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on Agricultural Economics |
Issue of 2020‒08‒31
nineteen papers chosen by |
By: | Nicholas Tyack (Graduate Institute of International and Development Studies, Geneva, Switzerland); Milan Scasny (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic & Charles University Environment Centre, Prague, Czech Republic) |
Abstract: | We use a discrete choice experiment to elicit the preferences of Czech adults ages 18 to 69 (n=805) for the conservation of wine, hop, and fruit tree varieties. In addition, we also elicit the preferences of a smaller sub-sample consisting solely of respondents from South Moravia (n=463), an agricultural region of the country. Estimating a mixed logit model, we find a strong public preference for fruit tree conservation and derive a mean willingness to pay (WTP) for the conservation of fruit tree varieties of about 280 KÄ . Mean WTP for wine variety conservation was found to be about 130 KÄ , while WTP for conserving hop varieties was estimated at about 80 KÄ . Mean WTP values among respondents from South Moravia for crop conservation programs were found to be between about three and four times higher than for the general Czech population. We further examine the impact of observed preference heterogeneity for several respondent-specific characteristics on WTP for the conservation of the three crops. In total, the Czech adult population was estimated to have an aggregate WTP of at least two billion KÄ for additional fruit tree conservation over next ten years, about one billion KÄ for the conservation of additional wine varieties, and ~580 million KÄ for the conservation of additional hop varieties, and these values increase by 31–112 percent if the estimated benefits for the maximum number of varieties as offered in our design are added), revealing the previously unmeasured social welfare benefits of these activities. The estimated benefits of specific crop conservation are an important contribution to the valuation of these historic Czech resources, as crop varieties conserved now provide not only option and bequest values but may also be more resistant to biotic stresses (such as pests and diseases) as well as expected adverse weather extremes, providing the potential to help adapt Czech agriculture to future shocks. |
Keywords: | Crop diversity; plant genetic resources for food and agriculture; discrete choice experiments; mixed logit; willingness to pay; consumer preferences |
JEL: | Q18 Q51 Q57 |
Date: | 2020–08 |
URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2020_25&r=all |
By: | Dambala Gelo |
Abstract: | As the result of prohibitively high transaction costs, smallholder farmers are only partly integrated into agricultural and forest commodity markets, a situation that may leave them in a lower level of development equilibrium (i.e., a poverty trap). For the most part, many users of forest commons extract forest products, typically non-timber products, for subsistence use or safety net purposes. To overcome this problem, in recent years, collective vertical integration (VI) of forest product marketing cooperative structures have been promoted and, in some cases, adopted by users of forest commons. Although this type of program has been observed to raise smallholder incomes, there is little evidence available on saving/investment responses to such income gains. This paper investigates precautionary saving and investment responses to collective forest product marketing programs among users of forest commons in Ethiopian villages. To identify the causal effects of the program, I applied propensity score matching, difference-in-difference (DID) and change-in-change (CIC) estimators to household survey data collected from randomly selected households in the Gimbo district (south-western Ethiopia). I find strong evidence that participation in the program reduces savings in the form of livestock holdings and that effect is limited to non-poor households. When interpreted in terms of the Permanent Income Hypothesis (PIH), the results imply that participants felt the current income gains to be non-transient, which led to reduced precautionary savings and to a gain in consumption/welfare. Moreover, I found that the program has spurred investment in child education and participation in off-farm self-employment. These results point to the importance of the safety net/insurance channel of the program. Overall, the findings underscore the program’s potential to raise the standard of living via ancillary mechanisms beyond directly raising income outcome. |
Keywords: | Forest commons, vertical integration, transaction cost, treatment effects, precautionary saving. |
JEL: | D02 D23 D14 Q |
Date: | 2020–08 |
URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:828&r=all |
By: | Ariel Ortiz-Bobea; Toby R. Ault; Carlos M. Carrillo; Robert G. Chambers; David B. Lobell |
Abstract: | Agricultural research has fostered productivity growth, but the historical influence of anthropogenic climate change on that growth has not been quantified. We develop a robust econometric model of weather effects on global agricultural total factor productivity (TFP) and combine this model with counterfactual climate scenarios to evaluate impacts of past climate trends on TFP. Our baseline model indicates that anthropogenic climate change has reduced global agricultural TFP by about 21% since 1961, a slowdown that is equivalent to losing the last 9 years of productivity growth. The effect is substantially more severe (a reduction of ~30-33%) in warmer regions such as Africa and Latin America and the Caribbean. We also find that global agriculture has grown more vulnerable to ongoing climate change. |
