nep-agr New Economics Papers
on Agricultural Economics
Issue of 2021‒03‒01
35 papers chosen by

  1. A Comparison of Environmental and Economic Sustainability across Seafood and Livestock Product Value Chains By Tsakiridis, Andreas; O’Donoghue, Cathal; Hynes, Stephen; Kilcline, Kevin
  2. Oil palm and structural transformation of agriculture in Indonesia By Chrisendo, Daniel; Siregar, Hermanto; Qaim, Matin
  3. Agriculture, Jobs, And Value Chains In Africa By Christiaensen,Luc
  4. Estimating the value of agroecosystem services in Ireland’s catchments By Norton, Daniel; Hynes, Stephen; Buckley, Cathal; Ryan, Mary; Doherty, Edel
  5. The Future of Work in Agriculture - Some Reflections By Christiaensen, Luc; Rutledge, Zachariah; Taylor, J. Edward
  6. Understanding the Farmers, Environmental Citizenship Behaviors Towards Climate Change. The Moderating Mediating Role of Environmental Knowledge and Ascribed Responsibility By Immaculate Maumoh; Emmanuel H. Yindi
  7. Dairy Balance Sheet and Profitability Benchmarks By Martinez, Charles; Bilderback, David; Eckelkamp, Elizabeth; Pepper, Hal; Cross, Tim
  8. Seeds of Learning: Uncertainty and Technology Adoption in an Ecosystem-Based Adaptation Game By Babtunde Abidoye; Sahan Dissanayake; Sarah Jacobson
  9. Reproduction's Impact on Beef Cattle Herd Profitability By Griffith, Andrew P.; Rhinehart, Justin D.
  10. Parameter uncertainty in policy planning models: Using portfolio management methods to choose optimal policies under world market volatility By Mukashov, Askar
  11. Farmers Follow the Herd: A Theoretical Model on Social Norms and Payments for Environmental Services By Philippe Le Coent; Raphaële Préget; Sophie Thoyer
  12. Dairy Non-Feed Income and Expense Benchmarks By Martinez, Charles; Bilderback, David; Eckelkamp, Elizabeth; Pepper, Hal; Cross, Tim
  13. Rationing the Commons By Nicholas Ryan; Anant Sudarshan
  14. Common Agricultural Policy Beneficiaries: Evidence of Inequality from a New Data Set By Javier Garcia-Bernardo; Petr Jansky; Vojtech Misak
  15. Introducing Environmental Ethics into Economic Analysis: Some Insights from Hans Jonas' Imperative of Responsibility By Damien Bazin; Sylvie Ferrari; Richard B. Howarth
  16. Environmental efficiency measurement when producers control pollutants under heterogeneous conditions: A generalization of the materials balance approach By Eder, Andreas
  17. Inclusive Value Chains to Accelerate Poverty Reduction in Africa By Swinnen, Johan; Kuijpers, Rob
  18. Reviving Markets And Market-Linked Agriculture In South Sudan: Jobs, Recovery, And Peacebuilding In Urban South Sudan – Technical Report III 2020 By Von Der Goltz, Jan; Saidi, Mira; Mayai, Augustino Ting; Williams, Melissa
  19. COVID-19 Working Paper: International Food Security Assessment, 2020-2030: COVID-19 Update and Impacts of Food Insecurity By Baquedano, Felix; Zereyesus, Yacob Abrehe; Christensen, Cheryl; Valdes, Constanza
  20. Questionning Fishing Access Agreements towards Social and Ecological Health in the Global South By Frédéric LE MANACH; Mialy ANDRIAMAHEFAZAFY; Nadège LEGROUX; Laure QUENTIN
  21. The perversion of public land distribution by landed elites: Power, inequality and development in Colombia By Jean-Paul Faguet; Fabio Sanchez Torres; Juanita Villaveces
  22. Rethinking how risk aversion and impatience are linked with cognitive ability: Experimental findings from agricultural students and farmers By Gruener, Sven
  23. COVID-19 Working Paper: A Timely Tool for Evaluating Financial Conditions in Agriculture: USDA Forecasts of the Value of Production in the Face of COVID-19 By Litkowski, Carrie; Law, Jonathan
  24. Socio-economic and demographic aspects of food security and nutrition By Olivia Placzek
  25. Assessing the effects of seasonal tariff-rate quotas on vegetable prices in Switzerland By Loginova, Daria; Portmann, Marco; Huber, Martin
  26. Free Power, Irrigation and Groundwater Depletion: Impact of the Farm Electricity Policy of Punjab, India By Disha Gupta
  27. Predicting poverty and malnutrition for targeting, mapping, monitoring, and early warning By McBride, Linden; Barrett, Christopher B.; Browne, Christopher; Hu, Leiqiu; Liu, Yanyan; Matteson, David S.; Sun, Ying; Wen, Jiaming
  28. On the Effects of the COVID Epidemic on Global and Local Food Access and Availability of Strategic Sectors: Role of Trade and Implications for Policymakers By Santeramo, Fabio G.; Dominguez, Ignacio Perez
  29. Early Effects of the COVID-19 Lockdown on Children in Rural Bangladesh By Momoe Makino; Abu S. Shonchoy; Zaki Wahhaj
  30. Valuing the Ecosystem Service Benefits from Kelp Forest Restoration: A Choice Experiment By Hynes, Stephen; Chen, Wenting; Vondolia, Kofi; Armstrong, Claire; O’Connor, Eamonn
  31. Natural capitals for nature’s contributions to people: the case of Japan By Kumagai, Junya; Wakamatsu, Mihoko; Hashimoto, Shizuka; Saito, Osamu; Yoshida, Takehito; Yamakita, Takehisa; Hori, Keiko; Matsui, Takanori; Oguro, Michio; Aiba, Masahiro; Shibata, Rei; Nakashizuka, Tohru; Managi, Shunsuke
  32. The economic impact of weather and climate By Richard S.J. Tol
  33. Testing environmental regulations, green innovation and social distribution as determinants of environmental sustainability: a case of ASEAN region By Ichsan Anwary; Yahya Ahmad Zein
  34. Does the quality of land records affect credit access of households in India? By Susan Thomas; Diya Uday
