nep-agr New Economics Papers
on Agricultural Economics
Issue of 2021‒01‒04
33 papers chosen by



  1. An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia? Synopsis By Diao, Xinshen, ed.; Takeshima, Hiroyuki. ed.; Zhang, Xiaobo, ed.
  2. Feasibility of Autonomous Equipment for Biopesticide Application By Lowenberg-DeBoer, James; Pope, Tom William; Roberts, Joe Mark
  3. a. Longer term impacts of the COVID-19 Pandemic on European agriculture By Lowenberg-DeBoer, James; Behrendt, Karl; Boot, Alastair; Byrne, Richard; de Silva, Carrie; Eastham, Jane; Huang, Iona; Keeble, Simon; May, Daniel; Munley, Mary; Paparas, Dimitrios; Schroer-Merker, Eva; Thelwell, Simon
  4. Farm Mechanization and Potential role of Robotics in Malawi By Kumwenda, Ian; Nyekanyeka, Aubrey; Gausi, Uriah; Phiri, Benson; Kamwendo, Phinehas; Msokera, Tiyamike; Kadazi, Florence
  5. What impact are subsidies and trade barriers abroad having on Australasian and Brazilian agriculture? By Kym Anderson; Ernesto Valenzuela
  6. The relative commercial orientation of smallholder farmers in Nigeria: Household and crop value-chain analyses By Benson, Todd; Amare, Mulubrhan; Ogunniyi, Adebayo
  7. Effects of COVID-19 on Papua New Guinea’s food economy: A multi-market simulation analysis By Diao, Xinshen; Dorosh, Paul A.; Fang, Peixun; Schmidt, Emily
  8. Agri-food trade in Myanmar: Its role in Myanmar’s future economic takeoff By Diao, Xinshen; Masias, Ian; Lwin, Wuit Yi
  9. Economic efficiency versus social equity: the productivity challenge for rice production in a `greying' rural Vietnam? By Hoa-Thi-Minh Nguyen; Huong Do; Tom Kompas
  10. Competition Problems and Governance of Non-personal Agricultural Machine Data: Comparing Voluntary Initiatives in the US and EU By ATIK Can; MARTENS Bertin
  11. Saving Africa's tropical forests through energy transition: A randomized controlled trial in Tanzania By Alem, Yonas; Ruhinduka, Remidius D.
  12. Exploring attitudes to technology adoption for cross compliance in Greek and Lithuanian farmers By Payne-Gifford, Sophie; Johnson, Kate; Mauchline, Alice; Gadanakis, Yiorgos; Girling, Laura; Mortimer, Simon
  13. Agriculture, Jobs, and Value Chains in Africa By Luc Christiaensen
  14. Productive Workfare? Evidence from Ethiopia’s Productive Safety Net Program By Jules Gazeaud; Victor Stephane
  15. How Big is the “Lemons” Problem? Historical Evidence from French Wines By Mérel, Pierre; Ortiz-Bobea, Davis Ariel; Paroissien, Emmanuel
  16. Volatility of International Commodity Prices in Times of Covid-19: Effects of Oil Supply and Global Demand Shocks By Hillary C. Ezeaku; Simplice A. Asongu; Joseph Nnanna
  17. Agricultural Productivity Growth and Poverty Reduction: Evidence from Thailand By Peter Warr; Waleerat Suphannachart
  18. 2020 Iowa State University Land Value Survey: Overview By Wendong Zhang
  19. The Economics of Environment and Ecology for Sustainable Development By Jakhanwal, Meeta; Mishra, Mukesh Kumar
  20. Top Policy Lessons in Agriculture By World Bank
  21. An Assessment of Forest Tenure in Myanmar By World Bank
  22. Benefits of Joint Land Titling in Vietnam By Helle Buchhave; Viet Cuong Nguyen; Tam Giang Nguyen; Thi Mong Hoa Pham
  23. Demand elasticity of processed food exports from developing countries: A panel analysis of U.S. imports By Wanissa Suanin
  24. Trade Responses to COVID-19 Food Security Concerns in Bangladesh By Nora Dihel; Nadeem Rizwan
  25. Implications of Cow Nutrition on Whole-Farm Profitability of Minnesota Dairy Farms By Gambonini, Alexandra
  26. Greening regional trade agreements on non-tariff measures through technical barriers to trade and regulatory co-operation By Christophe Bellmann; Colette van der Ven
  27. Millet, Rice, and Isolation: Origins and Persistence of the World's Most Enduring Mega-State By James Kai-sing Kung; Ömer Özak; Louis Putterman; Shuang Shi
  28. Regional market integration and the emergence of a Scottish national grain market By Cassidy, Daniel; Hanley, Nick
  29. Managing Momentum in Climate Negotiations By Stefano Carattini; Andreas Löschel
  30. Do We Still Need Carbon-Intensive Capital When Transitioning to a Green Economy? By Wei Jin; Rick van der Ploeg; Lin Zhang
  31. Trade Uncorked: Genetic Resistance and Quality Heterogeneity in Wine Exports By Olivier BARGAIN; Jean-Marie CARDEBAT; Raphaël CHIAPPINI
  32. Taking Time Seriously: Implications for Optimal Climate Policy By Michael Grubb; Rutger-Jan Lange; Nicolas Cerkez; Pablo Salas; Jean-Francois Mercure; Ida Sognnaes
  33. Promoting participation in value chains for pulses in Malawi: Who and where to target By Benson, Todd

