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on Agricultural Economics |
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Issue of 2011‒03‒05
219 papers chosen by |
| By: | Pascucci, Stefano; Capitanio, Fabian; Del Giudice, Teresa |
| Abstract: | In this paper we analyse different strategies used by Italian organic farmers to create value from credence food production. More specifically, we consider the following strategies: participation in policy support programmes (i.e. rural development measures and agroâenvironmental schemes), direct marketing (i.e. shortâchains, onâfarm businesses, agroâtourism), onâfarm processing and being a member of a marketing and/or processing cooperative. We use data from the 2006 Italian FADN (Farm Accountancy Data Network) related to 981 organic farmers. To estimate the factors affecting farmersâ strategies and to evaluate them simultaneously we implement a multivariate probit model (MVP). The results could be helpful to implement guidelines for public and private intervention in the next CAP programming period. Allowing for differences in farmersâ goals and their impact on the choice of farming method and strategies is important in a modern competitive scenario. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100474&r=agr |
| By: | Meuwisen, Miranda P.M.; Molnar, Tams A. |
| Abstract: | Worldwide, extreme climate risks cause stakeholders in food supply chains to search for new risk management tools. In Australia, recently soâcalled crop yield simulation insurance has been introduced based on an integrated agrometeorological simulation model. Current uptake is relatively low, possibly because Australian farmers perceive commodity price risk as more important than climate risk. Also, they perceive risk management tools such as water management and diversification as more important than buying crop insurance. Still, opportunities seem to exist for new insurance products, such as crop yield simulation insurance, as indicated by farmersâ interest into such products. Outcomes are useful in worldwide discussions on risk management opportunities in dryland agriculture. |
| Keywords: | Crop yield simulation, Yield insurance, Wheat farmers, Personal interviews, Agribusiness, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100505&r=agr |
| By: | Van Herck, Kristine; Vranken, Liesbet |
| Abstract: | Since the accession of the eight Central and Eastern European countries, farmers in these countries started to receive substantial agricultural subsidies. Agricultural subsidies alter farmer production incentives and thus factor demand and factor prices. Hence, agricultural support has an impact on land rents. This paper analyses the impact of the introduction of direct payments on land rents in the new member states and correlates econometrically land rental price data with support measures while controlling for other effects. The impact of direct payments on land rents is not only found to be statistically significant, but also economically important as 15% of the direct payments are capitalized in land rents in the new member states. |
| Keywords: | Land rental prices, Farm subsidies, New member states, Agricultural and Food Policy, Q12, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99583&r=agr |
| By: | Kragt, ME; Pannell, DJ; Robertson, MJ |
| Abstract: | The Australian government has identified soil carbon sequestration on agricultural lands as a potential strategy to offset greenhouse gas emissions. Industry and government claim providing positive incentives for farmers to change their land management will be cost can result in significant carbon sequestration in agricultural soils. There is, however, little information about the costs or benefits of agricultural soil carbon sequestration to test these claims. The objective of this study is to assess the costs of alternative land-use and land practises that will increase soil carbon sequestration, for a case study of the WA Wheat belt. The analysis integrates biophysical modelling of carbon sequestration with whole-farm economic modelling, to evaluate the cost-effectiveness of alternative carbon storage practices. Preliminary results suggest that, even under low commodity price scenarios, the opportunit sequestering carbon are considerable. We discuss the implications of our findings for policy development. |
| Keywords: | Agriculture, Bio-economic modelling, Greenhouse gases, Soil carbon, Agribusiness, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100575&r=agr |
| By: | Verschelde, Marijn; Vandamme, Ellen; DâHaese, Marijke; Rayp, Glenn |
| Abstract: | We use a nonparametric estimation of the production function to investigate the relation- ship between farm productivity and farming scale in poor smallholder agricultural systems in the north of Burundi. Burundi is one of the poorest countries in the world, with a pre- dominant small scale subsistence farming sector. A Kernel regression is used on data of mixed cropping systems to study the determinants of production including different factors that have been identified in literature as missing variables in the testing of the inverse relationship such as soil quality, location and household heterogeneity. Household data on farm activities and crop production was gathered among 640 households in 2007 in two Northern provinces of Burundi. Four production models were specified each with different control variables. For the relatively small farms, we find clear evidence of an inverse relationship. The relatively large farms show a different pattern. Returns to scale are found to be farm scale dependent. Parametric Cobb-Douglass models tend to over-simplify the debate on returns to scale because of not accounting for the different effects of large farms. Other factors that significantly positively affect production include the soil quality and production orientation towards banana or cash crop production. Production seems to be negatively affected by field fragmentation. |
| Keywords: | inverse relationship, farm size, nonparametric, Burundi, Agricultural and Food Policy, Community/Rural/Urban Development, Environmental Economics and Policy, D24, O13, Q12, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99359&r=agr |
| By: | Silvestrin Zanon, Raquel; Macchione Saes, Maria Sylvia |
| Abstract: | Economies of scale are present in soybean production. In Brazil, the two largest producing regions have properties with different dimensions. In particular, the average size of properties in the South is much smaller than those in the country´s MidâWest region. This study analyzes the characteristics that favor smallâscale soybeanâproducing properties in the countryâs Southern region. Its theoretical framework is based on the Neoclassical theory and in Transaction Cost Economics. Questionnaires were applied to producers from the State of Rio Grande do Sul. A regression analysis shows the relation between the selected factors and property size. Results show that a greater use of labor, particularly of family employees, and the greater diversity of crops contribute to explain the existence of small soybean properties in South Brazil. |
| Keywords: | economies of scale, soybean production, small property, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization, Marketing, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100476&r=agr |
| By: | Hertel, Thomas W |
| Abstract: | The number of people which the world must feed is expected to increase by another 2 billion people by 2050. When coupled with significant nutritional improvements for the 2.1 billion people currently living on less than $2/day, this translates into a very substantial rise in the demand for agricultural production. Most past growth in the demand for food has been met by improvements in productivity, but there is evidence of declining growth rates for agricultural yields; climate-change is likely to have important impacts on productivity through changes in temperature and precipitation; land-based climate mitigation policies are also projected to lead to increasing pressure on agricultural lands. Meanwhile supplies of water for irrigation are under pressure, urban land use is on the rise, and demands for setting aside land for environmental purposes continue to increase. Clearly, an enormous amount of additional research on ways to deal with this potential âperfect stormâ is needed. This paper highlights the explores the roles of biophysical and economic uncertainty in these projections of long run land use change, using this to suggest a future research agenda. |
| Keywords: | Food Consumption/Nutrition/Food Safety, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100557&r=agr |
| By: | Sheng, Yu; Zhao, Shiji; Nossal, Katarina |
| Abstract: | Higher productivity among large farms is often assumed to be a result of increasing returns to scale. However, using farm-level data for the Australian broadacre industry, it was found that constant or mildly decreasing returns to scale is more typical. On examining the monotonic change in marginal input returns as farm operating size increases, it was found that large farms achieve higher productivity through changes in production technology rather than through changes in scale. The results highlight the disparity between âreturns to scaleâ and âreturns to sizeâ in Australian agriculture. They also suggest that improving productivity in smaller farms would depend more on their ability to access advanced technologies than their ability to simply expand. The implications for ongoing structural adjustment in Australian agriculture are discussed. |
| Keywords: | returns to scale, returns to size, production function, technology progress, structural adjustment, Australian agriculture, Agricultural and Food Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100711&r=agr |
| By: | Roberts, Deborah; Majewski, Edward; Sulewski, Piotr |
| Abstract: | Despite the emphasis given in EU agricultural policy to the local economic benefits of a maintaining a strong agricultural sector, relatively little research has focussed on the contribution farm households make to their localities. The lack of understanding is particularly acute given ongoing changes in the agri-food chain and changes in farm structures. The paper presents findings from an analysis of the direct transactions associated with a sample of farm households drawn from two European case study areas â Podlaskie, Poland and North East Scotland, UK. The results confirm that the concept of âlocalâ in relation to farm household transactions depends on the economic geography of the area under analysis. With the exception of off-farm work, farm households within North East Scotland study have more distant and spatially-concentrated transactions due to the consolidation of upstream and downstream agri-businesses in the region. In contrast, transactions in Podlaskie take place far closer to the holding and are more spatially dispersed. Farm size does not systematically influence input purchasing and output sales patterns in either area but farmer attachment and supply-side factors are shown to be significant influences on behaviour. |
| Keywords: | local, spatial concentration, farm households, Agricultural and Food Policy, R12, Q12, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99595&r=agr |
| By: | Trisorio, Antonella; Borlizzi, Andrea |
| Abstract: | Farming practices and the conservation value of farmland are intimately interconnected. The recent policy debate has shed light on the need to address farming activities towards a more sustainable path, and has advocated for a reallocation of payments towards farming systems that provide public goods. This paper aims to explore likely HNV farms policy needs through the use of HNV farming system indicators. |
| Keywords: | High Nature Value, monitoring and evaluation, biodiversity indicator, farming systems., Agricultural and Food Policy, Q18, Q57, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:100042&r=agr |
| By: | Meyer, Christian H.; Fritz, Melanie; Schiefer, Gerhard |
| Abstract: | Usually, marketing communication efforts in the agrifood sector address the end consumers and concentrate on products that are processed and ready for consumption, thus quality efforts often concentrate on the final product. Moreover, thereâs a widespread view that agricultural commodities like wheat arenât suitable neither for product focused marketing nor branding. However, recent developments in the in agrifood sector challenge this view. The increasing use of biotechnology, the globalisation of markets and changing consumer demands for quality, food safety and process attributes require improved communication concepts and information sharing along whole production chains. This paper considers the development of a quality communication system to support a regional wheat brand and prerequisites for quality management efforts. |
| Keywords: | prototyping, quality communication system, region of origin, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100595&r=agr |
| By: | Parks, Joanna; Smith, Aaron; Alston, Julian |
| Abstract: | The Effects of the Food Stamp Program on Energy Balance and Obesity |
| Keywords: | Food Stamp Program (FSP), Supplemental Nutrition Assistance Program (SNAP), obesity, body mass index (BMI), nutrition assistance, Food Consumption/Nutrition/Food Safety, Q18, H53, I12, I18, I38, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100692&r=agr |
| By: | Deimel, Mark; Theuvsen, Ludwig |
| Abstract: | Increasing competitive pressures as well as growing requirements with regard to quality and safety pose a continuous challenge for farmers in European agrifood netchains. Against this background, the significance of networkâwide collaboration has been pointed out in recent years â especially for German livestock farming (Petersen et al., 2007). In the literature, it is generally agreed that participation in specialized networks can be beneficial to the competitiveness of individual farms and firms (Gellynck, Vermeire and Viaene, 2006). The northwestern part of Germany â known to be one of Europeâs major centres of pig production â apparently provides good structural preconditions for farmsâ and firmsâ comprehensive network participation due to an agglomeration of potential interaction partners specialized in pork production. Nonetheless, empirical studies show that, despite these good preconditions, farmersâ participation in networks is often limited. Spiller et al. (2005) for instance, found weaknesses with regard to relationship quality between pig fattening farmers and slaughterhouses. This might be due to power inequalities as well as manifold principalâagent relationships in food supply chains characterized by information asymmetries and utilityâmaximizing behaviour that limits cooperation between supply chain partners and reduces transparency of food supply chains (Theuvsen, 2004; Hingley, 2005; Deimel, Frentrup and Theuvsen, 2008). |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization, Production Economics, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100590&r=agr |
| By: | Latvala, Terhi |
| Abstract: | The safety of food in the food chain has become an increasingly interesting issue to consumers and the media. It has also become a source of concern, as the amount of information on the risks related to food safety continues to expand. The purpose of this study was to identify factors contributing to consumersâ willingness to pay for increased quality information. The second purpose of this study was to examine what kind of information flows are required to ensure quality and safety in the food chain for beef, and who should produce that information. Studying the willingness to pay of consumers makes it possible to determine whether the consumers consider the quantity of information available on the safety and quality of beef sufficient. The empirical scope of the study was restricted to beef, because the beef labelling system enables reliable tracing of the origin of beef, as well as attributes related to safety, environmental friendliness and animal welfare. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, Risk and Uncertainty, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100594&r=agr |
| By: | Moro, Daniele; Sckokai, Paolo |
| Abstract: | In the near future the CAP will continue to be structured around two pillars. In the first pillar the main instrument for producersâ support is the decoupled Single Farm Payment. In this paper we review the methodological framework for analysing decoupled payments in models of agricultural production. Market and technological uncertainty, credit constraints, farm household choices involving extra-agricultural decisions, policy uncertainty and long-run impact of decoupling on investment and land values are the relevant issues that should be pursued by methodological and empirical analysis. Future research should refine the analysis of decoupled payments, mainly trying to provide results that can be useful for policy simulation, to bridge the gap between analysis at the individual level and sector policy models. |
| Keywords: | decoupled payments, agricultural production models, Common Agricultural Policy, Agricultural and Food Policy, Q12, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99836&r=agr |
| By: | Sauer, Johannes; Morrison-Paul, Catherine |
| Abstract: | We provide a new approach for assessing the cost of marginal ecosystem changes and the effectiveness of agri-environmental schemes. The approach is based on a theoretical and empirical analysis of the bio-economic production interactions between marketed outputs and non-marketed ecosystem services at the micro level. To frame the economic nature of the problem, we employ a generalized joint production model in combination with cost minimization. The generalized joint production framework allows for the consideration of complementary, substitutive and competitive relationships between agricultural production and non-marketed ecosystem services generation and avoids double counting. From this theoretical model we distinguish three theoretical cases depending on the imposed minimum acceptable level of the non-marketed ecosystem services. We employ farm level panel data for the UK to empirically investigate these cases. More specifically, to represent and evaluate the production structure, we estimate first- and second-order elasticities derived from a flexible transformation function. Results show that the majority of farms produce agricultural output and ecosystem services in a complementary relationship. Generation of multiple ecosystem services on the same farm showed either a substitutive or competitive relationship. A change in the composition of the ecosystem services output would have very different implications for individual farms. |
| Keywords: | agri-environmental services, bio-economic modelling, economies of scale and scope, Agricultural and Food Policy, Environmental Economics and Policy, Q18, Q57, Q58., |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99425&r=agr |
| By: | Berlinschi, Ruxanda; Van Herck, Kristine; Swinnen, Johan F.M. |
| Abstract: | Agricultural employment in industrialized countries has been steadily decreasing despite important levels of farm subsidies. We argue that one explanation to this puzzle is the positive impact of subsidies on the education levels of farmersâ children. If farmers are credit constrained, they may underinvest in their childrenâs education. By increasing farmersâ revenues, subsidies increase investment in education. If more educated children are less willing to become farmers, one long term effect of subsidies is to reduce labor supply in the agricultural sector. We provide a theoretical model and some empirical evidence supporting this argument. |
