nep-agr New Economics Papers
on Agricultural Economics
Issue of 2022‒07‒11
25 papers chosen by

  1. Center Pivot Irrigation Systems as a Form of Drought Risk Mitigation in Humid Regions By Daniel J. Cooley; Steven M. Smith
  2. How digitalisation interacts with ecologisation? Perspectives from actors of the French Agricultural Innovation System By Éléonore Schnebelin; Pierre Labarthe; Jean-Marc Touzard
  3. Composite effects of human, natural and social capitals on sustainable food-crop farming in Sub-Saharan Africa By Tuan Nguyen-Anh; Chinh Hoang-Duc; Tuyen Tiet; Phu Nguyen-Van; Nguyen To-The
  4. Cambodia’s Agri-Food Trade: Structure, New Emerging Potentials, Challenges & Impacts of Covid-19 By Piseth, Sok; Monyoudom, Yang; Tynarath, Houn
  5. Educational Preferences on Farmland Leasing, Conservation Practices, and Transition Plans: Voices of Iowa Women Farmland Owners By Jingyi Tong; Wendong Zhang
  6. How Specific Resilience Pillars Mitigate the Impact of Drought on Food Security: Evidence from Uganda By Sunday, Nathan; Kahunde, Rehema; Atwine, Blessing; Adelaja, Adesoji; Kappiaruparampil, Justin
  7. VECM Modelling of the Price Dynamics for Fuels, Agricultural Commodities and Biofuels By Janda, Karel; Kravec, Peter
  8. The Institutional Costs of Adaptation: Agricultural Drainage in the United States By Eric C. Edwards; Walter N. Thurman
  9. Environmental Dimensions of Biofuels By Benes, Ondrej; Janda, Karel
  10. CLIMATE SHOCKS AND RESILIENCE: EVIDENCE FROM RURAL ETHIOPIA By Tesfahun, Birhan S.; Kasie, A.; Upton, Joanna B.; Blom, Sylvia A.
  11. How to promote agricultural technologies that generate positive environmental effects? Evidence on tree planting in Indonesia By Brenneis, Karina; Irawan, Bambang; Wollni, Meike
  12. Agricultural economic reforms, gender inequality and poverty in Senegal By Hélène Maisonnave; Pierre Nziengui Mamboundou
  13. Rwanda’s food systems transformation: A diagnostic of the public policy landscape shaping the transformation process By Dusingizimana, Petronille; Kazungu, Jules; Lalui, Armin; Milani, Peiman; Munanura, James; Nsabimana, Aimable; Sindi, Julius Kirimi; Spielman, David J.; Umugwaneza, Maryse
  14. Buffer stocks, wine quality, and wine cooperatives in Franco’s Spain and beyond By Samuel Garrido
  15. Socio-spatial information sources influencing farmers’ decision to use mechanical weeding in sugar beets By Massfeller, Anna; Storm, Hugo
  16. Environmental concern and pro-environmental behavior among residents in an oil palm cultivating hotspot By Brenneis, Karina; Edison, Edi; Asnawi, Rosyani; Wollni, Meike
  17. Targets in International Climate Policyː (Mis)understanding Two Degrees? By Otto, Felix; Held, Hermann
  18. Sustainability labels on olive oil: A review on consumer attitudes and behavior By Yamna Erraach; Fatma Jaafer; Ivana Radić; Mechthild Donner
  19. Innovation, growth and the transition to net-zero emissions By Nicholas Stern; Anna Valero
  20. Toward achieving sustainable development agenda: Nexus between Agriculture, Trade Openness, and Oil rents in Nigeria By Festus F. Adedoyin; Olawumi A. Osundina; Festus V. Bekun; Simplice A. Asongu
  21. A 2019 Social Accounting Matrix for Benin with Detailed Representation of Agriculture and Food Processing Sectors By Kinkpe, A. Thierry; Luckmann, Jonas; Grethe, Harald; Siddig, Khalid
  22. Maritime Transportation Costs in the Grains and Oilseeds Sector: Trends, Determinants and Network Analysis By Annelies Deuss; Clara Frezal; Frederica Maggi
  23. Green New Deal for Carbon-neutrality and Open Trade Policy in Korea By Lee, Jukwan; Kim, Jong Duk; Moon, Jinyoung; Eom, Jun-Hyun; Kim, Ji Hyeon; Suh, Jungmin
  24. Wildfires By Congressional Budget Office
  25. Greening our Laws: Revising Land Acquisition Law for Coal Mining in India By Srivastav, Sugandha; Singh, Tanmay

  1. By: Daniel J. Cooley; Steven M. Smith
    Abstract: Irrigation in the Eastern US receives little attention compared to the West, but farmers in humid states of the US, traditionally reliant on rainfall, have more than tripled irrigation since 1978. We examine this trend in Illinois where there has been a nearly threefold increase in center pivot irrigation systems (CPIS) installations since 1988. Specifically, we analyze where and when CPIS installations occur and their benefits in terms of annual crop yield, irrigated acreage, crop selection, and reduction in drought-related insurance payouts. To do so, we create a novel data set derived from a deep learning model capable of automatically identifying the location of CPIS during drought years along with annual county level crop, weather, and insurance data. The results indicate CPIS installations in Illinois are significantly more common over alluvial aquifers after droughts. Additionally, counties with a higher presence of CPIS do not have higher average crop yields, a shift to more water intensive crops, or an expansion of cropland. However, in drought years CPIS presence does have a significant positive effect on corn yield and a significant negative effect on indemnity payments for both soybeans and corn. The results provide insights into an emerging trend of irrigation in humid regions, raising potential policy considerations for crop insurance and signaling a potential need to address water rights as demand increases.