  1. By: Diao, Xinshen, ed.; Takeshima, Hiroyuki. ed.; Zhang, Xiaobo, ed.
    Abstract: Agricultural mechanization in Africa south of the Sahara — especially for small farms and businesses — requires a new paradigm to meet the needs of the continent’s evolving farming systems. Can Asia, with its recent success in adopting mechanization, offer a model for Africa? An Evolving Paradigm of Agricultural Mechanization Development analyzes the experiences of eight Asian and five African countries. The authors explore crucial government roles in boosting and supporting mechanization, from import policies to promotion policies to public good policies. Potential approaches presented to facilitating mechanization in Africa include prioritizing market-led hiring services, eliminating distortions, and developing appropriate technologies for the African context. The role of agricultural mechanization within overall agricultural and rural transformation strategies in Africa is also discussed. The book’s recommendations and insights should be useful to national policymakers and the development community, who can adapt this knowledge to local contexts and use it as a foundation for further research.
    Keywords: AFRICA, AFRICA SOUTH OF SAHARA, CENTRAL AFRICA, EAST AFRICA, NORTH AFRICA, SOUTHERN AFRICA, WEST AFRICA, CHINA, EAST ASIA, ASIA, INDIA, SOUTH ASIA, SRI LANKA, THAILAND, VIET NAM, VIETNAM, BANGLADESH, MYANMAR, BURMA, SOUTHEAST ASIA, NEPAL, GHANA, KENYA, NIGERIA, TANZANIA, ETHIOPIA, agricultural mechanization, policies, technology, governance, agriculture, machinery, tractors, mechanization, equipment, labour, imports, demand, farm size, remuneration, farmers, households, surveys, harvesters, harvesting, supply balance
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:fpr:synops:1224277378&r=all
  2. By: Lowenberg-DeBoer, James; Pope, Tom William; Roberts, Joe Mark
    Abstract: Since the European Union (EU) ban on neonicotinoid seed treatments in 2013, Cabbage Stem Flea Beetle (CSFB) is a pest with no effective control in the UK and the area sown to OSR has been cut in half. Biopesticides offer one promising approach, but most biopesticides have little residual effect, and consequently must be applied frequently. For a bulk commodity crop like OSR, the margins are tight and the cost of frequent application may make the crop unprofitable. Autonomous equipment could reduce application costs. If farmers own the equipment, the main cost of autonomous application is the original purchase of the machines, the marginal cost of additional applications is small. The objective of this study is to determine under what circumstances use of autonomous equipment for application of biopesticides would be profitable for farmers. The main hypothesis is that biopesticide application with autonomous equipment would be more profitable on farms that already use autonomous equipment for other field operations than on farms with conventional mechanisation. The study adapts the Hands Free Hectare (HFH) farm linear programming model by updating OSR yields and production practices for current CSFB challenges, adding alternative break crops like field beans and linseed, and includes biopesticide application with conventional or autonomous equipment. Initial results suggest that a low cost biopesticide might be profitable for farmers with either conventional or autonomous equipment, the cost of the biopesticide product is a key constraint, and HFH type retrofitted autonomous equipment still requires too much human labour. This study will be of interest to pest management researchers, agri-tech economists, OSR producers, and entrepreneurs developing autonomous farm equipment businesses.
    Keywords: Crop Production/Industries, Farm Management, Research and Development/Tech Change/Emerging Technologies
    Date: 2020–09–25
    URL: http://d.repec.org/n?u=RePEc:ags:haaepa:308162&r=all
  3. By: Lowenberg-DeBoer, James; Behrendt, Karl; Boot, Alastair; Byrne, Richard; de Silva, Carrie; Eastham, Jane; Huang, Iona; Keeble, Simon; May, Daniel; Munley, Mary; Paparas, Dimitrios; Schroer-Merker, Eva; Thelwell, Simon
    Abstract: The longer-term impacts of the COVID-19 pandemic on the European food supply chain may be substantially different than the short-term adaptation of farmers, food processors and retailers. The main consumer preference changes are likely to be linked to greater on-line ordering, home delivery and in-home consumption. The food industry changes will probably be more persistent and of greater magnitude than those on the consumer side, including a preference for production and processing closer to consumption, and greater flexibility in processing. The COVID-19 pandemic will promote greater automation throughout the food chain with automation of combinable crops leading the way because the engineering is more tractable than for fruits and vegetables. The COVID-19 pandemic will lead to a re-emphasis on food production and food security in agricultural policy throughout Europe. That re-emphasis of food security will be strongest in those countries which saw the largest and longest disruption in consumer level food availability. The COVID-19 pandemic has disrupted the European food system, but in the longer run it could also create opportunities for those ready to adapt to the changing realities.