| Keywords: | Agricultural Employment, Farm Subsidies, Education, Credit Constraints, Agricultural and Food Policy, Q12, Q18, I20, J62, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99424&r=agr |
| By: | Severini, Simone; Cortigiani, Raffaele |
| Abstract: | Farmers face increasing income uncertainty and the debate is growing on the role of insurance schemes and of public support in this field. This paper applies a PMP modelling approach that takes into explicit consideration risk aversion behaviour to test its applicability to evaluating the potential impact of insurance schemes. This is done by introducing a revenue insurance scheme into a model developed on a small group of crop farms in Italy. The paper represents a preliminary assessment of the soundness of the proposed approach. It identifies some limitations that should be overcome to improve the proposed approach. Despite these limitations, it seems a useful tool to investigate the impact of insurance schemes and policy relevant parameters such as premium and coverage rates. Indeed, it permits the assessment of how this affects production choices, farm profitability and the impact of public support to reduce the net premium paid by farmers. |
| Keywords: | Insurance schemes, PMP, Farmersâ behaviour, Risk aversion, Agricultural and Food Policy, Q12, C61, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99431&r=agr |
| By: | von Davier, Zazie; Heyder, Matthias; Theuvsen, Ludwig |
| Abstract: | The volatility of agricultural markets has increased remarkably in recent years. In spite of this, the way in which supply chain actors perceive market volatility has only rarely been analyzed. This paper seeks to close this research gap by presenting empirical findings about how the volatility of agricultural markets is perceived, how increasing market volatilities are being explained, and what adaptations to the volatile external environments are being suggested. Based on a largeâscale media analysis, we have identified perceptions, which vary greatly over time, especially with regard to the perception of the threats and opportunities volatility creates for farms and firms and the most frequently identified reasons for volatile prices. |
| Keywords: | Agriculture, media analysis, public discourse, shared assumptions, volatility, Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100472&r=agr |
| By: | Fromm, Ingrid; Hartwich, Frank; Romero, Gustavo |
| Abstract: | In this paper we present results from a study on the use of improved coffee production technology schemes among smallholder coffee producers in three prominent coffee producing regions in Honduras. We analyze the impact of various schemes (trajectories) in which different agents influence the producersâ decision to use new technologies. In particular, we distinguish the influence of a) private coffee buying organizations and b) government and public development agencies on the innovation behavior of coffee growers. Drawing from network data that depict the internal and outbound connectedness of producers in three village communities in main coffee producing zones in Honduras, we applied tools of social network analysis to find out how interactions with certain agents, separately and cumulatively, has influenced their use of improved methods in coffee production and marketing. The results suggest that there are significant differences in the way that various providers of knowledge and technology, especially private buyers and development agencies, influence the farmersâ behavior towards innovation. The influence of buyers, according to our data, is focused on certification and quality aspects, whereas development agents focus on improved agronomic practices. We also find that farmers who communicate with the extension branch of input providers tend to be more innovative. These results suggest that development programs should take more seriously into account the role of private actors in innovation among agricultural producers and, hence, design development programs in such a way to allow for collaboration with these agents. |
| Keywords: | Coffee production, innovation, upgrading, social networks, Honduras, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, International Relations/Trade, Marketing, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100475&r=agr |
| By: | Povellato, Andrea; Longhitano, Davide |
| Abstract: | In the ongoing debate of CAP reform, a new tool was proposed for farms that aims to create a new market for ecosystem goods and services that may be provided by agriculture. The mechanism of floor and trade (FT) assigns each holding a "minimum of environmental goods" that must be provided at farm level to ensure sustainability and justifies the subsides received from CAP. In this proposal we will analyse what might happen in a limited region (Veneto) with the application of FT mechanism, given the geographical conditions and the structural situation of farms, using FADN data. More precisely, we seek to quantify the regional supply curve of environmental services, provided by agricultural activities in case of floor and trade mechanism. We will use as a proxy the amount of carbon that could be sequestered by less intensive farming systems such as grassland and pastures, compared with other more intensive activities, in order to examine the trade-off between the economic goals of farmers and the environmental benefits due to the land use change provided by FT. We will use as methodology the Minimum Data (MD) approach in order to integrate the spatial heterogeneity of the biophysical environment of the different agroecosystems, with economic behaviour of farmers in case of the obligations imposed by the FT mechanism |
| Keywords: | Floor and trade, Ecosystems service, FADN, Agricultural and Food Policy, Q-57, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:100040&r=agr |
| By: | Martino, Gaetano; Fritz, Melanie |
| Abstract: | Farmers Markets are receiving an increasing attention by both food chains actors and social scientists. Economic and sociological studies are contributing to the comprehension of these forms of exchange. Both consumers and producers are fostering their expectations about the renewal of a mode of exchange which sustained local productionâ consumptions linkages. The main economic function of these organizational structures seems to be the reduction of the price paid by the consumers and the enhancements of allocation of farm products. The basic interpretation of these forms of exchange focuses on market structure, nonetheless the exchange relationships seems to emphasize several dimensions, including economic and cultural aspects. The objective of the paper is of investigating the role of networks among producers and consumers in structuring and making viable the Farmer Markets as structures of short food supply chains. The basic idea is that the strength of Farmer Markets is the ability of satisfying the consumers expectations about a few characteristics of the products, entailing given cultural and economic aspects. The study argues that under this view the Farmer Markets may be thought of as a emerging form of productionâconsumption interaction. According to existing evidences it is suggested that the network is also the emerging forms of horizontal relationships among the producers participants to the markets. The paper aims at suggesting that basic types of trust act as key factor in structuring the networks and in promoting the stability of the market. |
| Keywords: | Farmers Markets, networks, trust, food chains sustainability, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, D4, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100592&r=agr |
| By: | Nuppenau, Ernst-August |
| Abstract: | This paper outlines how a team work approach, recently suggested in institutional economics to overcome the problem of externalities, can be used to promote better food quality. Cost sharing as âteam workâ is considered a novel institution to improve food quality by giving incentives to overcome the public good character of quality. We translate the approach from negative to positive externalities. Hereby: (1) We make a reference to the current state of the discussion on how food quality depends on efforts of a food industry to get a better image and discuss how much need there is to improve quality. (2) An outline of a mathematical approach of a âteam workâ is presented in the provision of quality as a positive externality and (3) the approach is adapted to a likely team building effort in a food industry. Finally some remarks are made how to stimulate a process of team building and the role of a government is addressed. At the core of the paper we see the argument that free riding on quality can be avoided if collective actions or team building processes occur in a community. A team is modeled as partnership of producers in which costs for quality improvement are shared. |
| Keywords: | food quality, team, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100460&r=agr |
| By: | Esposti, Roberto |
| Abstract: | This paper aims at evaluating the impact of the 2003 CAP reform on farm production choices. The 2003 Reform of the Pillar I and the Pillar II measures are considered as two distinct but interacting treatments eventually generating the expected outcome, that is, market (ri)orientation of farmers. The outcome of âmarket orientationâ is measured by considering both the short-term production choices and the long-term investment decisions. The Average Treatment effect on the Treated (ATT) is estimated through alternative versions of the Propensity Score Matching (PSM) estimator. Results show that the 2003 Reform of Pillar I actually had a role in (ri)orienting short-term farm production decision and this effect is significantly reinforced, especially in investment decisions, when Pillar II measures are also taken into account. Pillar I reform seems to prevalently affect short-run production decisions while Pillar II support, when present, influences long-run choices (investments). |
| Keywords: | Common Agricultural Policy, Farm Production, Treatment Effects, Propensity Score Matching, Agricultural and Food Policy, Q18, Q12, C21, O13, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:100216&r=agr |
| By: | Viaggi, Davide; Raggi, Meri; Sardonini, Laura |
| Abstract: | In evaluating the potential effects of the reforms of the Common Agricultural Policy, a particularly challenging issue is the representation of the complexity of rural systems either in a static or dynamic framework. In this paper we use Bayesian networks, to the best knowledge of the authors, basically ignored by the literature on rural development. The objective of this paper is to discuss the potential use of Bayesian Networks tools to represent the multiple determinants and impacts of the Common Agricultural Policies in rural areas across Europe. The analysis shows the potential use of BNs in terms of representation of the multiple linkages between different components of rural areas and farming systems, though its use as a simulation tool still requires further improvements. |
| Keywords: | Bayesian Networks (BNs), farm-household, multiple outcomes, Agricultural and Food Policy, Q1, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99592&r=agr |
| By: | Giannoccaro, Giacomo; Berbel, Julio |
| Abstract: | This research is a result of the CAP-IRE project which objective is the understanding farmerâs reactions under CAP scenarios by 2020. In particular this research aims to analyze the role of the current CAP design on the farmerâs decision process focusing on several environmental issues. The analysis is based on 2,360 observations of household farmers across 11 cases study in 9 EU countries. Intended responses of farmers to the CAP reforms are analyzed by logistic model regression. According to the results CAP scenarios would influence farmerâs decision on fertilizers and pesticides, as well as water use, while the highest effect is found for decisions on number of animal rearing on the farm. Factors determining reaction to the CAP scenario are monetary and non-monetary, as well as structural and spatial. CAP role appears to be non univocal and strongly case-specific, as it substantially differs across regions according to their socio-economic structure |
| Keywords: | Environmental sustainability, Farmerâs intended behaviour, Logistic regression, Agricultural policy, Agricultural and Food Policy, Environmental Economics and Policy, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99419&r=agr |
| By: | Caracciolo, Francesco; Cembalo, Luigi |
| Abstract: | Traceability can serve various purposes in the food sector, including that of chain quality control. However, the aspects that seem to be most frequently required of traceability are those related to food safety. Nevertheless, traceability systems development has recently shifted its focus from the major aspects of food safety to a price premium search approach. Although such an approach often appears to lie behind production strategies, there is no technical or theoretical evidence to support it: traceability systems do not guarantee, per se, quality. On the other hand, a rigorous traceability system that pursues multiple objectives involves costly procedures that are very likely to feed all the way up to the consumer side. The mainstream literature is rich in technical and economic studies on traceability. Nevertheless, little has been written on the effects of traceability costs on quantity demanded. While numerous studies show a higher consumer willingness to pay for certified products, it is not clear in what way and to what extent price increases affect the market. |
| Keywords: | Traceability, early potato, censored demand system estimation, sample selection approach, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, JEL classification: [D12, C31, C34], |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100503&r=agr |
| By: | Gellynck, Xavier; Kühne, Bianka; Weaver, Rob D. |
| Abstract: | The purpose of the paper is to explore how the perceived relationship quality is related to the innovation capacity in chains of the traditional food sector. Based on suggestions from theory and previous studies, empirical evidence is drawn from a survey of 90 traditional food chains including 270 companies from 3 European countries in 6 traditional food product categories. Heterogeneity across these chains is first examined based on cluster analysis that identifies three distinct clusters interpreted as reflecting three levels of intensity in innovation capacity: high, medium, and low. Next, we define measures of the chain relationship quality through characteristics such as trust, conflict and reputation. The quality of the chain relationship is then shown for each innovation capacity cluster and compared among the clusters. Results suggest that measures of the chain relationship quality may be important factors in providing both an institutional foundation and a member motivation for innovation. As chain relationship quality fosters sharing of resources necessary for innovation as well as sharing incentives, these results further strengthen the emerging conclusion from the literature that innovation can be catalyzed by policies encouraging firms to build strong relationships. |
| Keywords: | Innovation capacity, Chain relationship quality, Traditional food products, SMEs, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100498&r=agr |
| By: | Feil, Jan Henning; MuÃhoff, Oliver; Balmann, Alfons |
| Abstract: | In recent years, the dairy sector has been exposed to strong changes in general conditions and extreme fluctuations in milk prices. Farmers and lobbyists have therefore asked politicians for additional market regulation. In this paper an agent-based real options market model is developed, which allows the analysis of the effects of different political schemes on the willingness to invest, firm profitability and economic efficiency in the dairy sector. The model results show that political schemes generally increase the willingness to invest in competitive markets under consideration of real options effects. However, they do not offer any substantial financial benefits to the producers and can cause a significant reduction in welfare. Furthermore, the results suggest that investment subsidies are preferable to lower price limits because the welfare is less reduced under the same stimulation of the willingness to invest. |
| Keywords: | Real Options, Competition, Policy Impact Analysis, Dairy Sector, Agricultural and Food Policy, D81, Q12, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:100039&r=agr |
| By: | Sahara; Gyau, Amos; Stringer, Randy; Umberger, Wendy |
| Abstract: | A decade of strong economic growth, rapid urbanization and liberalization of foreign direct investment (FDI) are transforming Indonesiaâs food retail sector. Modern retail markets are reorganizing how food chains operate: requiring product homogeneity, grading, sorting, packaging, and supply consistency. Current literature suggests that improving relationship quality among food chain actors enhances efficiency. In Indonesia, chillies are a priority crop commonly produced by small holders and like many other cash crops several farmer-trader issues emerging in chilli supply chains. This paper attempts to segment chilli farmers according to their perception of the relationship quality with their buyers. Data was collected through a survey of 602 chilli farmers selling to the traditional market channel or supermarket channel in West Java, Indonesia. The segments/clusters are developed based on the perceptions of chilli farmers to three variables in relationship quality: trust, satisfaction and commitment. Price satisfaction and socioeconomic attributes are analyzed to provide further insights. Four distinct clusters are identified. The largest cluster (45% of respondents) considers they have a high level of relationship quality with their buyers/traders. |
| Keywords: | farmer-trader relationships, relationship quality, cluster analysis, Community/Rural/Urban Development, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100706&r=agr |
| By: | Duncan, Jessica; Hatt, Ken |
| Abstract: | This paper introduces an innovative, interdisciplinary food systems programme based on an openâsource pedagogical model that facilitates learning through the use of technology developed at the Universitat Oberta de Catalunya (UOC). We begin by explaining the structure and goals of the UOC and briefly introduce the UOCâs eâlearning model. We then consider the development of the Department of Food Systems, Culture and Society and explain our rational for focussing on food governance. We focus primarily on a set of mandatory introductory courses for the Masterâs Diploma in Food, Society and International Food Governance. These courses, which make up a certificate in Food Systems Analysis, lay out the fundamentals of our approach to the study of food systems. Finally, we consider an analytical framework used to examine the socioâpolitical context of contemporary food systems. Here, food systems are approached as an arrangement of activities clustered around trade liberalization, neoliberalized social formations, and a condensed state, which produce complex forms of food governance. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100588&r=agr |
| By: | Trienekens, Jacques H. |