Date: | 2020–07 |
URL: | http://d.repec.org/n?u=RePEc:arx:papers:2007.10415&r=all |
By: | Hewitt, Richard J; Compagnucci, Andrea Baggio; Castellazzi, Marie; Dunford, Rob W.; Harrison, Paula A.; Pedde, Simona; Gimona, Alessandro |
Abstract: | Current estimates suggest that the world is on track for ~3°C of heating relative to pre-industrial levels by 2100. This is likely to bring great disruption to earth systems, leading to increased natural hazard risks, crop failures, civil unrest and population migration. There is, however, a high degree of uncertainty about the impacts that such events may have on land use and ecosystems in individual countries. Integrated assessment modelling (IAM) of scenarios like the Shared Socioeconomic Pathways (SSPs) offers one way to address this uncertainty, allowing outcomes such as the relative land cover under food production or forestry to be compared for each scenario. However, global and continental-scale IAMs need to be complemented by landscape scale spatial modelling to inform national and regional policy making. In this paper, we demonstrate impacts and trade-offs of future land cover change in Scotland, a UK region with a high degree of political autonomy, using downscaled SSPs from Europe to the national and finally the regional level. Our methods integrate participatory knowledge co-construction approaches with land-use modelling. Firstly, a stakeholder workshop held in November 2018 led to the development of detailed narratives for 5 UK SSPs. Two contrasting UK SSPs, SSP1 (Sustainability), and SSP5 (Fossil-Fuelled Development) were then adapted to the case of Scotland and simulated to the year 2040 using a land use change model (APoLUS). Land use demands for each scenario were quantified based on historical tendencies, narrative information derived from the workshop, and future Scottish Government targets. Results highlight trade-offs between forest cover, grasslands, natural areas including marginal peatlands important for carbon sequestration, and cropland for food production and the drinks industry. We discuss these preliminary findings, highlight key areas of uncertainty and present pathways for future work. |
Date: | 2020–06–11 |
URL: | http://d.repec.org/n?u=RePEc:osf:socarx:fc6he&r=all |
By: | Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon) |
Abstract: | Purpose – The purpose of this paper is to critically examine the impact of a growth enhancement support scheme (GESS) on youth development in informal farm entrepreneurship in Nigeria. Its special focus is to investigate the impact of the GESS on rural youths’ adoption of new technologies needed to sustainably increase food security in Nigeria. Design/ methodology/ approach – This paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional, describing and interpreting the current situation. A total of 800 rural youths were sampled across the six geopolitical zones of Nigeria. Findings – The result from the use of a bivariate probit model indicate that the GESS has a significant impact on rural youths’ innovations in farming. Practical implication – This suggests that information and communication technology (ICT) could provide new opportunities for making farming more interesting and enterprising for rural young people. Social implication – It implies that while old male and female farmers are less likely to adopt the new farming technologies needed to achieve Nigeria’s agricultural transformation agenda (ATA), a younger generation can help introduce new technologies, whilst also learning from traditional methods. Originality/ value – This research adds to the literature on informal farm entrepreneurship and rural communities’ debate in developing countries. It concludes that engaging youths in GESS should form the foundation of the ATA in Nigeria, which, in turn, would offer adequate combination of new and traditional solutions to address the challenges of food insecurity in sub-Saharan Africa. |
Keywords: | Youth Development Initiative, Informal Farm Entrepreneurship, Growth Enhancement Support Scheme (GESS), Rural Communities in Nigeria |
Date: | 2020–01 |
URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:20/060&r=all |
By: | Lowenberg-DeBoer, James; Behrendt, Karl; Godwin, Richard; Franklin, Kit |
Abstract: | Swarm robotics has the potential to radically change the economies of size in agriculture and this will impact farm size and structure in the UK. This study uses a systematic review of the economics of agricultural robotics literature, data from the Hands Free Hectare (HFH) demonstration project which showed the technical feasibility of robotic grain production, and farm-level linear programming (LP) to estimate changes in the average cost curve for wheat and oilseed rape from swarm robotics. The study shows that robotic grain production is technically and economically feasible. A preliminary analysis suggests that robotic production allows medium size farms to approach minimum per unit production cost levels and that the UK costs of production can compete with imported grain. The ability to achieve minimum production costs at relatively small farm size means that the pressure to “get big or get out” will diminish. Costs of production that are internationally competitive will mean reduced need for government subsidies and greater independence for farmers. The ability of swarm robotics to achieve minimum production costs even on small, irregularly shaped fields will reduce pressure to tear out hedges, cut infield trees and enlarge fields. |