    Keywords: Agribusiness, Agricultural and Food Policy, Crop Production/Industries, Farm Management, International Relations/Trade
    Date: 2020–09–25
    URL: http://d.repec.org/n?u=RePEc:ags:haaepa:308131&r=all
  4. By: Kumwenda, Ian; Nyekanyeka, Aubrey; Gausi, Uriah; Phiri, Benson; Kamwendo, Phinehas; Msokera, Tiyamike; Kadazi, Florence
    Abstract: Malawi’s agricultural economy comprises of the smallholder subsector on communal land, and the leasehold and freehold estate subsectors. Large farms and estates use modern inputs more frequently, than the smallholder farmers. Jayne (2016) reported the ratio of cultivated land area to total land holding size declines as farm size increases. This paper highlights farm mechanization and the potential for role of robots in Malawi. We provide a global overview of the situation in Africa and in Malawi. We also highlight the potential role of robotics. Farm mechanization often follows various stages, starting from the use of mechanical power for power-intensive operations that require little control to increased use of mechanically powered technologies, and finally to automation of production. Past state-led mechanization in Africa often failed due to insufficient understanding of the nature of demand for mechanization technologies among farmers and insufficient knowledge of private-sector functions. There are dedicated mechanization committees and departments as well as a decentralized approach to mechanization and a clear commitment to mechanization along the value chain in Malawi. While the Ministry of Agriculture, Irrigation and Water Development (MoAIWD) is responsible for maintaining Government-owned facilities with tractor and draught animals for hire, the private sector is expected to lead this intervention area. Malawi is not on track for meeting the Malabo Commitment area number 3.1. This relates to access to agriculture inputs and technologies. However, according to the selection methodology the country is part of a cluster of countries indicating rapid mechanization rates. Malawi has had an average annual machinery growth rate of 2.7% and a high agricultural output growth of over 6%. Malawi has made strides to introduce automated farming such as use of central pivot system of irrigation. However, information on how this is performing is rather limited.
    Keywords: Crop Production/Industries, Farm Management, Research and Development/Tech Change/Emerging Technologies
    Date: 2020–09–25
    URL: http://d.repec.org/n?u=RePEc:ags:haaepa:308161&r=all
  5. By: Kym Anderson; Ernesto Valenzuela
    Abstract: This paper provides new estimates of the extent and economic effects of agricultural policies that provide domestic support or import protection to farmers in countries that compete in the global marketplace with unsubsidized farmers. Analyses earlier this century found that import market access barriers accounted for more than 90% of the global welfare cost of all assistance to farmers, with domestic support measures providing as little as 5%. Since then the share contributed by domestic support has grown greatly in some high-income and emerging economies, thanks to policy reinstrumentation. Using the latest version of the GTAP model and database of the global economy, this paper estimates the economic effects of direct farmer subsidies, and of the producer subsidy and consumer tax equivalents of farm trade policies, on farmers in three lightly assisting countries. The estimates adjusted for country size suggest the effects on agricultural exports, net farm income, and national economic welfare of such policies are far more adverse for Australia, Brazil and especially New Zealand than for the rest of the world, and that domestic supports abroad are much more important contributors to those losses now than they were at the start of this century.
    Keywords: Agricultural trade distortions, domestic supports, farm subsidies, market access, trade negotiations.
    JEL: Q17 Q18 Q58 O54 O56
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:pas:papers:2020-25&r=all
  6. By: Benson, Todd; Amare, Mulubrhan; Ogunniyi, Adebayo
    Abstract: Increasing the productivity of commercially oriented smallholder farming households in Nigeria results in greater incomes for their households, which, in turn, can drive an expansion in local nonfarm employment opportunities and raise incomes across rural communities. Appropriately targeting agricultural development efforts towards commercially oriented farming households has important second-round development benefits for rural economies. We use nationally representative data from the Nigeria General Household Survey Panel to examine the characteristics of households and their context that determine their level of commercial orientation in 2015/16. We then use the same dataset for crop-specific analyses of the factors associated with a household choosing to produce a specific crop, to sell any of their harvest of that crop, and, if they sold any of the crop, whether they sold more than half of their harvest. Twelve crops are examined. We find that the commercial orientation of most smallholder farming households in Nigeria is not strong. One-third reported not making any crop sales, relying instead on household enterprises or wage employment to meet their cash needs. Another one-third reported selling less than one-third of the crops they harvested by value. For these households, any crop sales made seem to reflect the limited other options they have to obtain cash, rather than being part of a strategy of commercial production. A subsistence orientation still drives most crop production by smallholder farming households in Nigeria. The crop-specific analyses confirm that crop sales for many households are driven to an important degree by their lack of other income sources, rather than by actively seeking to produce significant commercial surpluses of a crop. That this is the case reflects a range of deficiencies in the production and marketing of many of the crops. Improved crop production technologies are not commonly used, may not be readily available, or, if available, may prove challenging to employ profitably. Nigerian crop markets remain risky with no assurances that farmers will find buyers offering remunerative prices when they bring their produce to the market to sell. Continued investments to increase crop productivity and to improve the performance and reliability of crop value chains are needed if commercial considerations are increasingly to drive the crop choices of smallholder farming households, to provide incentives for higher crop productivity, and, through the increased crop income of commercially oriented farming households, to motivate expansion in local non-farm sectors and to raise incomes for all households in rural Nigerian communities.
