nep-agr New Economics Papers
on Agricultural Economics
Issue of 2021‒04‒19
24 papers chosen by

  1. The global value of water in agriculture. By D'Odorico, Paolo; Chiarelli, Davide Danilo; Rosa, Lorenzo; Bini, Alfredo; Zilberman, David; Rulli, Maria Cristina
  2. Drivers of and Barriers to Adoption of Improved Sun- flower Varieties amongst Smallholder Farmers in Singida, Tanzania: the Double-Hurdle Approach By Felister Y. Tibamanya; Mursali A. Milanzi; Arne Henningsen
  3. Multilevel Determinants of Childhood Undernutrition among Low-Income Urban and Rural Households in the Philippines By Vanessa T. Siy Van; Zarah G. Sales; Normahitta P. Gordoncillo; Leslie Advincula-Lopez; Joselito T. Sescon; Eden Delight Miro
  4. Understanding Farmers' Reluctance to Reduce Pesticides use : a Choice Experiment By Benoit Chèze; Maia David; Vincent Martinet
  5. Do cost-share programs increase cover crop use? Empirical evidence from Iowa By Sawadgo, Wendiam; Plastina, Alejandro
  6. Does Growth Enhancement Support Scheme (GESS) Contribute to Youth Development in Informal Farm Entrepreneurship? Evidence from Rural Communities in Nigeria By Uduji, Joseph; Okolo-Obasi, Elda; Asongu, Simplice
  7. Did COVID-19 Market Disruptions Disrupt Food Security? Evidence from Households in Rural Liberia and Malawi By Aggarwal, Shilpa; Jeong, Dahyeon; Kumar, Naresh; Park, David S.; Robinson, Jonathan; Spearot, Alan
  8. How effective is e-NAM in integrating food commodity prices in India? Evidence from Onion Market. By Bhattacharya, Rudrani; Chowdhury, Sabarni
  9. The agricultural wage gap within rural villages By Baysan, Ceren; Dar, Manzoor H.; Emerick, Kyle; Sadoulet, Elisabeth
  10. Reforming Market Access in Agricultural Trade: Tariff Removal and the Trade Facilitation Agreement By Beckman, Jayson
  11. Using agriculture for development: Supply- and demand-side approaches By de Janvry, A; Sadoulet, E
  12. 2021 Global food policy report: Transforming food systems after COVID-19: Synopsis By International Food Policy Research Institute (IFPRI)
  13. Feasibility Test of Fishing Variables on Increasing Fishermen's Income in Tomini Bay, Gorontalo Province By Yapanto, Lis M; Harahab, Nuddin; , Sudarto; Olii, Abdul Hafidz
  14. An Inquiry into the Process of Upgrading Rice Milling Service: The Case of Mwea Irrigation Scheme in Kenya By Mano, Yukichi; Njeru, Timothy Njagi; Otsuka, Keijiro
  15. Private Input Suppliers as Information Agents for Technology Adoption in Agriculture By Dar, Manzoor H.; de Janvry, Alain; Emerick, Kyle; Sadoulet, Elisabeth; Wiseman, Eleanor
  16. Iowa Land Supply and Price Update Q1 2021 By Wendong Zhang; Hannah Spies
  17. Is green always attractive? The location choices of Chinese outward FDI By Andrea Ascani; Simona Iammarino
  18. Variation in forest landowners’ management preferences reduces timber supply from Finnish forests By Tero Heinonen; Timo Pukkala; Antti Asikainen
  19. Characterising agri-environmental policies: Towards measuring their progress By Santiago Guerrero
  20. Cognitive and hormonal regulation of appetite for food presented in the olfactory and visual modalities By Rémi Janet; Arnaud Fournel; Mélodie Fouillen; Edmund Derrington; Brice Corgnet; Moustafa Bensafi; J.-C. Dreher
  21. Risk Sharing and the Demand for Insurance: Theory and Experimental Evidence from Ethiopia By Erlend Berg; Michael Blake; Karlijn Morsink
  22. Out of Communal Land: Clientelism through Delegation of Agricultural Tenancy Contracts By Kurosaki, Takashi; Paul, Saumik; Witoelar, Firman
  23. Endogenous Information Sharing and the Gains from Using Network Information to Maximize Technology Adoption By Dar, Manzoor H.; de Janvry, Alain; Emerick, Kyle; Kelley, Erin M.; Sadoulet, Elisabeth
  24. 2021 Global food policy report: Transforming food systems after COVID-19: Synopsis [in Chinese] By International Food Policy Research Institute (IFPRI)

  1. By: D'Odorico, Paolo; Chiarelli, Davide Danilo; Rosa, Lorenzo; Bini, Alfredo; Zilberman, David; Rulli, Maria Cristina
    Abstract: Major environmental functions and human needs critically depend on water. In regions of the world affected by water scarcity economic activities can be constrained by water availability, leading to competition both among sectors and between human uses and environmental needs. While the commodification of water remains a contentious political issue, the valuation of this natural resource is sometime viewed as a strategy to avoid water waste. Likewise, water markets have been invoked as a mechanism to allocate water to economically most efficient uses. The value of water, however, remains difficult to estimate because water markets and market prices exist only in few regions of the world. Despite numerous attempts at estimating the value of water in the absence of markets (i.e., the "shadow price"), a global spatially explicit assessment of the value of water in agriculture is still missing. Here we propose a data-parsimonious biophysical framework to determine the value generated by water in irrigated agriculture and highlight its global spatiotemporal patterns. We find that in much of the world the actual crop distribution does not maximize agricultural water value.
