nep-agr New Economics Papers
on Agricultural Economics
Issue of 2023‒04‒03
23 papers chosen by

  2. Implications of Food Systems for Food Security: The case of the Republic of Mozambique By Isabelle Tsakok
  3. Leveraging automation and digitalization for precision agriculture: Evidence from the case studies By Ceccarelli, Tomaso; Chauhan, Aneesh; Rambaldi, Giacomo; Kumar, Inder; Cappello, Christina; Janssen, Sander; McCampbell, Mariette
  4. Agricultural digitalization and automation in low- and middle-income countries: Evidence from ten case studies By McCampbell, Mariette
  5. Repurposing food and agricultural policies to deliver affordable healthy diets, sustainably and inclusively: what is at stake? By Glauber, Joseph; Laborde, David
  6. Agricultural interventions and food security in Ethiopia – What is the role of adjusting livelihood strategies? By Cordonnier, Victor; Covarrubias, Katia Alejandra; de la O Campos, Ana Paula
  7. Subsidizing agricultural inputs in Senegal: Comparative analysis of three modes of intervention using a farm household model By Aymeric Ricome; Kamel Louhichi; Sergio Gomez y Paloma
  8. An ecosystemic framework for analysing evidence-informed policy systems for agricultural transformation – Case study of Benin By Thoto, Frejus; Mas Aparisi, Alban; Derlagen, Christian
  9. Food insecurity and poverty – A cross-country analysis using national household survey data By Moncada, Lorenzo; de la O Campos, Ana Paula; Tornarolli, Leopoldo
  10. Impact of Climate Change on Water in Pakistan By Nazam Maqbool
  11. Regional market integration within AfCFTA to further agri-food transformation and food security The case of the Republic of Rwanda By Isabelle Tsakok
  12. Food Subsidies Programs In Pakistan: A Review By Nasir Iqbal
  13. Consumer preferences for new fermented food products that mix animal and plant protein sources By Anne Saint-Eve; Françoise Irlinger; Caroline Pénicaud; Isabelle Souchon; Stéphan Marette
  14. Water challenges in socio-ecological systems: is human decision-making accounted for in the analysis of climate change adaptation options? By Zanini, Sara
  15. Set-Asides in USDA Food Procurement Auctions By Ni Yan; WenTing Tao
  16. The impact of climate legislation on trade-related carbon emissions 1996–2018 By Eskander, Shaikh M.S.U.; Fankhauser, Sam
  17. A Study on the Consumers' Perception and Their Consumption Pattern for Processed Dairy Dairy Products in Karachi By Hasan, Aleshba
  18. The Willingness to Pay for Cider Products: Results of a Survey on Habits and Consumption Behavior By Eric Le Fur; Jean-Francois Outreville
  19. Preferences for meat substitute with plant-based proteins: an experiment with real products consumption By Leplat Mélody; Loheac Youenn; Teillet Eric
  20. Emissions and Global Development: Evidence from the Environmental Kuznets Curve By Walter Cont; Fernando Antonio Ignacio González; Eliana Mariel Uesu
  21. Food Pricing Policy in Pakistan By Ayesha Fatima
  22. With a Little Help from My Friends? Surviving the Lockdown Using Social Networks in Rural South India By Isabelle Guérin; Christophe Jalil Nordman; Cécile Mouchel
  23. Climate change and growth By Stern, Nicholas; Stiglitz, Joseph E.

  1. By: Houria Et-Touile (UCA - Université Cadi Ayyad [Marrakech]); Fatima Arib
    Abstract: With the global health crisis related to the new coronavirus pandemic (Covid-19), the thorny issue of food security has arisen with force, especially with shortages of certain products on the markets, soaring prices, and sometimes even stock-outs. The covid-19 pandemic has led to a global economic crisis that has called into question the stability ensuring global food security. So, the present paper aims to analyze and discuss the impact of the Covid-19 pandemic on agriculture, food supply, and food security in Morocco. Toward this end, data provided by the Food Agriculture Organization (FAO), and the World Health Organization (WHO) have been analyzed, as well as studies conducted and published on the subject. The findings indicate that the Covid 19 pandemic has ensued several negative effects, which have directly and indirectly threatened Moroccan food security. It severely affected the agricultural sector which contributes significantly to GDP, due to suspension of agricultural activities, restriction of trade in agricultural commodities, and agricultural labor. Also, It has primarily affected food imports due to the dependence on food importation and has impacted food supply chains, as the shutdown and closing of some stores severely disrupted the supply chain (transportation, storage, and distribution), resulting in food insufficiency in many far areas. Globally, food security in Morocco has demonstrated its resilience during the Covid-19 pandemic, due to the agricultural strategy put in place, the market was regularly supplied and the availability of products was ensured in all the cities of the Kingdom. Finally, based on the findings, we have suggested some recommendations that would help boost sustainable food security.
