nep-agr New Economics Papers
on Agricultural Economics
Issue of 2020‒11‒09
23 papers chosen by

  1. Drivers and disruptors shaping the future of agriculture and the food system in LAC: Climate change and trade tensions By Piñeiro, Valeria; Thomas, Timothy S.; Laborde Debucquet, David; Diaz-Bonilla, Eugenio
  2. Gender and rural transformation By Kosec, Katrina; Doss, Cheryl; Slavchevska, Vanya
  3. Russia’s agriculture in 2019? By Shagaida Natalia; Shishkina Ekaterina; Gataulina Ekaterina; Ternovskiy D.
  4. Monitoring the impact of COVID-19 in Myanmar: Agricultural production and rural livelihoods in two irrigation schemes - August 2020 survey round By Lambrecht, Isabel; Ragasa, Catherine; Mahrt, Kristi; Aung, Zin Wai; Wang, Michael
  5. Formalizing land rights can reduce forest loss: Experimental evidence from Benin By Liam Wren-Lewis; Luis Becerra-Valbuena; Kenneth Houngbedji
  6. Report on a study to crowdsource farmgate prices for maize and soybeans in Malawi By Ochieng, Dennis O.; Baulch, Bob
  7. Fertility after The Drought: Theory and Evidence from Madagascar By Sylvain Dessy; Francesca Marchetta; Roland Pongou; Luca Tiberti
  8. Monitoring the impact of COVID-19 in Myanmar: Rice millers - August 2020 survey round By Goeb, Joseph; Zone, Phoo Pye; Tang, Yulu
  9. Impacts of COVID-19 on Myanmar’s poultry sector: Implications for achieving the sustainable development goals By Fang, Peixun; Belton, Ben; Zhang, Xiaobo; Ei Win, Hnin
  10. Developing a whole systems obesity classification for the UK Biobank Cohort By Clark, Stephen; Birkin, Mark; Lomax, Nik; Morris, Michelle
  11. IFPRI Malawi monthly maize market report, September 2020 By International Food Policy Research Institute (IFPRI)
  12. Socio-economic and environmental effects of eco-tourism By Saavedra, S
  13. West Africa’s dependency on imports of dairy products By Vincent Chatellier
  14. Value chains for nutritious food: Analysis of the egg value chain in the Tigray region of Ethiopia By Hirvonen, Kalle; Baye, Kaleab; Headey, Derek D.; Hoddinott, John F.
  15. The Value of Information in Technology Adoption By Islam, Asad; Ushchev, Philip; Zenou, Yves; Zhang, Xin
  16. Postharvest losses and the impact of reusable plastic container technology on profitability: Evidence from tomato traders in Nigeria By Aghadi, Crystal N.; Balana, Bedru; Ogunniyi, Adebayo
  17. Developing survey-based measures of gendered freedom of movement for use in studies of agricultural value chains By Heckert, Jessica; Myers, Emily; Malapit, Hazel J.
  18. Crop choices in micro-econometric multi-crop models: modelling corners, kinks and jumps By Obafèmi Philippe Koutchadé; Alain Carpentier; Fabienne Féménia
  19. When governance fails: Institutional asymmetries in water management in the municipality of La Paz By Ariel FERRUFINO REINAGA (CIDES-UMSA)
  20. Voting with their Sandals: Partisan Residential Sorting on Climate Change Risk By Asaf Bernstein; Stephen B. Billings; Matthew Gustafson; Ryan Lewis
  21. An experimental approach to the design of payment for ecosystem services: the role of plural motivations and values By Maca Millán Stefany; Arias Arévalo Paola; Restrepo Plaza Lina
  22. The Economic Case for Protecting Biodiversity By Geoffrey Heal

  1. By: Piñeiro, Valeria; Thomas, Timothy S.; Laborde Debucquet, David; Diaz-Bonilla, Eugenio
    Abstract: Agri-food production remains vital to the economies in Latin America and the Caribbean (LAC). Food systems are rapidly changing and are driven by income growth, (urban) population growth, shifts in dietary preferences, and agricultural productivity growth. Food systems are also under threat from disrupters like climate change and distorting policies (including trade wars). This paper makes two quantitative, forward-looking assessments for the future of food and agriculture in the LAC region. The first focuses on the long-term prospects - given projected pathways for the main drivers and under the threat of climate change. The second focuses on current vulnerability of LACs agri-food system to short-term disrupters with special reference to impacts of global trade wars and the prospects for reducing that vulnerability. The implications are not uniform across the countries in the region, but vary greatly depending on economic and demographic size, contribution of the agricultural sector to national GDP, natural resource endowments, ecological and climatic characteristics, level of sophistication of rural and agrarian institutions, available technology, farm-size distribution and tenure systems. Policy interventions to address the challenges will need to consider those differences in initial conditions. The foresight assessments are built on IFPRI’s core global model frameworks, IMPACT and MIRAGRODEP. They allow to capture the complexity of agri-food system development and the scenario analysis helps quantify the relative importance of the drivers and disruptors of food system change, which in turn should be of essential to policymakers in setting priorities for steering towards sustainable and stable food systems capable of meeting twenty-first century challenges.