| Abstract: | Currently, in most pork chains there is still a mismatch between delivered quality and expected quality, leading to unsatisfied customers and value losses because products are not sold against the best possible price. Differentiation of quality of pork starts already in the breeding stage, depends on feeding and living conditions of the animals at the farmer stage and is also influenced by the way the animals are transported and slaughtered. At the breeding stage a lot of research is being done that will eventually make it possible to use DNA technology to help guide breeding programs and to better predict the quality of animals and meat. However, because pigs are living creatures with a natural variation, 100% prediction accuracy is not to be expected and slaughterhouses still will have to cope with a large variation in quality characteristics, even within batches that come from the same farmer. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Marketing, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100470&r=agr |
| By: | Hingley, Martin; Boone, Julie; Haley, Simon |
| Abstract: | This study aims to understand local food and explore the barriers to development for small innovative food businesses. Research was conducted through depth interviews and a survey in NorthâWest England. Results indicate that small business success can be subjective and performance dependent on business aims. Identified were issues concerning access to finance, burden of regulations and the need for support from industry networks and government. Lack of an official and recognised definition of the term âlocal foodâ had implications for marketing strategy. Small businesses recognise that customers are increasingly concerned with food provenance and traceability, but that they and their representative associations need to do more to make these links. |
| Keywords: | Local, food, smallâbusiness, growth, UK, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100458&r=agr |
| By: | Alessio Cavicchi (Università di Macerata); Benedetto Rocchi, Matteo Baldeschi (Università di Firenze) |
| Abstract: | <div style="text-align: justify;">Farmers Markets (FMs) around the world are often considered as one key response to the less sustainable conventional food production systems. Despite the economic crisis, international studies show that the most important factor leading people to buy fresh products in these points of sale is the quality. In fact, consumers usually cite \better food quality", \locally produced foods", \higher social interaction" and \learning directly about the vendors and their food production practices", as the principal motivations in buying in FM environment. In this paper the results of a survey carried out in several FMs and shops in Tuscany are presented. A sample of consumers were interviewed on-site using a structured questionnaire. The attitude of respondent towards FM was assessed using a test scale composed of 16 items referring to five different features of this form of distribution, supposed to be relevant in the consumer choice: quality of products, direct contact with farmers, convenience, environmental sustainability, and support for rural development processes. The high level of reliability of the attitude scale allowed its use in performing a cluster analysis of observed units. The cluster analysis allowed to identify two groups of consumers with different characteristics both in term of socio-economic descriptive variables and in term of attitudes and motivations towards FMs.</div> |
| Keywords: | food miles,Alternative Food Networks (AFN),sustainability,Italy,Short Food Supply Chain (SFSC) |
| JEL: | D12 Q13 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:mcr:wpaper:wpaper00031&r=agr |
| By: | Buysse, Jeroen; Verspecht, Ann; Van Huylenbroeck, Guido |
| Abstract: | The paper uses the case of Flemish investment support to make a quantitative analysis of pillar II support based on micro-economic data from the FADN and the administrative dataset of the investment support fund. A dynamic panel estimation quantifies the effect of support for settingup young farmers, structural investment support and support for investments on farm diversification, animal welfare or environmental investments.. The results show that investment support for farm diversification and structural support increase the total output and the income. Environmental investment support increase costs and decrease the farm income without a significant impact on output. The conclusion for the national debate is that the structural and the diversification investment support is effective while the environmental investment support is too low to cover all additional costs in the short run. The conclusion for the international debate is that, except for the structural investment support, the Flemish investment support is not distortive for international agricultural markets. |
| Keywords: | Pillar II, Investment support, decoupled subsidies, dynamic panel estimation, Flanders, Agricultural and Food Policy, Q12, Q18, Q51, Q52., |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99596&r=agr |
| By: | Rosa, Franco |
| Abstract: | Farmer market, farmer shops, milk dispenser, 0âKm are some of the new born initiatives for trading agricultural products at (or near) the farm gate, now spreading in EUâUSA; their purpose is to offer to the farmers the chance to trade directly their products, and offer to the consumers new shopping opportunities alternatives to conventional food marketing outlets. This study was addressed to test the customer satisfaction at the farmersâ shops created by a farmer cooperative. The experiment was performed in Friuli VG a NorthâEast region of Italy, with a survey using a questionnaire submitted to a number of customers randomly selected at the end of their shopping. The customer satisfaction (CS) was evaluated with the SERQUAL procedure consisting in measuring the discrepancy between consumerâs perception and expectation of their shopping experience. The results suggested the following observations: the majority of customers was over 50âs, with an income less than 20 thousand â¬; they appreciated the variety and origin of the products and criticized the scarcity of space inside the shopping, parking and payment facilities. The frequency of shopping varied from once or twice a week to once a month while the average expenditure at farmersâ shops varied between 20â25 ⬠per visit. The usual food shopping was made at different market stores (from two to four) but most of the food budget was spent at the LD (Large distribution). Eight different consumerâs profiles were elaborated based on the results of the CS using the cluster analysis. Compared to other retailing facilities, consumers generally expected to find a better food quality, lower prices and were not strongly concerned about brand and packaging strategies, more important at the LD shopping. Quality, freshness and courtesy were the mostly appreciated attributes of this shopping experience, while critics were addressed to the scarcity of space inside the shops, difficulties in parking, payment facilities and market visibility |
| Keywords: | Farmer markets, short chain, direct selling, customer satisfaction, shopping point, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100459&r=agr |
| By: | Tait, Peter; Miller, Sini; Abell, Walter; Kaye-Blake, Wiliam; Guenther, Meike; Saunders, Caroline |
| Abstract: | Concerns about climate change and the general status of the environment have increased expectation that food products have sustainability credentials, and that these can be verified. There are significant and increasing pressures in key export markets for information on Greenhouse gas (GHG) intensity of products throughout its life-cycle. How this information is conveyed to consumers is a key issue. Labelling is a common method of communicating certain product attributes to consumers that may influence their choices. In a choice experiment concerning fruit purchase decisions, this study estimates willingness to pay for sustainability attributes by consumers in Japan and the UK. The role of label presentation format is investigated: text only, text and graphical, and graphical only. Results indicate that sustainability attributes influence consumersâ fruit purchase decisions. Reduction of carbon in fruit production is shown to be the least valued out of sustainability attributes considered. Differences are evident between presentation formats and between countries, with increased nutrient content being the most sensitive to format and country while carbon reduction is the most insensitive and almost always valued the least. |
| Keywords: | Willingness to pay, Choice experiment, Food labelling, Sustainability, Cross-country comparison, Agricultural and Food Policy, Consumer/Household Economics, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Q18, Q51, Q56, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100716&r=agr |
| By: | Finger, Robert; El Benni, Nadja |
| Abstract: | Using FADN data, we analyse farmersâ adoption decisions with respect to extensive wheat production, which is supported in Switzerland since 1992 with an ecological direct payment scheme. It shows that first year adoption was mainly characterized by free-riding effects. In particular small farms with low levels of input use and wheat yields adopted extensive wheat production. If later adoption phases are included, these differences in farm size between adopters and non-adopters vanish. However, the level of wheat yields is still an important adoption determinant. Less intensive producing farms (with lower yield levels) are much more likely to adopt extensive wheat production. In contrast, more intensively producing farms, i.e. those farms that may actually harm the environment, usually not adopt extensive wheat production. Thus, aggregated environmental effects of this programme may be limited and the effectiveness of voluntary participation in agricultural environmental protection programmes should be re-considered. |
| Keywords: | Extensive wheat production, agri-environmental programme, adoption analysis, Switzerland, Agricultural and Food Policy, Farm Management, Q1, Q5, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:98979&r=agr |
| By: | Adinolfi, Felice; Capitanio, Fabian; Pascucci, Stefamo; De Magistris, Tiziana |
| Abstract: | In this paper a (micro)econometric approach is developed by considering the farmer likelihood to participate in different policy programs as linked to the objective of farmer to maximize their welfare. In this way we model farmers participation in policy support scheme by using a new institutional economics approach and conceptualizing the decision to entry as a contractual choice between two rural development types of policy. Different discrete choice modelling approaches are used to analyze the complementarity/ substitutability of different policy programs such as environmental-related measures and farm investment supports policy schemes and the main driving factors behind them. We use an extensive cross-sectional database related to the Italian FADN 2006. Results indicate that social capital and institutional factors should be taken much more into account in order to understand farmers likelihood to entry in policy support schemes. Location and farm(er) socio-economic features are also relevant factors. Moreover complementarity has been found between different policy schemes. |
| Keywords: | Rural development policy, contract design, discrete choice modelling, Italy, Agricultural and Food Policy, Q12, Q18., |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99418&r=agr |
| By: | El Benni, Nadja; Mann, Stefan; Lehmann, Bernard |
| Abstract: | The switch from market-support to direct payments in Switzerland had impacts on the income distribution among farmers. In this paper, the distributional effect of the switch as a whole and of the different kinds of direct payments are elaborated through a presentation of different decomposed Gini coefficients. Although the income distribution in Swiss Agriculture is still more equal than in most other countries, the Gini coefficient has risen from 0.27 in 1990 to 0.38 in 2009 and is by now strongly dependent on the composition of direct payments. Off-farm income and direct payments decrease, while market income increases income inequality. |
| Keywords: | income distribution, direct payments, Gini decomposition, agricultural policy, Agricultural and Food Policy, Q00, Q18, Q28., |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99368&r=agr |
| By: | Ahmed, Sharmina |
| Abstract: | Participation in the informal land market by farmers is always common in land scarce rural Bangladesh in response to failure of implementation of administratively based land reform system to meet increasing demand for cultivable land and to minimize discrepancy in distribution of factors at the farm level. The objective of the present study is to jointly determine the socio-economic factors underlying decision to lease-in or lease-out land and conditional on these decisions, tenant-land lord's choice of accepting and offering of share versus fixed rent contracts in rural Bangladesh agriculture. The focus is on the risk averseness and moral hazard problem for tenant land lord respectively. An empirical model of contract choice for both parties (tenants and land lords) is compared against a data set from a sample survey of IRRI and finds a mixed evidence of risk averseness among tenants and moral hazard problem among land lords. However, we find attributes of the land lord plays more important part to offer either a sharecropping contract or fixed rent contract than tenantââ¬â¢s attributes to choose a contract between two alternatives. This indicates a monopoly power of land lords in Bangladesh in the informal tenancy market. |
| Keywords: | Farm Management, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100529&r=agr |
| By: | Bertazzoli, Aldo; Ghelfi, Rino; Samoggia, Antonella; Rivaroli, Sergio |
| Abstract: | The aim of the paper is to analyse value sharing and food system dynamics of milk, tomato, and cereals food chains, so to explore the agroâfood enterprises capacity to be competitive and sustainable. The paper is based on the functionalist approach of Malassis and the notion of the system of the General Systems Theory. The methodology is aimed at creating a consolidated financial statement for each food chain so to reâcreate the chain value and identify how this is shared among the different food chain stages. The analysis is carried out on primary and secondary data: around 2400 financial statements concerning 480 enterprises from 2003 to 2007 and stakeholdersâ interviews. Results show that value is usually created in the processing and distribution stages, to the detriment of the primary sector, and that the retail managing practices tend to impose damaging structural changes on farms whose profitability is at times becoming sustainable only thanks to European subsidies. To conclude, there is evidence of inadequate definition of strategic and network alliance along the chain. Competitiveness is still a concept achieved by single food chain stages against others and food chain internal competition entails a declining sustainability of small farms and enterprises. |
| Keywords: | food chain, value system, economic performance, potato, fruit, cheese, Agribusiness, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100509&r=agr |
| By: | Kriege-Steffen, Astrid; Boland, Hermann; Lohscheidt, Julia; Schneider, Flurina; Stolze, Matthias |
| Abstract: | Nowadays the food market is very complex and anonymous. Consequently, consumer trust in food has become a key issue for food choice. For example, the production process of food is not always transparent for consumers. To provide more transparency and to enhance consumer trust, different initiatives communicating traceability to the consumers exist. Visualised traceability systems such as the initiative âBio mit Gesichtâ allow consumers to gather information about the farmer who has produced the food as well as information about his farm and family. This study explores consumer trust in organic food, the impact of trust in the buying decision and the effectiveness of enhancing consumer trust by communication strategies on traceability. The research is grounded on the general finding that trust is one of the most crucial aspects when consumers decide whether or not to buy organic products. The study consists of two tasks, a quantitative and a qualitative survey. In this paper the focus is laid on the second task, a qualitative survey. The used method is the structureâformationtechnique. The aim is to combine an interview with a visualising technique. With the help of this method the factors which influence the decision of consumers to buy or not to buy organic food should become clear. Furthermore, the role of trust in the buying decision will be explored. Moreover, an investigation should be made as to whether or not traceability systems influence consumer trust in organic food. This research is currently being conducted but preliminary results can already be presented. The results of the study will help develop communication strategies for enhancing consumer trust in organic food. |
| Keywords: | consumer trust, organic food, traceability systems, structureâlayingâtechnique, Agribusiness, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100504&r=agr |
| By: | Barnes, Andrew P; Revoredo-Giha, Cesar; Sauer, Johannes |
| Abstract: | A regional approach is applied to measure technical efficiencies on dairy farms which employs the deterministic metafrontier approach. We construct six super regions for the UK, i.e. Eastern, Western, Northern England, Wales, Scotland and Northern Ireland. Data are collected through three different administrative systems, all be it under the same FADN guidance. We find for dairy farming comparative indicators of performance in all three data sets. The stochastic frontier approach is applied to construct 6 regional frontiers and a pooled (UK) dataset for comparison. A likelihood ratio test rejects the null hypothesis that these regions operate under a common frontier which may indicate bias in previous attempts to measure dairying efficiency at the country level. Mean technical efficiencies are high for the period 2005 to 2008, though there is some indication that little technical progress has occurred since decoupling of CAP payments from production in all regions. The metafrontier presents estimates against a common technology and mean scores range from below 0.50 for the English regions and Northern Ireland, 0.52 for Wales and 0.56 for Scotland. This paper promotes the application of the deterministic metafrontier approach for similar sub-country studies. |
| Keywords: | Stochastic Production Frontiers, Metafrontiers, UK Farm Account Data, Dairy farming., Agricultural and Food Policy, Q12, D24, C23, C51, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99369&r=agr |
| By: | Zhang, Yu; Ni, Jianhong; Zhang, Sizhu |
