nep-agr New Economics Papers
on Agricultural Economics
Issue of 2022‒03‒28
seventeen papers chosen by
Angelo Zago
Università degli Studi di Verona

  1. Climate Change and the Evolving Mix of Grape Varieties in Australia’s Wine Regions: Are They Related? By German Puga; Kym Anderson; Gregory Jones; Richard Smart
  2. On export duration puzzles By Carl Gaigné; Bruno Larue; Wendkouni Jean-Baptiste Zongo
  3. Standards and regulatory cooperation in Regional Trade Agreements: What the effects on trade? By Santeramo, Fabio; Lamonaca, Emilia
  4. Price Transmission and Policies in Biofuels-Related Global Networks By Karel Janda; Ladislav Kristoufek; Barbora Schererova; David Zilberman
  5. On the Trade Effects of Bilateral SPS Measures in Developed and Developing Countries By Santeramo, Fabio; Lamonaca, Emilia
  6. The economics of immense risk, urgent action and radical change: towards new approaches to the economics of climate change By Stern, Nicholas; Stiglitz, Joseph; Taylor, Charlotte
  7. A Model for Efficiently Allocating Resources to Mitigate Wildfire Risk along California Roadways By Whitney, Jason P.; Hollander, Allan D.; Boynton, Ryan M.; Shapiro, Kristen D.; Thorne, James H.; Worthington, Lisa Ann
  8. Cheap Talk and Coordination in the Lab and in the Field: Collective Commercialization in Senegal By Kodjo Aflagah; Tanguy Bernard; Angelino Viceisza
  9. Integrating Sustainable Trade Principles in Uzbekistan By Rahmetov, Anvar; Rakhmetova, Malika
  10. Impact of Energy Efficiency on CO2 Emissions: Empirical Evidence from Developing Countries By Mirza, Faisal Mehmood; Sinha, Avik; Khan, Javeria Rehman; Kalugina, Olga A.; Zafar, Muhammad Wasif
  11. How personality traits affect the way Gen Z faces economic and environmental sustainability: an econometric investigation By Canova, Luciano; Paladino, Giovanna
  12. Market heterogeneity and the distributional incidence of soft-drink taxes: evidence from France By Fabrice Etilé; Sébastien Lecocq; Christine Boizot-Szantai
  13. The Impact of Technical Barriers to Trade and Sanitary and Phytosanitary Measures on Trade in the Forest-Wood-Paper Sector. By Bossoma Doriane N'Doua
  14. Environmental Awareness and Green Business Practices in the Small Business Sector: Empirical Evidence Using a Small and Medium-sized Enterprises Survey in Japan By Masahiko Shibamoto
  15. The Political Consequences of Green Policies: Evidence from Italy By Italo Colantone; Livio Di Lonardo; Yotam Margalit; Marco Percoco
  16. Rural Service-Learning in Information Sciences By Nives Preradović; Marijeta Čalić; Marija Roglić
  17. Environmental Productivity Analysis : an Illustration with the Ecuadorian Oil Industry By Arnaud Abad; Michell Arias

  1. By: German Puga (Centre for Global Food and Resources, Wine Economics Research Centre, School of Economics and Public Policy, University of Adelaide, Australia); Kym Anderson (Wine Economics Research Centre, School of Economics and Public Policy, University of Adelaide, Australia, and Arndt-Corden Dept of Economics, Australian National University, Canberra ACT 2601, Australia); Gregory Jones (Abacela Vineyards and Winery, Roseburg OR 97471, USA); Richard Smart (Smart Viticulture, Greenvale Vic 3046, Australia)
    Abstract: The aim of this paper is to assess how well suited is the mix of winegrape varieties in Australia in the light of key climate indicators and climate change projections. We use two datasets with climate data. The first one is based on locations representative to each wine region and allows us to compare the climate of the Australian wine regions and their mix of winegrape varieties with those of the rest of the world. The second dataset provides spatial climate data and climate projections for Australia’s wine regions. We report five climatic classifications: three based on growing season average temperature, and two on multiple variables. These classifications show that, while Australia’s wine regions cover a wide range of climates, most regions are warm, sunny, and dry. Since the start of this century, the share of hot regions in the national vineyard bearing area has declined and the mostwidely planted varieties have a higher share under more-appropriate climates for high-quality winegrape production. However, these adjustments have been relatively small and lower than in other New World countries. Climate change projections suggest that Australian winegrowers will need to change their mix of winegrape varieties and/or plant vineyards in more-appropriate cooler climates in order to maintain current wine styles and/or quality. The question raised in the sub-title remains. While the mix of winegrape varieties has changed recently it is mainly towards ‘international’ varieties that are better suited to cool regions and only to a small extent towards heat-tolerant varieties in response to climate change adaptation needs.