    JEL: Q15 Q18 Q25 Q54
    Date: 2022–05
  2. By: Éléonore Schnebelin (UMR Innovation - Innovation et Développement dans l'Agriculture et l'Alimentation - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Pierre Labarthe (AGIR - AGroécologie, Innovations, teRritoires - Toulouse INP - Institut National Polytechnique (Toulouse) - Université Fédérale Toulouse Midi-Pyrénées - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jean-Marc Touzard (UMR Innovation - Innovation et Développement dans l'Agriculture et l'Alimentation - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)
    Abstract: Two major agricultural transformations are currently being promoted worldwide: digitalisation and ecologisation, that include different practices such as organic farming and sustainable intensification. In literature and in societal debates, these two transformations are sometimes described as antagonistic and sometimes as convergent but are rarely studied together. Using an innovation system approach, this paper discusses how diverse ecologisation pathways grasp digitalisation in the French agricultural sector; and do not discriminate against organic farming. Based on interviews with key representatives of conventional agriculture, organic agriculture and organisations that promote or develop digital agriculture, we explore how these actors perceive and participate in digital development in agriculture. We show that although all the actors are interested and involved in digital development, behind this apparent convergence, organic and conventional actors perceive neither the same benefits nor the same risks and consequently do not implement the same innovation processes. We conclude that digitalisation has different meanings depending on the actors' paradigm, but that digital actors fail to perceive these differences. This difference in perception should be taken into account if digital development is to benefit all kinds of agriculture and not discriminate against organic farming and more widely, against agroecology.
    Keywords: Digitalisation,Agriculture,Digital technology,Agricultural innovation system,Organic farming,Institutional economics,Ecological transition
    Date: 2021–08
  3. By: Tuan Nguyen-Anh; Chinh Hoang-Duc; Tuyen Tiet; Phu Nguyen-Van; Nguyen To-The
    Abstract: This study analyzes the spontaneous impact of human, social and natural capital on food crop technical efficiency (TE) in Sub-Saharan Africa (SSA). Our study contributes to the literature by adopting the meta-analysis method to investigate the relationship between TE and the three groups of capitals to better shed light on the TE in SSA regions. Our results highlight that social capital is the most critical factor among the three groups of capitals in promoting farming productivity. In particular, agriculture efficiency benefits from increasing people’s trust in institutions and the frequency of extension visits. Natural capital like temperature and elevation is essential in determining the farming TE in SSA regions. Outstandingly, our results also indicate that calorie intake, a proxy of labor quality, should be improved to achieve better productivity.
    Keywords: Farming technical efficiency; Human capital; Meta-analysis; Natural capital; Social capital; Sub-Saharan Africa
    JEL: D91 Q12 Q18
    Date: 2022
  4. By: Piseth, Sok; Monyoudom, Yang; Tynarath, Houn
    Abstract: This study provides overall analysis and informs readers about Cambodia’s agri-food trade regarding recent structures of trade flows, new emerging potentials, main challenges, and impacts of COVID19. The main data source is BACI datasets produced by Centre d'Études Prospectives et d'Informations Internationales (CEPII), the French leading center research and expertise on the world economy. Cambodia is a net importer of agricultural products for the last several years, resulting in agricultural trade deficit of 1.26 billion US dollars in 2018. Top agricultural products for export include cassava, rice, rubber, nuts, and animal feeds. At the same time, Cambodia imports massive amounts of tobacco products (i.e. cigarette), sugar, non-alcoholic beverages, and beer. The country is seen to export low-value agricultural primary products (i.e. fresh manioc or sliced cassava) and import highvalue manufactured products and processed foods (i.e. starch, flour, and prepared meats). Comparing to neighboring countries, Cambodia still lags behind in terms of product quality, productivity, and export competitiveness due to low value addition, high costs of production, unfavorable transport conditions, burdensome of border documents, and market diversification. Cambodian’s economy faced negative growth for the first time in decades. The COVID-19 pandemic, however, does not hurt agricultural sector much in Cambodia. The Royal Government of Cambodia, during the pandemic, has banned export of white rice to ensure domestic consumption. The export of fragrant rice, on the other hand, was seen substantially increased in 2020. In late 2020, Cambodia has signed free trade agreement with China, allowing 340 agricultural products to enter Chinese market. However, there was a significant drop of manioc export from Cambodia. As policy recommendation, Cambodia should explore import substitution in processed foods to diverse its export structure that heavily depends on garments and primary agriculture. Consequently, promoting more investments in domestic processing industry of the primary agricultural products and enhancing current processing capacity are the foremost step to increase value-addition of agricultural sector. Cost of production including electricity, gas or oil, water, and quality transportation should be highly considered by relevant government ministries to achieve better efficiency of each stage of value chains. Technology in agriculture such as AI, drone, and farm-based technology is immensely needed to improve productivity and quality assurance of the products for commercialization. At broader perspective, not solely depending on regional or free trade agreements, Cambodia should explore further potential markets around the globe to expand its exports of agricultural products. Therefore, joint coordination among relevant government ministries and stakeholders is immensely needed to achieve the ambitious goal.