    Keywords: NIGERIA; WEST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; smallholders; farmers; value chains; crop production; employment; commercial orientation; agricultural commercialization
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:fpr:nsspwp:66&r=all
  7. By: Diao, Xinshen; Dorosh, Paul A.; Fang, Peixun; Schmidt, Emily
    Abstract: Developments in the agricultural economy of Papua New Guinea have major impacts on household food consumption decisions. A household’s ability to produce and sell food is affected by climate and associated agricultural potential, market opportunities (domestic, import and export) and unexpected shocks. Each of these factors affects the overall food system, thereby influencing production and consumption of all food products and the markets in which they are traded. The COVID-19 pandemic has presented a challenge far more complex than an agricultural production shock, such as those due to El Niño or pests. Rather than directly affecting agricultural output and rural household welfare, the COVID-19 pandemic has affected economies across the globe via trade disruptions (logistic challenges; international trade barriers), social distancing policies (domestic food market and nonessential business closures), and transportation restrictions (road closures; air travel cancellations). The measures aimed to curb the spread of COVID-19 have affected household incomes via urban job losses, reduced market interaction, and dramatic changes in world food prices. While rice prices have increased, luxury food prices, such as for chocolate (i.e. cocoa), have decreased. PNG’s unique and highly varied biophysical landscape has shaped agricultural production patterns, outcomes, and livelihoods for centuries. Understanding how the PNG agrifood economy and resulting household consumption is affected by COVID-19 therefore requires attention to linkages and substitution effects across various products and the markets in which they are traded.
    Keywords: PAPUA NEW GUINEA, OCEANIA, Coronavirus, coronavirus disease, Coronavirinae, COVID-19, urban areas, households, rural areas, food consumption, household income, models, trade, markets, Multi-market Model, food economy
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:fpr:pngprn:7&r=all
  8. By: Diao, Xinshen; Masias, Ian; Lwin, Wuit Yi
    Abstract: Agri-food exports are important for Myanmar’s economic takeoff, in particular for the transformation of agri-food systems. This paper analyzes the past performance of key agri-food exports and assess their role and future potential to contribute to the transformation of Myanmar’s agri-food system and the overall economy.
    Keywords: MYANMAR, BURMA, SOUTHEAST ASIA, ASIA, trade, agrifood sector, exports, maize, rice, grain legumes, rubber, groundnuts, sesame seed, fishery byproducts, cattle, fruit, palm oils, policies, trade policies, gross national product, agrifood systems, agri-food exports
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:fpr:myanwp:6&r=all
  9. By: Hoa-Thi-Minh Nguyen; Huong Do; Tom Kompas
    Abstract: Increasing productivity in agriculture is often deemed necessary to enhance rural in come and ultimately narrow the urban-rural disparity in transitional economies. However, the objectives of social equity and economic e?ciency can contradict each other, especially in the context of ?erce competition for resources between agriculture and non-agricultural sectors and given the inherently redundant and unskilled aging rural population that of ten occurs during the economic transition to a market economy. We investigate the case of Vietnam during its high economic growth period (2000-2016), over which the country introduced policies to increase e?ciency in rice production and income for farmers. Con trary to expectations, we ?nd a steadily decreasing trend in the terms of trade for rice, indicating regression in farm income. At the same time, the Malmquist productivity in dex has been falling in most regions due to a decline in technical change, along with little improvement in technical e?ciency. We further examine the causes of ine?ciency using data from two household surveys in 2004 and 2014 (with plot-level information) along with semi-structured interviews with farmers in 2016-2017. The high ratio of aging farm workers who are unable to ?nd alternative employment during the transition emerges as an essential impediment to rice productivity, in addition to previously documented land use related issues. This demographic feature, along with government equity-targeting measures, hinders the farm amalgamation progress, further limiting e?orts to enhance productivity. Thus, the goals of economic e?ciency and social equity appear contradictory features of Vietnam’s rice policies, posing a signi?cant development challenge for the country’s current and likely future development.
    Keywords: greying agriculture, productivity, rice, Vietnam, Data Envelopment
    JEL: O12 O13 Q12 Q15
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:pas:papers:2020-26&r=all
  10. By: ATIK Can; MARTENS Bertin (European Commission – JRC)
    Abstract: The arrival of digital data in agriculture opens the possibility to realise productivity gains through precision farming. It also raises questions about the distribution of these gains between farmers and agricultural service providers. Farmers’ control of the data is often perceived as a means to appropriate a larger share of these gains. We show how data-driven agricultural business models lock farm data into machines and devices that reduce competition in downstream agricultural services markets. Personal data protection regulation is not applicable to non-personal agricultural machine data. Voluntary data charters in the EU and US emulate GDPR-like principles to give farmers more control over their data but do not really change market-based outcomes due to their legal design. Third-party platforms are a necessary intermediary because farmers cannot achieve the benefits from applications that depend on economies of scale and scope in data aggregation. The low marginal value of individual farm data in such applications puts farmers in a weak bargaining position. Neutral intermediaries that are not vertically integrated into agricultural machines, inputs or services may circumvent monopolistic data lock-ins provided they can access the data. Unless they find a way to generate and monetise economies of scale and scope with their data, their business model may not be sustainable. Regulatory intervention that facilitates portability and interoperability might be useful for farmers to overcome data lock-ins, but designing data access rights is a complicated issue as many parties contribute data to the production process and may claim access rights. Minor changes in who gets access to which data under which conditions may have significant effects on stakeholders. We conclude that digital agriculture still has some way to go to reach equitable and efficient solutions to data access rights. Similar situations are likely to occur in other industries that rely on non-personal machine data.