  35. Eliciting and utilizing willingness to pay: evidence from field trials in northern Ghana By Berry, James; Fischer, Gregory; Guiteras, Raymond

  1. By: Tsakiridis, Andreas; O’Donoghue, Cathal; Hynes, Stephen; Kilcline, Kevin
    Abstract: This paper uses an environmentally extended input-output model of the Irish economy to estimate greenhouse gas (GHG) emissions and economic output multipliers in 2010 for two aquatic (aquaculture products and sea fisheries) and five land-based livestock products (beef and veal, sheep meat, pig meat, poultry meat, and dairy products). Moreover, the Global Value Chain (GVC) framework is adopted to qualitatively understand the structure of Irish food sectors and identify segments of the food value chains with the greatest emissions efficiency and economic potential. Aquaculture is found to have the highest output multiplier and a low to medium carbon footprint compared to pastoral livestock products (beef and veal, sheep meat, dairy). The direct and indirect economic benefits of the aquaculture sector along with the relatively low carbon footprint suggest that additional benefits from an expansion of Ireland’s aquaculture sector can be gained. However, aquaculture is energy intensive, and therefore production requires the efficient use of energy and resources and the employment of low carbon technologies that strengthen aquaculture’s sustainability.
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy
    Date: 2020
  2. By: Chrisendo, Daniel; Siregar, Hermanto; Qaim, Matin
    Abstract: Structural transformation of agriculture typically involves a gradual increase of mean farm sizes and a reallocation of labor from agriculture to other sectors. Such structural transformation is often fostered through innovations in agriculture and newly emerging opportunities in manufacturing and services. Here, we use panel data from farm households in Indonesia to test and support the hypothesis that the recent oil palm boom contributes to structural transformation. Oil palm is capital-intensive but requires much less labor per hectare than traditional crops. Farmers who adopted oil palm increase their cropping area, meaning that some of the labor saved per hectare is used for expanding the farm. Average farm sizes increased in recent years. In addition, we observe a positive association between oil palm adoption and off-farm income, suggesting that some of the labor saved per hectare is also reallocated to non-agricultural activities. Oil palm adoption significantly increases the likelihood of households pursuing own non-farm businesses. However, oil palm adoption does not increase the likelihood of being employed in manufacturing or services, which is probably due to the limited non-farm labor demand in the local setting. Equitable and sustainable agricultural transformation requires new lucrative non-agricultural employment opportunities in rural areas.
    Keywords: Cross-country dataset,lower-middle income countries,risk preferences,smallholder farmers,time preferences
    JEL: O13 O14 Q12 Q15 R14
    Date: 2020
  3. By: Christiaensen,Luc
    Abstract: This Jobs Solutions Note identifies approaches for development practitioners and policymakers to better integrate poor smallholders into agricultural value chains. Based on curated knowledge and evidence for a specific topic and relevant to jobs, the Jobs Solutions Notes are not intended to be exhaustive; they provide key lessons, solutions and approaches synthesized from the experiences of the World Bank Group and partners. This Note develops a conceptual framework to guide policy choices in using inclusive agricultural value chain development for better job creation in the rural space. As the agricultural iVCD agenda is still nascent and rigorous empirical evidence incipient, it refrains from nuts-and-bolts operational guidance on how to do this.
    Keywords: Labor Markets,Food Security,Crops and Crop Management Systems,Inequality,Climate Change and Agriculture
    Date: 2020–04–29
  4. By: Norton, Daniel; Hynes, Stephen; Buckley, Cathal; Ryan, Mary; Doherty, Edel
    Abstract: Agricultural ecosystems provide a number of services that add greatly to the wellbeing of society. The most obvious services provided are the many forms of farm produce that are purchased and consumed. These ‘provisioning services’ are traded in established markets and their price often provides an indication of their value to society. Agroecosystems also generate many ecosystem services and disservices which are not valued by any established market. These non-market beneficial ecosystem services from agricultural landscapes include carbon sequestration, regulation of soil fertility and landscape and cultural services such as recreational opportunities on farmland. Disservices include nutrient runoff and greenhouse gas emissions. This paper provides an initial assessment of the value of Ireland’s agroecosystem services and disservices. Hydrological catchment units provide the spatial boundaries for case studies and an ecosystem service framework known as the Common International Classification of Ecosystem Services (CICES) is used to identify the relevant ecosystem services and disservices. A variety of indicators are employed to measure the level of ecosystem service or disservice generated. The values (or costs) of a number of ecosystem services are estimated and the contribution of Irish Agricultural in terms of ecosystem service benefits to society is found to be substantial.