Keywords: | Agribusiness, Crop Production/Industries, Farm Management, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies |
Date: | 2019–05–16 |
URL: | http://d.repec.org/n?u=RePEc:ags:haaewp:296492&r=all |
By: | Elías Cisnerosy; Krisztina Kis-Katosz; Nunung Nuryartono |
Abstract: | This paper studies the interactions between political and economic incentives to foster forest conversion in Indonesian districts. Using a district–level panel data set from 2001 to 2016, we analyze variation in remotely sensed forest loss and forest fires as well as measures of land use licensing. We link these outcomes to economic incentives to expand oil palm cultivation areas as well as political incentives arising before idiosyncratically–timed local mayoral elections. Empirical results documentsubstantial increases in deforestation and forest fires in the year prior to local elections.Additionally, oil palm plays a crucial role in driving deforestation dynamics. Variations in global market prices of palm oil are closely linked to deforestation inareas which are geo-climatically best suited for growing oil palm and they amplify the importance of the political cycle. We thus find clear evidence for economic and political incentives reinforcing each other as drivers of forest loss and land conversion for oil palm cultivation. |
JEL: | O13 Q15 Q56 P16 |
Date: | 2020–07 |
URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:825&r=all |
By: | Allan, Corey; Kerr, Suzi; Owen, Sally |
Abstract: | We investigate whether New Zealand’s rural land is over-valued when compared to its agricultural profitability. First, we develop a theoretical time-series framework showing that a positive profit shock in one agricultural land use should raise the value of land in that use, inducing land-use change. On average, the present value of expected future profits from national rural land should have a one-to-one relationship with the value of agricultural land when both are weighted by respective land use share. Second, we develop an empirical application using a new nationally consistent dataset of rural property sales and average agricultural profits for the period 1980-2012. Using a novel two-stage least squares approach to account for endogeneity, we find a positive relationship between the present value of expected agricultural profitability and rural land values. Furthermore, we cannot reject the hypothesis that this relationship is one-for-one, indicating that New Zealand's rural land does not appear to be over-valued. Our time-series methodology provides a roadmap for studies in other jurisdictions. |
Keywords: | Agricultural land, New Zealand, Agricutural profitability, |
Date: | 2020 |
URL: | http://d.repec.org/n?u=RePEc:vuw:vuwecf:9129&r=all |
By: | Gulati, Ashok; Sandip, Das |
Abstract: | India imports more from Africa than Africa does from India. A large share of Indian imports from Africa are oil and minerals. However, the India-Africa relations in food and agriculture are already important but have potentials for expansion. For complex reasons Africa had no transformation of its agriculture comparable to India’s during its erstwhile Green Revolution in the 1960s and 70s. The African continent and the Indian Subcontinent still have a lot to learn from each other, especially as food systems and food value chains are modernizing and technologies in agriculture and food sectors are spreading. This paper looks at historical ties between India and Africa. It identifies trade and investment patterns in recent decades and describes the collaborations between India and several African countries in the field of agriculture. Finally, we point at potential areas for mutual cooperation in agriculture of the two regions in the future. |
Keywords: | Agricultural and Food Policy, Food Security and Poverty, International Relations/Trade |
Date: | 2020–08–25 |
URL: | http://d.repec.org/n?u=RePEc:ags:ubonwp:304756&r=all |
By: | Romain Espinosa (CNRS - Centre National de la Recherche Scientifique, CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); Damian Tago (Emergency Centre for Transboundary Animal Diseases, Food and Agriculture Organization of the UN); Nicolas Treich (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
Abstract: | Most infectious diseases in humans originate from animals. In this paper, we explore the role of animal farming and meat consumption in the emergence and amplification of infectious diseases. First, we discuss how meat production increases epidemic risks, either directly through increased contact with wild and farmed animals or indirectly through its impact on the environment (e.g., biodiversity loss, water use, climate change). Traditional food systems such as bushmeat and backyard farming increase the risks of disease transmission from wild animals, while intensive farming amplifies the impact of the disease due to the high density, genetic proximity, increased immunodeficiency, and live transport of farmed animals. Second, we describe the various direct and indirect costs of animal-based infectious diseases, and in particular, how these diseases can negatively impact the economy and the environment. Last, we discuss policies to reduce the social costs of infectious diseases. While existing regulatory frameworks such as the "One Health" approach focus on increasing farms' biosecurity and emergency preparedness, we emphasize the need to better align stakeholders' incentives and to reduce meat consumption. We discuss in particular the implementation of a "zoonotic" Pigouvian tax, and innovations such as insect-based food or cultured meat. |