    Keywords: Adaptation, Australia’s viticulture, climate change, growing season average temperature, mix of winegrape varieties, wine regions’ climate
    JEL: Q10 Q54
    Date: 2022–02
  2. By: Carl Gaigné; Bruno Larue; Wendkouni Jean-Baptiste Zongo
    Abstract: We investigate two puzzles in the export duration literature. The first puzzle has to do with the frequent entries and exits of firms in export markets, which are at odds with the large fixed export costs in such markets. We introduce convex production technologies in a trade model to show how variable marginal costs create direct linkages between export markets. As fixed export costs vary across destinations, more productive firms need not necessarily export to more destinations. Cost convexity implies that the probability of supplying a given export market is adversely affected by positive export shocks in other markets. This is supported by our empirical analysis of bilateral flows for over 200 agri-food products to 176 destinations originating from six large exporting countries. The second puzzle has to do with the paradoxical effect of tariffs reported in empirical export duration studies. When endogeneity is addressed, tariffs increase the probability of an export failure.
    Keywords: cost convexity, export failure, gravity
    JEL: F12 F14 Q17
    Date: 2021
  3. By: Santeramo, Fabio; Lamonaca, Emilia
    Abstract: The agenda of trade negotiation in the agri-food sector is characterised by an exponential increase of Sanitary and Phytosanitary (SPS) measures and of Regional Trade Agreements (RTAs). Their joint effect on trade is puzzling and still an open empirical question. Once assessed the trade effect of standards provided in SPS measures, the study evaluates how regulatory cooperation and commitments beyond WTO requirements affect trade between signatories of RTAs. Trade between signatories seems obstructed by non discriminatory (multilateral) SPS measures. However, SPS-specific commitments negotiated in joint SPS committees within RTAs tend to create conditions to meet standards, contributing to boost trade.
    Keywords: RTA, SPS measures, Agri-food, Trade policy
    JEL: F13 O24 O57 Q17 Q18
    Date: 2021–12–15
  4. By: Karel Janda (Charles University, Faculty of Social Sciences, Institute of Economic Studies & Prague University of Economics and Business, Faculty of Finance and Accounting); Ladislav Kristoufek (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Barbora Schererova (Prague University of Economics and Business, Faculty of Finance and Accounting); David Zilberman (University of California, Berkeley)
    Abstract: This article investigates the connections between the prices of biofuels and many traded commodities and other relevant assets in Europe, USA and Brazil. The analysis uses a comprehensive dataset covering price data for 38 traded titles over the period 2003-2020. We utilize the minimum spanning tree approach to identify price connections in a complex trading system. Our analysis of mutual price connections discovers the major defining features of world leading biofuels markets during the period since the ground-breaking policy initiatives of the 2003 EU Transport Fuel Directive and Energy Taxation Directive. We provide characteristics of main bioethanol and biodiesel markets with respect to government policies and technical and local features of the production and consumption of particular biofuels. Despite a relatively long and dynamically evolving history of biofuels, we find that the biofuels systems in USA, Brazil and Europe do not converge towards the same pattern of relations among fossil fuels, biofuels, agricultural commodities and financial assets.