    Keywords: Agricultural and Food Policy, Demand and Price Analysis
    Date: 2021–11–01
  5. By: Jingyi Tong; Wendong Zhang (Center for Agricultural and Rural Development (CARD) at Iowa State University)
    Abstract: The 2017 Iowa Farmland Ownership and Tenure survey finds that women own nearly half of all acres in Iowa, thus they are an essential group in agriculture and natural resources. However, the significance of this group is overlooked and many women landowners have limited farming experience. The purpose of this study is to improve the knowledge and confidence of women landowners on the use of more equitable farmland leases and access, the adoption of soil and water conservation practices, and the implementation of efficient plans to transition farmland to next-generation owners. Using a sample of 358 responses from women landowners of Iowa farmland, this study provides a timely and informational update on the interests and concerns of women landowners in farmland leasing, conservation practices, and farmland transition plans. The study also summarizes respondents' preferred ways to receive educational programming on these issues, which can be a critical reference for developing educational material for women landowners.
    Date: 2022–06
  6. By: Sunday, Nathan; Kahunde, Rehema; Atwine, Blessing; Adelaja, Adesoji; Kappiaruparampil, Justin
    Abstract: Uganda continues to be prone to climate shocks especially drought which has adverse impact on food security. This paper studies household resilience capacities with special focus on how different resilience capacities mitigate the impact of drought on food security. The study follows the TANGO framework and two-step factor analysis to construct resilience capacity indexes. It employs a panel data from the Uganda National Panel Surveys (UNPS) undertaken between 2010/11 and 2018/19, spanning five waves. To minimize the bias arising from subjective self-reported drought shock, we introduce an objective measure of drought from the global SPEI database into the UNPS data. We also control for attrition bias by controlling for attrition hazard estimated from the attrition function. Our analysis reveals that households in Uganda exhibit significantly low and nearly static resilience capacities. This implies majority of households in Uganda remain highly susceptible food insecurity in the event of severe drought. The study shows that building resilience capacities is an effective way of protecting households from such devastating situation. In this regard, adaptive capacity is found to be the most effective in mitigating the effect of drought on food security. Transformative capacity and absorptive capacities possess limited mitigating power. Based on significant components from each of the capacities, we recommend investing in early warning systems and wide dissemination of climate related information to enhance preparedness adaptation, encouraging and supporting formation and sustainability of informal institutions at local levels, enhancing access to communal resources, improved infrastructure and agriculture extension services by the most vulnerable groups.
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy, Food Security and Poverty
    Date: 2021–08–02
  7. By: Janda, Karel; Kravec, Peter
    Abstract: This paper investigates the dynamics of price transmission among ethanol a biodiesel related prices on the Brazilian, US and EU markets. The prices of commodities related to the biofuels are examined under the Johansen co-integration test followed by the Vector Error Correction Model over the period 2003-2020. The period was further divided into 4 periods, defined on the base of the dynamics of world food prices. Together we had 858 weekly observations mostly captured on Friday. In most cases, our result indicates a co-movement, the strength of which changes over periods. The price transmission revealed by our estimations was stronger for Brazilian sugarcane-based ethanol and European biodiesel than for US corn-based ethanol and related commodities.