    Keywords: COVID 19 agriculture food security food prices food systems Morocco, COVID 19, agriculture, food security, food prices, food systems, Morocco
    Date: 2021–11–02
  2. By: Isabelle Tsakok
    Abstract: Implications of Food Systems for Food Security: The case of the Republic of Mozambique Mozambique is resource-rich and strategically located on the east coast of Africa between Tanzania and South Africa. Its mineral wealth includes coal, iron ore, bauxite, copper, gold, rubies, and natural gas. Valuable marine stocks include crustaceans, demersal and pelagic fish which populate its long coastline. Its agriculture is endowed with plentiful land, water, and a generally favorable climate for agricultural (crops and livestock) production. Yet, its agriculture cannot produce enough surplus, thus trapping the vast majority of rural people in grinding poverty. This Policy Brief focuses on how policy and institutional neglect of a country's food systems ensure millions suffer chronic malnutrition and poor health status, right from conception to infancy. The Frelimo government has not prioritized using Mozambique's mineral wealth to invest in agriculture, the primary sector the majority depends upon for their livelihood. Its growth model has been import-substituting, extractive industrialization first. Mozambique confirms the historical fact that neglecting agriculture in the early stages of development condemns a country to massive poverty and food insecurity.
    Date: 2022–07
  3. By: Ceccarelli, Tomaso; Chauhan, Aneesh; Rambaldi, Giacomo; Kumar, Inder; Cappello, Christina; Janssen, Sander; McCampbell, Mariette
    Abstract: Digital and automation solutions for precision agriculture can improve efficiency, productivity, product quality and sustainability. Nevertheless, barriers to adoption of such solutions – including their cost, lack of knowledge and skills, and the absence of an enabling environment and infrastructure – can prevent producers from realizing these benefits. Building on findings from 22 case studies worldwide, this study finds that national data policies and infrastructure are key enablers of adoption, as is investment in connectivity (e.g. internet) and electricity in rural areas. Further research and information on the economic, environmental and social impacts of the solutions are also needed to provide evidence on their benefits. So too is investment in human capacity development, particularly digital literacy. To ensure an inclusive process, solutions must be adapted across agricultural production systems, regions and farm types. Partnerships and networks for exchanging information and promoting collaboration will key. Finally, awareness raising and communication are important since consumers can be skeptical about food being produced by new technologies. In summary, by focusing on a variety of solutions, this study provides a landscape analysis of digital and automation solutions and offers guidance to accelerate adoption for more inclusive, sustainable and resilient agrifood systems. This study was developed as a background document for the FAO report "The State of Food and Agriculture 2022 – Leveraging automation in agriculture for transforming agrifood systems" (
    Keywords: Agricultural and Food Policy, Research and Development/Tech Change/Emerging Technologies
    Date: 2022–11–15
  4. By: McCampbell, Mariette
    Abstract: Digital and automation solutions can solve labour bottlenecks, increase agricultural productivity, resilience and efficiency, and improve environmental sustainability. However, access is limited in low- and lower-middle-income countries, especially for small-scale producers. Based on ten case studies in sub-Saharan Africa, Latin America and the Caribbean and Asia, this study investigates the suitability of digital and automation solutions for small-scale producers, the main drivers and barriers to their adoption and the role of policies and regulations in creating an enabling environment. Findings show that technologies in the study countries are largely limited to smartphones and tablets, and related software tools (e.g. mobile applications). Most digital and automation solutions focus on crops, some on livestock and aquaculture, and a few on agroforestry. The most important adoption barriers include the high investment cost, lack of digital skills and knowledge and a lack of an enabling environment. Yet, advances in mechanization supported by digital technologies, and the development of hiring platforms foster adoption. The emergence of guidelines, strategic plans and policies that regulate and streamline automation should be encouraged, as should providing producers with information about the benefits and costs of digital and automation solutions. This study was developed as a background document for the FAO report "The State of Food and Agriculture 2022 – Leveraging automation in agriculture for transforming agrifood systems" (
    Keywords: Agricultural and Food Policy, Research and Development/Tech Change/Emerging Technologies
    Date: 2022–11–16
  5. By: Glauber, Joseph; Laborde, David
    Abstract: The analysis presented in this report examines the impacts of repurposing food and agricultural fiscal support and border support on the cost and affordability of healthy diets and several other key socioeconomic, nutritional and climate indicators. The impacts are estimated at the global level, as well as for various income groups and geographic regions. Scenarios include repurposing fiscal support to producer support targeted to high-priority foods (those where current levels of consumption are below that of recommended levels) and to consumer subsidies targeting high-priority foods.