    Keywords: LATIN AMERICA; CARIBBEAN; AMERICAS; agriculture; food systems; trade; climate; climate change; forecasting; agrifood systems; trade tensions
    Date: 2020
  2. By: Kosec, Katrina; Doss, Cheryl; Slavchevska, Vanya
    Abstract: Rural transformation is central to the broader structural transformation process taking place in developing countries – fueled by the globalization of value chains, changing food systems, new technologies, conflict and displacement, and climate change, among other factors. Rural transformation refers to the process whereby rural economies diversify into nonfarm activities, agriculture becomes more capital-intensive and commercially oriented, and linkages with neighboring towns and cities grow and deepen (Berdegué, Rosada, and Bebbington 2014). It can bring about fundamental changes in the way businesses and households organize, such as the commercialization and diversification of agricultural production; increased agricultural productivity; migration; and the emergence of a broader set of rural livelihood activities.
    Keywords: rural areas; empowerment; gender; women; women's empowerment; labour; smallholders; agriculture; farmers; access to resources; rural transformation
    Date: 2020
  3. By: Shagaida Natalia (Gaidar Institute for Economic Policy); Shishkina Ekaterina (RANEPA); Gataulina Ekaterina (Gaidar Institute for Economic Policy); Ternovskiy D. (Gaidar Institute for Economic Policy)
    Abstract: Sustainable positive dynamics of agricultural production allowed agrarians, economists and politicians to talk about the industry not only as an instrument for ensuring food security, but also as a driver of economic growth. The inclusion of gross value added (GVA) data in the target indicators of the Government Program of Agriculture Development and Regulation of Markets for Agricultural Products, Raw Materials and Foodstuffs (hereinafter referred to as the Government Program) proved this thesis in practice. At the same time, over recent years, growth of agricultural production is accompanied by reduction of agricultural share in the national economy.
    Keywords: Russian economy, agricultural production
    JEL: Q13 Q14 Q15 Q16 Q17 Q18
    Date: 2020
  4. By: Lambrecht, Isabel; Ragasa, Catherine; Mahrt, Kristi; Aung, Zin Wai; Wang, Michael
    Abstract: This policy note provides evidence of the immediate impacts of the COVID-19 crisis on farming communities in Myanmar’s Central Dry Zone using baseline data from January 2020 (BL) and followup telephone survey data. 1 The first round of the telephone survey was conducted with 606 households between 10 and 21 June 2020 (PS1) and inquired about the effects of COVID-19 on agricultural production and other livelihood sources from February to May 2020. The second round effects of COVID-19 in June and July.
    Keywords: MYANMAR, BURMA, SOUTHEAST ASIA, ASIA, agricultural production, rural areas, Coronavirus, coronavirus disease, Coronavirinae, irrigation, livelihoods, households, income, nutrition, cash transfers, social protection, employment, COVID-19, income loss
    Date: 2020
  5. By: Liam Wren-Lewis (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Luis Becerra-Valbuena (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Kenneth Houngbedji (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Many countries are formalizing customary land rights systems with the aim of improving agricultural productivity and facilitating community forest management. This paper evaluates the impact on tree cover loss of the first randomized control trial of such a program. Around 70,000 landholdings were demarcated and registered in randomly chosen villages in Benin, a country with a high rate of deforestation driven by demand for agricultural land. We estimate that the program reduced the area of forest loss in treated villages, with no evidence of anticipatory deforestation or negative spillovers to other areas. Surveys indicate that possible mechanisms include an increase in tenure security and an improvement in the effectiveness of community forest management. Overall, our results suggest that formalizing customary land rights in rural areas can be an effective way to reduce forest loss while improving agricultural investments.