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy
    Date: 2020
  5. By: Christiaensen, Luc; Rutledge, Zachariah; Taylor, J. Edward
    Abstract: As countries develop (and food saturation takes hold), agriculture’s role as domestic employer declines. But the broader agri-food system (AFS) also expands, and the scope for agriculture-related job creation shifts beyond the farm. Historically, technological revolutions both have shaped and have been shaped by these dynamics. Today, a digital revolution is taking hold, affecting agricultural labor and skill demands. In this process, societies evolve from having a surplus to a shortage of domestic farm labor, typically met largely by foreign agricultural wage workers. Yet, anti-immigration sentiments are flying high in migrant-destination countries, and robots in the fields and packing plants offer an alternative. Agricultural trade may be similarly challenged. In the world’s poorest countries, particularly in Africa, labor productivity in agriculture remains at historically low levels. So, what can the role of agriculture as a source of employment be in the future? This viewpoint elaborates on these trends and reviews a number of policy options, including inclusive value chain development, better immigration policies, social insurance schemes and ramp up in agricultural education and extension.
    Keywords: Agriculture; farm labor; fresh fruit and vegetable; productivity-enhancing investment; information and communication technology; analysis of panel data; early stage of development; send remittance; share of public spending; income elasticity of demand; farmer; agricultural labor; farm labor market; agricultural labor force; food supply chain; future of work; movement of worker
    Date: 2020–03–10
  6. By: Immaculate Maumoh; Emmanuel H. Yindi
    Abstract: Knowledge is known to be a pre-condition for an individuals behavior. For the most efficient informational strategies for education, it is essential that we identify the types of knowledge that promote behavior effectively and investigate their structure. The purpose of this paper is therefore to examine the factors that affect Kenyan farmers, environmental citizenship behavior (ECB) in the context of Adaptation and mitigation (Climate smart agriculture). To achieve this objective, a theoretical framework has been developed based on value belief norm (VBN) theory. Design/methodology/approach, Data were obtained from 350 farmers using a survey method. Partial lease square structural equation modelling (PLS-SEM) was used to examine the hypothetical model. The results of PLS analysis confirm the direct and mediating effect of the causal sequences of the variables in the VBN model. The moderating role of Environmental knowledge has been seen to be impactful in Climate Smart Agriculture.
    Date: 2021–02
  7. By: Martinez, Charles; Bilderback, David; Eckelkamp, Elizabeth; Pepper, Hal; Cross, Tim
    Abstract: In any business, recordkeeping is an important practice for financial success. In agriculture, recordkeeping can help producers understand the production/input efficiency, breakeven values, cost structure and profitability drivers for their business. A major benefit can also be financial health analyses. University of Tennessee Extension has developed the Dairy Gauge Benchmarking program to help dairy producers better understand what their financial statements and key ratios suggest about the financial health of their business. Within the program, there are three areas that were developed specifically for gauging a dairy business’s financial health. The three areas are 1) balance sheet and profitability dairy benchmarks, 2) dairy feed benchmarks, and 3) dairy non-feed income and expense benchmarks. This publication is focused on the dairy balance sheet and profitability benchmarks.
    Keywords: Agribusiness, Farm Management, Productivity Analysis
    Date: 2021–02–19
  8. By: Babtunde Abidoye (United Nations Development Programme); Sahan Dissanayake (Portland State University); Sarah Jacobson (Williams College)
    Abstract: We introduce an interactive game exploring ecosystem-based adaptation to climate change, with a focus on technology adoption and uncertainty. The game is useful in academic classes and trainings for policymakers and stakeholders. Participants play the role of small-scale farmers in a developing country where their farming practices cause erosion that pollutes waterways, while at the same time climate change is making farmers more vulnerable to natural threats like flooding. The game gives participants a series of opportunities to adopt ecosystem-based adaptation practices: for example, a riparian buffer strip, low-till farming, and agroforestry. The practices differ in the uncertainty surrounding their effects on yields. The game deploys three policies to encourage adoption: a flat payment, a conservation auction, and a flat payment with a pilot bonus for early adoption. Players observe each other’s choices and outcomes, which allows for social learning. Participants get a hands-on understanding of climate change’s impacts, adaptation, ecosystem services, payment for ecosystem service programs, choice under uncertainty, social learning, adoption of new technology, learning spillovers, cost-effective conservation, and conservation auctions. We provide all materials necessary to run the game, a list of suggested readings, and ideas for discussions and assignments.