    Keywords: Digital data, data access and ownership, digital agriculture
    Date: 2020–12
    URL: http://d.repec.org/n?u=RePEc:ipt:decwpa:202007&r=all
  11. By: Alem, Yonas; Ruhinduka, Remidius D.
    Abstract: The production of charcoal to meet cooking needs of urban households is one of the main causes of deforestation and degradation of Africa's tropical forests, which offer significant carbon sequestration capacity to the global economy. In collaboration with a reputable local microfinance institution, we designed a randomised controlled trial in urban Tanzania and offered LPG stoves through subsidy and on credit to measure their impact on charcoal consumption and the corresponding reduction in deforestation. We also investigate the impact of the stoves on cooking time of women, who are the default cooks of the household. We find that, relative to households in the control group, adoption of LPG stoves reduced charcoal consumption by about 30% in the treatment group 15 months after the intervention. This corresponds to an average reduction in deforestation of 0.04 ha/household/year. However, providing subsidies for stove purchases resulted in a larger reduction in charcoal use (38%) than did providing access on credit (27%) with the corresponding likely reduction in deforestation by 0.05 and 0.03 ha/household/year respectively. A social cost-benefit analysis suggests that the cost of both programs is far below the benefits of the averted carbon dioxide CO2 due to possible reduction in deforestation. A carefully conducted controlled cooking test shows that cooking with LP gas is 50% cheaper than cooking with charcoal and it reduces cooking time by about 44% - welfare effects clearly indicating that LPG is cost-effective to the household as well. We highlight the importance of relaxing households' financial constraints and improving access to credit to encourage urban households to switch to cleaner energy sources and save the remaining forest resources of Africa.
    Keywords: charcoal,deforestation,carbon dioxide,LPG stoves,liquidity constraint,credit
    JEL: G21 H31 O10 O13 Q23 Q51
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:rwirep:885&r=all
  12. By: Payne-Gifford, Sophie; Johnson, Kate; Mauchline, Alice; Gadanakis, Yiorgos; Girling, Laura; Mortimer, Simon
    Abstract: The fourth agricultural revolution has started with an explosion of online, smart, digital technologies that are now available to support farmers to improve their operations is enabling opportunities for direct integration between agricultural and computer-based systems. However, the wide range of devices and applications available can be overwhelming and the farming community is showing reluctance to adoption of these new technologies. As part of an EU-funded, multi-partner research project we developed, in collaboration with farmers and other stakeholders, a novel on-line system that supports EU farmers and paying agencies to reduce the administrative burden of CAP’s cross compliance record-keeping and inspections. During the co-development phase we interviewed Greek and Lithuanian farmers about their user needs in relation to the novel system and their potential adoption of this new technology. We analysed their qualitative responses and could identify two groups; ‘Optimistic’ and ‘Reluctant’ in relation to their use of novel technologies. In order to achieve up-take of new technologies within the European farming community, we considered these findings using the Theory of Planned Behaviour and concluded that focussing on the ease of adoption and peer usage would encourage the highest adoption rates as opposed to focusing on changing farmer attitudes.
    Keywords: Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Institutional and Behavioral Economics, Research and Development/Tech Change/Emerging Technologies
    Date: 2020–09–25
    URL: http://d.repec.org/n?u=RePEc:ags:haaepa:308133&r=all
  13. By: Luc Christiaensen
    Keywords: Agriculture - Agricultural Sector Economics Agriculture - Food Security Private Sector Development - Global Value Chains and Business Clustering Private Sector Development - Small and Medium Size Enterprises Rural Development - Rural Labor Markets
    Date: 2020–04
    URL: http://d.repec.org/n?u=RePEc:wbk:wboper:33693&r=all
  14. By: Jules Gazeaud (NOVAFRICA, Nova School of Business and Economics, Universidade Nova de Lisboa, Campus de Carcavelos, Rua da Holanda 1, 2775-405 Carcavelos, Portugal); Victor Stephane (Univ Lyon, UJM Saint-Etienne, GATE UMR 5824, F-42023 Saint-Etienne, France)
    Abstract: Despite the popularity of public works programs in developing countries, there is virtually no evidence on the value of the infrastructure they generate. This paper attempts to start filling this gap in the context of the PSNP – a largescale program implemented in Ethiopia since 2005. Under the program, millions of beneficiaries received social transfers conditional on their participation in activities such as land improvements and soil and water conservation measures. We examine the value of these activities using a satellite-based indicator of agricultural productivity and (reweighted) difference-in-differences estimates. Results show that the program is associated with limited changes in agricultural productivity. The upper bound of the main estimate is equivalent to a 3.6 percent increase in agricultural productivity. This contrasts with existing narratives and calls for more research on the productive effects of public works.
    Keywords: Social Protection, Public Works, Transfers, Ethiopia, PSNP
    JEL: I38 O13 O22 Q15
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:gat:wpaper:2037&r=all
  15. By: Mérel, Pierre; Ortiz-Bobea, Davis Ariel; Paroissien, Emmanuel
    Abstract: This paper provides empirical evidence on the welfare losses associated with asymmetric information about product quality in a competitive market. When consumers cannot observe product characteristics at the time of purchase, atomistic producers have no incentive to supply costly quality. We compare wine prices across administrative districts around the enactment of historic regulations aimed at certifying the quality of more than 250 French appellation wines to identify welfare losses from asymmetric information. We estimate that these losses amount to more than 7% of total market value, suggesting an important role for credible certification schemes.