    Keywords: agricultural investments,Community Forest Management,deforestation
    Date: 2020–06
  6. By: Ochieng, Dennis O.; Baulch, Bob
    Abstract: This report summarizes the findings from an innovative study to collect the prices that farmers received for maize and soybeans during the 2020 main marketing season in Malawi. Between April and July, whenever they sold maize or soybeans, farmers were asked to report the prices they received by calling or texting a toll-free number managed by Farm Radio Trust. Reported prices were then compared to the minimum farmgate prices set by the Ministry of Agriculture and Food Security. Our findings show that 75 percent of maize farmers and 90 percent of soybean farmers sold their crops below the official minimum farmgate prices. On average, prices received by these farmers were approximately three-quarters of official minimum farmgate prices.
    Keywords: MALAWI, SOUTHERN AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, producer prices, prices, maize, soybeans, marketing
    Date: 2020
  7. By: Sylvain Dessy; Francesca Marchetta; Roland Pongou; Luca Tiberti
    Abstract: In communities highly dependent on rainfed agriculture for their livelihoods, the common occur-rence of climatic shocks such as droughts can lower the opportunity cost of having children, and raise fertility. Using longitudinal household data from Madagascar, we estimate the causal effect of drought occurrences on fertility, and explore the nature of potential mechanisms driving this effect. We exploit exogenous within-district year-to-year variation in rainfall deficits, and find that droughts occurring during the agricultural season significantly increase the number of children born to women living in agrarian communities. This effect is long lasting, as it is not reversed within four years following the drought occurrence. Analyzing the mechanism, we find that droughts have no effect on common underlying factors of high fertility such as marriage timing and child mortality. Furthermore, droughts have no significant effect on fertility if they occur during the non-agricultural season or in non-agrarian communities, and their positive effect in agrarian communities is mitigated by irrigation. These findings provide evidence that a low opportunity cost of having children is the main channel driving the fertility effect of drought in agrarian communities.
    Keywords: Climatic shocks; Droughts; Agricultural season; Opportunity cost of children; Fertility; Irrigation.
    JEL: C12 C13 C14 J12 J13 O12
    Date: 2019
  8. By: Goeb, Joseph; Zone, Phoo Pye; Tang, Yulu
    Abstract: This is the second policy note in a series presenting the results from telephone surveys with approximately 400 rice millers in three important rice-growing regions of Myanmar: Ayeyarwady, Bago, and Yangon. Mills are the most important link between farms and consumers in the rice value chain. In addition to drying, milling, processing, and storing rice, mills also buy paddy directly from farmers and often provide farmers with inputs on credit. Thus, any shocks to rice mills will impact both rural rice-producing households and urban consumers. To understand how the COVID-19 crisis and the corresponding policy responses are affecting the business activities of rice mills in Myanmar, we are conducting a panel telephone survey with rice millers. Interviews have been conducted every 30 days starting in July 2020, continuing through the monsoon harvests and ending in November. This report presents the results from the second survey round conducted in August. Interviews were completed by August 22, before a second wave of COVID-19 infections began to spread widely in Myanmar.