    Keywords: Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty
    Date: 2023–02–20
  6. By: Cordonnier, Victor; Covarrubias, Katia Alejandra; de la O Campos, Ana Paula
    Abstract: This paper assesses the food security impacts of widespread agricultural interventions, aiming at increasing agricultural yields, and explores the role played by adjustments in rural households’ livelihood strategies in mediating those impacts. Our empirical strategy combines project and remote-sensing data with a household panel survey and exploits the timing and geographic variation in the roll-out of interventions implemented from 2011 to 2016 by the Ethiopian Agricultural Transformation Agency (ATA), recently renamed as Agricultural Transformation Institute (ATI). Results show that agricultural interventions are effectively associated with higher agricultural yields, better food security outcomes and adjustments in livelihood strategies. However, when exploring the role of livelihood strategies through a Causal Mediation Analysis, we show that livelihood adjustments do not seem to play any mediating role in food security impacts. Heterogeneity analysis suggests that the absence of a mediating role stems from agricultural interventions affecting different types of households differently: the most vulnerable households primarily benefited through food security improvements while more-endowed households adjusted their livelihood strategies.
    Keywords: Agricultural and Food Policy, Food Security and Poverty
    Date: 2022–12–02
  7. By: Aymeric Ricome (JRC); Kamel Louhichi (JRC); Sergio Gomez y Paloma (JRC)
    Abstract: This report presents the results of an ex-ante impact assessment of several scenarios related to the farmer targeting of the input subsidy programme currently implemented in Senegal. This study has been achieved with the agricultural household model FSSIM-Dev, calibrated on a sample of 2 278 farm households from the ESPS-2 survey. The impacts on crop mix, fertilizer application, farm income and on the government cost are presented and discussed.
    Date: 2023–02
  8. By: Thoto, Frejus; Mas Aparisi, Alban; Derlagen, Christian
    Abstract: The production and use of evidence for agricultural policy is critical to prioritizing and targeting effective agricultural transformation reforms in African countries. International development organizations have supported programmes that promote evidence-informed policies, however, this support has often been focused on short-term and externally driven solutions, with limited impact in the long run. Faced with this scenario, there is now a growing interest in the role of resilient and sustainable national systems that can generate organic evidence-informed agricultural policy. Yet, there is limited knowledge on how to map out and analyse such systems, which is critical to fostering their emergence and the later uptake of evidence in policymaking. This study draws on ecological science and social network analysis to develop and test a framework that can help understand evidence-policy systems and their potential to sustainably promote evidence-informed policymaking in the agricultural sector. Applying this framework in Benin, the study found that beyond the Ministry of Agriculture, other organizations produce, broker or use evidence such as data, research, evaluation and expert knowledge in a context that is influenced by the institutional rules and setup, the incentives in place and the funding landscape. Furthermore, the paper analyses the sustainability of the evidence-policy system in Benin through its power, resilience and capability. Finally, it provides policy recommendations with the key entry points to improve on and how a system like this can be used to improve agricultural policymaking.