    Keywords: Crops, Agricultural, Water, Conservation of Natural Resources, Water Supply, Agricultural Irrigation, irrigation, water productivity, water value
    Date: 2020–09–01
  2. By: Felister Y. Tibamanya (Department of Food and Resource Economics, University of Copenhagen; Department of Economics, Mzumbe Universiy, Tanzania); Mursali A. Milanzi (Department of Economics, Mzumbe Universiy, Tanzania); Arne Henningsen (Department of Food and Resource Economics, University of Copenhagen)
    Abstract: Purpose: Yield-enhancing agricultural technologies such as improved crop varieties are widely promoted by public and private agencies in developing countries because they are important for improving food security, income and welfare of farm households. Nonetheless, the low rate of adoption of these technologies by farm households is still a less-understood phenomenon. We thus investigate the drivers of and the barriers to adoption of improved sunflower varieties by smallholder farmers in Tanzania as an empirical example. Undertaking this study can help to improve policies, development programmes and business decisions, which are geared towards enhancing agricultural productivity and farm household welfare. Methodology: Our empirical study applies the double-hurdle econometric model to a cross-sectional survey data set of 416 smallholder farmers in Singida region, Tanzania. Findings: Our results suggest that risk aversion and liquidity constraints are significant barriers to the adoption of improved sunflower varieties, while radios, extension service and farmers' groups are important channels for farmers for receiving information about new technologies. Originality: Compared to earlier studies of the adoption of improved oilseeds varieties, our study distinguishes two dimensions of the adoption, i.e. the decision to adopt or not and, in case of adoption, the extent of adoption. Furthermore, our analysis investigates the roles of market constraints, liquidity constraints and contract farming for adoption of improved varieties, which are largely ignored in previous adoption studies.
    Keywords: improved crop varieties, sunflower, smallholder farmers, market and liquidity constraints, double-hurdle model, Tanzania
    JEL: Q12 O13 O33
    Date: 2021–03
  3. By: Vanessa T. Siy Van (Health Sciences Program, Ateneo de Manila University); Zarah G. Sales (Institute of Human Nutrition and Food, University of the Philippines Los Baños); Normahitta P. Gordoncillo (Institute of Human Nutrition and Food, University of the Philippines Los Baños); Leslie Advincula-Lopez (Development Studies Program, Ateneo de Manila University); Joselito T. Sescon (Department of Economics, Ateneo de Manila University); Eden Delight Miro (Department of Mathematics, Ateneo de Manila University)
    Abstract: Poverty plays a large role in childhood undernutrition; however, the interplay between context-specific economic, environmental, and social factors and food decisions of Philippine low-income households has yet to be fully explored, especially given wide variation between the characteristics of the country’s rural and urban areas. This paper aimed to identify and compare pathways of childhood undernutrition among 308 rural and 310 urban children from low-income households in the Philippines. Multidisciplinary analyses based on 24-hour dietary recalls, household surveys, focus-group discussions, field data, and secondary literature revealed that while the poor are more vulnerable to undernutrition, poor urban and rural children faced unique constraints that accounted for differing nutritional outcomes. Urban families utilized cheap processed-foods that shaped children’s dietary preferences towards sugars and fats, leading to vegetable avoidance and poor micronutrient adequacy. Rural households generally relied on home food production. However, rather than mitigate threats to undernutrition, agriculture heightened rural households’ risk to food insecurity, as the Philippines is vulnerable to crop-destroying tropical storms. Geographically-isolated rural communities were particularly disadvantaged because members had limited livelihood opportunities and could not access most social protection programs. Our findings suggest the need to strengthen local governance institutions to implement context-specific multisectoral interventions.