| Abstract: | The possibility of using biomass as a source of energy in reducing the greenhouse-effect imposed by carbon dioxide emission and relieving energy crisis is a matter of great interest, such as bioethanol production. Nevertheless, the cultivation of dedicated energy crops dose meet with some criticisms (conflict with food security and environmental degradation, for example). Nowadays sugarcane and cassava are regarded as the potential energy crops for bioethanol production. Endowed with natural resources and favorable weather condition, Yunnan province, China, is the major sugarcane and cassava production area in China. This paper presents production structures of these two crops in Yunnan and compares the sustainable production between the usages of sugarcane and cassava as bioethanol feedstock. Firstly, we estimated the technical efficiency for sugarcane and cassava production by adopting the production function and stochastic frontier production function. Field surveys from 61 sugarcane farmers and 50 cassava farmers were collected in June and September, 2008. Secondly, the sustainability of each crop production was evaluated. Since there is no generally accepted definition of sustainable production, a set of criteria was defined including 2 concerns (employment and food supply) from socio-economic area and 3 concerns (conversion rate to ethanol, water requirement, and fertilizer pollution) from environmental area. Empirical results demonstrated that the average production function was located below the frontier production function, 5% for sugarcane production and 7% for cassava production. These findings reflect the existence of technical inefficiency not only in the sugarcane production but also in the cassava production as well. But after considering sustainable production, cassava, which requires low agro-chemical, should be recommended as a prior energy crop in Yunnan with higher rates in ethanol conversion and dry matter. |
| Keywords: | International Development, Production Economics, Energy crop, stochastic frontier production, Sustainable production, Yunnan province, Bioethanol, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100737&r=agr |
| By: | Valenzuela, Ernesto; Anderson, Kym |
| Abstract: | Recent analyses of the possible adverse effects of climate change on agriculture in developing countries have raised food security concerns, especially for farm households whose crop productivity is expected to fall. The present study uses the GTAP global economy-wide model to capture at the same time the expected positive effects on temperate zone crop productivity, which will more or less offset the upward pressure on farm product prices from yield falls in developing countries. Also modelled is an expected adverse effect of higher temperatures and humidity on the productivity of unskilled workers in the tropics, but since they work in nonfarm as well as farm activities the net effect of that shock on agricultureâs competitiveness is an empirical matter. The results suggest there may be less cause for concern over food security than some earlier studies indicated, but the degrees of uncertainty involved in such modelling are sufficient to warrant a precautionary approach. |
| Keywords: | Climate change, crop and labour productivity growth, global computable general equilibrium model projections, Productivity Analysis, D58, F17, Q17, Q24, Q54, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100531&r=agr |
| By: | Deppermann, Andre; Grethe, Harald; Offermann, Frank |
| Abstract: | This study is concerned with measuring impacts of the Common Agricultural Policy (CAP) on farm income distribution of western Germany. Not only the sheer contribution of market price support and direct payments as a proportion of income is taken into account, but also the impact of support on production incentives. For this purpose, we apply a modelling system consisting of a partial equilibrium model and a programming model. Based on a comparison of Gini coefficients and a decomposition of overall inequality effects we conclude that liberalization of the agricultural sector leads to a more unequal distribution of family farm income in relative terms, whereas a liberalized market provides a more equal situation in absolute terms. |
| Keywords: | Income distribution, CAP, Farm Group Model, Equilibrium Model, Agricultural and Food Policy, Q11, Q12, Q18, C54, C6, D31, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99428&r=agr |
| By: | Pascucci, Stefano |
| Abstract: | In this paper we use a combination of behavioral and new institutional economic perspectives to look at the transactions of âsustainableâorientedâ foods (e.g. organic food, fair trade, etc.) which often assume the characteristic of credence goods. When credence attributes are involved in the transaction (e.g. safety, fairness, etc.) information asymmetry and uncertainty tend to reduce the likelihood of different parties to enter in the transaction1. Because spot markets are unlikely to be used in this type of transactions, typical solutions are the use of hybrids, vertical integration and public monitoring (Vetter and Karantininis, 2002; Ménard and Valceschini, 2005). Moreover both consumers and producers (e.g. farmers) look at these products from a more utilitarian (cold) then a hedonic (hot) perspective. In this paper we address this issue by analyzing the effect of a ânewâ governance structure (GS) which is emerging in credence food transactions both at local and global level. We define this GS as a community network (CN) in which consumers and producers strongly integrate their goals by organizing a âclubâ. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100591&r=agr |
| By: | Watanabe, Kassia; Zylbersztajn, Decio |
| Abstract: | The purpose of this article is to study the transplantation of complex agroâindustrial systems. The main focus is the analysis of the biodiesel system in Brazil using the AgroâChain System approach (AGS). The AGS analysis considers the institutional and organizational environments and verifies how a governance structure evolves as the institutional environment changes. The methodology used is a case study of the biodiesel chain system in the State of Minas Gerais â Brazil. This local system developed as a result of governmental incentives. The present studyâs contribution is that it identifies the main obstacles to implementing agro chains and networks involving regions and actors that do not have previous history of productive organizations. |
| Keywords: | Transplant of agroâindustrial systems, bioâenergy production, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100499&r=agr |
| By: | De Vivo, Carmela; Henke, Roberto; Pupo D'Andrea, Maria Rosaria; Vanni, F. |
| Abstract: | One of the main objectives of the 2003 CAP reform was that to enhance farm competitiveness and make farmers able to catch market signals and adjust their production level and specialization accordingly. The aim of the paper is to evaluate the effects of decoupling in Italy COP sector comparing the estimated results of some structural and economic indicators of a sample of farms before and after the 2003 reform using data from the Italian Institute of Statistics and of the Italian Farm Accountancy Data Network (FADN). The analysis shows an improvement of income in farms that kept COP production specialization through the years under study. At the same time, farms that opted for a different specialisation in the post reform period improved their economic performance. All this suggests that coupled support had become a constraint rather than an opportunity and that the 2003 reform, decoupling farm support from production, has contributed to a more efficient and market-oriented COP sector in Italy. |
| Keywords: | CAP, decoupling, Italian FADN, COP sector, Agricultural and Food Policy, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:98984&r=agr |
| By: | Taylor, Philip |
| Abstract: | Since the 1970s, there has been a broad shift from armâs length to long-term strategic alliance procurement practices across nations and industries. This has happened for sound commercial reasons. Peculiarities of agricultural production have slowed this shift in many food industry sectors, but it is now proceeding apace â driven primarily by rapidly globalising supermarket chains. In most Australian agri-food sectors, few firms have the scale or level of sophistication that would make them attractive strategic alliance partners either for international food retailers or for their category managers. The reasons for this include a combination of past government failures (inappropriate policies) and failures or inefficiencies in a range of information markets. The long-term nature of strategic alliances generates significant first-mover advantages for suppliers. Australian food producers risk being locked out of attractive opportunities if they fail to adapt to the new mode of contracting. For regional economies, the long-term benefits from accelerating strategic alliance adoption are likely to be large. Such benefits will flow on to many who are not usually considered private beneficiaries of that adoption. In other words, there are significant public benefits in prospect. While the results of past government intervention in this field have been mixed, there has been much learnt internationally from such experience. In Australia, many of the inappropriate policies have now been reversed and the prospects for cost-effective government assistance in the relevant information markets are good. |
| Keywords: | Agri-food industry sectors, strategic alliance contracting, value chain, government assistance, Agribusiness, Agricultural and Food Policy, Marketing, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100718&r=agr |
| By: | Spreen, Thomas; Dwivedi, Puneet; Goodrich-Schneider, Renee |
| Abstract: | This study is a part of a comprehensive study which attempts to create a baseline of global warming impact (expressed in total greenhouse gas emission and measured in terms of carbon equivalent) associated with the production and consumption of a gallon of orange juice available in the form of NFC (Not from Concentrate) and FCOJ (Frozen Concentrated Orange Juice) in Florida. A detailed lifeâcycle approach is adopted and greenhouse gas emissions of all the steps in the supply chain starting from citrus nursery management to the point where customer purchases juice from a food store are considered. This study reports total greenhouse gas emission related with the management of an acre orange grove under the two scenarios of with and without resetting of trees lost due to normal attrition. It was found that total emission of greenhouse gas (carbon equivalent) for one gallon of orange juice produced under the scenarios of without and with resetting was 1.92 and 1.60 pounds, respectively. Carbon sequestered in orange trees was not considered in the present study. |
| Keywords: | Greenhouse Gas Emission, Orange Juice, LifeâCycle Analysis, Florida, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100461&r=agr |
| By: | Brown, Colin; Waldron, Scott |
| Abstract: | In its ongoing efforts to identify more socially inclusive forms of development that target households in rural areas of Tibet, the Chinese central government has begun to focus more attention and resources on agricultural modernisation and development. Although agriculture continues to play a pivotal role in rural areas of Tibet, the nature of agriculture and rural society is changing.3 This paper first highlights some of the macroâlevel changes that are occurring and some of the underlying drivers behind these changes. It then describes a model used to understand farm household systems at a microâlevel for the main agricultural areas of the Yalong river and its tributaries . The models explore the impact of agricultural innovations and changing agricultural practices on household consumption, resources, and economic returns. Although the model and analysis are still in a preliminary stage, they reveal detailed insights about the role of agriculture in the livelihoods of Tibetan farm households. |
| Keywords: | Community/Rural/Urban Development, International Development, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100729&r=agr |
| By: | Crean, Jason; Millham, Nick; Singh, Ranjinder Pal |
| Abstract: | The irrigated rice-wheat cropping system is the predominant and most profitable farming system in north-west India, especially in Punjab. However, there are growing concerns about the environmental effects of the system, particularly with the practice of burning rice stubbles, due to its adverse effects on human health and air pollution. In this paper we consider the wide array of policy settings that tend to favour current land uses and management practices and their impact on the farming system over time. As part of an ACIAR-funded project, we assess the significance of these policies with a view to considering what additional or alternative policies could be put in place to encourage the adoption of approaches or technologies directly concerned with reducing the practice of stubble burning. We conclude that many of these policy settings limit the gains from technology adoption and might be better addressed prior to considering policies aimed at specific technological solutions. |
| Keywords: | agricultural policy, air pollution, stubble burning, technology adoption, India, Agricultural and Food Policy, Crop Production/Industries, Land Economics/Use, Political Economy, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100686&r=agr |
| By: | Burdack, Doreen; Baldwin, Claudia; Lotze-Campen, Hermann; von Witzke, Harald |
| Abstract: | In the Australian Murray-Darling Basin (MDB) the combination of severe and prolonged droughts and historic water management decisions to divert water for cultivation stressed water resources in such an intensive manner that wetlands went dry and rivers are now far from a natural flow. More appropriate water management policies must be implemented to restore ecological function. However, with 39 % of Australiaâs total value of agricultural production, transitions in use need to be managed to minimise economic and social impacts on basin communities while they adjust. Recent studies estimate that industries with high water usage but lower or more volatile value products will be impacted more than higher value products. Therefore, this studyâs focus is to analyse different water management policies and their impacts on agricultural production, particularly changes in production of water low value and water high value crops and agricultural water consumption. By applying the Water Integrated Market (WatIM)-Model, benefits and costs of water management policies can be evaluated by identifying changes in quantities, prices and economic welfare, such as consumer and producer surplus. The WatIM-Model is a multi-market model combining water low and water high value crop markets and the water market with its supply and demand. Since the MDB is a complex system with different types of agriculture and water sharing rules in each catchment, economic variables are aggregated in the WatIMModel to examine overall trends and changes in the MDB. By the assumption that policy decisions on one market cause reactions on prices, supply and demand on other markets, market interdependencies can be derived. With these results, the merit of shifting production from water low value crops to water high value crops is examined and advantages and disadvantages of water management policies can be determined. This enables refinement of water management policies to optimise social, economic and environmental outcomes. |
| Keywords: | Water market, water management policy, agriculture, sustainable water allocation, Resource /Energy Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100534&r=agr |
| By: | Ventura, Flaminia; Diotalllevi, Francesco; Ricciardulli, Nicolletta; Berletti, Maria |
| Abstract: | The agri-food sector is characterized by very heterogeneous agreements and formal and informal contracts aimed to create stable relationships among firms. In this scenario, the actors are linked by common interest in creating and distributing added value. In the network, the risk and the responsibilities are shared by the participants and the transaction costs are reduced by the presence of dynamic flows of information and knowledge. Consequently, the creation and development of agri-food networks is a main objective of regional administration in their Rural Development Plans. The article item is the presentation and the discussion of the methodology used for the evaluation of Integrated Measures Project (Progetti Integrati di Filiera, PIF) presented by firm networks and agri-food chains in Veneto. The result are demonstrated extremely interesting about the understanding of PIF. Moreover, the comparative study serve to understand the result in terms of competitive advantage and income for the farmers. |
| Keywords: | agri-food networking, food-chain policy, Rural Development Programme, Agricultural and Food Policy, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:100281&r=agr |
| By: | Cicia, Gianni; Colantuoni, Francesca |
| Abstract: | Several researches evaluated consumersâ Willingness To Pay (WTP) for each meat traceable attribute, generating a lot of information in this regard, although related to the conditions of each study. In light of this, WTP estimates for traceability characteristics largely differ across the literature, leading sometimes to contrasting interpretations. Seeking a full, meaningful statistical description of the findings of a collection of studies, the metaâanalysis allows us analyzing the consistency across studies and controlling for factors thought to drive variations in WTP estimates. The metaâanalysis has been conducted of 23 studies that, in aggregate, report 92 valuations for WTP. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100593&r=agr |
| By: | Reynolds S. Pacheco de Carvalho, Bernardo M. T. |
| Abstract: | The discussion about bioenergy solutions and respective interaction with food security concerns continues to be a difficult subject in the international arena. The academic efforts to address the issue should be based on facts and models that allow a sound decision process. However, beyond theoretical considerations and model implications, the facts based on case studies provide, probably, the most powerful arguments, mainly when they are supported by some rationalization and a chosen reference model. The research we want to discuss is based on the study of the two major countries and âplayersâ in the bioenergy initiatives and related agricultural changes driven by that process, USA and Brazil. The key factors to study the subject are markets, institutions and regulation needs, within a systematic approach, beginning with sustainability considerations (environment impacts), market behaviour and food prices and opportunities âversusâ risks at local and global levels. For agribusiness opportunities it seems evident that bioenergy alternative is a powerful area for intervention mainly in less developed countries with available land resources. On the other hand, markets and mainly food markets need to be under consideration which might require institutional innovation and different forms of regulation, both public and private regulation. More regulation does not mean, necessarily, less markets and more state intervention. In some cases it can be a decisive factor for better markets and more market economic driven changes. The actual research also provides examples of private regulation with good results. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100501&r=agr |
| By: | Listorti, Giulia; Kempen, Markus; Girardin, Jean; Kranzlein, Tim |
| Abstract: | Within WTO agricultural negotiations, this paper deals with alternative criteria for the selection of sensitive products. Existing methodologies mostly rely on the analysis of tariffs and trade flows. On the contrary, assessments of the economic impacts on specific groups of stakeholders, namely the domestic agricultural sector, are missing or conducted at a high level of product aggregation. We hence develop a methodology that considers the effects of the selection of sensitive products on domestic agricultural prices. Our model, TRIMAG (Tariff Reduction Impact Model for Agriculture), defined at the 8-digit level, optimizes the domestic agricultural value added subject to a maximum number of sensitive tariff lines. The existing methodologies are applied to the Swiss tariff schedule and results compared with those of TRIMAG. Findings confirm the importance of developing sound economic criteria for the exante impact assessment of policy flexibilities. Furthermore, TRIMAG can be considered as a tariff aggregation tool that can be linked to agricultural simulation models that operate at a higher level of aggregation. |