    Keywords: classroom game, climate change adaptation, ecosystem-based adaptation, payments for ecosystem services, technology adoption, uncertainty
    JEL: A20 D80 Q16 Q54 Q56 Q58
    Date: 2021–01–18
  9. By: Griffith, Andrew P.; Rhinehart, Justin D.
    Abstract: Several factors influence beef cattle operation profitability. The three primary categories are input costs, cattle prices and reproduction (i.e., “making something to sell”). Of those three, cattle producers generally have more influence over reproduction than input costs and cattle prices, because reproductive rate can be controlled through management. Even if a cattle producer can purchase inputs at volume discounts and is extremely good at managing cattle price risk, it is still necessary to have something to sell, which comes back to reproduction. There are benchmarks for reproductive performance that influence profitability and economic sustainability. Pregnancy rate, calving rate and weaning rate are the first three reproduction benchmarks to focus on, with each rate setting the upper level of the next (i.e., if the pregnancy rate is 95 percent, then the calving rate cannot exceed 95 percent). These three values are indicative of the number of calves a producer can market given the number of cows exposed to a bull. Another important reproductive benchmark is the calving distribution of a herd (percent of calves born by day 30, 60 and 90 of a calving season), which influences the production benchmarks of weaning weight and pounds of calf weaned per cow exposed. The older a calf is, the heavier the calf will likely be at time of weaning and at time of sale. Shifting calving distribution improves revenue potential after reaching the upper limits of the other reproductive factors, but it is also influential prior to achieving those benchmarks. The objective of this publication is to compare how the net return to a beef cow-calf operation is impacted by changes in reproductive success. This publication illustrates how changes in reproductive benchmarks (i.e., weaning percentage and calving distribution) can influence profitability of a cow herd.
    Keywords: Farm Management, Livestock Production/Industries, Production Economics
    Date: 2021–02–09
  10. By: Mukashov, Askar
    Abstract: This paper suggests using portfolio management methods in policy planning models as a practical tool for determining optimal policy under model parameter uncertainty. We suggest that in addition to calculating the standard policy return estimates, policy options should also be analyzed from the risk perspective by using metrics that inform the effect of parameter uncertainty on policy impact variation. We demonstrate the approach in a Computable General Equilibrium model that analyzes pro-poor agricultural value chains in Senegal under world market uncertainty. We show that prioritizing the rice sector is the most effective policy in terms of expected policy return, but this policy is also associated with the highest risk, leading to an increase in poverty under unfavorable yet realistic scenarios. Much like diversified portfolios in finance, mixed policies that assume the rice sector's promotion combined with other sectors such as milk, vegetables, oilseeds, or fishery, can offer risk reduction at the cost of reduced expected policy return.
    Keywords: policy analysis,CGE modeling,portfolio management,pro-poor growth
    JEL: D58 C68 O13 Q11 I3 O21 G11
    Date: 2021
  11. By: Philippe Le Coent (BRGM - Bureau de Recherches Géologiques et Minières (BRGM)); Raphaële Préget (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Sophie Thoyer (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: This article analyses the role played by social norms in farmers' decisions to enroll into an agri-environmental scheme (AES). First, it develops a simple theoretical model highlighting the interplay of descriptive and injunctive norms in farmers' utility functions. Second, an empirical valuation of the effect of social norms is provided based on the results of a stated preference survey conducted with 98 wine-growers in the South of France. Proxies are proposed to capture and measure the weight of social norms in farmers' decision to sign an agri-environmental contract. Our empirical results indicate that the injunctive norm seems to play a stronger role than the descriptive norm.
    Keywords: Voluntary contribution to a public good,Social norms,Behaviour,Farmers,Payments for environmental services
    Date: 2020–12–29
  12. By: Martinez, Charles; Bilderback, David; Eckelkamp, Elizabeth; Pepper, Hal; Cross, Tim
    Abstract: In any business, record keeping is a financial priority. In agriculture, record keeping can help producers understand the breakeven value, cost structure and profitability drivers for their business. A major benefit can also be analysis of financial health. University of Tennessee Extension has developed the Dairy Gauge Benchmarking program to help dairy producers better understand what their financial statements suggest about financial health. Within the program, there are three areas that were developed specifically for gauging a dairy business’s health. The three areas are 1) balance sheet and profitability dairy benchmarks, 2) dairy feed benchmarks, and 3) dairy non-feed income and expense benchmarks. This publication is focused on the non-feed income and expense benchmarks.
    Keywords: Agribusiness, Farm Management, Productivity Analysis
    Date: 2021–02–19
  13. By: Nicholas Ryan (Yale University - Department of Economics); Anant Sudarshan (University of Chicago - Energy Policy Institute)
    Abstract: Common resources may be managed with inefficient policies for the sake of equity. We study how rationing the commons shapes the efficiency and equity of resource use, in the context of agricultural groundwater use in Rajasthan, India. We find that rationing binds on input use, such that farmers, despite trivial prices for water extraction, use roughly the socially optimal amount of water on average. The rationing regime is still grossly inefficient, because it misallocates water across farmers, lowering productivity. Pigouvian reform would increase agricultural surplus by 12% of household income, yet fall well short of a Pareto improvement over rationing.
    Date: 2020
  14. By: Javier Garcia-Bernardo (University of Amsterdam, Faculty of Social and Behavioural Sciences, Spui 21, 1012 WX Amsterdam, The Netherlands); Petr Jansky (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Vojtech Misak (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic)
    Abstract: Although the Common Agricultural Policy (CAP) is the largest expenditure programme of the European Union, not much is currently known either about its beneficiaries or about how unequally payments are distributed among them. We thus create a novel – and currently the most extensive – publicly available data set of CAP’s beneficiaries. We exploit a recent EU regulation which requires member states to disclose the identities and amounts allocated to all beneficiaries. We succeed in collecting data for 21 member states for up to 4 years between 2015 and 2018. We find that the extent of payment inequality among CAP beneficiaries differs among member states and that old member states generally tend to exhibit lower inequality while new member states tend to suffer from higher inequality. Specifically, Gini coefficients are lowest in Belgium, Finland, France and Denmark and highest in Slovakia, Estonia, Bulgaria and Czechia. In an additional exploratory analysis, we combine the amassed data with a company ownership database, which enables us to identify owners that are either foreign or common for multiple beneficiaries.