    Keywords: Philippines; child nutrition; urbanization; food security; poverty; health inequalities
    JEL: I14 I38 R23
    Date: 2021–04
  4. By: Benoit Chèze (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Maia David (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Vincent Martinet (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Despite reducing the use of pesticides being a major challenge in developed countries, dedicated agri-environmental policies have not yet proven successful in doing so. We analyze conventional farmers' willingness to reduce their use of synthetic pesticides. To do so, we conduct a discrete choice experiment that includes the risk of large production losses due to pests. Our results indicate that this risk strongly limits farmers' willingness to change their practices, regardless of the consequences on average profit. Furthermore, the administrative burden has a significant effect on farmers' decisions. Reducing the negative health and environmental impacts of pesticides is a significant motivator only when respondents believe that pesticides affect the environment. Farmers who earn revenue from outside their farms and/or believe that yields can be maintained while reducing the use of pesticides are significantly more willing to adopt low-pesticide practices. Policy recommendations are derived from our results.
    Keywords: Pesticides,Agricultural practices,Production risk,Discrete choice experiment
    Date: 2019–06
  5. By: Sawadgo, Wendiam; Plastina, Alejandro
    Abstract: Cover crops have been shown to have both on-farm and water quality benefits. However, the use of cover crops in Iowa remains subdued, in part due to the implementation costs faced by farmers. In this paper, we test the hypothesis that monetary incentives through cost-share programs are effective at increasing the amount of farmland planted to cover crops in Iowa, using a propensity-score matching estimator. Combining data from a unique cover crop survey of 674 farm-operator respondents and the 2012 Census of Agriculture, we find that cost-share payments induced an 18 percentage-point expansion of the cover crop area beyond what would have been planted in absence of the programs, for the farmers who participated in cost-share programs. In addition, at least two-thirds of the payments funded acres that would not have been planted without cost share. We also calculate farmers’ net returns to using cover crops with a partial budget analysis and estimate that the combined public and farmer cost of avoiding one pound of nitrogen pollution through cover crops is between $1.72 and $4.69 per pound, with farmers undertaking 70% of this cost through net losses. Overall, cost share for cover crops has been a relatively low-cost method to reduce nitrogen pollution to waterways in Iowa.
    Date: 2021–01–01
  6. By: Uduji, Joseph; Okolo-Obasi, Elda; Asongu, Simplice
    Abstract: Purpose – The purpose of this paper is to critically examine the impact of a growth enhancement support scheme (GESS) on youth development in informal farm entrepreneurship in Nigeria. Its special focus is to investigate the impact of the GESS on rural youths’ adoption of new technologies needed to sustainably increase food security in Nigeria. Design/ methodology/ approach – This paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional, describing and interpreting the current situation. A total of 800 rural youths were sampled across the six geopolitical zones of Nigeria. Findings – The result from the use of a bivariate probit model indicate that the GESS has a significant impact on rural youths’ innovations in farming. Practical implication – This suggests that information and communication technology (ICT) could provide new opportunities for making farming more interesting and enterprising for rural young people. Social implication – It implies that while old male and female farmers are less likely to adopt the new farming technologies needed to achieve Nigeria’s agricultural transformation agenda (ATA), a younger generation can help introduce new technologies, whilst also learning from traditional methods. Originality/ value – This research adds to the literature on informal farm entrepreneurship and rural communities’ debate in developing countries. It concludes that engaging youths in GESS should form the foundation of the ATA in Nigeria, which, in turn, would offer adequate combination of new and traditional solutions to address the challenges of food insecurity in sub-Saharan Africa.