    Keywords: ethanol; biodiesel; minimum spanning tree; energy and agricultural policies
    JEL: C38 Q16 Q42
    Date: 2022–03
  5. By: Santeramo, Fabio; Lamonaca, Emilia
    Abstract: The agri-food trade has expanded considerably over decades, with a remarkable increase in the market share of developing countries. The upward trend in trade flows has been parallel to the proliferation of non-tariff measures, particularly of sanitary and phytosanitary (SPS) measures in the agri-food sector. SPS measures may have a dual impact on trade, i.e. standards as catalysts versus standards as barriers, and the net effect is likely to depend on the level of economic development of countries involved. We investigate whether the trade effects of SPS measures is correlated with the economic development of trading partners. In particular, we disentangle the trade effects of SPS measures implemented by developed and developing countries and look at differential impacts due to a mismatch in the economic development of trading partners. Using a structural gravity approach on bilateral trade and regulation data, we conclude that SPS measures are catalysts for developing importers, whereas no evidence is found for developed importers. We also find a pro-trade effect of SPS measures when traders have different levels of economic development. Our findings have important policy implications: sharing SPS measures is strategic for economies characterised by different abilities to alter trade terms.
    Keywords: Agri-food trade; Economic development; Gravity model; Non-tariff measure; Trade pattern.
    JEL: F13 O24 O57 Q17 Q18
    Date: 2021–12–15
  6. By: Stern, Nicholas; Stiglitz, Joseph; Taylor, Charlotte
    Abstract: Designing policy for climate change requires analyses which integrate the interrelationship between the economy and the environment. We argue that, despite their dominance in the economics literature and influence in public discussion and policymaking, the methodology employed by Integrated Assessment Models (IAMs) rests on flawed foundations, which become particularly relevant in relation to the realities of the immense risks and challenges of climate change, and the radical changes in our economies that a sound and effective response require. We identify a set of critical methodological problems with the IAMs which limit their usefulness and discuss the analytic foundations of an alternative approach that is more capable of providing insights into how best to manage the transition to net-zero emissions.
    Keywords: climate change; extreme risk; market imperfections; climate policy; integrated assessment; social welfare; innovation; Grantham Institute; CCCEP; T&F deal
    JEL: J1
    Date: 2022–02–24
  7. By: Whitney, Jason P.; Hollander, Allan D.; Boynton, Ryan M.; Shapiro, Kristen D.; Thorne, James H.; Worthington, Lisa Ann
    Abstract: A key function of a highway network is to maintain access during normal and emergency operations. During wildfire evacuations, first-responders and firefighters depend on highways and local roads for transporting heavy equipment to communities in need. The California Department of Transportation (Caltrans) is expanding vegetation management to begin establishing defensible space zones along California’s nearly 16,000 miles of state highways and in about 230,000 acres of highway right-ofway. However, extended drought, a longer fire season, and higher temperatures brought on by climate change, along with the spread of invasive weeds and dense, dry vegetation, have created new challenges. The California Department of Forestry and Fire Protection produced a Community Wildfire Prevention and Mitigation Report in 2019 with a methodology to assess wildfire risk. Caltrans and researchers at the University of California, Davis applied these methods to develop a highway-segment-specific prioritization model for vegetation management within highway rights-of-way. The researchers also interviewed Caltrans staff about opportunities for and obstacles to increasing the pace and scale of vegetation treatments. This policy brief summarizes the findings from that research and provides policy implications. View the NCST Project Webpage
    Keywords: Engineering, Right of way (Land), Risk assessment, Vegetation, Wildfires
    Date: 2022–03–01
  8. By: Kodjo Aflagah (University of Maryland [College Park] - University of Maryland System); Tanguy Bernard (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Angelino Viceisza (Spelman College)
    Abstract: Most developing-country farms are small and engage in cooperative agriculture. Prior literature has argued that mechanisms aimed at facilitating smallholder coordination such as cooperatives are central to stimulating market participation. At the same time, cooperatives have not always been able to engage in collective action. In this paper, we conduct neutrally framed coordination games and a natural field experiment to test the effect of cheap talk among members of groundnut-producing cooperatives in Senegal. In both experiments, we ask farmers how much they intend to contribute to the group prior to them actually doing so and then, confidentially reveal aggregate intentions to other cooperative members. Based on survey and administrative data, we find that (1) revealing farmers' intentions improves collective commercialization and this effect increases with group size and (2) learning in the lab transfers to behavior in the day-to-day environment. Implications for policy and future work are discussed.