    Keywords: Agricultural and Food Policy, Food Security and Poverty
    Date: 2023–02–28
  9. By: Moncada, Lorenzo; de la O Campos, Ana Paula; Tornarolli, Leopoldo
    Abstract: This study analyses national household surveys from ten countries in sub-Saharan Africa and Latin America to shed light on the household-level relationship between monetary poverty and food insecurity. Similar to previous studies, results highlight a clear correlation between poverty and food insecurity. In some instances, the overlap between the set of households classified as poor and those classified as food insecure, can be partial, with not-negligible shares being either classified as poor but not food insecure, or as food insecure but not poor. This mismatch is not surprising, as food security and poverty are two distinct conceptual constructs. Findings warn against superficial targeting approaches where monetary poverty is used as a proxy of food insecurity and vice versa, highlighting that specific food insecurity and poverty measures are needed to guide respective policies. The analysis also points to certain population groups, such as households involved in agriculture and households suffering from shocks, where classifications based on poverty and food insecurity measures appear to be more discrepant.
    Keywords: Agricultural and Food Policy, Food Security and Poverty
    Date: 2022–12–09
  10. By: Nazam Maqbool (Pakistan Institute of Development Economics)
    Abstract: Water is the prime channel through which the impacts of climate change on the world’s ecosystems and livelihoods will be felt. Pakistan is already a water-stressed country, ranking 14 among the 17 ‘extremely high water risk’ countries.[1] Climate change in the form of rising temperatures and extreme and less predictable weather patterns are projected to affect patterns of rainfall, snowmelt, river flows, groundwater and water quality in Pakistan. This can lead to an increase in both inter- and intra-country disputes over water sharing arrangements.
    Date: 2022
  11. By: Isabelle Tsakok
    Abstract: Rwanda is famous for its remarkable socio-economic performance after the ravages of the Genocide against the Tutsis and moderate Hutus in 1994. Under the leadership of President Paul Kagame, Rwanda has followed a state-led development model with stunning results. Despite these substantial accomplishments, Rwanda is still a low-income country with extensive poverty. Its agriculture is still of low productivity and highly vulnerable to climate change. Structural transformation has weakened as the rate of growth, job creation, and poverty reduction have slowed down. Food security is still a distant dream for millions. Agriculture must successfully transform, 1 if Rwanda is to realize its ambitious Vision 2035 of reaching middle-income country status and Vision 2050 of reaching high-income status. Rwanda’s state-led approach to focusing on food self-sufficiency as agricultural transformation has had good results but the approach is fast encountering diminishing returns. Instead, a holistic approach to agricultural transformation is required: an approach that embraces a more significant role for the private sector with access to expanding, lucrative, and competitive markets. In an era when geo-political tensions exacerbate supply chain disruptions, the African Continental Free Trade Agreement (AfCFTA) offers Rwanda the regional market opportunities it needs to power its structural transformation.
    Date: 2022–08
  12. By: Nasir Iqbal (Pakistan Institute of Development Economics)
    Abstract: Pakistan has been facing high inflation over the last few years. Rising food and fuel (2Fs) prices, in addition to disruption in the global supply chain, adverse impacts of climate change, and bad governance challenges, are major contributing factors to high inflation. The skyrocketing 2Fs prices have aggravated food insecurity and poverty in Pakistan. Targeted in-kind transfers are commonly used to dilute the adverse effects of food and fuel inflation globally (Banerjee, Hanna, Olken, Satriawan, & Sumarto, 2021; Nawaz & Iqbal, 2020).