    Keywords: Youth Development Initiative, Informal Farm Entrepreneurship, Growth Enhancement Support Scheme (GESS), Rural Communities in Nigeria
    JEL: C5 O1
    Date: 2020–01
  7. By: Aggarwal, Shilpa; Jeong, Dahyeon; Kumar, Naresh; Park, David S.; Robinson, Jonathan; Spearot, Alan
    Abstract: We quantify the effect of market disruptions due to COVID-19 on the lives of householdsin rural areas of Liberia and Malawi, utilizing panel data from phone surveys that were implemented as part of a randomized cash transfer experiment. The surveys began collection several months before the pandemic and have continued throughout it. The household survey included a consistent set of internationally accepted and validated questions on food security (the householddietary diversity score, the household hunger scale, and the food consumption score). In both countries, market activity was severely disrupted and we observe large declines in income among market vendors, but we find no evidence of declines in food security for households in the short run. Even though we observe no adverse effects of the lockdowns on food securityamong the control group, cash transfers improved dietary quality and quantity over the low levels observed at baseline.
    Keywords: Social and Behavioral Sciences, COVID-19, market disruption, food security, cash transfers, Liberia, Malawi
    Date: 2020–10–29
  8. By: Bhattacharya, Rudrani (National Institute of Public Finance and Policy); Chowdhury, Sabarni (National Institute of Public Finance and Policy)
    Abstract: A series of market distortionary rules and regulations hinder development of an integrated agricultural market in India. In order to ensure greater transparency and uniformity of food commodity prices across states, various reform measures have to be undertaken to develop agriculture marketing. These measures concentrate on the numerous areas, specifically infrastructure development, information provision, improving the role of private sector and decreasing government sector intervention, training of farmers and traders in marketing and postharvest issues, and most importantly creating a competitive national market for food commodities. The Indian government established e-NAM as a first step toward inducing competition in the agricultural market in 2016. The e-NAM or the National Agriculture Market, is a pan-India electronic trading portal which integrates the existing APMC mandis to create a unified national market for agricultural commodities. In this backdrop, this paper examines whether the introduction of e-NAM by the government has improved the spatial integration of onion markets in India. Using the maximum likelihood method of cointegration, it investigates onion market price integration of Maharashtra , Karnataka , Rajasthan , West-Bengal with the average wholesale onion price of India for the period 2010-2016 ( before e-NAM ) and 2016-2019 ( after e-NAM ). It provides evidence in favour of market integration for the period 2016-2019, while multiple relations are found to govern onion prices across states during 2010-2016. The evidence in effect suggests that introduction of e-NAM in 2016 has improved market integration for onion market prices in India.
    Keywords: Unit root ; Cointegration ; Spatial Market Integration ; Onion market ; e-NAM ; India
    JEL: C22 C32 O53 Q11
    Date: 2021–04
  9. By: Baysan, Ceren; Dar, Manzoor H.; Emerick, Kyle; Sadoulet, Elisabeth
    Abstract: We use a unique dataset on daily labor-market outcomes for Indian casual workers to study labor reallocation between agricultural and non-agricultural activities within rural areas. We use workers who switch sectors during a period of one to two weeks to estimate an agricultural wage gap that cannot be due to selection on unobservable characteristics. Workers can obtain 21 percent higher wages by taking non-agricultural jobs, many of which are available inside their villages. Surveys reveal that non-agricultural jobs are less preferred because they are harder, suggesting that the agricultural wage gap in rural areas might reflect a compensating differential.
    Keywords: Social and Behavioral Sciences
    Date: 2019–05–29
  10. By: Beckman, Jayson
    Abstract: Twenty-five years after World Trade Organization member countries agreed to agricultural policy reforms embodied in the Uruguay Round Agreement on Agriculture of 1994 (URAA), multilateral efforts to reduce barriers to agricultural trade have largely stalled. This report estimates the potential gains in global trade and welfare (societal well-being) from two trade reform scenarios: elimination of agricultural tariffs, and a reduction in agriculture trade costs through implementation of the Trade Facilitation Agreement (TFA). Simulations reveal that reducing trade costs through the TFA could increase trade value by 7.27 percent. Removing agricultural tariffs could lead to an even larger global increase in trade value of 11.09 percent. Both scenarios would lead to an increase in societal well-being of $42.9 billion and $56.3 billion annually (respectively). This would represent gains to the global agricultural sector of a little more than 2 percent for each scenario. Although these gains represent an increase in agricultural market access, other market access barriers remain (e.g., nontariff measures).