    Keywords: biodiesel,ethanol,price transmission,fuel,food
    JEL: Q42 Q54
    Date: 2022
  8. By: Eric C. Edwards; Walter N. Thurman
    Abstract: Tile drainage was first demonstrated in the United States in 1835 as a method to adapt agriculture to excessive water in soils. Subsequently, innovations in coordinated drainage enterprises, engineering, and tile manufacture led to drainage over large portions of the U.S. Midwest and Southeast. Of the 215 million acres of wetlands estimated to have existed in the contiguous United States at colonization, 124 million have been drained, 80-87% for agricultural purposes. In this paper we argue that a key institutional innovation, the drainage management district, facilitated local investment in drainage. States in our sample adopted drainage laws between 1857 and 1932, and after adoption each state saw an increase in improved agricultural land in counties with poorly drained soils relative to well drained counties. We estimate artificial drainage increased the value of agricultural land in each of the worst-drained counties of the eastern United States by 13.5-30.3%, a total increase in these counties of $7-17B (2020 dollars). With the increasing likelihood of extreme precipitation events across the entire U.S., technical innovation in drain tile will be a key component of adaptation to climate change. Our paper points as well to the importance of institutional innovation and its associated costs.
    JEL: N51 N52 Q1 Q15 Q54
    Date: 2022–05
  9. By: Benes, Ondrej; Janda, Karel
    Abstract: This paper deals with non-economic problems of biofuel development. Firstly we look at a complex of issues surrounding the food-fuel debate, which is concerned mainly with the efficiency of use of land resources for the production of biofuel feedstock rather than for production of food for human consumption. Secondly we look at other environment and health related problems of extensive biofuels production. Lastly we briefly acknowledge the existence of a large block of socio-economic impacts of biofuels.
    Keywords: Biofuels,land,food,environment
    JEL: Q42 Q55 Q58
    Date: 2022
  10. By: Tesfahun, Birhan S.; Kasie, A.; Upton, Joanna B.; Blom, Sylvia A.
    Abstract: Climate shock, specifically drought causes serious adverse effects on household welfare in rural Ethiopia. As a direct response to such shocks, resilience and related activities become the country’s key development agenda. In this context, we examine the relationship between climate shock and household consumption and then assess how household resilience influences this relationship. By combining historical observations of climate extremes and Ethiopian Socioeconomic survey datasets, we find that both short-term and long-term droughts are significantly associated with reduced consumption, and this relationship is moderated by resilience. We look at the resilience indicators that possibly mediate the effects of drought on either realized or probabilistic measures of consumption to understand what is associated with the ability to withstand or recover quickly from drought. We reframe the resilience as capacity approach and resilience as a normative condition approach that reflect two distinct ways of inferring resilience. In the resilience as capacity approach, we model realized consumption as a dependent variable and interaction terms between drought and hypothesized resilience indicators as joint explanatory variables. From our hypothesized resilience indicators, we find some indicators that are associated with attenuating the adverse effects of drought shock on realized household consumption. These include wealth index, informal transfer, and formal transfer indicators. In the resilience as a normative condition approach, we model probabilistic household consumption as a dependent variable and same interaction terms and find income diversification, livestock diversification, and agricultural asset indicators. This study has important implications for both research and policy. The adverse effects of droughts on consumption inform the investment need and policy design around resilience. The resilience indicators associated with attenuating the adverse effects of drought shock on realized and probabilistic consumption has also important implications. First, the nexus between drought and consumption via specific resilience indicators associated with attenuating the adverse effect of drought on consumption informs policy design around these indicators. Second, our interest variable framing to identify the specific resilience indicators associated with attenuating the adverse effects of drought on both realized and probabilistic household consumption provides insight to bridge the resilience as capacity and resilience as a normative condition approaches classic debate with the question of whether resilience is a right-hand or left-hand side variable
    Keywords: Consumer/Household Economics, Environmental Economics and Policy
    Date: 2021–10–01
  11. By: Brenneis, Karina; Irawan, Bambang; Wollni, Meike
    Abstract: Agricultural technologies frequently have been introduced via subsidies to accelerate diffusion and spur adoption in the presence of market inefficiencies or missing information. Yet, for agricultural technologies that mainly generate positive environmental effects, it is not clear how to encourage adoption, maintenance, and additional investments most effectively. This study addresses this gap by introducing two policy interventions to foster tree planting in an oil palm hotspot in Indonesia. In the first treatment, oil palm farmers receive information about native tree planting and three different native tree seedlings for free (subsidy treatment). In the second treatment, oil palm farmers receive the same information and the opportunity to buy three different native tree seedlings through an auction (price treatment). Results from negative binomial regressions reveal that a full subsidy leads to higher tree planting at first, but the results from a double hurdle model show that conditional on being planted there is no significant difference in survival rates between the two treatments. Our results further show that conditional on tree planting farmers in the price treatment apply a higher number of maintenance practices than farmers in the subsidy treatment. Finally, the subsidy treatment has a significantly negative effect on additional planting efforts.