    Keywords: Food Subsidies Programs,
    Date: 2022
  13. By: Anne Saint-Eve (SayFood - Paris-Saclay Food and Bioproduct Engineering - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Françoise Irlinger (SayFood - Paris-Saclay Food and Bioproduct Engineering - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Caroline Pénicaud (SayFood - Paris-Saclay Food and Bioproduct Engineering - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Isabelle Souchon (SayFood - Paris-Saclay Food and Bioproduct Engineering - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Stéphan Marette (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Consumers are being encouraged to increase the proportion of plant protein in their diets to enhance the sustainability of food systems. One approach is to develop plant-protein-rich foods that are acceptable to consumers. This study examined French people's reactions to cheese alternatives—new fermented products that mixed animal and plant protein sources. We conducted experimental sessions with 240 French participants to assess their responses to three fermented products containing different percentages of yellow pea and cow's milk. First, we asked the participants to blind-taste the three products and solicited hedonic scores of products. We then provided the participants with simple information about the products' composition and asked them to taste and score the liking of the products a second time. We also asked consumers to estimate their willingness to pay (WTP) for each product before and after revealing additional information about the nutritional or environmental benefits of consuming pea-based foods. The product with the lowest percentage of pea and the highest percentage of milk received the highest hedonic scores, and WTP was correlated with the hedonic scores. The additional information about the nutritional and environmental benefits of pea-based foods led to significant increases in WTP for two of the fermented products, but not for the least preferred product, namely the one with the highest percentage of pea. This finding suggests that participant reactions to information depended on hedonic preferences.
    Abstract: Les consommateurs sont encouragés à augmenter la proportion de protéines végétales dans leur alimentation afin d'améliorer la durabilité des systèmes alimentaires. Une approche consiste à développer des aliments riches en protéines végétales acceptables pour les consommateurs. Cette étude examine les réactions des Français face aux alternatives au fromage - de nouveaux produits fermentés mélangeant des sources de protéines animales et végétales. Nous avons mené des sessions expérimentales avec 240 participants français pour évaluer leurs réponses à trois produits fermentés contenant différents pourcentages de pois jaunes et de lait de vache. Tout d'abord, nous avons demandé aux participants de goûter à l'aveugle les trois produits, et nous avons sollicité leur jugement hédonique. Nous avons ensuite fourni aux participants des informations simples sur la composition des produits et leur avons demandé de goûter à nouveau, en notant le goût des produits une seconde fois. Nous avons également demandé aux consommateurs d'estimer leur consentement à payer (CAP) pour chaque produit avant, et après avoir révélé des informations supplémentaires sur les avantages nutritionnels ou environnementaux de la consommation d'aliments à base de pois. Le produit avec le pourcentage le plus bas de pois et le pourcentage le plus élevé de lait a reçu les scores hédoniques les plus élevés, et les CAP étaient corrélés aux scores hédoniques. Les informations supplémentaires sur les avantages nutritionnels et environnementaux des aliments à base de pois ont conduit à des augmentations significatives du CAP pour deux des produits fermentés, mais pas pour le produit le moins préféré, à savoir celui avec le pourcentage le plus élevé de pois. Cette découverte suggère que les réactions des participants à l'information dépendent des préférences hédoniques.
    Keywords: Plant-based product, Consumer behavior, Economic approach, Sensory analysis
    Date: 2021–06
  14. By: Zanini, Sara
    Abstract: This mixed-method systematic review is motivated by the willingness to identify the efforts of the most recent developments of the literature on the understanding of water challenges in socioecological systems, particularly coastal ones. The attention, in the exercise, is directed at the analysis of individual and collective decision-making processes concerning the use of the environmental good. This is because ultimately, if it is true that water resources are affected by external trends and shocks, it is also relevant how distinct paths of local and regional level responses impact on resource status. The inquiry, departs from a conceptual point of view mainly pinpointing scholars’ already proposed method- ological solutions for the concern, being them mostly participatory modelling excercises, bayesian net- work analyses, multi-agent games and experiments and finally integrated assessment models. Even if methodological tools with a potential to explicitly represent human decision-making coupled with its connection with the natural environment do exist, these methods are found to be relatively superficially articulated in interdisciplinary water management analyses. Particularly, the study explores to what extent is the human behaviour, in relation to water resources, included into the extant analyses.
    Keywords: Resource /Energy Economics and Policy
    Date: 2023–03–10
  15. By: Ni Yan; WenTing Tao
    Abstract: We study the partial and full set-asides and their implication for changes in bidding behavior in first-price sealed-bid auctions in the context of United States Department of Agriculture (USDA) food procurement auctions. Using five years of bid data on different beef products, we implement weighted least squares regression models to show that partial set-aside predicts decreases in both offer prices and winning prices among large and small business bidders. Full set-aside predicts a small increase in offer prices and winning prices among small businesses. With these predictions, we infer that net profit of small businesses is unlikely to increase when set-asides are present.