    Keywords: Institutional and Behavioral Economics, Marketing
    Date: 2021–01
    URL: http://d.repec.org/n?u=RePEc:ags:assa21:308045&r=all
  16. By: Hillary C. Ezeaku (Caritas University, Enugu, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon); Joseph Nnanna (The Development Bank of Nigeria, Abuja, Nigeria)
    Abstract: This study examines the effects of oil supply and global demand shocks on the volatility of commodity prices in the metal and agricultural commodity markets using the SVAR model. The empirical evidence is based on real time daily closing international commodity prices covering the period 2 December 2019 to 1 October 2020. The findings are presented in cumulative impulse responses and variance decompositions. The former is utilized to examine the accumulated influence of structural shocks on the volatility of agricultural and metal commodities whereas the latter reflect the share of variation in the volatility of each commodity arising from each structural shock. Various patterns are provided on how metal and agricultural commodity prices have been influenced by the COVID-19 pandemic. Policy implications are discussed.
    Keywords: Covid-9; Commodity Prices
    JEL: H12 I12 O10
    Date: 2020–01
    URL: http://d.repec.org/n?u=RePEc:agd:wpaper:20/101&r=all
  17. By: Peter Warr; Waleerat Suphannachart
    Abstract: Raising agricultural productivity in developing countries is often said to reduce poverty, though the empirical evidence is more nuanced. Productivity growth generates additional income and must benefit someone, though not necessarily the poor. It is conceivable that most, or even all of the benefits go to others. Using region-level data from Thailand, we study the relationship between agricultural productivity growth and rural poverty incidence. Our dependent variable is the annual rate of change in rural poverty incidence at the regional level between the years for which poverty data are available. Agricultural productivity is measured as the annual rate of change in regional agricultural productivity, covering the same time intervals as the poverty observations, but lagged one calendar year. Other control variables include regional nonagricultural incomes and the real price of food. The estimated coefficient on the change in agricultural productivity is negative and highly significant, implying that agricultural productivity growth does reduce rural poverty, holding other variables constant. Nevertheless, the poverty-reducing contribution of recent productivity growth is small. The poverty-reducing effects of long-term drivers of agricultural productivity growth are also studied using simulations based on the estimated model.
    Keywords: Agricultural productivity, Poverty incidence, Thailand
    JEL: I32 O13 O15 Q01 Q18
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:pas:papers:2020-24&r=all
  18. By: Wendong Zhang (Center for Agricultural and Rural Development (CARD))
    Abstract: Since 1950, the Iowa State University Land Value Survey has been the only data source that provides a county-level land value estimate for each of the 99 counties in Iowa. The 2020 Iowa State University Land Value Survey reported a 1.7% increase to $7,559 per acre in average Iowa farmland values from November 2019 to November 2020. This modest rise is the third increase in Iowa farmland values over the past six years, and a second consecutive rise. The increase is buoyed by record-level federal ad hoc payments, drastic cuts in interest rates by the Federal Reserve, recent surges in agricultural exports and commodity prices, and limited land supply. The 2020 land value still represents a 13% decline from the 2013 peak in nominal land values, or a 22% drop in inflation-adjusted values. All crop reporting districts reported an increase in land values except for the Southwest district, which saw a decline of 0.9%. While high quality land decreased by 0.1%, medium- and low-quality land saw increases of 2.6% and 6.7%, respectively. In general, the results from the 2020 Iowa State University Land Value Survey echo results from other surveys, which all showed relatively stable farmland market trends.
    Date: 2020–12
    URL: http://d.repec.org/n?u=RePEc:ias:cpaper:20-wp613&r=all
  19. By: Jakhanwal, Meeta; Mishra, Mukesh Kumar
    Abstract: Economic growth and development are intricately linked to the sound management of environmental resources. Reducing inequalities in society and maintaining healthy ecosystems are fundamental to achieving sustainable development, yet the interactions between these goals have been largely underexplored. Ecology and economy are derived from the same root words and concerns. Economics provides important tools for understanding and managing resources. Ecological economics focuses on the value of natural services and tries to include those services into price calculations. This Paper brief focuses on how societies can create opportunities for a green and inclusive economic recovery and, aims to achieve this goal by a structured approach to valuation that helps decision-makers recognize the wide range of benefits provided by ecology and ecosystems, their values in economic terms and in decision-making. A green recovery will significantly enhance the resilience of economies and societies in the face of both the severe recession and accelerating environmental challenges. Through education, research, policy and social action, needs to transform towards an equitable and ecologically sustainable society with respect for the rights of people and nature, biological cultural diversity and to respect its ecological limits.