    Keywords: MYANMAR, BURMA, SOUTHEAST ASIA, ASIA, Coronavirus; coronavirus disease; Coronavirinae; rice; value chains; paddy; policies; surveys; food prices; COVID-19 Economic Relief Plan; Covid-19; rice mills; phone survey; rice byproduct prices
    Date: 2020
  9. By: Fang, Peixun; Belton, Ben; Zhang, Xiaobo; Ei Win, Hnin
    Abstract: This paper analyzes the impact of COVID-19 on two types of poultry production systems, broilers and layers, in Myanmar using five waves of telephone surveys from June to August 2020. The surveys were implemented with 269 poultry farms previously surveyed in 2019. The slow supply response of layer farms to increased egg demand after the initial COVID-19 shocks has resulted in higher egg prices for consumers. This, in turn, has affected nutritional intake, making it more difficult for Myanmar to achieve the second Sustainable Development Goal of ending hunger and malnutrition by 2030. Within both broiler and layer production systems are found both integrated poultry and fish farms and pure poultry farms. For layer farms, integration of poultry production with fish has provided a buffer against risk; the bankruptcy rate among integrated layer-fish farms was much lower than among pure layer farms. However, such advantages of integration of poultry with fish production are not seen for broiler farms.
    Keywords: MYANMAR, BURMA, SOUTHEAST ASIA, ASIA, Coronavirus, coronavirus disease, Coronavirinae, COVID-19, poultry, Sustainable Development Goals, food production, eggs, chicken, poultry farming, farmers, poultry production, poultry farms
    Date: 2020
  10. By: Clark, Stephen; Birkin, Mark; Lomax, Nik; Morris, Michelle
    Abstract: The number of people who are obese and overweight presents a global challenge, and the development of effective interventions is hampered by a lack of research which takes in to account a joined up, whole systems approach to understanding the drivers of the phenomena. We need to better understand the collective characteristics and behaviours of the overweight and obese population and how these differ from those who maintain a healthy weight. Using the UK Biobank cohort of 500 000 adults, we develop an obesity classification system using k-means clustering. Variable selection from UK Biobank is informed by the Foresight whole system obesity map across key domains (Societal Influences, Individual Psychology, Individual Physiology, Individual Physical Activity, Physical Activity Environment). This paper presents the first study of UK Biobank participants to adopt this whole systems approach. Our classification identifies six groups of people, similar in respect to their exposure to known drivers of obesity: ‘Younger, active and working hard’, ‘Retirees with good lifestyle’ , ‘Stressed, sedentary and struggling’, Older with poor lifestyle’, ‘Younger, busy professionals’ and ‘Younger, fitter families’. Pen portraits are developed to describe the characteristics of these different groups. Multinomial logistic regression is used to demonstrate that the classification can effectively detect groups of individuals more likely to be overweight or obese. The group identified as ‘Younger, fitter families’ are observed to have a higher proportion of healthy weight, while three groups have increased relative risk of being overweight or obese: ‘Younger, active and working hard’, ‘Stressed, sedentary and struggling’ and ‘Older with poor lifestyles’. This work presents an innovative new approach to better understand the whole systems drivers of obesity which has the potential to produce meaningful tools for policy makers to better target interventions across the whole system to reduce overweight and obesity.
    Date: 2020–10–14
  11. By: International Food Policy Research Institute (IFPRI)
    Abstract: The Monthly Maize Market Report was developed by researchers at IFPRI Malawi with the goal of providing clear and accurate information on the variation of daily maize prices in selected markets throughout Malawi. The reports are intended as a resource for those interested in maize markets in Malawi, namely producers, traders, consumers, or other agricultural stakeholders.
    Keywords: MALAWI, SOUTHERN AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, maize, market prices, retail prices, food prices, regional prices, agricultural stakeholders,
    Date: 2020
  12. By: Saavedra, S
    Abstract: Eradicating poverty and halting deforestation are two of the Sustainable Development Goals. Eco-tourism is considered a win-win strategy that can increase income and preserve forests. However, there are no well-identified impact evaluations of both variables at the same time. Seventy-six municipalities in Colombia were randomly assigned to either a control group or a treatment group that received ecotourism promotion. I estimate the socio-economic and environmental effects of nine months of treatment using an ANCOVA specification that controls for baseline individual outcomes. In treated municipalities, I find an increase of 30% in the number of tourists and 16% in the number of workers. However, there are no statistically significant effects on business profits, poverty, or household income. At the same time, I do find a reduction of 100% of deforestation alerts around treated eco-tourism sites. These results illustrate the importance of economic opportunities for local communities in order to preserve forests.