Keywords: | Infectious diseases,meat production,meat consumption,biodiversity,prevention,intensive farming,regulation,taxation |
Date: | 2020 |
URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02891997&r=all |
By: | Benjamin Dovey; Herbert Ntuli |
Abstract: | This paper reports a study done on Cape Town consumers, with the aim to understand how their purchasing decisions are shaped with respect to GMOs. A choice experiment approach was used to examine consumer preferences for biotechnology products in the food market. Four models were run to analyse the data, i.e., the conditional logit and random parameters logit models, with and without iteration terms. The results revealed a large status quo bias, indicating that the majority of consumers were reluctant to consume foods that incorporated certain technologies in their production process. The paper concludes by stating that producers need to align the development of GMOs to better meet consumers desires rather than suppliers. Finally, the paper takes an understanding that to increase the acceptance of GMOs, a larger portion of the population needs to be educated better about this technology. |
Keywords: | GMOs, biotechnology, choice experiment, willingness to pay, consumer preferences |
JEL: | P46 Q2 Q18 Q51 Q55 |
Date: | 2020–07 |
URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:827&r=all |
By: | Vadim A. Karatayev; V\'itor V. Vasconcelos; Anne-Sophie Lafuite; Simon A. Levin; Chris T. Bauch; Madhur Anand |
Abstract: | Recent attempts at cooperating on climate change mitigation highlight the limited efficacy of large-scale agreements, when commitment to mitigation is costly and initially rare. Bottom-up approaches using region-specific mitigation agreements promise greater success, at the cost of slowing global adoption. Here, we show that a well-timed switch from regional to global negotiations dramatically accelerates climate mitigation compared to using only local, only global, or both agreement types simultaneously. This highlights the scale-specific roles of mitigation incentives: local incentives capitalize on regional differences (e.g., where recent disasters incentivize mitigation) by committing early-adopting regions, after which global agreements draw in late-adopting regions. We conclude that global agreements are key to overcoming the expenses of mitigation and economic rivalry among regions but should be attempted once regional agreements are common. Gradually up-scaling efforts could likewise accelerate mitigation at smaller scales, for instance when costly ecosystem restoration initially faces limited public and legislative support. |
Date: | 2020–07 |
URL: | http://d.repec.org/n?u=RePEc:arx:papers:2007.13238&r=all |
By: | Monia Saïdi (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jean-Sauveur Ay (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Stephan Marette (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Christophe Martin (CSGA - Centre des Sciences du Goût et de l'Alimentation [Dijon] - UB - Université de Bourgogne - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
Abstract: | This article presents a new experimental protocol for estimating consumers' willingness-to-pay (WTP) for products involved in a reshuffle of geographical indications (GIs), e.g., a change of hierarchical levels within a restricted area. Although the collective reputation of a given GI depends on its temporal stability, reshuffling a GI area could make it better aligned with product quality or consumers' perception. We first provide a simple theoretical model in which consumers put a negative value on within-GI quality variance, thereby showing that reshuffling the GI designation scheme may increase WTP without any change in product quality. Using the experimental protocol, we evaluate consumer perceptions of different reshuffling scenarios for the vineyards of Marsannay, Burgundy, France. The results reveal a significant increase in WTP for the current distribution of products' quality. Elicited WTP values are then used to simulate the optimal GI reshuffle. |
Keywords: | Willingness To Pay,Geographical indication,Wine,Experimental economics,wine appellation,quality signal,public policy JEL Classification: Q18,Q28,L66,Consentement a payer,Vin,Indication Géographique Protégée IGP |
Date: | 2020–02 |
URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02871222&r=all |
By: | Reason Lesego Machete |
Abstract: | Since 1986, Government of Botswana has been running an Agricultural Credit Guarantee Scheme for dry-land arable farming. The scheme purports to assist dry-land crop farmers who have taken loans with participating banks or lending institutions to help them meet their debt obligations in case of crop failure due to drought, floods, frost or hailstorm. Nonetheless, to date, the scheme has focused solely on drought. The scheme has placed an unsustainable financial burden on Government because it is not based on actuarially sound principles. This paper argues that the level of Government subsidies should take into account the gains made by farmers during non-drought years. It recommends a quasi self-financing mechanism that takes into account non-specific risks. |
Date: | 2020–07 |
URL: | http://d.repec.org/n?u=RePEc:arx:papers:2007.11618&r=all |