    Keywords: technology adoption,policy analysis,auction,subsidies,negative binomial estimation
    Date: 2022
  12. By: Hélène Maisonnave (EDEHN - Equipe d'Economie Le Havre Normandie - ULH - Université Le Havre Normandie - NU - Normandie Université); Pierre Nziengui Mamboundou (EDEHN - Equipe d'Economie Le Havre Normandie - ULH - Université Le Havre Normandie - NU - Normandie Université)
    Abstract: In Senegal, as in many developing countries, the agricultural sector plays a key role in the economy. In addition to supplying food, agriculture is the most important source of employment, especially for women. Through the Plan for an Emerging Senegal (PES), the Senegalese government is implementing an ambitious financing plan to improve the productivity of the agricultural sector and enhance employment opportunities for women. Our study assesses the impact of two PES measures (investment subsidies and an increase in production subsidies for the agricultural sectors) on economic growth, women's employment, poverty and inequality using a dynamic computable general equilibrium model linked to a microsimulation model. The results show that both policies have generally positive effects in reducing poverty and gender inequalities. However, investment subsidies in the agricultural sectors have stronger impacts in reducing gender inequality and poverty in the long term.
    Keywords: public policies,Senegal,agriculture,dynamic CGEM,gender,poverty
    Date: 2022–03–29
  13. By: Dusingizimana, Petronille; Kazungu, Jules; Lalui, Armin; Milani, Peiman; Munanura, James; Nsabimana, Aimable; Sindi, Julius Kirimi; Spielman, David J.; Umugwaneza, Maryse
    Abstract: This paper provides a diagnostic of Rwanda’s food systems and the policy landscape that shapes it. It aims to inform national and local conversations on Rwanda’s food systems transformation—an idea that has attracted considerable attention in national consultations conducted in the run-up to the United Nations Food Systems Summit in September 2021, at the summit itself, and in the post-summit actions that Rwanda is now pursuing. A food system comprises the full range of actors and activities originating from agriculture, livestock, forestry, or fisheries, as well as the broader economic, societal, and natural environments in which they operate. An inclusive and sustainable food systems transformation is a process of growth and development that is profitable for the full range of individual actors engaged in the system, beneficial for society including marginalized and vulnerable groups, and advantageous for the natural environment. Rwanda’s journey towards a food systems transformation is well captured in Vision 2050, the National Strategy for Transformation (NST 1), and strategic plans for sectors such as agriculture, health, nutrition, commerce, and the environment. Their priorities are echoed in ongoing programs and investments of the government, its development partners, the private sector, and civil society. Nonetheless, there are still challenges facing Rwanda’s efforts to sustain and accelerate progress along this journey. Efforts to overcome these challenges call for a deeper and more significant shift in thinking—informed by the food systems perspective—that is highlighted by stronger multi-sectoral approaches to problem-solving. Overall findings suggest an opportunity for a tangible shift in how public policy in Rwanda approaches its food systems and how the systems contribute to the broader national transformation process. This means addressing how balances are struck—and tradeoffs are managed—between and among agriculture, nutrition, health, and the environment in the face of a climate crisis. It also means giving greater attention to the demand-side drivers in Rwanda’s food system, recognizing that singularly focused supply-side strategies rarely succeed in isolation. Finally, it means deepening the integration of policies and policy actors in the design and implementation phases of interventions that shape the food system. We offer several recommendations to translate abstract ideas into a coherent and focused set of actions in the policy space. 1. Strengthen existing entities and mechanisms rather than create new ones. 2. Develop a national food systems transformation strategy that is integrative, multi-sectoral, and action-oriented. 3. Innovate on existing programs. 4. Allow for learning through both success and failure. 5. Invest in rigorous impact evaluation. These actions aim to strengthen the policy environment that enables a truly broad-based food systems transformation. This enabling environment is itself an outcome of broad-based national conversations, integration across sectors, domains, and levels; and the encouragement of policy and program innovation.
    Keywords: RWANDA, CENTRAL AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, food systems, public policies, policies, commercialization, demand, agricultural production, nutrition, poverty, climate change
    Date: 2022
  14. By: Samuel Garrido (Department of Economics, Universitat Jaume I, Castellón, Spain)
    Abstract: Cooperative wineries are one of the cornerstones of the wine industry in Europe today. To understand how they reached this condition, I use the case of Spain and pay special attention to the period in which they took off in the country, namely, during the Franco dictatorship (1939-1975). Wine economists often believe that cooperatives produce mediocre wines because they cannot avoid the opportunistic behavior of their members. I argue that they can and that the poor quality of their wine in some regions was the result of the perverse stimuli provided by a badly designed wine market regulation policy.