    Keywords: Common Agricultural Policy; Common Agricultural Policy beneficiary; inequality; agriculture; European Union
    JEL: D63 H25 L11 Q14 Q18
    Date: 2021–02
  15. By: Damien Bazin (Université Côte d'Azur; GREDEG CNRS); Sylvie Ferrari (Université de Bordeaux; GREThA, CNRS); Richard B. Howarth (Dartmouth College; GREThA, CNRS)
    Abstract: This paper addresses how environmental ethics might be incorporated into economic analysis and in particular how Hans Jonas’ Imperative of Responsibility may provide useful insights into the analysis of sustainability issues. The challenges of environmental and social sustainability in terms of inter-generational fairness are analysed and involve a moral duty that is applicable to economic governance. The paper also explores to what extent responsibility, as an alternative to utilitarianism and as a principle facilitating the coordination of the agents involved, may be a first step towards the long-term and sustainable conservation of Nature.
    Keywords: Environmental ethics, intergenerational fairness, responsibility principle, self-binding behaviour, sustainability
    JEL: Q01 Q20 Q32 Q57
    Date: 2021–02
  16. By: Eder, Andreas
    Abstract: This article provides a generalization of the materials balance-based production model introduced by Coelli et al. (2007). Based on this, some new environmental efficiency (EE) measures are presented. The Coelli et al. (2007) EE measure and its extension by Rødseth (2016) produce biased efficiency estimates if the material flow coefficients (MFCs) are heterogeneous across decision-making units and non-discretionary. Furthermore, the Coelli et al. (2007) measure fails to reward emission reductions by emission control. To overcome these shortcomings, this paper proposes production models which allow for heterogeneous MFCs reflecting differences of external environmental factors or non-controllable heterogeneities in inputs and outputs, and which properly take into account emission abatement activities. Based on this, we provide new EE measures and decompose them into i) a part reflecting emission control efficiency (ECE), ii) a part measuring material input efficiency (MIE), and iii) a part reflecting the efficient allocation between material and non-material inputs (environmental allocative efficiency, EAE). The approach is illustrated by an empirical application to arable farming in Austria utilizing data from 90 farms for the year 2011. Soil erosion is considered an undesirable output and land a material input. The average EE, ECE, MIE, and EAE are 0.53, 0.96, 0.69, and 0.79, respectively. The results indicate that actual output can be potentially achieved with 47% less soil loss. Most of the potential to improve EE is due to differences in MIE and EAE. Removing inefficiencies in the implementation of existing, subsidized erosion controls allows soil loss to be reduced by 4%.
    Keywords: Emission-generating technologies,Materials balance condition,Weak-G disposability,Data envelopment analysis,Non-discretionary factors,Soil erosion,Crop farms
    JEL: C61 D24 Q12 Q15
    Date: 2020
  17. By: Swinnen, Johan; Kuijpers, Rob
    Abstract: The rapid transformation of agri-food value chains in Africa and other developing countries hasimportant implications for economic growth and poverty reduction. Policy makers increasinglyrecognize this but there is a need for a better understanding of what value chain transformationentails and what the main policy options are. This paper provides an overview and analysis ofdifferent value chain models that have emerged in the past decades and reviews the literatureon the main development implications. We discuss and categorize existing policy initiativesthat aim to stimulate inclusive value chain development. Based on this review we identifylessons and implications for policy makers.
    Keywords: value chain; farmer; fresh fruit and vegetable; access to bank loan; Political Economy; change in consumer demand; private sector development programs; reduction of transaction costs; effects of policy changes; impact on poverty reduction; Fruit and Vegetable Export; supply of raw material; limited access to capital; investment in transition country; access to finance; vertical coordination
    Date: 2020–02–01
  18. By: Von Der Goltz, Jan; Saidi, Mira; Mayai, Augustino Ting; Williams, Melissa
    Abstract: This study assesses the state of markets and of jobs in market-linked agriculture in the towns of South Sudan. It is based on a 2019 market trader survey end extensive qualitative work. Agriculture provides most urban livelihoods, and there is high potential for raising production. However, insecurity has disrupted all elements of agricultural markets, from production to the transformation of produce, trade networks, and demand. Market activity is recovering, but food system value chains are few and short. While most market activities are small-time and profits slim, most traders rely on their activities for most of their household’s income, and many provide jobs for hired helpers. Local products face competition from imports as insecurity makes it difficult for aggregators to operate. A lack of funds, bad and dangerous roads, low demand, and inflation are the most prominent obstacles to business in the markets. The study is one of a set of four reports assessing different aspects of jobs in urban South Sudan in order to formulate policy for recovery.