    Date: 2023–02
  16. By: Eskander, Shaikh M.S.U.; Fankhauser, Sam
    Abstract: We analyse the international impact on carbon emissions from national climate legislation in 111 countries over 1996–2018. We estimate trade-related carbon leakage, or net carbon imports, as the difference between consumption and production emissions. Legislation has had a significant negative and roughly similar impact on both consumption and production emissions. The net impact on trade-related emissions is therefore not statistically significant, neither in the short term (laws passed in the last 3 years) nor the long term (laws older than 3 years). We find a significant negative long-term impact on domestic emissions from laws passed by trade partners. This latter specification corresponds to the traditional definition of carbon leakage. Overall, we conclude that there has been no detrimental effect of climate legislation on international emissions.
    Keywords: carbon leakage; climate change legislation; climate policy; consumption emissions; production emissions; technology spillovers
    JEL: F18 K32 Q54 Q56 Q58
    Date: 2023–02–22
  17. By: Hasan, Aleshba
    Abstract: The topic of the project selected for the market research is “Consumer’s perception and their Consumption pattern for Processed Dairy products in Karachi”. This study revolves around the dairy industry and focuses mainly on the Processed dairy products, namely milk, butter and yogurt. Since all these products depend on milk for their production therefore milk is the focal point of the study. The object of selecting this topic for research is to perform an in-depth study of the prevailing situation of the Processed dairy products and its potential to grow in the Karachi market. Also this research will shed light on the major factors such as Advertising, Quality, and Taste etc which determine the perception of the consumers about the focused dairy products. The study also determines the reasons why or why not consumers prefer Processed dairy milk over Open milk. To gather the required data for the study a questionnaire was developed, a sample of 100 respondents were taken randomly, of which 20 were interviewed and their response was carefully recorded. During the course of market research, some interesting features of the marketing have been noticed and much knowledge was gained about the different consumer’s perception and their consumption pattern for processed dairy products. The market study has also identified the potential customers for processed dairy products who are currently purchasing Open dairy products. The overall findings based on the results of the questionnaire and personal interviews indicates that the processed dairy industry needs to work a lot on creating awareness for its products by educating the consumers of its benefits. Also they should focus on the potential customers who can be made actual customers by enhancing their Marketing, Advertising and Pricing strategies. The Availability of the product is also an important issue that needs to be worked on. Hence it can be said that the Processed dairy products have a bright future scope and a great potential in the Karachi market.
    Keywords: Processed Diary
    JEL: M3
    Date: 2023–02–11
  18. By: Eric Le Fur (Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - UB - Université de Bordeaux); Jean-Francois Outreville
    Abstract: Purpose : The objective of the paper is to investigate the impact of habits and consumption behavior on the willingness to pay (WTP) for cider by surveying young consumers. Method : The analysis is based on a questionnaire distributed to a group of 433 French business students from December 2017 to January 2018. Specifically, the questionnaire is designed to test whether young consumers would pay a premium price or not for quality ciders with respect to a traditional sweet cider with similar characteristics. We are modelling the premium that consumers are willing to pay for an organic cider, a farmer cider and rosé cider. To accommodate the feature of a significant proportion of zero or negative premiums in dependent variables, the Heckman two-stage estimation procedure is performed. Results : Results show that the young generation consider cider as a cheap, festive and non-organic beverage and is willing to pay a premium for quality ciders like specifically rosé and farmer ciders. Conclusion : The results from this research have useful implications not only for the cider market but also in the understanding of the characteristics of competitive beverages that young consumers may prefer and value.