    Keywords: wine, cooperative wineries, market regulation, Franco’s Spain, European Union
    JEL: D40 L66 N34 Q13
    Date: 2022
  15. By: Massfeller, Anna; Storm, Hugo
    Abstract: Farmers' decisions to adopt novel technologies are likely to be influenced by the behaviour of other farmers. Those effects are typically described as peer effects and are intensively studied. What remains unclear from the existing literature, however, is the general mechanism underlying those peer effects. Specifically, existing literature does not seem to clearly distinguish between 1) peer effects that result from information exchange, i.e. farmers talking to each other and 2) from the possibility of field observation, i.e. the possibility to observe the application of technology, the outcomes of the application, and the general state of the fields. We aim to study if information exchange and field observations are indeed two different mechanisms both leading to “peer effects”. Therefore, we extend the existing theoretical assumptions on social learning and empirically explore the relationship between the two sources, hypothesizing that each provides complementary information due to the different underlying mechanisms. To study those two mechanisms, we focus on the example of mechanical weeding in sugar beets in Germany. We conduct an online survey among sugar beet farmers on the use of mechanical weeding in early 2022. Distinguishing between information exchange and field observation as two different mechanisms that drive peer effects, and understanding how they relate to each other, is crucial for designing effective extension services and policies to promote the adoption of desired farming practices.
    Keywords: Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies
    Date: 2022–04
  16. By: Brenneis, Karina; Edison, Edi; Asnawi, Rosyani; Wollni, Meike
    Abstract: Oil palm is the most significant boom crop in Southeast Asia and associated with tremendous negative environmental effects. These environmental effects can influence the environmental concern (EC) and pro-environmental behavior (PEB) of the local population in different ways. While various research has investigated rural-urban differences for EC and PEB, evidence is missing for societies in the Global South where rural and urban populations face similar environmental problems. This paper addresses the questions of what influences EC and PEB of residents living in a hotspot for oil palm cultivation with a special focus on the geographical residence in Indonesia. Our results from OLS regressions show that overall, rural residents directly involved in oil palm cultivation tend to be more concerned than the urban respondents. This is true for general EC, as well as for the oil palm-related EC, which points towards oil palm farmers being aware of the environmental repercussions of oil palm plantations. We also find that connectedness with nature, connectedness with oil palms, and preferences for homogenized landscapes are important factors that are correlated with EC. PEB is measured in terms of donations made to a local environmental organization. Our results, first of all, show strong positive correlations between EC measures and PEB. Furthermore, results reveal that rural respondents make significantly higher donations. In addition, a higher connectedness with oil palms decreases donations among our respondents, while the hours participated in other environmental activities correlate positively with donations.
    Keywords: environmental concern,pro-environmental behavior,rural-urban gap,hyperbolic sine transformation
    Date: 2022
  17. By: Otto, Felix; Held, Hermann
    Abstract: This article investigates the genesis and role of the 2° target in international climate policy. We identify a dual role played by temperature targets: (i) a social planner's option of decision making under uncertainty that draws on the precautionary principle, and (ii) a policy instrument to help the social planners' position become reality. Accordingly, the recent debate over the 2° target as found in the literature is actually a mutual misunderstanding: while the opponents mainly focus on the policy instrument function, the proponents focus on the social planner solution. By publishing this article, we hope to contribute to a more "targeted" dialogue in the future. In order to achieve this, the article analyses the concept of targets and argues that an environmental target always consists of three elements, namely (a) science or system knowledge, (b) norms and values, and (c) an operational perspective. Further, it investigates how targets were defined in international climate policy and how they have evolved over time. In 1997, emission targets were defined in the Kyoto Protocol. In 2015, the 2° target, based on the precautionary principle, was implemented in the Paris Agreement. Learning from the case of sulphur dioxide policy, another example of environmental policy, when considering how the 2° target could be made more effective, one might be tempted to underpin it with impact-related findings that are as concrete as possible - or to replace it with corresponding impact-based targets. However, many actors might contend that the totality of global warming impacts is still hard to judge. Accordingly, the 2° target should also serve as an expression of precaution, as an interim solution of sorts, until we acquired a more comprehensive grasp of climate impacts.
    Keywords: target,climate policy,Precautionary Principle,international environmental policy
    Date: 2022
  18. By: Yamna Erraach (Innov'com, Sup'com, University of Carthage Ariana, Tunis, Tunisia); Fatma Jaafer (Université de Carthage - University of Carthage); Ivana Radić (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Mechthild Donner (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)
    Abstract: Product labeling is a way to inform consumers and increase their awareness about sustainability attributes of products. It guarantees the use of specific production conditions, promotes market incentives and highlights environmental, social and/or ethical product attributes. This study provides a literature review of sustainability labels on olive oil including consumer attitudes and behavior towards this product. Results show that consumers have positive attitudes towards olive oil carrying sustainability labels and are willing to pay more for olive oil carrying those labels. However, the major drivers of this behavior are far from being related to sustainability. This insight jeopardizes the main objective of those labels and suggests more clarifications about the information delivered by them. More in-depth investigations are needed about the drivers of consumer behavior towards olive oil carrying sustainability labels.