    Keywords: Agribusiness, Agricultural and Food Policy, Demand and Price Analysis, Institutional and Behavioral Economics, International Development, International Relations/Trade, Political Economy
    Date: 2021–04–07
  11. By: de Janvry, A; Sadoulet, E
    Abstract: For most poor countries of today, using agriculture for development is widely recognized as a promising strategy. Yet, in these countries, investment in agriculture has mostly been lagging relative to international norms and recommendations. Current wisdom on how to use agriculture for development is that it requires asset building for smallholder farmers, productivity growth in staple foods, an agricultural transformation (diversification of farming systems toward high value crops), and a rural transformation (value addition through rural non-farm activities linked to agriculture). This sequence has too often been hampered by extensive market and government failures. We outline a theory of change where the removal of market and government failures to use this Agriculture for Development strategy can be addressed through two contrasted and complementary approaches. One is from the “supply-side” where public and social agents (governments, international and bilateral development agencies, NGOs, donors) intervene to help farmers overcome the major constraints to adoption: liquidity, risk, information, and access to markets. The other is from the “demand-side” where private agents (entrepreneurs, producer organizations) create incentives for smallholder farmers to modernize through contracting and vertical coordination in value chains. We review the extensive literature that has explored ways of using Agriculture for Development through these two approaches. We conclude by noting that the supply-side approach has benefited from extensive research but met with limited success. The demand-side approach has promise, but received insufficient attention and is in need of additional rigorous research which we outline.
    Keywords: Staple foods, Agricultural transformation, Rural transformation, Adoption constraints, Value chain development, Development Studies, Economics, Studies in Human Society
    Date: 2020–09–01
  12. By: International Food Policy Research Institute (IFPRI)
    Abstract: The coronavirus pandemic has upended local, national, and global food systems, and put the Sustainable Development Goals further out of reach. But lessons from the world’s response to the pandemic can help address future shocks and contribute to food system change. In the 2021 Global Food Policy Report, IFPRI researchers and other food policy experts explore the impacts of the pandemic and government policy responses, particularly for the poor and disadvantaged, and consider what this means for transforming our food systems to be healthy, resilient, efficient, sustainable, and inclusive. Chapters in the report look at balancing health and economic policies, promoting healthy diets and nutrition, strengthening social protection policies and inclusion, integrating natural resource protection into food sector policies, and enhancing the contribution of the private sector. Regional sections look at the diverse experiences around the world, and a special section on finance looks at innovative ways of funding food system transformation. Critical questions addressed include: Who felt the greatest impact from falling incomes and food system disruptions caused by the pandemic? How can countries find an effective balance among health, economic, and social policies in the face of crisis? How did lockdowns affect diet quality and quantity in rural and urban areas? Do national social protection systems such as cash transfers have the capacity to protect poor and vulnerable groups in a global crisis? Can better integration of agricultural and ecosystem polices help prevent the next pandemic? How did companies accelerate ongoing trends in digitalization and integration to keep food supply chains moving? What different challenges did the pandemic spark in Asia, Africa, and Latin America and how did these regions respond?