    Keywords: Ecological Economics,Environmental Economics,Sustainable Development
    JEL: Q56 Q57 Q58
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:esprep:227598&r=all
  20. By: World Bank
    Keywords: Agriculture - Agricultural Extension Agriculture - Agricultural Sector Economics Agriculture - Crops & Crop Management Systems Gender - Gender and Economics Gender - Gender and Rural Development
    Date: 2020–03
    URL: http://d.repec.org/n?u=RePEc:wbk:wboper:33493&r=all
  21. By: World Bank
    Keywords: Environment - Forests and Forestry Environment - Sustainable Land Management Rural Development - Forestry Rural Development - Rural Land Policies for Poverty Reduction
    Date: 2020–04
    URL: http://d.repec.org/n?u=RePEc:wbk:wboper:34334&r=all
  22. By: Helle Buchhave; Viet Cuong Nguyen; Tam Giang Nguyen; Thi Mong Hoa Pham
    Keywords: Communities and Human Settlements - Land Administration Communities and Human Settlements - Land Use and Policies Rural Development - Rural Land Policies for Poverty Reduction Gender - Gender and Rural Development Poverty Reduction - Inequality Poverty Reduction - Rural Poverty Reduction
    Date: 2020–03
    URL: http://d.repec.org/n?u=RePEc:wbk:wboper:33546&r=all
  23. By: Wanissa Suanin
    Abstract: There has been a growing emphasis in resource-rich developing countries on promoting processed food exports as part of their export expansion and diversification strategy. A key issue for this strategy is whether global market conditions are conducive for significant trade gains. We estimate price and income elasticities of demand for processed food exports from developing countries using a new quarterly panel dataset for the United States, the major market for these products, over the period 1992– 2018. Our findings indicate that demand for processed food imports from developing countries has high income elasticity combined with low price elasticity. The implication is that expansion of imports is driven by demand expansion driven by income growth which counterbalances any possible negative impact of an increase in relative prices. Income elasticity of demand for processed food imports is much higher than that for unprocessed food imports, reflecting preferences for processed food.
    Keywords: Demand elasticity; Processed food trade; Developing countries; ARDL estimator
    JEL: F14 Q11 Q17
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:pas:papers:2020-28&r=all
  24. By: Nora Dihel; Nadeem Rizwan
    Keywords: Agriculture - Food Security International Economics and Trade - Trade Facilitation International Economics and Trade - Trade Policy
    Date: 2020–04
    URL: http://d.repec.org/n?u=RePEc:wbk:wboper:33758&r=all
  25. By: Gambonini, Alexandra
    Keywords: Farm Management, Livestock Production/Industries
    Date: 2020–12
    URL: http://d.repec.org/n?u=RePEc:ags:umapmt:308107&r=all
  26. By: Christophe Bellmann; Colette van der Ven
    Abstract: This report explores how regional trade agreements (RTAs) can serve as a vehicle to reflect environmental objectives in chapters and articles dealing with technical barriers to trade and regulatory co-operation. In particular, the analysis builds upon examples from seven recent RTAs that aim at deep economic integration, and explores ways to further incorporate environmental objectives. The report identifies a range of options to reconcile economic and environmental objectives, related to areas of technical barriers to trade and regulatory co-operation, by incorporating environmental considerations as overarching principles, provisions on regulatory impact assessments and ex post evaluations, non-regression clauses, and dedicated chapters and sectoral annexes.
    JEL: F13 F18 R11 Q56
    Date: 2020–12–22
    URL: http://d.repec.org/n?u=RePEc:oec:traaaa:2020/04-en&r=all
  27. By: James Kai-sing Kung (The University of Hong Kong); Ömer Özak (Southern Methodist University); Louis Putterman (Brown University); Shuang Shi (The University of Hong Kong)
    Abstract: We propose and empirically test a theory for the endogenous formation and persistence of large states, using China as an example. We suggest that the relative timing of the emergence of agricultural societies and their distance to each other set off a race between autochthonous state-building projects and the expansion of neighboring (proto-)states. Using a novel dataset on the Chinese state's historical presence, the timing of agricultural adoption, social complexity, climate, and geography across 1x1 degree grid cells in East Asia, we provide empirical support for this hypothesis. Specifically, we find that on average, cells that adopted agriculture earlier or were close to the earliest archaic state in East Asia (Erlitou) remained longer under Sinitic control. In contrast, earlier adoption of agriculture decreased the persistent control of the Chinese state in cells farther than 2.8 weeks of travel from Erlitou.
    Keywords: Comparative Development, State-Building, Emergence of States, Agricultural Adoption, Isolation, Neolithic Revolution, Social Complexity, East Asia, China, Erlitou
    JEL: F50 F59 H70 H79 N90 O10 R10 Z10 Z13
    Date: 2020–12
    URL: http://d.repec.org/n?u=RePEc:smu:ecowpa:2016&r=all
  28. By: Cassidy, Daniel; Hanley, Nick
    Abstract: This article examines the integration of regional Scottish grain markets from the early seventeenth century until the end of the long eighteenth century in 1815. The Scottish economy developed rapidly in this period, with expansion driven by improvements in market structures and specialisation in agricultural production. We test for price convergence and market efficiency using grain prices collected from Scotland's fiars courts' records. Our results suggest that price convergence increased across the seventeenth and eighteenth centuries but experienced a number of setbacks in times of famine and war. The civil war and Cromwellian occupation of the Scottish Lowlands in the 1640s and 1650s, the famine years of the 1690s, the American War of Independence, and the French/Napoleonic wars all caused declines in price convergence. Using a dynamic factor model, we find that market efficiency increased substantially in regional Scottish markets from the late seventeenth century. This analysis suggests that sub-national markets existed in the late seventeenth century, in the east and west of the country, but merged in the eighteenth century to form a unified national grain market.