| Keywords: | WTO agricultural negotiations, market access, sensitive products, Agricultural and Food Policy, International Relations/Trade, F13, Q17, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:98986&r=agr |
| By: | Coppola, Adele; Verneau, Fabio |
| Abstract: | Food is a very sensitive area and the most intimate form of consumption. Consumer choice is known to be strongly affected by emotional factors usually not taken into account in economic analysis. At the same time it is clear that such emotional factors can affect consumer behaviour and market reactions above all when there are scandals and concerns. One of the emotional aspects that seems to dominate consumer behaviour in the food sector is soâcalled magical thinking which leans on two different pillars: the contagion principle and the similarity principle. The contagion principle affects the concept of naturalness which, according to cognitive psychologists, is a key factor in determining consumer preferences. The main element stemming from this psychological approach is the generalised superiority which characterises those foods which are perceived as natural by consumers. It has also been observed that the specific kind of processing as well as the adding or subtracting of unnatural elements can modify the perception of naturalness and the degree of acceptability for food products. A survey which bore all such considerations in mind was conducted on a sample of 180 people interviewed shortly after their shopping trip to superâ and hyperâmarkets in the province of Naples. A questionnaire was submitted to sample in winter 2009. The questionnaire collected information about the perception of naturalness and its role in determining consumer preferences for different food products and different kinds of processing. A specific section of the questionnaire covered a case study and gathered information about the willingness to buy a specific food product: pasteurized and microfiltered fresh cowâs milk. This product has the same nutritional qualities and the same taste as fresh pasteurized cowâs milk, but has a longer shelfâlife due to specific technology. On the basis of the results and by using a binary model, consumer willingness to purchase the specific milk was estimated. The findings permit an analysis of the role that both different types of product processing or manipulation and the various forms of innovation can play in determining levels of trust and modifying the discrepancy between objective and perceived quality. |
| Keywords: | food technology, consumer perception, contagion principle, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Marketing, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100468&r=agr |
| By: | Fanfani, Roberto |
| Abstract: | Because of the growing influence of China, the rapid economic development and the transformation of Chinese society have attracted the attention of analysts, politicians and mass media. There are, however, many aspects of these changes that are less well known. This is not only because of the sheer size of China â with a population of more than 1.3 billion â but also because of the lack of information on the enormously large and varied rural areas, where still now more than 55% of the Chinese population lives. The great reform of the Chinese economy began 30 years ago in 1978. The basic change was liberalization of foreign trade, the soâcalled âOpen Door Policyâ. This involved a deep reform of the economy and in particular of agriculture, which entailed the dismantling of the collectives and the establishment of a familyâbased farming structure, the soâcalled âHousehold Responsibility Systemâ. The rapid development of the Chinese economy in recent decades is the result of the combined effect of these reforms. However the role that reforms in agriculture and rural areas have played in this transformation have often been overlooked, and in particular the effect of reliable food supplies on a continually growing population, such as the Chinese one. The great reduction in hunger and malnutrition, which in the past affected millions of Chinese citizens, has had a decisive impact on the reduction of poverty, thus increasing the social stability of the whole country. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100511&r=agr |
| By: | Kayser, Maike; Böhm, Justus; Spiller, Achim |
| Abstract: | The agriâfood industry has improved its productivity, especially in developed countries, in an unparalleled way. This development has, however, estranged the agriâfood sector in parts from society over the years. Never before has food been as safe and secure, but simultaneously, society has become increasingly critical towards agricultural and food related issues. In the following, this twoâsided development between society and agribusiness â the existence of two sides of the same coin â will be analyzed using framing theory, which is based on media research that complex issues are simplified and reduced in order to improve understanding. An innovative technique was applied, analyzing the webâbased social media in Germany. 50,931 web posts were collected in German web discussion forums and weblogs covering 21 issues identified as relevant in the public discourse with regard to the agriâfood sector. All posts were analyzed with quantitative semantic software to characterize the respective framing. The results show that all contentious issues are mainly framed in a twoâsided way. The modern productivityâdriven agrifood industry is judged as a negative development, and trends returning towards a more natural food production are seen as positive. |
| Keywords: | AgriâFood Industry, Framing, Image, Issue Management, Social Media, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100587&r=agr |
| By: | Mikkola, Minna; Risku-Norja, Helmi; Post, Anna |
| Abstract: | Food businesses feel the call for sustainable development (SD). This paper about the Finnish and Swedish food system actors about their understanding of and activities towards sustainability shows that there is commitment for solving aspects of sustainability and different strategies to do this. However, the food businesses also seem to get entangled with various dilemmas regarding sustainability, and to perceive contradictions between economic, environmental and social issues; however, these situations may also turn synergistic. The businesses studied expressed commitment to sustainable solutions interpreted by their sustainability strategies. The first identified strategy was a 'selfâmade' effort, whereby businesses absorbed economically, environmentally and socially 'positive' ideas and implemented them in their activities. The second strategy was based on labels and included the certification of the environmental and/or social quality management system, the use of particular labelled products and local food. The third strategy for critical coâoperation within the chain meant learning about oneâs food networks in coâoperation with other network actors, experts or brokers. These strategies seemed to impact differently on the sustainable development of the organizations on the one hand and the chain level on the other. Label based strategies offered more visibility than âselfâmadeâ strategies, which may, however, support extensive sustainability efforts or remain narrow saving strategies implying the risk to miss the opportunity for chain level development. As a rather rare approach, the critical coâoperation strategy may upgrade sustainable developments both on the organizational and chain level. Participatory research supporting creative and contextual sustainability developments was suggested as a promising future option for food businesses to aim at organizational and system wide SD. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100462&r=agr |
| By: | Lovo, Stefania; Magnani, Riccardo; Perali, Federico |
| Abstract: | This paper develops a multi-regional general equilibrium model (MEG-R) to compare the social desirability of the CAP reform in the three Italian macro-regions: North, Center and South. The model employs a mixed complementary framework that allows for the decision of not producing a particular crop in one or more regions and presents an attempt to model interregional trade flows. The model incorporates the links between production and consumption that characterize farm householdâs behavior and allows for heterogeneous household responses across regions. Results show a general tendency to reallocations from cereal crops to forage that appear more severe in the South. In this region, the reduction in crops cannot be translated into an effective expansion of fodder and could lead to the âdeactivationâ of the land. |
| Keywords: | Multi-regional general equilibrium model, farm households, interregional trade, Agricultural and Food Policy, C68, R13, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:98996&r=agr |
| By: | Bartolini, Fabio; Viaggi, Davide; Ronchi, Davide; Sergio Gomez, Paloma; Sammeth, Frank |
| Abstract: | The CAP reform process has been a central issue for agricultural economics research in recent years, and is gaining further attention in view of the post-2013 perspectives. The objective of this paper is to assess ex-ante the effect of different post-2013 CAP and market scenarios on the demand of productions factors. The paper is based on the use of farm household dynamic programming models maximising the net present value with a time horizon until 2030. A representative model has been implemented for 18 different farming systems in 8 EU countries. Changes in marginal values of selected resource constraints (land, labour and capital) are used to assess the potential effect of different scenarios on farm-household demand of production factors. Results highlight that both policy and market conditions change strongly the demand of productive factors. |
| Keywords: | CAP reform, Investment behaviour, Farm Household model, Factor markets, Agricultural and Food Policy, Q12, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99593&r=agr |
| By: | Kristkova, Zuzana; Ratinger, Tomas; Majerova, Jana |
| Abstract: | Capturing agricultural multifunctionality challenges agricultural economists for more than a decade. On one hand, researchers increasingly build in their commodity based models provision of environmental protection and landscape maintenance, on the other hand, there are efforts as contingence valuation to assess the economic value of environmental benefits provided by agriculture. This paper and the corresponding research tries to merge the both research streams by incorporating supply and demand of landscape public good in the CGE framework. The former is done by including an explicit sector of joint commodity and noncommodity production in the model structure, the latter by extending the household demand system of willingness to pay for landscape. The approach is tested on four scenarios which are extensively compared. |
| Keywords: | Environmental public goods, agri-environmental policy, CGE models, Agricultural and Food Policy, Environmental Economics and Policy, Q11, Q15, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99422&r=agr |
| By: | Boniface, Bonaventure |
| Abstract: | Research on buyer-seller relationships in the agricultural sector receives little attention. A growing body of evidence suggests that strong buyer-seller relationships facilitate more efficient supply chains. The long term relationship literature tends to treat suppliers as a homogenous group when attempting to identify motivations, strategies and incentives to enhance the quality of buyer-seller relationships. This article explores the role of long-term relationships between buyers and sellers in Malaysiaâs dairy industry, taking into consideration the heterogeneous nature of the producers. Interviews with 133 producers provide the data for this study. Cluster analysis suggests two well-defined groups differing in terms of demographic characteristics and relationship perceptions toward their buyers. Based on the results, the study proposes some policy implication and marketing strategies for both milk buyers and government. |
| Keywords: | buyer-seller relationship, price satisfaction dimensions, cluster analysis, dairy industry, Malaysia, Marketing, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100532&r=agr |
| By: | Vengedasalam, Deviga; Harris, Michael; MacAulay, T. Gordon |
| Abstract: | Malaysiaâs rice sector is highly protected, with the protection justified largely by arguments for food security. The government intervenes in the rice market by providing subsidies to farmers and consumers as well as imposing high import duties. Furthermore, the rice trade is controlled through a sole importer. In this paper, the welfare effects of eliminating the major government interventions in Malaysiaâs rice sector are evaluated. A modified spatial price equilibrium model that incorporates a sole importer with a fixed domestic price has been developed to measure the welfare impacts of the market distortions. Four scenarios were developed: (1) removal of the sole importer but continuation of the subsidies and existing tariffs; (2) removal of the subsidies but with the existence of the sole importer; (3) imposition of tariff and (4) free trade. Large net welfare gains and a significant reduction in government expenditures are likely if all forms of government interventions were to be eliminated and a free market allowed. |
| Keywords: | Food Consumption/Nutrition/Food Safety, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100726&r=agr |
| By: | Derwisch, Sebastian; Kopainsky, Birgit; Henson-Appollonio, Victoria |
| Abstract: | The role of foreign direct investment and intellectual property rights in economic development is discussed widely in the literature. However, an integrating framework is missing to assess the role of FDI and IPR for agricultural development. This paper establishes a framework to assess the role of FDI and IPR for seed sector development in developing countries. The impact assessment is carried out with a System Dynamics model that shows local capacity development to develop new seed varieties in the scenario of a multinational company penetrating the market and spillovers occurring. Simulation runs reveal the impact of IPR on the quantity technology transferred by multinational companies and on spillovers. The development path of the local industry depends crucially on the capacity of the local seed sector when the multinational company enters. A pattern for seed sector development is derived. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Agricultural Finance, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100463&r=agr |
| By: | Galvão da Silva Júnior, Aziz; Perez, Ronaldo; Boratto, Metheus |
| Abstract: | In line with the social objectives of the PNPB (Brazilian Program of Production and Use of Biodiesel) and its âSocial Sealâ Framework, PETROBRAS has set up a 57 million liter/year biodiesel plant in the semiâarid region of North of Minas Gerais State, where the socioeconomics indicators are very unfavorable. Despite the potential to boost the agricultural and agroâindustrial sector, the biodiesel plant is using mainly soybean oil from other regions. Funded by the Minas Gerais Government, the ongoing project aims to contribute to the development of oilseed supply chain in the North of Minas Gerais. To deal with these socioeconomic complex decisions, the Analytic Hierarchy Process (AHP) was used. Organization models were proposed for the following production chain: i) castor seed, ii) jatropha, iii) sunflower seed, iv) cotton seed, v) macaw palm and vi) soybean. For each chain, investment alternatives were analysed using the software BiodieselFAO. The organizational models and economic results will be discussed with the stakeholder in a workshop, when the alternatives will be selected. Partial results of the project demonstrate that the lack of trust between the stakeholders is the main challenge to the organization of the production chains. The AHP methodology has been proved to be adequate to accomplish the project objectives. Further researches on production chain modeling and building are, especially for the bioenergy sector, highly opportune. |
| Keywords: | biodiesel, oil extraction, AHP, North of Minas, Agribusiness, Agricultural and Food Policy, Farm Management, Financial Economics, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100500&r=agr |
| By: | Farquharson, R; Ramilan, T; Stewardson, M; Beverly, C; Vietz, G; George, B; Dassanyake, K; Sammonds, M |
| Abstract: | The Commonwealth of Australia Water Act 2007 changed the priority for water use in the Murray-Darling Basin (MDB) to first ensure environmentally sustainable levels of extraction and then to maximise net economic returns to the community from water use. The Murray- Darling Basin Authority (MDBA) is expected to deliver a draft Basin Plan in 2011 providing a framework for future water planning. The Plan will include Sustainable Diversion Limits (SDLs) which define water diversions for consumption while maintaining environmental assets and ecosystem functions. The 2009 MDBA Concept Statement acknowledged that in some areas less information is available to determine the SDLs. The 2010 MDBA Guide to the Basin Plan proposed SDLs reducing the current long-term average surface water diversions to between 25 and 34% for the Goulburn-Broken region. Representative farm-level models of irrigated dairy, horticulture and viticulture, and dryland broadacre, industries were developed to determine the likely impacts on farm income and farm enterprise mix if the price and quantity of irrigation water changes. Water for ecological benefits and ecosystem functioning was determined for a range of river health levels using a bottom-up approach identifying flow requirements for fish, riparian vegetation, invertebrates, and geomorphic and nutrient processes. A novel part of the analysis is the conjunctive use of water for both purposes, e.g. wetland filling and then pumping for irrigation. The linkages between changed land use and surface/ground water outcomes are assessed using a Catchment Analysis Tool. An experimental design of different proportions of water going to the environment and consumptive uses showed potential trade-offs between agricultural, environmental and surface/ground water outcomes. These trade-offs were examined to assess the impact of alternative water management on catchment welfare, and provide information about setting SDLs. |
| Keywords: | Water sharing, environment, agriculture, Murray-Darling Basin, Broken catchment, Resource /Energy Economics and Policy, Q18, Q25, Q28, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100547&r=agr |
| By: | Targetti, Stefano; Viaggi, Davide; Cuming, David |
| Abstract: | A comprehensive quantification of biodiversity in farming systems would require a very significant amount of work (and funds) even for a small area. Therefore, biodiversity indicators are needed to solve the problem of the measurement feasibility. Even though the issue of cost and effectiveness is central for the evaluation of the indicators, only the latter is discussed in detail in the scientific literature. This work presents a cost analysis based on the direct gathering of records from a farm-scale biodiversity survey (EU-FP7, BioBio - âIndicators for biodiversity in organic and low-input farming systemsâ) where the analysis of costs is part of the project. It is a simple method for comparing different indicators by their ratio of cost/effectiveness. Here we present the results from the French case study (Gascony Hills, Midi-Pyrenees Region). |