    Keywords: market trader; Agriculture; agricultural product; market activity; farmer; value chain; market stall; qualitative data collection; agricultural production; burden of disease; cost of transport; price of rice; rural access road; number of workers; loss of asset; signs of recovery; loss of consumer; labor market outcome; source of income; share of revenue; decline in revenue; loss of revenue; rate of hire; put pressure; access to finance; number of jobs; take time; places of business; low purchasing power; privileges and immunity; movement of good; abandoned farm; vegetable and fruit; production and export; degree of diversification; Agricultural Value Chain; competition from imports; source of employment; employer having; local food production; source income; access to fund; income generating activity; source of food; cash transfer program; lack of demand; data collection effort; demand for good; civil service salary; urban household; market demand
    Date: 2020–10–26
  19. By: Baquedano, Felix; Zereyesus, Yacob Abrehe; Christensen, Cheryl; Valdes, Constanza
    Abstract: Updated analysis estimates that in 2020, there will be 921 million food-insecure people, an increase of 160 million from the pre-pandemic estimate, and almost double the pre-COVID-19 estimate published in the ERS August 2020 International Food Security Assessment, 2020-2030.
    Keywords: Food Security and Poverty
    Date: 2021–01–20
    Abstract: While marine ecosystems play a major role in the regulation of climate and our Planet's ability to cope with climate change, they are also critical for providing food, livelihood, and income to billions of people worldwide. Unfortunately, they face increasing threats due to anthropic activities. In many regions, various types of agreements have historically organized and commodified the access to the resources of the Exclusive Economic Zones of coastal States to distant-water fishing nations. These longstanding commercial mechanisms can take the form of either private agreements between a State and a fishing company, public agreements between two States, or joint ventures between two companies. They are used by a variety of industrialized fishing countries and blocs such as the European Union, the USA, Russia, Japan, and China to access fisheries resources in the waters of the Global South. In Europe, these fishing agreements most often take the form of “public access agreements”, i.e. agreements that are negotiated between a coastal State (e.g. Senegal or Madagascar) and the European Commission, on behalf of the European fleets. These public fishing access agreements have become an integral part of the Common Fisheries Policy, granting EU vessels access to the bountiful waters of Africa, and, to a much lower extent, Oceania. Unlike for other fishing nations such as Russia, Turkey or China — whose severe impacts on local ecosystems and coastal communities are suspected but poorly documented — the analysis of European public fishing access agreements is facilitated by a relatively high level of transparency and data availability. This paper examines and questions global fishing access agreements through the lens of the public agreements established between the European Union and African countries. Specifically, we contextualize the property and management of marine resources at sea, and provide some of the most up-to-date information regarding the state-of play of EU public fishing access agreements. The notion of “surplus”, which is at the heart of many global fishing agreements, is also explored and challenged. We conclude our analysis with three avenues for researchers and policy makers: i) the development of more complex, multi-user regional models as the scientific basis for fishing access agreements, ii) the need to increase research investments and transparency in order to develop such models, and iii) an improvement in monitoring, control and surveillance necessary to drive practices in the Global South towards more sustainability and equity.
    JEL: Q
    Date: 2021–02–12
  21. By: Jean-Paul Faguet; Fabio Sanchez Torres; Juanita Villaveces
    Abstract: Over two centuries, Colombia transferred vast quantities of public land into private hands. Much of this process was justified publicly in terms of giving land to the landless and reducing rural poverty. And yet Colombia retains one of the highest concentrations of land ownership in the world. Why? Analyzing the period 1960–2010, we show that the effects of public land distribution across 1100+ municipalities are highly heterogeneous. Where small and medium-sized farms dominate, land distribution increased average farm size, decreased land inequality, and accelerated local development. But where land was concentrated in the hands of a rural elite, distributed land was diverted to bigger farms, resulting in fewer small and more large farms, greater plot size dispersion, and lower levels of development. We explore whether these effects flow through voter turnout, political competition, or public expenditure and taxation. Land distribution increases turnout, makes politics more competitive, and increases public service provision. But landed elites use patron-client ties to distort local policy and decision-making to their benefit. Land distribution’s secondary, institutional effects on the distribution of power outweigh its primary effects on the distribution of land.
    Keywords: Land reformPublic land distributionInequalityDevelopmentLatifundiaColombia
    Date: 2020–12–14
  22. By: Gruener, Sven
    Abstract: Dohmen et al. (2010) describe in their paper, which has been published in the American Economic Review, that risk aversion and impatience are negatively related to cognitive ability. This topic is important because controlling for cognitive ability might be necessary if someone is interested in the link of risk preferences or time preferences to real-world outcomes. We re-examine their key results by conducting an experimental study using two subject pools (agricultural students and farmers) and three levels of monetary incentives. Similar to Dohmen et al. (2010), our study finds the above-described negative correlations. However, the strength of the association is smaller and the p-values are quite large.
    Date: 2021–02–26
  23. By: Litkowski, Carrie; Law, Jonathan
    Abstract: The USDA Economic Research Service releases farm income forecasts and updated estimates 3 times per year. Examining trends in the value of production more frequently can provide useful information on some of the impacts of unexpected events on the farm income forecasts.
    Keywords: Agribusiness, Crop Production/Industries, Farm Management
    Date: 2021–01–07
  24. By: Olivia Placzek
    Abstract: In OECD countries, socio-economically disadvantaged groups tend to consume less nutritious food, leading to suboptimal health outcomes, including obesity. Contributing factors include low levels of income and education; time-poor single parent households; and the prevalence and accessibility of fast food restaurants. More broadly, food insecurity also remains a problem in OECD countries, with Indigenous Peoples being particularly vulnerable. Foodbanks run by non-governmental organisations provide emergency food assistance, sometimes using food recovered as part of food waste policies; however, the sustainability of this approach is contested. Understanding the role that socio-economic and demographic factors play in determining household food purchases and consumption is limited by inadequate and irregular food data collection, including on the prevalence of food insecurity. Lack of data is also hampering evaluation of the effectiveness of policies in addressing the needs of particular socio-economic and demographic groups.