    Keywords: Cooperatives,Collective commercialization,Coordination,Cheap talk,Field experiments,Development
    Date: 2022
  9. By: Rahmetov, Anvar; Rakhmetova, Malika
    Abstract: This article is an assessment of the current state of affairs in Uzbekistan’s SDG policies. It is based on an analysis of UN compiled data on SDGs, as well as an overview of Uzbekistan’s key SDG-related strategies, as well as unstructured interviews with a dozen respondents. Desk research suggests that Government’s key SDG priorities remain in export promotion, job creation and increased economic competitiveness. Interviews suggest that sustainability is understood as political and economic stability, economic growth, environmental conservation and rule of law. From the SDG issues, respondents identified SME and female entrepreneur support, employment generation and e-commerce as the ones with the highest priority, while concurring that corruption, monopolies and market distortions, low policy implementation capacity and limited public awareness of sustainability were the greatest obstacles. The greatest strength of Uzbekistan in integrating international trade into SDGs is the current reform momentum. Significantly improved relations with neighbors is another strength, with a window of opportunity to improve on regional trade, transit, connectivity, as well as water management and water-energy nexus. The greatest challenge, on the other hand, remains the government’s focus on exports, FDI, job creation and GDP growth, even if at the expense of the other SDGs. The other significant challenge is the insistence on import substitution and local production, and economic mercantilism in general, at the expense of the free-trade, value-chain-integration-based development model. Agriculture and food production, energy and e-commerce will be the sectors with highest potential in scaling up sustainable trade principles.
    Keywords: sustainable trade, SDGs, international trade, Uzbekistan, sustainability, energy, economy, agriculture, e-commerce
    JEL: O19 O24 O53
    Date: 2022–01–15
  10. By: Mirza, Faisal Mehmood; Sinha, Avik; Khan, Javeria Rehman; Kalugina, Olga A.; Zafar, Muhammad Wasif
    Abstract: Attaining higher level of the energy efficiency is being considered as a preferred and cost-effective policy option to achieve economic propensity, environmental sustainability and improved energy security in recent years. This drive to achieve higher energy efficiency levels is mainly motivated by higher international oil prices during last two decades, the concerns regarding energy supply security and rising CO2 emissions globally. In this background, this study decomposes energy intensity into structural and activity effects, and empirically examines their impact on CO2 emissions in environmental Kuznets curve framework for the developing economies. Second generation methodological approach is adopted. The decomposed indices reflect that energy efficiency has played a key role in decreasing energy intensity, while structural shifts have caused only a minor reduction in energy intensity. The findings suggest that energy efficiency improvements have largest influence on CO2 emissions mitigation. In developing countries as a whole, energy efficiency has positive while structural shifts have negative relation with CO2 emissions in long run. The findings presented that energy efficiency is major contributor of CO2 emissions reduction. While structural shifts in developing countries tend to increase CO2 emissions because these countries are moving towards the sectors that are producing more pollution. However, the income is one of the major contributors of CO2 emissions. While renewable energy consumption has negative and industrialization has positive impact on CO2 emissions in developing countries. The study outcomes are utilized to develop a policy framework for attaining the SDG 7 and SDG 13 in the chosen countries.