    Keywords: market integration,development,prices
    JEL: N13 F15
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:eabhps:2005&r=all
  29. By: Stefano Carattini; Andreas Löschel
    Abstract: The Conference of the Parties (COP) has proven a valuable outlet to advance the climate agenda. The combination of high media coverage, extremely high expectations set by influential environmentalists, and unanimity rules has, however, started to limit its effectiveness. Technical issues can legitimately require years to be addressed. Delays on such issues should not lead society to ignore progress in other areas. If anything, defining expectations based on technical issues creates more incentives for unwilling countries to delay action and spread pessimism. The coronavirus is bad news for climate action, but also provides opportunities. The absence of a session of the COP in 2020 gives negotiators additional time to address technical issues behind the scenes, including through club approaches. Virtual forums can be used to increase interactions, also involving top diplomats. The extra time also allows global leaders and influential environmentalists to improve their communication strategies, increasing ambition while effectively managing momentum.
    Keywords: international environmental agreements, cooperation, beliefs, climate change
    JEL: D71 D84 F53 Q54
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_8717&r=all
  30. By: Wei Jin; Rick van der Ploeg; Lin Zhang
    Abstract: This paper presents a two-sector green endogenous growth model to explore a mechanism that explains why carbon-intensive capital is not necessarily shut down during transition to a green economy. Without accumulating clean capital to offset carbon emissions, a tightening of climate regulation leads to the running down of carbon-intensive capital. However, if climate regulations induce stepping-up of carbon-free capital to offset warming damages, the economic value of carbon-intensive capital can be protected and the running down of carbon-intensive assets can be mitigated. The use of carbon-intensive capital gives the economic means to enhance clean capital accumulation and sustain endogenous growth. Both carbon-intensive and carbon-free capital may thus be needed for an efficient transition to green growth.
    Keywords: endogenous growth, green growth, two-sector growth model, climate policy
    JEL: Q54 Q43 Q32 O13 O44 C61
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_8745&r=all
  31. By: Olivier BARGAIN; Jean-Marie CARDEBAT; Raphaël CHIAPPINI
    Abstract: A nascent literature explores the impact of taste differences on trade. In gravity model estimations, the coefficient on geographical distance is large because it tends to capture such (usually unobservable) preference-related frictions. A related stream of research also shows that the effect of distance decreases with quality. We bring both aspects together by asking how heterogeneity in tastes affect exports and how this effect may depend on good quality. We examine these questions in the context of French wine, i.e. a cultural good characterized by a great variety of types (accommodating a large heterogeneity in wine tastes) and of quality levels (from cheap table wine to the finest grands crus). A series of gravity models are estimated using very complete data on French wine exports by detailed appellation between 1998 and 2015. We use genetic distance as a proxy for taste differences explained mainly by biology and culture, while controlling for the other pathways through which culture affects trade (for instance the role of trust) and for other factors associated with genetic distance (e.g. micro-geography). We show that the ‘taste’ component of genetic distance has an independent effect on trade, explaining between 20% and 40% of the coefficient of physical distance. Heterogeneous effects of physical and genetic distances are estimated using alternative proxies of quality (namely the reputation of wine regions and experts’ scores). We confirm that high-end wines tend to escape gravity but also the home bias due to tastes – possibly illustrating the fact that luxury goods have become global iconic products, less associated to national original preferences but rather to status and investment motives.
    Keywords: wine trade; cultural/genetic distance; geographical distance; gravity model; PPML
    JEL: F10 F14 L66 Q17
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:grt:bdxewp:2020-18&r=all
  32. By: Michael Grubb (University College London); Rutger-Jan Lange (Erasmus University of Rotterdam); Nicolas Cerkez (University College London); Pablo Salas (University of Cambridge); Jean-Francois Mercure (University of Exeter); Ida Sognnaes (University of Oslo)
    Abstract: Induced innovation and associated issues of path dependence and inertia are of critical importance in the transition to a carbon free economy. We develop a model that, instead of modeling these processes themselves, models the implications of these characteristics and in the process allows us to shed a more nuanced light on this transition phase, an often neglected task. The resulting policy recommendations emphasize the advantages of immediate action and show under what conditions optimal policy might differ from one sector to another. The model thus generates important and policy-relevant insights while seriously considering transition dynamics.
    Keywords: abatement, DICE, energy economics, inertia, innovation, path dependence, transition
    JEL: C61 O30 Q30 Q42 Q43 Q54 Q58
    Date: 2020–12–21
    URL: http://d.repec.org/n?u=RePEc:tin:wpaper:20200083&r=all
  33. By: Benson, Todd
    Abstract: In this Policy Note, we examine both household and spatial factors that may drive participation by smallholder farming households in commercial value chains for pulses, legume crops that are primarily harvested for their dry seed. Here the focus is on value chains for common bean (Phaseolus vulgaris), cowpea (Vigna unguiculata), and pigeonpea (Cajanus cajan). Bean and pigeonpea are particularly important secondary crops within many smallholder farming systems in Malawi, while cowpea is less common. All are commonly grown as intercrops in smallholder farming systems, primarily with maize.
    Keywords: MALAWI; SOUTHERN AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; value chains; grain legumes; households; beans; pigeon peas; cowpeas
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:fpr:masspn:40&r=all

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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.