    Date: 2022–02–13
  19. By: Leplat Mélody (L@BISEN - Laboratoire ISEN - Institut supérieur de l'électronique et du numérique (ISEN) - YO - YNCREA OUEST); Loheac Youenn (ESC [Rennes] - ESC Rennes School of Business); Teillet Eric (SensoStat)
    Keywords: meat substitutes, sensory evaluation, choices experiment, real products
    Date: 2022–06–30
  20. By: Walter Cont; Fernando Antonio Ignacio González; Eliana Mariel Uesu
    Abstract: The global sustainable development agenda indicates that countries must achieve a rapid reduction in greenhouse gases emissions (decarbonization) while sustaining economic growth to continue improving living standards -especially in developing countries-. The relationship between emissions and economic growth is complex. One of the most widely used tools to model this relationship is the so-called Environmental Kuznets curve (EKC). The EKC suggests the existence of an inverted-U relationship between greenhouse gases (GHG) emissions and economic growth. In this work, we estimate the EKC for a broad panel of countries spanning the last three decades (1990-2019), using a panel regression with fixed effects. We find a positive relationship between GHG emissions and growth. Emissions eventually turn with income when we narrow down the analysis to carbon dioxide excluding land use, land use change and forestry, supporting the EKC hypothesis. These results are robust when decomposing by emitting activities (energy and industrial processes) and sub-activities (electricity, transportation and buildings), but they are not robust to decomposition by regions. In the 1990-2019 sample, we find no relationship between emissions and growth in the Latin American and the Caribbean, as well as some other regions. We use the results to assess the level of income at which emissions eventually decouple from growth. Even though we show some disperse results, which are common in the literature, we recommend cautiousness and deeper research in fostering growth hoping emissions will eventually turn. Therefore, decarbonization efforts should not be diminished.
    JEL: Q56 O13
    Date: 2022–11
  21. By: Ayesha Fatima (Pakistan Institute of Development Economics)
    Abstract: In Pakistan, input subsidies and price support are the basic tools used for pricing policy. However, if these tools are implemented in the proper way, they may affect the economy positively.
    Date: 2023
  22. By: Isabelle Guérin (IRD, CESSMA (Paris, France), IFP (Pondicherry, India)); Christophe Jalil Nordman (IRD, UMR LEDa, DIAL, PSL, Université Paris Dauphine, IFP (Pondicherry, India)); Cécile Mouchel (Université Paris Diderot, CESSMA (Social Science Center Studies in African, American and Asian Worlds), DIAL)
    Abstract: How have rural populations in India mobilized their social networks in times of forced "social distancing"? Focusing on a rural region in Tamil Nadu, mixing Social Network Analysis, descriptive statistics and qualitative interviews conducted before the lockdown, during the lockdown and its aftermath, this paper shows that kinship ties and caste-based relationships are still used as inescapable economic resources, especially when it comes to surviving in this unprecedented worldwide economic and social crisis. The region under study has undergone profound changes in recent decades, combining the disappearance of agrarian forms of dependency and the strengthening of intra-caste interdependence among the lower-caste group (measured here in terms of homophily and homogeneity) with a focus on access to credit and selfhelp to access employment. The crisis is putting these social networks to the test. Subsidized food, the main pro-poor measure of the Indian government, prevented famine, even if it did not prevent severe malnutrition. Although kin and caste solidarity played a key role in helping households survive, they did not prevent the resurgence of old forms of patronage.
    Keywords: social networks, homophily, name generators, India, lockdown, caste, employment, debt, kinship
    JEL: D85 J15 Q12
    Date: 2023–03
  23. By: Stern, Nicholas; Stiglitz, Joseph E.
    Abstract: Contrary to much of the conventional wisdom, taking stronger actions on climate change may enhance economic growth, even as conventionally measured, but even more so, in terms of societal well-being. We identify the flaws in the models and analyses which contend that there must be a trade-off and explain the mechanisms and dynamic forces which have the potential to enhance growth. Critically, there are numerous market failures that result in suboptimal economic performance. We explain how addressing climate change reduces the bite of these failures and enhances the incentives and political will to address them. We identify packages of policies that alleviate market failures, enhance growth, and reduce carbon emissions. Finally, we argue that the green transition is coming at a time when, both because of persistent deficiencies of aggregate demand and advances in technology, including artificial intelligence and robotization, the macroeconomic opportunity costs of strong climate actions may be especially low and the benefits particularly high.
    JEL: O40 O49 Q58
    Date: 2023–02–17

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.