| Keywords: | biodiversity, cost-effectiveness, indicator costs, Agricultural and Food Policy, Q2, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99585&r=agr |
| By: | Salvioni, Cristina; Sciulli, Dario |
| Abstract: | We use a conditional difference-in-difference matching estimator and a 2003-2007 balanced panel drawn from the FADN Italian sample to evaluate the impact at the farm level of the implementation of the first Italian Rural Development Programme (RDP). We find that, in average, farms receiving at least a RDP payment increased family labor, while they did not increase total labour employed on farm. In addition, they experienced an increase in labor profitability and added value, even though the estimate significance varies accordingly to the matching method used. Our findings, suggest that the implementation of the first RDP produced a positive direct impact on rural GDP, while it did not prove to be effective in terms of rural employment growth. |
| Keywords: | Common Agricultural Policy, Rural Development Policy, conditional diff-in-diff matching, Agricultural and Food Policy, Q12, Q18, C14, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99421&r=agr |
| By: | Judez, Lucinio; De Andres, Rosario; Urzainqui, Elvira |
| Abstract: | Land dual values are one of the important aspects of the results of mathematical programming models used to evaluate the impact of agricultural policy measures at regional and farm level. When the decoupling of direct payments and the payment entitlements per hectare are included in PMP models in the context of the Single Payment Scheme (SPS), the analysis of the land dual values is more complex than in models which do not take these aspects into account. In this paper, we present a theoretical analysis of the land dual values when the SPS is included in PMP farm models. This theoretical analysis is carried out for the base year (linear model) and for a simulated year (quadratic model).The results of this analysis are illustrated by comparing numerically the land opportunity costs obtained in the case of partial decoupling and in the case of full decoupling of direct payments. |
| Keywords: | Positive mathematical programming, Single Payment Scheme or Single Farm Payment, Land dual values, Agricultural and Food Policy, C61, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:98997&r=agr |
| By: | Slee, Bill; Thomson, Ken |
| Abstract: | Environmental âpublic goodsâ generated by agricultural land use are discussed in terms of their conceptual underpinnings and how they have been addressed to date in European Union policy for agriculture and rural development. The current debate on CAP reform has intensified the already considerable debate over how these goods should be valued, and how the relevant policy measures should be evaluated. Against this background, a number of methodological and practical issues for evaluation are discussed, including accounting for spatial scale and diversity, the estimation of use and non-use values, governance, potential conflict between âpublic goodsâ and their marketisation, and accounting for the marginal effects of rural development policy on environmental assets and their values. |
| Keywords: | public goods, evaluation, Agricultural and Food Policy, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99601&r=agr |
| By: | Croci Angelini, Elisabetta; Sorana, Silvia |
| Abstract: | The aim of the paper is to investigate how agricultural relative incomes have changed in recent years, since the CAP has switched its emphasis from price support to rural development. The distributional implications of agricultural and rural policies are indirectly evaluated looking at the dynamics of earnings and wages in agriculture, as well as at the rural household incomes described through monetary and non monetary variables, so to proxy their living standards. Our concern is not particularly on the agricultural policy tools, as much as on the evaluation of their end results. A comparison spanning through time and across countries is performed on the basis of the information provided by the ECHP and EU-SILC surveys. The paper seeks to unravel the differences between rural and urban population in the different European areas and offers a description of how successes and failures varied, keeping the CAP in the background. |
| Keywords: | Income distribution, Standard of living Earnings in agriculture., Agricultural and Food Policy, D31, E24, J31, N50, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99587&r=agr |
| By: | Groot, Etienne; Albisu, Luis Miguel |
| Abstract: | Fresh fruits are always recommended as ingredients in healthiest diets. However, there is a tendency for consumers to move their consumption towards transformed fruits, which are integrated in many food products. Quite commonly fresh fruits are difficult to handle and store but they also do not have regular quality when they reach consumers. There are many other elements besides the physical characteristics, which are very important for consumers, and they can be promoted through marketing actions. It is very important to understand why consumers make elections of fresh fruits in order to increase their consumption. The aim of this study is to understand how consumers make their purchasing choices based on the most important peachesâ attributes and levels. In Spain there are 20 fruits with the Protected Designation of Origin (PDO) label. Among those PDOs, only one brand certifies the peachesâ origin and it is called âCalanda Peachesâ. This fruit has been selected to test several hypotheses about consumersâ fruits choice. The survey collects information from questionnaires applied to PDO Calanda peaches` consumers that were attending two hypermarkets in Zaragoza city, in 2009. An attributeâlevel bestâworst experiment was undertaken, respondents stated the most and the least important characteristic in their purchasing. Each characteristic, or alternative, is an attribute associated to a level of that attribute. In our case, nine hypothetical products were presented from different combinations of 4 attributes, with 3 levels in each attribute, (price: 1.2 â¬/kg, 2.4 â¬/kg and 3.6 â¬/kg; origin: PDO Calanda, non PDO Calanda and non Calanda; packaging: bulk, conventional packaging and active packaging; and fruit size: small, medium and big) to allow main effects estimation. Data were analysed using Weighted Least Squares (WLS) by in BestâWorst Paired (BWP) and BestâWorst Marginal (BWM) methods. Both models allow the attribute and attributeâs levels impact estimation on consumer purchase decision. They also have similar measurement properties, but as Paired models have more observations per respondent, they present smaller standard errors. Results show that both models have good performance. Consumers give different weights to the attributes when they buy peaches. There is an overriding influence of the origin especially for the attributeâlevel Calanda in comparison with the rest. |
| Keywords: | peaches, Protected Designation of Origin (PDO), consumer behaviour, market segments, attribute levels bestâworst experiment, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Marketing, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100469&r=agr |
| By: | Latouche, Karine; Chevassus-Lozza, Emanuelle; Persillet, Vanessa; Harel, Monique |
| Abstract: | Based on recent development of international economics, this paper aims to evaluate in what extent private standards impact trade, and more precisely trade of French agriâfood firms. Our paper explores an original "handmade" database identifying French agriâfood firms which are certified with the International Food Standard â IFSâ and/or the British Retail Consortium standard â BRC. From this dataset, one can analyse the characteristics and the export behaviour of certified firms compared to that of the non certified ones. First we look at the productivity of the firms; second, we look at export behaviour of the firms: does a certification such as BRC imply export orientation of the firm? Then we propose the estimation of Chaneyâs model (2008) to test for the impact of certification on trade costs faced by certified firms to access EU markets. Our preliminary results show that certification clearly impacts French firms. In the case of BRC certification, we especially show that French certified firms significantly decrease their fixed costs to access EU markets. |
| Keywords: | Private standards, IFS/BRC, trade costs, productivity, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100457&r=agr |
| By: | Banterle, Alessandro; Cavaliere, Alessia; Stranieri, Stefanella; Carraresi, Laura |
| Abstract: | In the EU market small and medium sized enterprises (SMEs) represent the greater part of the food industry, specially with regard to traditional food products (TFPs). However, the growth of competition, connected mainly to globalisation, is making it very difficult for SMEs to survive. On the other hand, market opportunities for SMEs are connected to the evolution of consumer preferences toward food quality. To profit from such opportunities and to survive on the market, SMEs need to adapt their strategies, focusing on innovation aspects in order to meet consumer requirements and to compete on the market. The literature shows that firmsâ market orientation and marketing capabilities are very important for innovation in food industries to guarantee that innovation reflects market needs. The purpose of this paper is to analyse the relationship between the level of firm innovativeness and the different stages of marketing management process, in order to understand if good results in marketing management can affect firm innovation. An interactive questionnaire available on the web has been used for the data collection, with the aim of evaluating SME marketing management capabilities and innovation development. The survey was conducted on 468 EU country SMEs producing TFPs. Linear Regression was run to assess the link between marketing activities and the level of firm innovation. Our empirical analysis reveals that SME marketing management capabilities show significant and positive relationships with a firmâs innovation. This aspect reinforces our assumptions on the strategic role of marketing activities on a firmâs capacity to understand consumer needs, and thus its need to be innovative and market oriented. |
| Keywords: | traditional food products, innovation, marketing management capabilities, linear regression model, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Marketing, Production Economics, Research Methods/ Statistical Methods, L25, L66, M31, Q13, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100589&r=agr |
| By: | Mignouna, DB; Mutabazi, KDS; Senkondo, EM; Manyong, VM |
| Abstract: | Last two decades have been dominated by issues on poverty as major growth area with the adoption by United Nations member countries of the Millennium Development Goals, the first of which calls for halving the incidence of poverty and hunger by 2015, this has underlined the importance of introduction of improved agricultural technologies. Most poor rural households in developing countries usually depend on agriculture and have to cope with poverty stills a rural phenomenon. Agricultural production has continuously decreased, subject to serious limitations such as declining soil fertility, diseases, pests, drought and erosion plaguing crops growing areas. This situation should have encouraged rural households to increasingly consider the use of promising technologies. This study was done using a case of imazapyr-resistant maize (IRM) technology for combating noxious Striga weed which has devastating effects on maize production in western Kenya. A cross sectional survey that included randomly a total selected sample of 600 households of which 169 IRM users and 431 non-users was employed. |
| Keywords: | IRM technology, striga control, poverty reduction, Kenya., Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100685&r=agr |
| By: | Versace, VL; Scarborough, H; Ierodiaconou, D; O'Toole, K; Wallis, A; Stagnitti, F |
| Abstract: | Societal expectations from rural lands have traditionally been focussed on the production of food and fibre. Yet the perception of rural areas is changing and they are now seen in many instances to be capable of delivering multiple functions or non-commodity outputs including land conservation and the preservation of biodiversity, contributing to the sustainable management of renewable natural resources and enhancing the socio-economic viability of many areas (OECD, 2001). The overall multifunctionality is constrained or favoured by biophysical and socio-economic drivers. As these types of drivers vary spatially and temporally, so does the functionality of the landscape and heterogeneous patterns emerge. Associated with multiple functions at a single location are a variety of pressures which can manifest themselves as conflict between interacting land uses (Gimona and van der Horst, 2007; Willemen et al., 2010). One such conflict in rural zones is that between agricultural use and residential use. |
| Keywords: | Land Economics/Use, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100727&r=agr |
| By: | Declerck, Francis; Viviani, Jean-Laurent |
| Abstract: | The paper assesses the ability of French wineries to prevail over the crisis of French wine in the years 2000. Corporations are distinguished from coâoperatives: Over the 2000â2006 period in spite of sales fluctuations, French wineries did not increase their financial debt level substantially. Such result supports the traditional static tradeâoff theory (TOT). Coâoperatives were able to absorb part of the impact of the wine crisis at the expense of their members, in increasing account payables to member. Corporations have not increased trade account payables to vine growers. In the midâ2000s, the French wine crisis has not been strong enough to shake the financial structure of cooperatives and corporations. But coâoperatives look more affected. However, sales of French wines dropped a lot more in 2009 and financial data are not yet available to observe the consequences. |
| Keywords: | winery, coâoperative, strategy, debt, leverage, performance, wine, crisis, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100507&r=agr |
| By: | Cioffi, Antonio; Santeramo, Fabio G. |
| Abstract: | The paper investigates the effects of the entry price scheme for fresh fruit and vegetables. The analysis is conducted on the EU prices of tomatoes, lemons and apples for some of the main competing countries on the EU domestic markets: Morocco, Argentina, Turkey and China. The econometric analysis is based on testing and estimating a switching vector autoregressive model with endogenous threshold entry price level. The model shows the isolation effects and the accumulation of SIVs above the trigger entry price. This paper contributes to clarify the role played by the EPS in avoid or deter low priced imports from main EU partner Countries. |
| Keywords: | Fruits and vegetables, Entry price system, trade policy, TVAR, Agricultural and Food Policy, F13, Q17, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99432&r=agr |
| By: | Lankoski, Jussi E.; Ollikainen, Markku |
| Abstract: | This paper applies counterfactual approach to assess the impacts of agri-environmental programs. Counterfactual analysis evaluates policies answering questions: what would have happened if...? We develop a theoretical framework for counterfactual analysis based on the inter-linkages between the behaviour of agents and the response of environmental systems to the economic decisions. We apply our model to assess the performance of the Finnish Agri- Environmental Programme to reduce agricultural nutrient runoff to the Baltic Sea. Counterfactual analysis allows us to determine both the unit effectiveness of the measures included in the Programme and its preventive impact. We demonstrate that the Finnish Agri- Environmental Programme does not achieve its goals, because it fails to anticipate farmersâ responses to incentives created by the Common Agricultural Policy and the Agri-Environmental Programme itself. The social cost-benefit analysis of the Program shows negative net benefits: benefits from reduced nutrient loading are much lower than support payments. |
| Keywords: | Environmental policy evaluation, counterfactual analysis, nutrient runoff, the Baltic Sea, Agricultural and Food Policy, Q5, H23, H43, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:98993&r=agr |
| By: | Zylbersztajn, Decio |
| Abstract: | The debate about the governance of complex systems of production represents a rich branch of the literature of applied organization theory. The particular application to agroârelated networks is a relevant example since agriculture plays new roles in modern society. The core of the analysis is centered in the rationale for allocation of residual decision rights and distribution of the rights regarding the value created. Contributions based in transaction cost economics, resourceâbased view, dynamic competences, and incomplete contract theory explore different dimensions related to the allocation of property rights. The question of how joint strategies are defined, and how value added (or subtracted) is shared among network players is still relevant. Indeed, the questions of how residual decision rights are defined and how residual rewards of resources applied in production are shared are relevant for the modern theory of organizations in general. Most of the traditional literature considers the transaction as the unit of analysis, following the tradition of the alignment hypothesis proposed by Williamson (1996). Hence the literature as developed so far deals with two limitations. First, the dyadic perspective, which narrows a complex and multidimensional task down to two actors, one transaction, and a choice of internal or contractual mechanisms of coordination. Second, the traditional perspective places its attention on the existing value, whether real or potential, that can be revealed by choosing the efficient mechanism of allocation of authority. This is only part of a larger and more complex frame, where value generation becomes a central question. |
| Keywords: | governance, networks, coordination of production, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Political Economy, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100479&r=agr |
| By: | Lindberg, Gunnar; Midmore, Peter; Surry, Yves René |
| Abstract: | As agricultural policy reform and its effects have become increasingly territorialised, analyses which attempt to explain or predict impacts need to be more localised but also identify spillover effects. In addition to the predictions of policy shocks predicted by sectoral partial equilibrium models, local and regional general equilibrium approaches which establish the wider effects of such policy shocks have become popular. However, these neglect a major, underexplored difficulty: agriculture is usually described as a single sector in input-output accounts, whereas policy shocks with differential impacts have effects on other industries which are different to those implied by average input-output coefficients. Regionalisation of aggregated input-output tables adds further to these difficulties. The objective of this paper is to develop a relatively simple method for dealing with these problems. It establishes the theoretical basis for aggregation bias and shows how it can be measured, in two contrasting case study regions in the United Kingdom and Sweden. Having established that this is a significant problem, a simple but effective procedure is demonstrated, based on additional information on variable costs, which transforms policy shocks from a direct change in agricultural output to that transmitted to the suppliers of inputs. This method provides an impact close to that which could be calculated if the general equilibrium system had indeed been disaggregated, and supports use of this approach in impact studies where the researcher does not have the time or funding available for completely disaggregating the agricultural sectorâs regional accounts. |