    Keywords: COVID-19, Food marketing, Foodbanks, Indigenous Peoples, Obesity
    JEL: I18 I38 M38 Q18
    Date: 2021–02–10
  25. By: Loginova, Daria (Agroscope); Portmann, Marco (Administration fédérale des contributions); Huber, Martin
    Abstract: Causal estimation of the short-term effects of tariff-rate quotas (TRQs) on vegetable producer prices is hampered by the large variety and different growing seasons of vegetables and is therefore rarely performed. We quantify the effects of Swiss seasonal TRQs on domestic producer prices of a variety of vegetables based on a difference-in-differences estimation using a novel dataset of weekly producer prices for Switzerland and neighbouring countries. We find that TRQs increase prices of most vegetables by more than 20% above the prices in neighbouring countries during the main harvest time for most vegetables and even more than 50% for some vegetables. The effects are stronger for more perishable vegetables and for conventionally produced ones compared with organic vegetables. However, we do not find clear-cut effects of TRQs on the week-to-week price volatility of vegetables although the overall lower price volatility in Switzerland compared with neighbouring countries might be a result of the TRQ system in place.
    Keywords: agricultural trade policies, price volatility, Swiss agriculture, seasonal production, vegetable production, price stability, stabilisation policies, tariff-rate quotas, difference-indifferences, inverse probability weighting
    JEL: Q02 P52
    Date: 2021–02–26
  26. By: Disha Gupta (Department of Economics, Delhi School of Economics)
    Abstract: This paper provides causal evidence of the impact of a change in the policy regime from flat rate to free farm electricity pricing, introduced in Punjab, India in February 1997 using a difference-in-differences framework. Based on village-level data from the second and the third rounds of the Minor Irrigation Census, the study finds a differential increase in the number of electric-operated tubewells and horsepower load of pumps in Punjab as compared to an agriculturally-similar and neighbouring state, Haryana, which is taken as the control group. Through these channels, the study finds that percentage deviation in groundwater depth from its mean in the baseline period increased by 16 per cent more in Punjab. Nationally-representative well-level data on groundwater depths from Central Ground Water Board shows impact heterogeneity with sharper effect on groundwater depth for wells that are lying closer to the cut-off of about 10 meters where a technological shift from centrifugal to submersible is required to maintain access to groundwater pumping. Key Words: Water Pricing, Power Subsidies, Groundwater Depletion, Irrigation,Agriculture JEL Codes: O13, Q18, Q25, Q48
    Date: 2021–02
  27. By: McBride, Linden; Barrett, Christopher B.; Browne, Christopher; Hu, Leiqiu; Liu, Yanyan; Matteson, David S.; Sun, Ying; Wen, Jiaming
    Abstract: More frequent and severe shocks combined with more plentiful data and increasingly powerful predictive algorithms heighten the promise of data science in support of humanitarian and development programming. We advocate for embrace of, and investment in, machine learning methods for poverty and malnutrition targeting, mapping, monitoring, and early warning while also cautioning that distinct tasks require different data inputs and methods. In particular, we highlight the differences between poverty and malnutrition targeting and mapping, identification of those in a state of structural versus stochastic deprivation, and the modeling and data challenges of developing early warning systems. Overall, we urge careful consideration of the purpose and possible use cases of big data and machine learning informed models.
    Keywords: Food Security and Poverty, Research and Development/Tech Change/Emerging Technologies
    Date: 2021–01
  28. By: Santeramo, Fabio G.; Dominguez, Ignacio Perez
    Keywords: Agricultural and Food Policy, Demand and Price Analysis, International Relations/Trade
    Date: 2021–01
  29. By: Momoe Makino; Abu S. Shonchoy; Zaki Wahhaj
    Abstract: Using data collected through a telephone-based survey in rural Bangladesh during the height of the pandemic, we present evidence on the effects of COVID-19-led lockdown and school closures on children, focusing on three child-related outcomes: time use of children during the school closure, plans regarding children’s schooling continuation, and the incidence of child marriages. Our analysis reveals heterogeneity in the effects of lockdown and school closure in terms of the child’s gender and the type of shocks. We find a decrease in children’s study time and an increase in time spent on household chores during the school closure, and these changes were significantly larger for girls than for boys. Within the household, respiratory illness lowered expectations that a child would return to school and increased the probability of marriage-related discussions for girls. Our findings offer a cautionary tale regarding the potential longterm effects of pandemic for girls in developing countries.
    Keywords: COVID-19; school closure; child marriage; children’s time allocation; Bangladesh
    JEL: I25 J12 O53
    Date: 2021–01
  30. By: Hynes, Stephen; Chen, Wenting; Vondolia, Kofi; Armstrong, Claire; O’Connor, Eamonn
    Abstract: Habitat loss and degradation are recognised as the most important causes of species decline and extinction in marine ecosystems. It is also widely recognised that a range of restoration actions are now essential to halt further decline. From a policy perspective, demonstration that restoration activity is in the interest of society is an important goal. In this paper, the welfare impacts of restoring Norwegian kelp forests to areas where they once were dominant but which now lie barren are estimated using the discrete choice modelling approach. The paper also examines if more direct contact with the environmental good under investigation influences respondents’ willingness to pay to restore ecosystem features. The results indicate a positive and significant marginal societal willingness to pay for the ecosystem services associated with kelp forest restoration. The enhanced biodiversity levels as a result of the restoration activity are the most highly valued by the Norwegian public although the size of the area restored is more highly valued by respondents who are active marine environment users. It is argued that without incorporating these non-market values into the decision making process marine policy decisions may be made that are not in fact in the best interest of society.