    Keywords: WORLD; food systems; Coronavirus; coronavirus disease; Coronavirinae; COVID-19; Sustainable Development Goals; pandemics; policies; diet; nutrition; rural areas; urban areas; social protection; cash transfers; poverty; food supply chains; resilience; shock; health; natural resources; environment; governance; gender; innovation; supply chains; food policies; food security; health foods; decision making; refugees; policymakers; lockdown
    Date: 2021
  13. By: Yapanto, Lis M (Universitas Negeri Gorontalo); Harahab, Nuddin; , Sudarto; Olii, Abdul Hafidz
    Abstract: This study aims to assess the household diversification of coastal fishing on coastal communities' welfare in the District of Kabila Bone, since August 2019-November 2019, 184 respondents, with a survey method. The data collected are primary and secondary data was done by using observation, interview techniques, documentation techniques. The lives and livelihoods of coastal fishing communities are very vulnerable to climate change and the environment. Diversification of fishermen's income sources outside of fisheries can be an effective way to overcome environmental change's adverse effects. This study aims to analyze the effect of business diversification on welfare, environmental sustainability, and welfare on environmental sustainability. The data collected are primary and secondary data, which is done using observation, interview, and documentation techniques. The independent variable is selected according to considerations based on the empirical conditions of the coastal area, the researcher's ability and the availability of supporting theories, and the characteristics of the research area. The researcher's ability and the availability of supporting theories, and the characteristics of the research area. The independent or exogenous variables chosen are fishery business (X1), livestock business. Based on the model developed from the relevant theory, the endogenous variables are welfare (Y1) and environmental sustainability (Y2); the model is tested using the PLS-based Structure Equation Model (SEM). The researcher's ability and the availability of supporting theories, and the characteristics of the research area. The independent or exogenous variables chosen are fishery business (X1), livestock business. Based on the model developed from the relevant theory, the endogenous variables are welfare (Y1) and environmental sustainability (Y2); the model is tested using the PLS-based Structure Equation Model (SEM). The model developed from the relevant theory, then tested on a model using the Structural Equation Model (SEM) based on SMART PLUS. The results of the analysis of effort diversification models suggest that the utilization of environmental services does not affect coastal communities' welfare.
    Date: 2021–03–29
  14. By: Mano, Yukichi; Njeru, Timothy Njagi; Otsuka, Keijiro
    Abstract: Countries in sub-Sahara Africa (SSA) heavily rely on rice imported from Asia, partly because of rapidly increasing rice demand and partly because of consumers’ preference for high-quality Asian rice. A few entrepreneurial rice millers in Kenya adopted large-scale improved milling machines, including the component called destoners, around 2010, which they learned from China. Later, smaller-sized improved machines were introduced and more widely adopted. These adopters successfully improved the quality of milled rice, which can compete with imported rice, and their business performance. In contrast, many other millers without adopting improved machines were forced to reduce their business or exit the industry.
    Keywords: rice quality, rice milling, destoner, Kenya, sub-Sahara Africa
    JEL: Q13 Q16 Q18
    Date: 2021–03
  15. By: Dar, Manzoor H.; de Janvry, Alain; Emerick, Kyle; Sadoulet, Elisabeth; Wiseman, Eleanor
    Abstract: Information frictions limit the adoption of new agricultural technologies in developingcountries. Most public-sector interventions to eliminate these frictions target information directly at select farmers. We show that an information intervention targeted at private input suppliers increases farmer-level adoption by over 50 percent compared to this public-sector approach. These newly informed suppliers become more proactive in carrying the new variety, informing potential customers, and in increasing adoption by those most likely to benefit from the technology. They do so in along-term perspective of reputation building and business development.
    Keywords: Social and Behavioral Sciences, Technology Adoption, Agriculture, Privatization, Learning
    Date: 2021–02–08
  16. By: Wendong Zhang (Center for Agricultural and Rural Development (CARD)); Hannah Spies
    Abstract: The Q1 2021 update reveals several important findings: • The Iowa land market proved itself again in providing stability and growth in an uncertain agricultural economic environment. High-quality land sold at around $10,500/acre, and medium and low-quality land sold around $7,300/acre and $4,500/acre, respectively, which is 20% higher than 2019 levels. This reflects tremendous surges in commodity prices and farmland sales prices, especially in the latter half of 2020. • Farmland supply is still tight-only 72,275 acres sold at auction this year, and limited land supply tends to support land values. • The pandemic has led to a transition of land sale modes, with more acres sold using real estate listings as opposed to land auctions, especially in Q2 and Q3 2020. However, things seem to be returning to normal with much larger shares sold via auctions in Q4 2020. This is the first of a quarterly series in collaboration with FarmlandFinder (, built on ISU-FarmlandFinder Research Collaboration Agreement 136585, and it hopefully provides timely and important ground-truth information on the Iowa land market, especially critical land supply information.