    Keywords: Energy Efficiency; Structural Shifts; Energy Intensity; Developing Economies; CO2 emissions; EKC; SDG
    JEL: Q5
    Date: 2022
  11. By: Canova, Luciano; Paladino, Giovanna
    Abstract: Before the coronavirus disease (COVID-19) pandemic, awareness of the relevance of sustainability issues and climate change had increased significantly, especially among the younger generation. The COVID-19 pandemic and the related shutdown of many economic activities raised concerns about the conservation of biodiversity and the environment and about the state of personal economic well-being. Theoretically, at least two associations between sustainability and personal financial habits are relevant: a) they concern the decision-making process regarding the use of scarce resources, and b) they need a medium/long-term horizon as they exert their impacts over time. In this study, we examined how Generation Z deals with issues of sustainability and money management. By using the technique of the principal components, two synthetic indexes were derived on the basis of a set of multivariate information from a questionnaire that investigated the approach to the issue of sustainability by a representative sample of 400 girls aged between 13 and 18 years. The GREEN INDEX represents environmental practices, and the MONEY INDEX represents habits in money management. They are used as dependent variables to detect how socio-demographic factors and personality elements influence the degree of awareness. Our results show the importance of character traits at both levels of awareness and the strong association between attention to money management and a sense of responsibility toward the environment, highlighting the possibility that financial education can set in motion a virtuous circle.
    Keywords: Sustainability, Environment, Financial Education, Gen Z
    JEL: G10 J53 Q50
    Date: 2022–01
  12. By: Fabrice Etilé (INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Sébastien Lecocq (Université Paris-Saclay); Christine Boizot-Szantai (Université Paris-Saclay)
    Abstract: Market heterogeneity may affect the distributional incidence of nutritional taxes if households sort by income across markets with different characteristics. We use scanner data to analyse the distributional incidence of the 2012 French soda tax on Exact Price Indices that measure consumer welfare from the price and availability of softdrinks at a local level. While the average pass-through was small-about 45 per cent-, tax incidence was significantly higher in low-income and less-competitive markets. Market heterogeneity ultimately has substantial distributional effects: it accounts for at least 33 per cent of the difference in welfare variation between low-and high-income consumers.
    Keywords: consumer price index,market structure,inequality,tax incidence,soft-drink tax,France
    Date: 2021
  13. By: Bossoma Doriane N'Doua (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBTs) govern trade in several sectors, including the forest-wood-paper sector. Using a gravity model, we analyze the impact of SPS and TBT measures on trade flows in the forest-wood-paper sector by distinguishing between technical regulations and conformity assessment procedures. Our results show that SPS and TBT conformity assessment procedures and TBT technical regulations increase trade flows. We also find that the impact of these measures differs depending on the level of development of imposing countries when imports come from developing countries. In particular, SPS and TBT conformity assessment procedures and SPS technical regulations imposed by developed countries tend to restrict trade with developing country exporters, while TBT technical regulations tend to increase it. In contrast, SPS and TBT conformity assessment procedures imposed by developing countries contribute to increasing such trade. In analyzing the differences or similarities in regulatory patterns between these countries, we find that, on average, developing countries exhibit less regulatory intensity than developed countries. This result suggests that it will require more technical and financial resources for developing countries to comply with measures imposed by developed countries that adopt more stringent technical measures than they do.