    Keywords: olive oil,attitudes,consumer behavior,sustainability,labels
    Date: 2021–11
  19. By: Nicholas Stern; Anna Valero
    Abstract: The climate crisis and the global economic impact of the Covid-19 crisis occur against a background of slowing growth and widening inequalities, which together imply an urgent need for a new environmentally sustainable and inclusive approach to growth. Investments in "clean" innovation and its diffusion are key to shaping this, accompanied by investments in complementary assets including sustainable infrastructure, and human, natural and social capital which will not only help achieve net-zero greenhouse gas emissions, but will also improve productivity, living standards and the prospects of individuals. In this article, we draw on the theoretical and empirical evidence on the opportunities, drivers and policies for innovation-led sustainable growth. We highlight the importance of a coordinated set of long-term policies and institutions that can enable and foster private sector investments in clean innovation and assets quickly and at scale. In doing so, we draw inspiration from Chris Freeman's work on the system-wide drivers of innovation, and his early vision of achieving environmental sustainability by reorienting growth.
    Keywords: innovation, sustainable growth, net-zero transition, clean technology
    Date: 2021–06–01
  20. By: Festus F. Adedoyin (Bournemouth University, United Kingdom); Olawumi A. Osundina (Ogun State, Nigeria); Festus V. Bekun (Istanbul Gelisim University, Istanbul, Turkey); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: Over the years, agriculture has been considered as a panacea for long-term economic growth as believed by the physiocracy school of thought. Aligning this with the United Nations’ Sustainable Development Goals (specifically UN-SDG-2 which highlights zero hunger), the present study empirically complements existing studies by exploring the interactions between agriculture, trade openness and oil rents using annual time frequency series data from 1981-2017. A series of analysis is conducted. First, a battery of non-stationarity and stationarity unit root tests are performed; these range from the traditional Augmented Dickey-Fuller (ADF) and Phillips Perron (PP) techniques to the relatively recent Zivot Andrews (ZA) unit root test which accounts for a single structural break to ascertain stationarity properties in the variables under review. Subsequently, the recent Bayer and Hanck (2013) test in conjunction with the Johansen co-integration test were used for the co-integration analysis. Furthermore, to detect the direction of causality, the Toda-Yamamoto Granger Causality test alongside the impulse response function technique shows insightful outcomes. From the empirical results, co-integration is apparent and a long-run equilibrium relationship is traced between the outlined variables over the investigated period. The causality results and impulse response analysis highlight the existence of one-way causality links running from agriculture to trade and from trade to oil rents. These are revealing given the dwindling oil market prices. More insights are elucidated in the conclusion section accordingly.
    Keywords: Agriculture, sustainability; Bayer-Hanck cointegration; Nigeria
    JEL: Q10 O13 C32 C33
    Date: 2022–01
  21. By: Kinkpe, A. Thierry; Luckmann, Jonas; Grethe, Harald; Siddig, Khalid
    Abstract: This paper presents a detailed 2019 Social Accounting Matrix (SAM) for Benin as a basis for policy analysis with a focus on agriculture, food processing and energy generation from by-products. It is based on official statistics collected from national and international institutions (national statistical office, ministry of agriculture and related research institutions, central bank, World Bank, United Nations) and complemented with data collected from stakeholders within the domestic processing sector and NGOs supporting agriculture and food processing. A top-down approach was followed starting with national accounts data to build a consistent macro-SAM. The values in the macro-SAM were used as macro-totals while disaggregating a prior micro-SAM (with minor imbalances), which is estimated using the Cross-Entropy method. The micro-SAM contains 127 accounts: 47 activities (19 agricultural, 12 food processing, 9 non-food industries, construction and 6 service sectors); 51 commodities (21 agricultural, 13 food processing, 10 non-food industries, construction and 6 service commodities); 3 margins; 4 production factors; 10 household groups (rural and urban income quintiles), the government as well as 6 tax accounts; enterprises, 2 savings/investment accounts (private and public) and 2 foreign accounts (Nigeria and the rest of the world). The estimated SAM reflects total GDP at factor cost at FCFA 7.7 trillion (about US$ 13.1 billions). Services, agriculture, construction, non-food industry and food industry contribute 60.3%, 29.1%, 5.2%, 2.7% and 2.6% respectively to GDP. Labour and land are the most important income sources for low income households while capital and labour provide most of the income of high-income households. Cet article présente une Matrice de Comptabilité Sociale (MCS) détaillée de 2019 pour le Bénin, qui servira de base à l'analyse des politiques focalisées sur l'agriculture, la transformation agro-alimentaire et la production d'énergie à partir des sous-produits de transformation. Elle est basée sur des statistiques officielles collectées auprès d'institutions nationales et internationales (institut national de la statistique, ministère de l'agriculture et institutions de recherche connexes, banque centrale, banque mondiale, nations unies) et complétée par des données collectées auprès des parties prenantes du secteur de la transformation agro-alimentaire et des ONG soutenant l'agriculture et la transformation agro-alimentaire. Une approche “top-down” a été suivie en commençant par les données des comptes nationaux pour construire une macro-MCS cohérente. Les valeurs de la macro-MCS ont été utilisées comme macro-totaux pour construire une micro-MCS primaire (avec des déséquilibres mineurs), qui a été estimée en utilisant la méthode de l'entropie croisée. La micro-MCS contient 127 comptes : 47 activités (19 agricoles, 12 de transformation agro-alimentaire, 9 des industries non alimentaires, 1 de construction et 6 de services) ; 51 produits (21 agricoles, 13 de transformation agro-alimentaire, 10 des industries non alimentaires, 1 de construction et 6 de services) ; 3 marges ; 4 facteurs de production ; 10 groupes de ménages (quintiles de revenus ruraux et urbains), le gouvernement ainsi que 6 comptes de taxes ; des entreprises, 2 comptes d'épargne/investissement (privés et publics) et 2 comptes étrangers (Nigeria et reste du monde). La MCS estimée révèle, conformément aux comptes nationaux, un Produit Intérieur Brut (PIB) total au coût des facteurs d’environ 7,7 mille milliards de FCFA (environ 13,1 milliards de dollar). Les services, l'agriculture, la construction, l'industrie non alimentaire et l'industrie agro-alimentaire contribuent respectivement à 60,3%, 29,1%, 5,2%, 2,7% et 2,6% du PIB. Le travail (la main d’oeuvre) et la terre sont les sources de revenus les plus importantes pour les ménages à faibles revenus, tandis que le capital et la main d’oeuvre fournissent la plupart des revenus des ménages à hauts revenus.