    Keywords: Eco-tourism; Poverty; Deforestation; Colombia
    JEL: Q56 Z32
    Date: 2020–10–28
  13. By: Vincent Chatellier
    Abstract: [in French] The world dairy sector is undergoing sustained development due to the increasing dairy needs of a growing population and a gradual change in diets. This article looks at the place of West African countries in the "dairy planet". The analysis uses FAO statistical data over a long period (1961 to 2017) and customs statistics from 2000 to 2018 for global data ("BACI" database) and from 2000 to 2019 for European data ("COMEXT" database). Although per capita consumption of dairy products per year is still low in many West African countries compared with industrialised countries, overall requirements for dairy products are increasing rapidly as a result of population growth. Due to numerous difficulties (climate, soil quality, low animal productivity, lack of investment, etc.), the development of milk production in West Africa (5.8 billion litres in 2017 for sixteen countries, equivalent to the production of Brittany) is not sufficient to meet local needs. A little over two thirds of the dairy products imported into this zone come from the EU, whose exports have increased sharply over the past ten years (end of milk quotas). Around 40% of these imports are skimmed milk and vegetable fat powder blends (based on palm oil), a product that benefits from a competitive price and which is only very slightly taxed on entry into West African countries.
    Keywords: livestock, milk production, milk powder, vegetable fat powder, West Africa, international trade, European Union, competitiveness
    JEL: Q13 Q17 Q18
    Date: 2020
  14. By: Hirvonen, Kalle; Baye, Kaleab; Headey, Derek D.; Hoddinott, John F.
    Abstract: Eggs have high potential for improving nutrition outcomes in low-income countries, yet very few children in such settings consume eggs on a regular basis despite widespread poultry ownership. To redress this disconnect, a number of interventions have been implemented to improve household production of poultry products, as well as caregiver awareness of the nutritional benefits of eggs and other animal-sourced foods. However, very few of these interventions have tried to leverage food markets to improve nutrition, even though most rural people predominantly rely on markets for the majority of their non-staple food consumption. This study was implemented to better understand the constraints to purchasing eggs for consumption by young children in rural Ethiopia, with a view to informing the design of marketoriented interventions that might cost-effectively increase children’s egg consumption. To do so we analyzed secondary datasets on poultry ownership, household and child egg consumption, and retail egg prices to understand egg markets and the egg value chain in Tigray. Similar to other contexts in sub-Saharan Africa, we find that two-thirds of households own poultry, though only onequarter of young children consumed eggs in the past 24 hours. Although markets in Tigray are well integrated – likely because of the important role of egg aggregators – egg prices remain high. A modest consumption level of 2.5 eggs per person per week would cost around 10 percent of the total budget of households in the poorest quintile of households, even though eggs are more affordable than other animal-sourced foods. We find that egg consumption among young children is not constrained by fasting associated with Orthodox Christianity. High prices are likely the main constraint and are a function of low levels of intensification in egg production, which is dominated by backyard poultry systems characterized by high mortality rates and low productivity. Localized increases in egg production will therefore be needed to lower prices, at least in the short to medium term. We hypothesize that extending the presence of private sector poultry input suppliers in Tigray – who provide chicks through semi-independent agents – offers an entry point for increasing production, lowering prices, and increasing consumption. These input suppliers already have a scalable micro- ranchising model that provides strong economic returns to raising poultry. That model could potentially also be leveraged to raise awareness of the nutritional benefits of eggs.
    Keywords: ETHIOPIA; EAST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; nutrition; value chains; eggs; households; surveys; food prices; food consumption; trade; egg price; egg consumption
    Date: 2020
  15. By: Islam, Asad (Monash University); Ushchev, Philip (National Research University); Zenou, Yves (Monasch University); Zhang, Xin (Monash University)
    Abstract: We develop a theoretical model in which technology adoption decisions are based on the information received from others about the quality of a new technology and on their risk attitudes. We test the predictions of this model using a randomized field experiment in Bangladesh. We show that the share of treated farmers who receive better training in System of Rice Intensification (SRI) technology have a high positive impact on the adoption rate of untreated farmers. We also find that untreated farmers who are more risk-averse tend to adopt the technology less and are less influenced by their treated peers. Our results thus indicate that spillover effects are important in technology adoption and that information transmission about the quality of the technology matters.