| Keywords: | agricultural and rural development policy evaluation, CAP, input-output analysis, aggregation bias, Agricultural and Food Policy, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99358&r=agr |
| By: | Constant, Labintan |
| Abstract: | This study examined changes in agricultural productivity at Benin in the context of diverse institutional arrangements using Data Envelopment Analysis (DEA).A time series data which consists of information on agricultural production and means of production were obtained from World Research Institute database, INSAE and rainfall data from AMMA database. The information was for a 43-year period (1961-2003); DEA method was used to measure Malquist index of total factor productivity to evaluate technical change efficiency and technological efficiency change across the countryâs 12 provinces. A decomposition of TFP measures revealed whether the performance of factors productivity is due to technological change or technical efficiency change over the reference period. The study further examined the effect of land quality, agriculture labor, and selected governance indicators such as government effectiveness and openness on productivity growth. All the variables included in the model are significant effect on the TPF and the country agriculture growth. They equally performed well in terms of expected relationship with TFP except land quality index which unexpectedly had an inverse relationship with TFP. |
| Keywords: | Data Envelopment Analysis, Efficiency, Productivity, Benin, Agribusiness, N57, C01, C23, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100538&r=agr |
| By: | Chellattan Veettil, Prakashan; Ashok, Arathy; Speelman, Stijn; Buysse, Jeroen; Van Huylenbroeck, Guido |
| Abstract: | All deviations from the frontier is inefficiency in deterministic DEA (DDEA); thus making the DDEA unable to accommodate the measurement and specification errors. But, most of the production relationships are stochastic in nature with some inputs fixed in the short run. This paper addressed the above two issues by formulating a sub-vector efficiency model in a Stochastic DEA (SDEA) framework to analyze the efficiency of sub vector of inputs. The results illustrate that there is a wide scope for stochastic efficiency analysis. The overall efficiency in SDEA is higher than DDEA under both Constant and Variable Return to Scale frameworks. SDEA revealed that some efficient producers are not sub-vector efficient in our case study. Thus, overall efficiency oriented policy may not be sufficient for optimizing water use. The proposed model has limitations in terms of the degree of stochastic variability and the level of tolerance that the model can accommodate |
| Keywords: | Stochastic DEA, sub-vector efficiency, chance constrained programming, irrigation water use efficiency, Agricultural and Food Policy, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:98978&r=agr |
| By: | Islam, Nazrul; Xayavong, Vilaphonh; Kingwell, Ross |
| Abstract: | This paper examines broadacre farm performance in south-western Australia. This region has experienced pronounced climate variability and volatile commodity prices over the last decade or so. Relationships between productivity and profitability are explored using panel data from 50 farms in the study region. The data are analysed using non-parametric methods. Components of farm productivity and profitability are measured over the period 1998 to 2008. Economies of scale and scope are shown often to be positive contributors to productivity and profitability. However, the main finding is that technical change, much more so than technical efficiency, has supplied over 68 percent of the improvement in total factor productivity for farms in the different climatic zones of the region from 1998 to 2008. In addition, growth in total factor productivity is the main contributor to farm profitability. By implication, technical change, often accompanied by scale and mix efficiencies, is the main driver of farm profitability. These findings indicate a vital role for innovation and R,D&E to deliver technologies and practices that bolster farm profitability, as well as a continuing role for scale and scope economies. The products and knowledge that come from innovation and R,D&E are the springboard for technical change. Through technical change and scale and scope efficiencies farmers in this study have achieved higher profits. |
| Keywords: | Productivity, Profitability, Technical change, Farm businesses, Farm Management, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100565&r=agr |
| By: | Hughes, Neal; Lawson, Kenton; Davidson, Alistair; Jackson, Tom; Sheng, Yu |
| Abstract: | This study introduces two advances to the aggregate productivity index methodology typically employed by ABARES. First, it accounts for the effects of climate variability on measured productivity by matching spatial climate data to individual farms in the ABARES farm surveys database. Second, a farm-level production frontier estimation technique is employed to facilitate the decomposition of productivity change into several key components, including technical change and technical efficiency change.The study makes use of farm-level data from the ABARES Australian agricultural and grazing industries survey database. An unbalanced panel dataset is constructed containing 13 430 observations (4255 farms) over the period 1977â78 to 2007â08. Spatial climate data, including winter and summer seasonal rainfall and average maximum and minimum temperatures, were obtained via the Australian Water Availability Project. These data were mapped to individual farms using Geographic Information System methods. The study employed stochastic frontier analysis methods to estimate a production frontier with time varying technical efficiency effects of the form proposed by Battese and Coelli (1992). Production frontiers are estimated for each of the three major Grains Research and Development Corporation regions: southern, northern and western.Selected climate variables are shown to display a high degree of explanatory power over farm output. The results confirm that deterioration in average climate conditions has contributed significantly to the decline in estimated productivity over the post-2000 period. Technical change is shown to be the primary driver of productivity growth in the industry in the long run, offset by a gradual decline in technical efficiency. After controlling for climate variability, a gradual decline in the rate of technical change is still observed. |
| Keywords: | Productivity Analysis, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100563&r=agr |
| By: | Ciaccia, Domenico; Pizzoli, Edoardo |
| Abstract: | Monitoring and Evaluation of policies is intrinsically challenging and requires a very high level of technical capacity. Appropriate statistical indicators have to be selected and calculated to satisfy the needs of final users, linking the date to statistical demand. Appropriate classifications and definitions are also essential, while different data-sources and highly disaggregated estimations are needed; for instance, for small areas estimations and rural areas. Furthermore, Evaluation of a policy is a specific purpose, different from monitoring a project or long run economic analysis. The paper try to address the argument from a National Account prospective, rely on the assumption that this is an appropriate macro-economic framework for statistics and to base scientific studies. |
| Keywords: | National Accounts, Monitoring&Evaluation, Agriculture, Rural Development Statistics, Agricultural Households Income, Agricultural and Food Policy, E01, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99832&r=agr |
| By: | Banse, Martin; Van Leeuwen, Myrna; Tabeau, Andrzej; Salamon, Petra; von Ledebur, Oliver |
| Abstract: | The paper investigates the CAP impacts on the EU agriculture by means of policy simulations conducted with the AGMEMOD model. To isolate the policy effects in the historical period 2000-2005, counterfactual simulations for this period are run. To simulate the response of the EU agriculture on different policy changes in the period 2006-2020, a âno-policy changeâ baseline scenario is developed and then policy experiments are conducted such as the abolition of milk quota, the implementation of the regional payments and some budget cuts. To identify the policy effects, the policy scenarios are compared with the âno-policy changeâ baseline. |
| Keywords: | CAP Reform, ex-post evaluation, agricultural sector modelling, Agricultural and Food Policy, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99366&r=agr |
| By: | Caracciolo, Francesco; Cembalo, Luigi; Cicia, Gianni; Del Giudice, Teresa |
| Abstract: | The agriâfood sector and food consumption models have experienced both worldwide and in Europe a process of change that still appears ongoing. The main effects of this change are clearly visible in a whole series of new developments. The most interesting of these appears to be the role played by food product quality as a basis on which to implement modern marketing policies targeting an increasingly segmented market. This obviously makes it necessary for food consumption analysts to shed light on what it means, within todayâs European and world consumption scenarios, to produce quality goods. On this point, in recent years the concept of quality may be said to have undergone rapid evolution. Quality has gone from meaning only intrinsic product attributes, hence synonymous with excellence, to a broader definition full of different meanings. Currently, it is widely recognised that, in modern consumer markets, food product quality is made up by both a set of intrinsic and extrinsic characteristics (Grunert, 2002) and by the way such characteristics are guaranteed and communicated to end consumers (Caswell and Joseph, 2007). As a result, purchase choices are affected not only by elements such as taste and price, but also by product range in the outlet, communication strategies, by the level of food safety, production process characteristics, nutritional aspects, origin and |
| Keywords: | Agribusiness, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100466&r=agr |
| By: | Roeder, Norbert; Gocht, Alexander |
| Abstract: | Since several decades the RAUMIS modelling system is applied for policy impact assessments to measure the impact of agriculture on the environment. A disaggregation at the municipality level with more than 9.000 administrative units, instead of currently used 316 counties, would tremendously improve the environmental impact analysis. Two sets of data are used for this purpose. The first are geo-referenced data, that are, however, incomplete with respect its coverage of production activities in agriculture. The second set is the micro census statistic itself, that has a full coverage, but data protection rules (DPR) prohibit its straightforward use. The paper show how this bottleneck can be passed to obtain a reliable modelling data set at municipality level with a complete coverage of the agricultural sector in Germany. We successfully applied a Bayesian estimator, that uses prior information derived a cluster analysis based on the micro census and GIS information. Our test statistics of the estimation, calculated by the statistical office, comparing our estimates and the real protected data, reveals that the proposed approach adequately estimates most activities and can be used to fed the municipality layer in the RAUMIS modelling system for an extended policy analysis. |
| Keywords: | Highest Posterior Density estimator (HPD), RAUMIS, Down scaling, Agricultural and Food Policy, C11, C61, C81, Q15, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99248&r=agr |
| By: | Bartolini, Fabio; Latruffe, Laure; Viaggi, Davide |
| Abstract: | Literature on innovation adoption mechanism has emphasised the positive effect of Single Farm Payments (SFP) and Rural Development Payments on adoption of new technologies. In this context, the expected process of CAP reforming after 2013 is likely to strengthen the role of innovation in the European Union (EU). The objective of this paper is to identify the determinants of the adoption of future innovation, in particular in connection to past innovation, and to assess the role of agricultural policy in the promotion of innovation adoption. The analysis is applied to two regions (Centre and Midi-Pyrénées) in France. Two separate Count models are developed in order to explain famersâ stated intention concerning different intensities of innovation adoption under two different policy scenarios. Preliminary results highlight that the CAP strongly affects the decision to innovate and the innovation intensity, even if there is no statistical significance for the variable connected to the amount of payments or the level of payment per hectare. |
| Keywords: | innovation, sequences of innovation, CAP, zero inflated Poisson model, Agricultural and Food Policy, Q12, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99594&r=agr |
| By: | Yusuf, RP |
| Abstract: | This study explores consumer perceptions and willingness to pay for clean and safe poultry products, particularly chicken meat and eggs, in Bali. The study also analyses the correlation between factors associated with the consumerâs purchase decision. Four high-end markets in Denpasar were chosen and 80 respondents were randomly selected in order to explore these issues. Nine attributes were used to define clean and safe poultry products, while five variables were used to explore the correlation between consumer characteristics and their purchase decision. The results show that consumers have a good understanding of clean and safe poultry products. They are aware how the product should appear physically, and they are willing to spend up to an extra Rp.5,0001 for whole chicken and Rp.10,000/kg for eggs. From the five consumer characteristic variables tested, only age and income have strong correlation with consumer purchase decisions. This information is useful for poultry producers as they seek to produce the type of product required by the supermarket consumer. |
| Keywords: | Food Consumption/Nutrition/Food Safety, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100736&r=agr |
| By: | Kingwell, Ross |
| Abstract: | This paper uses variance decomposition modelling to explore how wheat revenue volatility in Australia has changed spatially and temporally. The components of revenue variance are the variances and covariances of wheat prices, the area of wheat harvested and the yield of wheat. The key finding is that the volatility of wheat revenue (detrended) has more than doubled in every main wheat-growing State in Australia over the last 15 years or so Changes in wheat areas are mostly a minor source of revenue variance. The principal cause of volatility is yield changes with price changes increasing slightly in absolute importance when compared to their adjacent previous period. Greater downside yield risk is often the principal cause of the increased yield variance. The implications are that revenue variance, and especially downside revenue risk, has posed major problems for wheat-dominant farm businesses over the last 15 years or so. How Australiaâs wheat producers have managed this greater volatility of wheat revenue is likely to have greatly affected the viability of their farm businesses. |
| Keywords: | risk, wheat production, variance decomposition, wheat farming, Agribusiness, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100572&r=agr |
| By: | Fahrmann, Barbara; Grajewski, Regina |
| Abstract: | The present paper refers to the results from the evaluation of rural development programmes (RDPs) of five German states. It is focussed on two issues. The first is to develop a methodological approach for determining the implementation costs (ICs). The second is the discussion of their relevance in the context of the implementation of rural development policies presenting selected empirical results. The cost-impact synopsis (CIS) is a wider approach to relate the measure-specific implementation costs and disbursed funds, based on implementation cost classes, with achieved impact levels. The principles guiding the discussion are two theses: (1) High implementation costs increase the overall cost of the programme and thus reduce funding efficiency, (2) High implementation costs increase the use efficiency of the programmes because they are associated with more targeted, more effective measures. Sample analytical results for different study levels show that the empirical results lie somewhere between these two extremes. |
| Keywords: | Implementation costs, Rural Development Programmes, Evaluation, Agricultural and Food Policy, H83, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99588&r=agr |
| By: | Verreth, Daphne M.I.; Emvalomatis, Grigorios; Bunte, Frank; Oude Lansink, Alfons G.J.M |
| Abstract: | Horticultural firms are dependent on energy to produce, while policy makers focus on reducing the use of energy and investment in energy-saving technologies. The paper aimed to asses Dutch greenhouse farmersâ responses to policies that would affect prices of different energy inputs. The farmerâs behaviour is modelled in two steps: firms are assumed to maximize profit at given energy use level, and firms are assumed to minimize the discounted sum of energy costs. The model is estimated using farm survey data spanning the period 2001-2008. Short-run and long-run elasticities with respect to prices and investments in energy-using technology are estimated. The greenhouse sector shows a fast adjustment of energy capital towards its long-run equilibrium. This model provides a framework for assessing policy simulations. Policies will not have much more impact in the long-run compared to the short-run, and incentives to invest would result in an increase of the use of energy-saving technologies |
| Keywords: | Greenhouse horticulture, Energy, Dynamic duality, Adjustment costs, Agricultural and Food Policy, C51, C61, D92, Q12, Q18, Q48., |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99364&r=agr |
| By: | Liljenstolpe, Carolina |
| Abstract: | The payments within the Rural Development Programme 2007- 2013 seek to improve the environment and contribute to rural development and economic growth. These policy measures may therefore have visual effects on the rural landscape. To achieve a measure of willingness to pay for these effects, a hedonic pricing approach is applied. The prices for staying at holdings in the âStaying on farmsâ registry are used to quantify the valuation of these visual effects. The results of this study indicate that there is a relationship between the price of rental objects and spatial variables constructed in GIS. Riparian strips and animals at the farm are positively valued. Cultivated land, grazing and meadow lands close to the settings are negatively valued. Hence, this study indicate that there is a positive willingness to pay for payments addressing user values in a diversified landscape and a negative willingness to pay for actions leading to a more monotonous landscape, such as payments to extensive grazing systems. |