    Date: 2021–04
  17. By: Andrea Ascani (Gran Sasso Science Institute); Simona Iammarino (London School of Economics)
    Abstract: With the exponential growth of the role of China in the global economy, the environmental implications of its international expansion are serious but still scarcely investigated. This paper analyses the location of 6,494 manufacturing subsidiaries of Chinese Multinational Enterprises (MNEs) in 78 countries over the period 2008-2015, in response to the environmental performance of host economies, in order to explore whether degraded environmental contexts represent a pull factor for Chinese outward foreign direct investment (FDI). We build an original conceptual framework combining traditional race-to-the-bottom arguments with a set of conditioning factors pertaining to heterogeneity of both host countries and MNEs. By empirically accounting for endogeneity concerns, our results suggest that Chinese outward FDI may feed a downward spiral by systematically favouring locations with more fragile ecosystem vitality, that is, a weakly sustainable use of local natural resources and the consequent erosion of the quality of the natural ecosystems. These results characterise Chinese subsidiaries (i) locating in developing countries, (ii) operating within deficient institutional frameworks and (iii) privately owned
    Keywords: multinational enterprises, outward FDI, environment, location strategies, China
    JEL: F23 F64 Q5
    Date: 2020–11
  18. By: Tero Heinonen (University of Eastern Finland); Timo Pukkala (University of Eastern Finland); Antti Asikainen (LUKE - Natural Resources Institute Finland)
    Abstract: Context: The round wood harvests from Finnish forests are increasing and approaching to the level of maximum sustainable cut. Cutting budget calculations assume that forests are harvested in an optimal way for national timber supply. The calculations ignore the variability of landowners' forest management preferences. Aims: This study analyzed the effect of variation in the management objectives and silvicultural preferences of forest landowners on the forecasted timber supply from Finnish forests. Methods: Forest owners were divided into savers (net present value maximized with a 1% discount rate), average owners (3% discount rate), and investors (5% discount rate). The owners of each group were further divided into three groups: those who allow only continuous cover management (12%), owners who use only rotation forest management (10%), and indifferent landowners who may use both silvicultural systems (78%). Scenarios were composed of management prescriptions that were optimized separately for the different groups of forest landowners. Results: Compared to the even-flow timber drain scenario for rotation forest management (calculated without acknowledging the varying preferences of landowners), the scenario where the owners' preferences varied decreased harvested volume by 15–19% during a 100-year calculation period. The main reason for the difference was the saver type of landowners who rarely sell timber. Conclusion: It was concluded that variation of the preferences of forest landowners may make it challenging to meet the increasing harvesting targets of the growing bioeconomy of Finland.
    Keywords: National forest inventory,Private forest owner,Timber trade,Boreal forest
    Date: 2020
  19. By: Santiago Guerrero
    Abstract: This report proposes a taxonomy of policy design features for agri-environmental payment schemes, with a focus on those features that are conducive to policy cost-effectiveness. An application of the taxonomy to all agri-environmental payment schemes in six countries (Argentina, Australia, Estonia, Finland, Korea, and Portugal) reveals that more than 70% of 85 agri-environmental payment schemes have some of these key design features, including establishment of baselines; rates based on estimated or actual implementation costs; inspections and penalties; contract flexibility; and technical assistance. That said, at least 80% of the schemes could be improved, including by: use of cost-effectiveness criteria for selecting recipients; moving from supporting the adoption of specific practices to focusing on achievement of environmental outcomes; more regular policy evaluations; and comprehensive collection of information on policy characteristics. An in-depth application of the taxonomy to Korea illustrates the potential of this taxonomy for country policy monitoring and evaluation purposes.
    Keywords: Agri-environmental payments, Cost-effectiveness, Monitoring and evaluation, Policy indicators
    JEL: Q15 Q18 Q58
    Date: 2021–04–19
  20. By: Rémi Janet (emlyon business school); Arnaud Fournel; Mélodie Fouillen; Edmund Derrington; Brice Corgnet; Moustafa Bensafi; J.-C. Dreher
    Abstract: The ability to regulate appetite is essential to avoid food over-consumption. The desire for a particular food can be triggered by its odor before it is even seen. Using fMRI, we identify the neural systems modulated by cognitive regulation when experiencing appetizing food stimuli presented in both olfactory and visual modalities, while being hungry. Regulatory instruction modulated bids for food items and inhalation patterns. Distinct brain regions were observed for up and down appetite-regulation, respectively the dorsomedial prefrontal cortex (dmPFC) and dorsolateral PFC. Food valuation engaged the ventromedial PFC and bilateral striatum. Furthermore, we identified a neurobiological marker for successful appetite upregulation. Individuals with higher blood levels of ghrelin were better at exercising up-regulation, and engaged the dmPFC more. These findings characterize the neural circuitry regulating food consumption within the healthy population and highlight how cognitive regulation modulates olfactomotor measures of olfaction.