    Keywords: Technology adoption; Peers; Risk attitude; RCT; Bangladesh
    JEL: O13 Z13
    Date: 2020–10–12
  16. By: Aghadi, Crystal N.; Balana, Bedru; Ogunniyi, Adebayo
    Abstract: Postharvest loss is a major challenge in food production and supply chains in developing countries. Using primary data from fresh tomato traders in Lagos, Nigeria, and endogenous switching econometric modelling, this study investigates the effects of reusable plastic containers (RPC) technology on traders’ net profits and the factors determining the adoption of the technology. Results indicate that the trader’s position along the supply chain, income level, seasonality, sales frequency, and technology affordability positively influence their adoption decision. We found that the use of RPC technology significantly increases traders’ net profits. The counterfactual impact analysis indicates that traders who adopted RPC would have earned 7 percent lower net profits had they not used RPC. Conversely, non-adopters would have increased their net profit by 5 percent had they adopted the technology. However, heterogenous treatment effects were observed due to heterogeneities among the adopters.
    Keywords: NIGERIA; WEST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; adoption; postharvest losses; profit; trade; food losses; technology; regression analysis; livelihoods; econometrics; endogenous switching regression; reusable plastic container; small traders
    Date: 2020
  17. By: Heckert, Jessica; Myers, Emily; Malapit, Hazel J.
    Abstract: Freedom of movement is an important aspect of women’s empowerment, especially in the context of rural transformation as women attempt to transition from subsistence agriculture into more remunerative roles, such as involvement in higher nodes of the agricultural value chain, which often involves marketing activities and traveling away from the home. Nevertheless, there is no agreement on how to measure freedom of movement in large-scale surveys. First, we develop a conceptual framework for studying gendered freedom of movement that considers individual and household characteristics, along with the broader social environment. We then synthesize the existing literature on factors that affect freedom of movement. Next, we review approaches for measuring freedom of movement that have been used in previous surveys. In comparing existing survey-based approaches to the conceptual framework and existing literature, we conclude that existing approaches are limited in several ways. Foremost, they primarily focus on family- and household-based barriers to freedom of movement, and do not consider the barriers present in the broader social environment. Additionally, they lack consideration for how freedom of movement may affect women’s economic participation. To address the need for survey-based modules for studies that examine how freedom of movement is related to economic participation, we propose two new approaches. The first approach is an experience-based module that asks about frequency of visiting specific places, whether they were ever prevented from going to each of these places, and various limiting factors. The second approach uses vignettes designed to understand the relative strength of different social norms limiting women’s freedom of movement and the strength of sanctions that would be imposed for violating these norms. Data collected with these modules have the potential to better understand limitations on women’s freedom of movement and their consequences.
    Keywords: empowerment; gender; women; women's empowerment; value chains; policies; surveys; freedom of movement; agricultural value chains; women’s economic participation
    Date: 2020
  18. By: Obafèmi Philippe Koutchadé; Alain Carpentier; Fabienne Féménia
    Abstract: Null crop acreages raise pervasive issues when modelling acreage choices with farm data. We revisit these issues and emphasize that null acreage choices arise not only due to binding non-negativity constraints but also due to crop production fixed costs. Based on this micro-economic background, we present a micro-econometric multi-crop model that consistently handles null acreages and accounts for crop production fixed costs. This multivariate endogenous regime switching model allows for specific crop acreage patterns, such as multiple kinks and jumps in crop acreage responses to economic incentives, that are due to changes in produced crop sets. Currently available micro-econometric multi-crop models, which handle null acreages based on a censored regression approach, cannot represent these patterns. We illustrate the empirical tractability of our modelling framework by estimating a random parameter version of the proposed endogenous regime switching micro-econometric multi-crop model with a panel dataset of French farmers. Our estimation and simulation results support our theoretical analysis, the effects of crop fixed costs and crop set choices on crop acreage choices in particular. More generally, these results suggest that the micro-econometric multi-crop model presented in this article can significantly improves empirical analyses of crop supply based on farm data.