    Keywords: Sanitary and Phytosanitary (SPS) Measures,Technical Barriers to Trade (TBT),Gravity Model,Forest-Wood-Paper Sector
    Date: 2022–02–14
  14. By: Masahiko Shibamoto (Research Institute for Economics and Business Administration and Center for Computational Social Science, Kobe University, JAPAN)
    Abstract: This study argues that the heterogeneity in environmental awareness among business owners is a pivotal component in characterizing the implementation of green business practices in the small business sector. Specifically, using a large-scale survey of small and medium-sized enterprises (SMEs) throughout Japan, we show a gap between environmental awareness and green business practices in the small business sector; that is, SMEs are aware of environmental issues, but they do not practice green business to a large extent. Further, we quantitatively show that the environmental awareness of SMEs already practicing or attempting to practice green business tends to be greater than that of SMEs not practicing green business. Our empirical results support the link between environmental awareness as a business opportunity and green business practices. However, there is less evidence that environmental awareness divorced from management, such as the need to pass on a sustainable society to future generations, would be involved with green business practices in the small business sector. Our findings advocate that policymakers looking to strengthen environmental initiatives in the small business sector need to direct SMEs to build awareness of environmental issues related to their businesses.
    Keywords: Green business practices; Environmental awareness; Small business sector; Survey data; Japan
    JEL: L21 Q56
    Date: 2022–03
  15. By: Italo Colantone; Livio Di Lonardo; Yotam Margalit; Marco Percoco
    Abstract: For many governments enacting green policies is a priority, but these often entail substantial and uneven costs on citizens. How does the introduction of green policies affect voting? We study this question in the context of a major ban on polluting cars introduced in Milan. The policy was strongly opposed by the right-wing populist party Lega, portraying it as a “radical-chic-leftist†initiative penalizing common people. We show that owners of banned vehicles—who incurred a median loss of €3,750—were significantly more likely to vote for Lega in the subsequent elections. This electoral shift does not stem from increased environmental skepticism, but rather from the perceived unfairness of the policy and its pocketbook implications. In fact, recipients of compensation from the local government were not more likely to switch to Lega. The findings underscore that addressing the distributive consequences is key for advancing green policies that are politically sustainable.
    Keywords: environmental politics; green policies; distributional consequences; compensation mechanisms
    Date: 2022
  16. By: Nives Preradović; Marijeta Čalić; Marija Roglić (MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVM - Université Paul-Valéry - Montpellier 3 - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM1 - Université Montpellier 1, Labex Entreprendre - UM - Université de Montpellier)
    Abstract: The aim of this paper is to represent the implementation of service-learning methodology into Croatia's information sciences which contributed to meeting the needs of the rural population's on two Croatian islands. Those needs defined as a digital skills in rural tourism for adults and STEM education of elementary school children are usually not easily accessible in rural areas. Thirteen students of information sciences from the University of Zagreb have spent a week with rural organization LAG 5 from Korčula implementing robotics workshops for children (Micro:bit and MBot) and teaching web and online advertising for rural entrepreneurs. This kind of collaboration helped develop the rural community's core skills and entrepreneurial capabilities but also motivated students for developing their expertise in teaching, problemsolving, teamwork, taking initiative and innovation. Service-learning proved to be an effective tool for strengthening the partnership and support between universities and rural organizations in which we boost social innovation and explore specific rural development opportunities.
    Keywords: Service-learning,Croatian students,Local action group LAGs
    Date: 2021–10–01
  17. By: Arnaud Abad (BETA - Bureau d'Économie Théorique et Appliquée - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Michell Arias (UPVD - Université de Perpignan Via Domitia)
    Abstract: In this paper, environmental productivity variation is analysed through the pollution-adjusted Malmquist and Hicks-Moorsteen productivity indices. These productivity indices are defined as combination of multiplicative pollution-adjusted distance functions. Non convex pollution-generating technology is assumed to estimate the pollution-adjusted Malmquist and Hicks-Moorsteen productivity measures. The main sources of the pollution-adjusted productivity change are displayed. An empirical illustration is provided by considering a sample of 20 Ecuadorian oil companies over the period 2012-2018. The results are estimated through a non parametric analytic framework.
    Keywords: Non Convexity,Ecuadorian Oil industry,Environmental Efficiency and Productivity Indices,Pollution-generating Technology
    Date: 2022–02–15

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