    Keywords: Cognitive Regulation,Neuroscience
    Date: 2021–04–15
  21. By: Erlend Berg; Michael Blake; Karlijn Morsink
    Abstract: Households in developing countries commonly engage in risk sharing to cope with shocks. Despite this, the residual risk they remain exposed to - often due to aggregate events such as droughts and floods - is considerable. To mitigate these risks, governments, NGOs and multilateral organizations have introduced index insurance. To appreciate its welfare implications, however, we need to assess how insurance interacts with pre-existing risk sharing. We ask to what extent the demand for index insurance - as compared to standard indemnity insurance - depends on the level of pre-existing risk sharing. We contribute by developing a simple theoretical framework which shows that, relative to a state of autarky, risk sharing between agents increases demand for index insurance and decreases demand for indemnity insurance. In an artefactual field experiment with Ethiopian farmers who share risk in real life, we test and confirm these predictions.
    Date: 2021–04–09
  22. By: Kurosaki, Takashi (Hitotsubashi University); Paul, Saumik (Newcastle University); Witoelar, Firman (Australian National University)
    Abstract: Do local institutions influence the nature of political clientelist exchange? We find a positive answer in the context of a village institution prevalent in Java since the Dutch colonial rule, where democratically elected village heads receive usufruct rights over a piece of communal village land (bengkok land) as a compensation for their service in lieu of salary. To formulate how limited-term private ownership of bengkok land promotes clientelism, we model a timely delegation of agricultural tenancy contracts to villagers-cum-voters as an incumbent re-election strategy. Based on a household survey fielded in 2018 across 130 villages in Java, Indonesia, we find that the chances of a bengkok plot being rented out increase by 6 percentage points as the time of the next election becomes closer by one year, and sharecropping is preferred to a fixed-rental contract as the election approaches. The empirical results are statistically significant and remain largely unchanged against a series of robustness checks. We also find suggestive evidence of short-term efficiency loss from clientelist politics over bengkok land.
    Keywords: tanah bengkok, political budget cycle, clientelism, agricultural tenancy, electoral competition, Indonesia
    JEL: D72 H77 H83 O17 O18
    Date: 2021–04
  23. By: Dar, Manzoor H.; de Janvry, Alain; Emerick, Kyle; Kelley, Erin M.; Sadoulet, Elisabeth
    Abstract: Can agents in a social network be induced to obtain information from outside their peer groups? Using a field experiment in rural Bangladesh, we show that demonstration plots in agriculture - a technique where the first users of a new variety cultivate it in a side-by-side comparison with an existing variety - facilitate social learning by inducing conversations and information sharing outside of existing social networks. We compare these improvements in learning with those from seeding new technology with more central farmers in village social networks. The demonstration plots - when cultivated by randomly selected farmers - improve knowledge by just as much as seeding with more central farmers. Moreover, the demonstration plots only induce conversations and facilitate learning for farmers that were unconnected to entry points at baseline. Finally, we combine this diffusion experiment with an impact experiment to show that both demonstration plots and improved seeding transmit information to farmers that are less likely to benefit from the new innovation.
    Keywords: Social and Behavioral Sciences
    Date: 2019–05–29
  24. By: International Food Policy Research Institute (IFPRI)
    Keywords: WORLD; food systems; Coronavirus; coronavirus disease; Coronavirinae; COVID-19; Sustainable Development Goals; pandemics; policies; diet; nutrition; rural areas; urban areas; social protection; cash transfers; poverty; food supply chains; resilience; shock; health; natural resources; environment; governance; gender; innovation; supply chains; food policies; food security; health foods; decision making; refugees; policymakers; lockdown
    Date: 2021

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