By: | Aslihan Arslan; Kristin Floress; Christine Lamanna; Leslie Lipper; Solomon Asfaw; Todd Rosenstock |
Abstract: | Understanding the determinants of improved agricultural technology adoption is an important component of increasing agricultural productivity and incomes of smallholders to reduce poverty and hunger. In this paper, particular attention is given to the identification and promotion of productivity and resilience enhancing agricultural practices. Although numerous seminal reviews of this literature have been published, most of these were theoretical or conceptual reviews and focus on earlier literature from continents other than Africa, which is the continent facing the biggest productivity challenge now. The authors synthesize the findings of this literature with a focus on Africa using a meta-data set that brings together the results of 168 recently published papers. They find that most of this literature focuses on agronomic practices and that agroforestry and livestock related studies make up less than one fifth of the total published papers. Eleven determinants, primarily those related to information access, wealth indicators and tenure security, are found to increase adoption more than chance would dictate in the literature. The findings provide evidence to support recommendations for future policy and research. |
Keywords: | Agricultural and Food Policy |
Date: | 2020–08–26 |
URL: | http://d.repec.org/n?u=RePEc:ags:unadrs:304758&r=all |
By: | Cheung, Stephen L. (University of Sydney); Tymula, Agnieszka (University of Sydney); Wang, Xueting (University of Sydney) |
Abstract: | Economists model self-control problems through time-inconsistent preferences. Empirical tests of these preferences largely rely on experimental elicitation methods using monetary rewards, with several recent studies failing to find present bias for money. In this paper, we compare estimates of present bias for money with estimates for healthy and unhealthy foods. In a within-subjects longitudinal experiment with 697 low-income Chinese high school students we find strong present bias for both money and food, and that individual measures of present bias are moderately correlated across reward types. Our experimental measures of time preferences over money predict field behaviours better than preferences elicited over foods. |
Keywords: | self-control, quasi-hyperbolic discounting, present bias, adolescents, food rewards |
JEL: | C91 D12 D80 D91 |
Date: | 2020–06 |
URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp13406&r=all |
By: | Tensay Meles; L. (Lisa B.) Ryan; Joe Wheatley |
Abstract: | The COVID-19 crisis comes at a complex moment for European climate policy as it pivots from a 40% 2030 emissions reduction target to a European Green Deal that is in better alignment with long-term Paris Agreement goals. Here, the implications of the dramatic fall in economic output associated with the crisis are examined using a representative range of growth scenarios. With lower economic activity resulting from the COVID-19 crisis, existing policy measures could achieve the 40% target sooner than 2030. However, we find that even in the most severe economic scenario examined, this falls well short of the 50-55% emissions reduction target under the Green Deal. Maintaining the existing 40% target in 2030 with reduced policy measures on the other hand would move European climate policy away from the required path. This analysis indicates the feasibility of increased climate ambition in the wake of the pandemic and supports the Green Deal 50-55% targets in 2030. |
Keywords: | Climate change policy; Greenhouse gas emissions; Economic recovery; COVID-19 economic effects; Energy demand |
JEL: | Q5 Q54 Q58 E6 Q43 |
Date: | 2020–05 |
URL: | http://d.repec.org/n?u=RePEc:ucn:wpaper:202012&r=all |
By: | Alexander Sandkamp; Erdal Yalcin |
Abstract: | This paper examines how varying antidumping methodologies applied within the WTO differ in the extent to which they reduce targeted exports. We show that antidumping duties, on average, hit Chinese exporters harder than those of other targeted countries. This difference can be traced back in part to China’s non-market economy status, which affects the way AD duties are calculated. Furthermore, we show that the type of imposed duty matters, as ad-valorem duties affect exports differently compared to specific duties or duties conditional on the export price. Overall, however, antidumping duties remain effective in reducing imports independent of market economy status. |
Keywords: | antidumping, China, trade, market economy status, World Trade Organization |
JEL: | F10 F13 F21 |
Date: | 2020 |
URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8398&r=all |
By: | Hughes, David W. |
Abstract: | This publication presents an analysis of recent trends for the Tennessee wine and grape industries. Growth in both the wine and grape sectors has been substantial but has recently slowed. These sectors have begun to lag behind those of key neighboring states. The data for these states are also presented for purposes of comparison. The COVID-19 pandemic has important implications for the Tennessee industry. A set of policy recommendations aimed at leveling the playing field for Tennessee’s wine and grape industry with that of other states, bolstering sales, and increasing production of Tennessee wines and Tennessee grapes are also made. |
Keywords: | Agribusiness |
Date: | 2020–08–28 |
URL: | http://d.repec.org/n?u=RePEc:ags:utaeer:304762&r=all |