents being unsatisfied with tap water quality because of health concerns. The expected WTP increased with income, education, environmental concern, and health and taste concerns with the tap water. |
| Date: | 2020–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02430307&r=all |
| By: | Jafari, Yaghoob; Britz, Wolfgang; Dudu, Hasan; Roson, Roberto; Sartori, Martina |
| Abstract: | In recent years, reducing food waste and loss has become a policy priority in the European Union, but little is known about impacts of related measures in the EU and beyond. This study informs the debate on food waste reduction through a quantitative analysis. It considers adjustment costs for reducing food waste in food processing industries and impacts on food availability, pressure on land and water, and other environmental consequences. The results suggest that the leakage effects of global trade may offset almost all benefits of food waste reduction in the EU. We thus conclude that costly efforts to reduce food waste in the EU cannot be motivated by larger contributions to global food availability and environmental benefits. This highlights the need for global coordination of such policies and/or more targeted actions in the EU which focus on specific production chains, where losses can be reduced and environmental gains obtained at a relatively low cost. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Land Economics/Use, Political Economy, Resource /Energy Economics and Policy |
| Date: | 2020–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubfred:301858&r=all |
| By: | Catherine Araujo Bonjean (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Alioune N’diaye (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique, UMR SELMET - Systèmes d'élevage méditerranéens et tropicaux - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique); Olivier Santoni (FERDI - Fondation pour les Etudes et Recherches sur le Développement International) |
| Abstract: | The return of more abundant rainfall in the Sahel region since the early 2000s raises questions about the consequences of this change for breeders in the Ferlo region of Senegal. A detailed analysis of precipitation data shows that with the return of a more humid rainfall regime, the climatic risk has changed in nature but remains present. The increase in annual precipitations and in the lengthening of the rainy season is offset by an increase in rainfall aggressiveness and in the number of dry spells. In the end, the efficiency of precipitations in terms of vegetation growth does not increase or even decreases. The data collected in 2015 for a representative sample of farmers makes it possible to assess the impact of the monsoon characteristics on milk production and animal sales. The results, based on the analysis of livestock breeders' behavior in the dry and wet seasons, show the sensitivity of milk production to rainfall and vegetation conditions. They also show that adverse rainfall conditions lead farmers to increase livestock's sales, but they do not support the income-smoothing hypothesis. |
| Abstract: | Le retour à un régime de précipitations plus abondantes au Sahel à partir des années 2000 conduit à s'interroger sur les conséquences de ce changement pour les éleveurs du Ferlo sénégalais. Une analyse fine des données de précipitations montre qu'avec le retour d'un régime pluviométrique plus humide, le risque climatique a changé de nature mais reste présent. L'augmentation des précipitations et l'allongement de la saison des pluies sont compensés par une augmentation de l'agressivité des pluies et du nombre d'épisodes secs. Au final, l'efficacité des pluies en termes de croissance de la végétation n'augmente pas, voire diminue. Les données collectées en 2015, pour un échantillon représentatif d'éleveurs, permettent d'évaluer l'impact de ces différents paramètres sur la production laitière et les ventes d'animaux. Les résultats, basés sur l'analyse du comportement des éleveurs en saison sèche et en saison humide, montrent la sensibilité de la production laitière aux pluies et à l'état de la végétation. Ils soulignent aussi que des conditions pluviométriques défavorables entrainent un déstockage d'animaux, conséquence des difficultés des éleveurs à entretenir leur cheptel plutôt que d'une stratégie de lissage de leur revenu. |
| Keywords: | Climate change,Pastoralism,Senegal,Changement climatique,pastoralisme,Sénégal |
| Date: | 2019–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-02419601&r=all |
| By: | Nigatu, Getachew; Badau, Flavius; Seeley, Ralph; Hansen, James |
| Abstract: | Agricultural commodity prices play an important role in the production decisions of farmers and ranchers, including planted/harvested acreage of crops or inventory of livestock and, thus, the supply of agricultural commodities. This report examines changes in global demand and supply factors that contributed to agricultural commodity price declines during 2014-19 and changes that contributed to the rising trend in prices that peaked in 2007/08 and 2011/12. Additionally, the report projects how global commodity prices and trade could change out to 2021/22 given various assumptions on key factors, such as the growth in Gross Domestic Product (GDP) and agricultural production across countries. Information on these factors and their market impacts can inform and enhance public and private decision making on issues relating to agricultural markets. Model results suggest that if GDP growth slows in developing and emerging economies by 2.3 percentage points annually (the average annual rate of decline experienced in these countries over 2007-09), commodity prices would decrease on average by 4 percent per year over 2018/19 to 2021/22. However, the volume of global commodity trade would remain relatively stable. Second, if crop production by major producing countries (including the United States) were to decline by 3 percentage points, commodity prices are projected to rise by an average of 12 percent per year over 2018/19 to 2021/22. The volume of global commodity trade is projected to fall by an average of 2 percent per year for this scenario. Third, if U.S. crop production increases by an average of 1 percentage point, average commodity prices decline by 2 percent, and the volume of global commodity trade increases by an average of less than 1 percent over 2018/19 to 2021/22. |
| Keywords: | Agricultural and Food Policy, Crop Production/Industries, Demand and Price Analysis, International Relations/Trade |
| Date: | 2020–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersrr:301181&r=all |
| By: | Sauveur Giannoni (LISA - Lieux, Identités, eSpaces, Activités - UPP - Université Pascal Paoli - CNRS - Centre National de la Recherche Scientifique); Olivier Beaumais (CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université, LISA - Lieux, Identités, eSpaces, Activités - UPP - Université Pascal Paoli - CNRS - Centre National de la Recherche Scientifique); Caroline Tafani (LISA - Lieux, Identités, eSpaces, Activités - UPP - Université Pascal Paoli - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The influx of non-local buyers into the farmland market is commonly held responsible for the exclusion of local buyers. We study the case of the seaside farmland market in Corsica between 1998 and 2008. Rather than the exclusion of locals, the data show a massive price gap between non-local and local buyers. In order to assess the reality and magnitude of this price gap, we first estimate standard hedonic price models, while controlling for omitted variable bias using an innovative method recently proposed by Oster (2017). Beyond the estimation of standard hedonic price models, we show that the estimation of a general potential outcome model allows to capture more finely the observable and non-observable heterogeneity related to the preferences of non-local and local buyers. Our findings emphasize that, although willing to pay high prices due to their specific preferences, non-local buyers can coexist with local buyers, who pay significantly lower prices. |
| Keywords: | local buyers' exclusion,price gap,general potential outcome model |
| Date: | 2019–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02400305&r=all |