    Keywords: Environmental Economics and Policy
    Date: 2020
  31. By: Kumagai, Junya; Wakamatsu, Mihoko; Hashimoto, Shizuka; Saito, Osamu; Yoshida, Takehito; Yamakita, Takehisa; Hori, Keiko; Matsui, Takanori; Oguro, Michio; Aiba, Masahiro; Shibata, Rei; Nakashizuka, Tohru; Managi, Shunsuke
    Abstract: Recently, natural capital has gained the attention of researchers and policymakers to promote sustainability. Previous studies have investigated the value of ecosystem services with respect to specific areas or species. Other studies have investigated the value of various types of ecosystem services and natural capital by integrating a number of findings using meta-analyses at the global level. Although these studies have provided information on either the global value of natural capital or the local value of specific subjects, there is little evidence on the country-specific values of natural capital in Japan, which will provide useful information for national environmental policies. We investigated the perceived values of terrestrial and marine natural capital in Japan using internet surveys and payment card methods. Data on various natural forms of capital were collected in a unified format and comparable manner. We found that some explanatory variables, such as perceived importance and visit frequency, as well as sociodemographic characteristics, are significant drivers of the willingness to pay (WTP), which maintains each aspect of natural capital. In addition, we conducted future predictions of terrestrial and marine natural capital using a scenario developed in a previous study. Our results indicate that Japan should follow a population dispersed scenario for the sustainable management of natural capital up to 2050.
    Keywords: terrestrial natural capital; marine natural capital; willingness to pay; future prediction; sustainable development goals
    JEL: Q5
    Date: 2021–01–04
  32. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of stochastic frontier analysis of the impact of climate and weather on economic output.
    Keywords: climate change, stochastic frontier analysis, weather, video
    JEL: Q54
    Date: 2021–02
  33. By: Ichsan Anwary (Lambung Mangkurat University); Yahya Ahmad Zein (Borneo Tarakan University)
    Abstract: Regulations and policies regarding environment and green and environment friendly innovations play an important role in the reduction in pollution and to make the environment clean to live a better life. In this regard, people play a critical part by following these policies and regulations and by promoting the green innovations. The current study has been designed with the aim to find out and investigate the impact of environmental regulations, green innovation, and social distribution on the environmental sustainability of ASEAN countries. Therefore, the data for the study has been gathered from ASEAN countries covering the period of 29 years. The accuracy of the results obtained by the analysis of data collection has been ensured by the collection of data from World Bank Development Indicators and Global Economy. Various tests and techniques have been applied on the collected data such as panel unit root test, panel cointegration test, FMOLS coefficient estimation and Granger Casualty test. The result obtained by the analysis indicated that all the independent (environmental regulations, green innovation, and social distribution) and control variables (per capita income and human development) have significant impact on environmental sustainability. Moreover, the researcher also found the casual relationships between various variables of the study.
    Keywords: Environmental Regulations,Green Innovation,Social Distribution,Environmental Sustainability,ASEAN Countries
    Date: 2020
  34. By: Susan Thomas (xKDR); Diya Uday (xKDR)
    Abstract: Under-utilisation of land as collateral for loans is often attributed to the poor quality of the land records infrastructure, which is seen to both increase the cost of closing credit transactions and the risk in collection if a loan fails. In this paper, we examine the link between the heterogeneity of the quality of the land records infrastructure across states and the access to credit by households in these states using two new data-sets for the analysis. The state-level variation in land record quality is measured using the NCAER Land Records Services Index score while the Consumer Pyramids household data is used to capture household borrowing. Our findings are that there is a weak link between the borrowing patterns of households and quality of land records infrastructure, particularly the availability of spatial records. However, it does not appear that this is sufficient to capture the extent to which households are able to access credit from formal financial sources.
    JEL: E2 G2 R1 R5 O4
    Date: 2021–02
  35. By: Berry, James; Fischer, Gregory; Guiteras, Raymond
    Abstract: We use the Becker-DeGroot-Marschak (BDM) mechanism to estimate willingness to pay (WTP) for and heterogeneous impacts of clean water technology through a field experiment in Ghana. Although WTP is low relative to cost, demand is inelastic at low prices. Short-run treatment effects are positive throughout the WTP distribution. After 1 year, use and benefits are both increasing in WTP, with negative effects on low-WTP households. Combining estimated treatment effects with house-holds’ WTP implies valuations of health benefits much smaller than typically used by policy makers. We explore differences between BDM and take-it-or-leave-it valuations and make recommendations for implementing BDM in the field.
    Keywords: price mechanism; heterogeneous treatment effects; health behavior; Becker- DeGroot-Marschak; field experiments
    JEL: C93 D12 L11 L31 O12 Q51
    Date: 2020–04–01

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.