    Keywords: Agricultural and Food Policy, Community/Rural/Urban Development, Consumer/Household Economics, Environmental Economics and Policy, Food Security and Poverty, Production Economics, Public Economics
    Date: 2022–04–27
  22. By: Annelies Deuss; Clara Frezal; Frederica Maggi
    Abstract: More than 80% of global trade in grains and oilseeds occurs by maritime transport. This report provides an in-depth analysis of ocean freight rates during 2007-2021, examining their evolution, volatility, determinants, and how they influence port networks. Freight rates accounted on average for 11% of the cost and freight price, but this share ranges between 2% and 43%, demonstrating the potentially large impact of freight rates on consumer prices. Freight rates for grains and oilseeds are generally more volatile than their free-on-board prices. Regression analysis shows that a 10% increase in the distance between two ports is estimated to lead to a 2.5% increase in freight rates. It also demonstrates that freight costs for grains and oilseeds do not obey the iceberg formulation, which implies that they should be modelled as additive (constant costs per unit traded) rather than as multiplicative (iceberg) costs.
    Keywords: Additive costs, Freight rates, Iceberg, Ports
    JEL: F14 Q17 Q2 R40 D85
    Date: 2022–06–15
    Abstract: This study focuses on Korea’s Green New Deal policy and global response measures to climate change that affect international trade. A trade policy perspective and approach have been applied while reviewing the carbon-neutral policy pursued by the Green New Deal. We attempted through an empirical analysis to determine whether the expansion of openness helps reduce carbon emissions and simulate the impact of a carbon-neutral policy, such as the EU's carbon border adjustment, on the global economy under global production networks. In addition, the amount of financial support from Korea's Green New Deal needed to offset the negative economic effects of other countries’ independent carbon-neutral policies was derived. This study finally suggests that the effect of the Green New Deal can be expanded through the restoration of openness and global cooperation.
    Keywords: Green New Deal; Carbon-neutrality; Open Trade Policy; Korea
    Date: 2022–05–24
  24. By: Congressional Budget Office
    Abstract: The average annual acreage burned by wildfires in the United States has increased over the past 30 years, affecting both federal and nonfederal lands. In this report, CBO analyzes trends in wildfire activity; considers the effects of wildfires on the federal budget, the environment, people’s health, and the economy; and reviews forest-management practices meant to reduce the likelihood and seriousness of fire-related disasters.
    JEL: H84 Q53 Q54
    Date: 2022–06–16
  25. By: Srivastav, Sugandha; Singh, Tanmay
    Abstract: Laws that govern land acquisition can lock in old paradigms. We study one such case: the Coal Bearing Areas Act of 1957 (CBAA) which unlike the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR) provides minimal social and environmental safeguards. The lack of due diligence processes in the CBAA confers an undue comparative advantage to coal development, a facet of policy that is at odds with India's current stance to phasedown coal use, reduce air pollution, and advance modern, low-carbon energy to achieve net-zero emissions. In the decades since the CBAA was written, the local context has significantly changed: the environmental and social costs of dirty energy are clearer, and low-carbon alternatives are cost competitive. We recommend updating land acquisition laws to bring coal under the general purview of LARR or, at minimum, amending CBAA to ensure adequate environmental and social safeguards are in place, both in letter and practice.
    Keywords: coal, land acquisition, net-zero, environmental protection, social impact assessment, rehabilitation and resettlement
    Date: 2022–06

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.