    Keywords: acreage choice, crop choice, endogenous regime switching, random parameter models
    JEL: Q12 C13 C15
    Date: 2020
    Abstract: This article reflects on the emergence of asymmetries in the institutionality of the water and sanitation sector, primarily caused by the presence of political, social and economic forces that catalyze a process of liquefaction of sectoral and competence-driven regulations by the main actors. In other words, the rules of the game for organization and institutional management of the resource are not followed, producing instability in provision of the service, to the point of bringing about a supply crisis (as happened in the city of La Paz in November 2016). In Bolivia, where water is a fundamental human right, the sector institutions tend to generate actions that are contrary to good governance. Good governance would establish an ideal symmetry characterized by institutional correspondence according to the competences of each actor, interdependence, associativity, trust and continuous participation, and by power relations subject to greater political will in the search for solutions, compliance with sectoral regulations and technical criteria to enhance the sustainable access to services for the entire population.
    Keywords: Bolivie
    JEL: Q
    Date: 2020–10–20
  20. By: Asaf Bernstein; Stephen B. Billings; Matthew Gustafson; Ryan Lewis
    Abstract: Climate change partisanship is reflected in residential choice. Comparing individual occupants at properties in the same zip code with similar elevation and proximity to the coast, registered republicans (democrats) are more (less) likely than independents to own houses exposed to sea level rise (SLR). Findings are unchanged controlling flexibly for other individual demographics and a variety of granular property characteristics, including the value of the home. This sorting is driven by differential perceptions of long-run SLR risks across the political spectrum not tolerance for current flood risk or preferences for correlated coastal amenities. Observed residential sorting manifests among owners regardless of occupancy, but not among renters. We also find no residential sorting in relation to storm surge exposure, which is a primary driver of current flood risk. Anticipatory sorting on climate change informs models of migration in the face of long-run risks and suggests households that are most likely to vote against climate friendly policies and least likely to adapt may ultimately bear the burden of climate change.
    JEL: D10 D72 G1 Q5 Q54 R2 R21 R23 R31
    Date: 2020–10
  21. By: Maca Millán Stefany; Arias Arévalo Paola; Restrepo Plaza Lina
    Abstract: Incentives based on extrinsic motivations such as Payments for Environmental Services (PES) could negatively affect intrinsic motivations (i.e., motivational crowding-out). This effect occurs when conservation levels after the intervention decline relative to those existing before the PES implementation. However, few experimental studies have assessed PES effects on motivations once financial incentives are missing. Moreover, experimental research still lacks insights on PES designs that may prevent motivational crowding-out. This research aims to i) provide a classification of plural motivations and values; ii) assess the motivational crowding effects associated to a PES design based merely on monetary incentives; and iii) assess the motivational crowding effect of integrating plural motivations and values in PES design via environmental awareness and social recognition. We conducted a lab-in-the-field experiment followed by a questionnaire involving 120 participants in rural Cali, Colombia. We use a difference in differences (DiD) approach to show that while PES had a crowding-out effect, integrating plural motivations and values via environmental awareness had a crowding-in effect on conservation. We also found that irrespectively of the PES treatment women were more prone to conservation. We conclude that conservation instruments such as PES could be more effective if they integrate plural motivations and values, rather than only emphasize extrinsic motivations and instrumental values.
    Keywords: Conservation motivations, environmental values, intrinsic values, lab-in-the-field experiment, relational values, plural values, pro-environmental behavior, public goods
    JEL: Q57 D9 H41 C9
    Date: 2020–10–29
  22. By: Geoffrey Heal
    Abstract: This paper summarizes in non-technical terms the economic case for conserving biodiversity, and explains why we cannot rely on market forces to do this task. It reviews the policy interventions that could help in biodiversity conservation.
    JEL: Q0 Q01 Q1 Q20
    Date: 2020–10
  23. By: Jonathan Dezecot (URCA - Université de Reims Champagne-Ardenne, REGARDS - Recherches en Économie Gestion AgroRessources Durabilité Santé- EA 6292 - URCA - Université de Reims Champagne-Ardenne - MSH-URCA - Maison des Sciences Humaines de Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne); Nathalie Fleck
    Date: 2020–05–05

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