| Keywords: | Hedonic Valuation, Rural landscape, Rural Development Program, GIS, Agricultural and Food Policy, Community/Rural/Urban Development, Q150, Q180, Q510, |
| Date: | 2011–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:98881&r=agr |
| By: | Senaratne, Athula; Scarborough, Helen |
| Abstract: | Coping with Climatic Variability by Rain-fed Farmers in Dry Zone, Sri Lanka: Towards Understanding Adaptation to Climate Change |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100707&r=agr |
| By: | Griffith, Garry; Thompson, John; Polkinghorne, Rod; Gunner, Richard |
| Abstract: | Variable eating quality was identified as a major contributor to declining Australian beef consumption in the early 1990s. The primary issue was the inability to predict the eating quality of cooked beef before consumption. A R&D program funded by industry and Meat and Livestock Australia investigated the relationships between critical control points along the supply chain, cooking methods and beef palatability. These relationships were underpinned by extensive consumer taste panels. Out of this R&D grew the Meat Standards Australia (MSA) voluntary meat grading system which aimed at predicting consumer palatability scores of cooked beef. Quality was defined on the basis of one of four grades. The grading model predicts consumer scores for 135 âcut by cooking methodâ combinations for each graded carcass. The MSA system commenced in 1999/2000 and at present some 850,000 cattle are graded annually, about 25% of the total domestic kill. This paper first describes the evolution of the MSA grading scheme and its adoption by industry. Next, evidence is presented relating to consumersâ willingness to pay (WTP) for guaranteed eating quality, the premiums that Australian consumers have actually paid for MSA graded cuts, and the extent to which premiums paid by consumers are transmitted back along the value chain to cattle producers. WTP data collected during exit surveys from taste panels in Australia, the United States, Japan and Ireland showed that consumers were willing to pay more for premium quality. However, whilst MSA has the capacity for four quality grades, it is mostly used to simply discriminate between ungraded and graded product (ie 3 star or better). A survey of Australian beef retailers and wholesalers suggested that from 2004/05 to 2007/08, beef consumers were prepared to pay around $0.32/kg extra for MSA branded beef on a carcass weight equivalent basis. Retailers kept about $0.06/kg and wholesalers kept about $0.12/kg. The remaining $0.14/kg was passed back to cattle producers. Despite accelerated use of MSA in the wholesale trade, visibility at retail is generally low. It is being used predominantly to support private brand initiatives or to underpin existing channel partner offers. The paper concludes by discussing two case studies of business models that small niche beef retailers have developed to further capture the benefits from the MSA scheme through introduction of private brands. In summary, the MSA innovation has resulted in a higher degree of accuracy in the ability to predict beef eating quality for consumers. This has improved consumer choice, opportunities for value adding, and sufficient transmission of the premiums paid by consumers for graded cuts to provide real incentives for beef producers to supply MSAcompliant cattle. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Marketing, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100471&r=agr |
| By: | Puspitawati, Eka |
| Abstract: | Indonesiaâs potato industry is undergoing a rapid transformation, presenting producers with new and profitable opportunities to participate in sales to the modern channels. However, few farmers are involved in the new channels. This study offers an analysis of three groups of potato farmersâ perceptions of trust in their buyers. The aim is to understand the many different ways producers can enter modern chains and how different channels suit the individual characteristics of different producers. We surveyed 50 farmer field schools (FFS) producers, 60 Indofood suppliers, and 192 general potato farmers (GPF) in the largest potato producing area in Indonesia, West Java. Using MANOVA and linear regression methods, the study reveals that flexibility and dependence are determinate factors of trust in the three groups. Particularly among the FFS producers, relative price and firm size are factors identified to increase the farmersâ trust. Farmers contracting with Indofood establish the relationship with the firm in terms of reputation and flexibility. On the other hand, the GPF has more concerns about buyers offering price transparency and joint problem solving. This article provides a conceptual model and an empirical analysis of the buyer-seller relationship in the potato industry in Indonesia. |
| Keywords: | buyer-seller relationships, trust, potato industry, Crop Production/Industries, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100699&r=agr |
| By: | Sauer, Johannes; Morrison-Paul, Catherine |
| Abstract: | When different technologies are present in an industry, assuming a homogeneous technology will lead to misleading implications about technical change and inefficient policy recommendations. In this paper a latent class modelling approach and flexible estimation of the production structure is used to distinguish different technologies for a representative sample of E.U. dairy producers, as an industry exhibiting significant structural changes and differences in production systems in the past decades. The model uses a transformation function to recognize multiple outputs; separate technological classes based on multiple characteristics, a flexible generalized linear functional form, a variety of inputs, and random effects to capture firm heterogeneity; and measures of first- and second-order elasticities to represent technical change and biases. We find that if multiple production frontiers are embodied in the data, different firms exhibit different output or input intensities and changes associated with different production systems that are veiled by overall (average) measures. In particular, we find that farms that are larger and more capital intensive experience greater productivity, technical progress and labor savings, and enjoy scale economies that have increased over time. |
| Keywords: | Heterogenous Technologies, Transformation Function, Localized Technical Change, Agricultural and Food Policy, Q12, O33, C35, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99834&r=agr |
| By: | Kolodziejak, Andre |
| Abstract: | A very positive development in the last decade has been the increased interest of agricultural economists in ex post modeling. So far however this has not resulted in a strong increase of the use of modeling for ex post CAP evaluation purposes. It can be expected that the need for evidence based evaluation of the CAP, based on specific modeling tools for that purpose, will increase in the coming years. The more important role of the EU budget authority, the European Parliament, following the Lisbon Treaty is one of the driving factors of this increasing need. The EU 2020 strategy shows a political shift from the market liberalization processes of the past decades aiming at efficiency, such as the Internal Market, towards policies promoting stability and equity. The recent economic crisis and climate change adds to this. The effect of this will be that CAP policies will have to be evaluated more from a holistic and European added value perspective. In order to increase for the sake of good governance the role of ex post evaluation modeling, agricultural economists will succeed in providing and using excellent modeling tools if they are capable to formulate an agenda how to match their modeling tools in time with the substantially changing CAP and EU policies and their objectives. |
| Keywords: | Modelling CAP evaluation, Agricultural and Food Policy, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99423&r=agr |
| By: | Kandulu, John |
| Abstract: | Climate change and climate variability induce uncertainty in yields, and thus threaten long term economic viability of rain-fed agricultural enterprises. Enterprise mix diversification is the most common, and is widely regarded as the most effective, strategy for mitigating multiple sources of farm business risk. We assess the potential for enterprise mix diversification in mitigating climate induced variability in long term net returns from rain-fed agriculture. We build on APSIM modelling and apply Monte Carlo simulation, probability theory, and finance techniques, to assess the potential for enterprise mix diversification to mitigate climate-induced variability in long term economic returns from rain-fed agriculture. We consider four alternative farm enterprise types consisting of three non-diversified farm enterprises and one diversified farm enterprise consisting of a correlated mix of rain-fed agricultural activities. We analyse a decision to switch from a non-diversified agricultural enterprise with the highest expected return to a diversified agricultural enterprise consisting of a mix of agricultural enterprises. Correlation analysis showed that yields were not perfectly correlated (i.e. are less than 1) indicating that changes in climate variables cause non-proportional impacts on yield production. We conclude that at best, diversification can reduce the standard deviation of net returns by up to about A$110 Ha-1, or 52% of mean net returns; increase the probability of below-average net returns by up to about 4% and increase the mean of 10% of worst probable annual net returns by up to A$54/ha. At worst, diversification can reduce the mean of net returns by up to about A$95 Ha-1, or 46%. |
| Keywords: | climate variability, yield uncertainty, economic returns, rain-fed agricultural enterprise, risk, Monte Carlo, Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100568&r=agr |
| By: | MacEwan, Duncan; Howitt, Richard |
| Abstract: | Crop rotation systems have played a key role in agricultural production for thousands of years, dating back to the biennial grain-fallow rotations employed by the Ancient Greeks. Fundamentally, rotations are rooted in intertemporal spillover effects between crops, the economic consequences of which depend on relative input and output prices. We contribute to the literature by developing a dynamic, field-level model of crop rotations using a geo-referenced panel dataset that covers 12 years and over 14,000 individual fields. We identify empirical rotations using a Sequence Analysis procedure from the bio-informatics literature, and calibrate a dynamic field-level profit function that satisfies the underlying Euler dynamic first-order conditions using Generalized Maximum Entropy. The resulting model is based entirely on empirical data, and exhibits a stable rotational cycle which responds to changes in expected prices and costs. We illustrate the mechanics of the model with a four-crop rotation of alfalfa, cotton, grain, and fallow, and simulate field-level changes resulting from changes in relative prices. |
| Keywords: | Crop Production/Industries, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100581&r=agr |
| By: | Stefani, Gianluca; Giudicissi, Eufrasia |
| Abstract: | We reviewed some moral hazard (MH) models applied to agri-environmental policies and identified the main methodological aspects of the literature on this topics. Imperfect vs incomplete monitoring , static vs dynamic and single vs multiple agents models are the main lines along which the literature has been organised analysing each component of a MH model. Most papers point out the role of farmers' risk aversion in mitigating MH. Others highlight that the observed high rate of compliance is still somewhat paradoxical given current enforcement strategies with low fines and monitoring levels. Cross compliance confirm these findings and urges further studies on dynamic models and farmers' non profit maximising behaviour. |
| Keywords: | Cross-compiance, Moral Hazard, Enforcement, Agri-environjeljmental schemes, Agricultural and Food Policy, Q15, Q58, D82, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99597&r=agr |
| By: | Mukherjee, Kedar nath |
| Abstract: | Besides the well-established fact towards the requirement of market based instrument, there is always been a doubt, as expressed by different bodies, on the usefulness and suitability of futures contract in developing the underlying agricultural commodity market, especially in agricultural based economy like India. Therefore, an attempt has been made to re-validate the impact of futures trading on agricultural commodity market in India. The daily price information in spot and futures markets, for a period of 7 years (2004 – 2010), for 9 major agricultural commodities, taken from different categories of Agri-products, are incorporated into various econometric models to test the concerned objective. Like most of the other studies undertaken on world and Indian commodity market, the present study have also exhibited that even though the inflationary pressure on commodity, especially agricultural commodity, prices have gone up sharply after the introduction of commodity futures contracts, the destabilizing effect of the futures contract is casual in nature and tends to vary over a long period of time. The empirical findings significantly shows that comparative advantage of futures market in disseminating information, leading to a significant price discovery and risk management, that can again help to successfully develop the underlying commodity market in India. Therefore instead of curbing the commodity futures market, it can always be suggested to strengthen the market structure to achieve the broader target. |
| Keywords: | Commodity Futures, Lead-Lag Relation, Efficiency, Volatility |
| JEL: | G14 G10 |
| Date: | 2011–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28963&r=agr |
| By: | Ambarawati, I Gusti Agung Ayu; Prasetyo, Bugie Kurnianto; Patrick3, Ian |
| Abstract: | This paper measures the cost of implementing biosecurity on broiler and layer farms in Bali. Farmer investment in biosecurity is analysed to determine if there is any difference in the implementation of biosecurity between broiler and layer farms. Data is taken from a survey of 60 layer and 60 broiler smallholder farmers in Bali in 2009. While secure boundary fencing and farm gate locks are more common on layer farms, broiler producers are more likely to have a footbaths at the shed door. In this analysis, biosecurity investments include the quality of fencing and gates, presence of locks on gates, management changes required to minimise staff and visitor movement onto and in the farm, costs of minimising vehicle entry, use of vaccination and disinfectant, chlorination of water and quality of the chicken shed. Defining the relationships between present investment decisions and farm type, size and mortality rates will provide useful information to decision makers concerning the cost-effective levels of biosecurity that should be adopted by smallholder farmers in Bali. In Bali, decision makers are not only the individual farmers but also the government and private companies. |
| Keywords: | biosecurity, poultry, investment, Bali, Farm Management, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100530&r=agr |
| By: | Wright, Vic |
| Abstract: | The focus of farm management, as a discipline, has reflected historically the assumption that farms are embedded in near-perfectly competitive market structures. The common validity of this assumption is plain. As open systems, farms have asymmetric relationships with their environment: they are significantly more influenced by it than influencing it. However, farmers seem often not to appreciate the implications of this for their management options. Nor, arguably, is the farm management discipline yet well equipped to analyse initiatives that farmers might contemplate to enhance their control over market outcomes, specifically, as a means of exerting greater control over business performance. In this paper a framework for the analysis of the prospects for product differentiation of farm output is presented in an attempt to fill this lacuna. Introduction As an academic discipline, historically farm management (FM) has been focused on management decision making (Charry and Parton 2002). The domain of physical agricultural production activities may have been taught within farm management qualifications, but the discipline has persistently involved analysis for decisions. Within it farms are characterised as purposeful, open, complex systems having to cope with substantial stochasticity (Dillon 1992). Economics has been the discipline used to most effect to analyse farm management decisions (Malcolm 2004). |
| Keywords: | Farm Management, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100734&r=agr |
| By: | Xavier, Antonio; De Belem Martins, Maria; Fragoso, Rui |
| Abstract: | This work presents an entropy approach to disaggregate agricultural data at a local level. It comprises two different steps. In a first one, an information prior at disaggregated level based on expertsâ opinions, available cartography of land use and biophysical data is created. In a second step, itâs used a minimum cross entropy process in order to manage these information inputs and to guaranty a solution compatible with all the different restrictions. The model was applied to the region of Algarve in the year of 1999, in order to disaggregate the data at the pixel and county level. Results show that the model was able to provide some satisfactory results since the estimated values obtained for the different areas revealed a good approximation to the true values. These results were then analyzed and provided a new insight about the policiesâ consequences in the territory. |
| Keywords: | Minimum cross entropy, data disaggregation, local level, Algarve, agricultural policies, Agricultural and Food Policy, C11, C81, Q15, R14, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:98991&r=agr |
| By: | Ameseder, Christoph; House, Lisa; Haas, Rainer; Meixner, Oliver; Fritz, Melanie; Dahl, Ellie; Hofstede, Gert Jan |
| Abstract: | Research on organizational and interâorganizational trust has become an important field in management and marketing literature, as it is perceived as a pivotal aspect of business transactions. However, clarifications are still needed on the issue of whom we trust; is the person whom we are trading with trusted, or the organization, or just the productâquality? Not only has this question not been answered within this field of research, neither have cultural differences have been described to any great extent. Additionally, if the perceived factors important to establish trusting relationships may or may not be the same on the buyers and the sellers side in international business transaction in food chains. The primary objective of this research study therefore is to identify how well US exporters understand the elements of trust that establish strong relationships with EU importers. The Analytical Hierarchy Process was used to evaluate the importance of different trust elements in interviews conducted with US exporters and EU importers of fruits and vegetables. Results are compared, providing both a picture of the important facets of trust, as well as whether the partners understand the perspectives of the other partner. |
| Keywords: | trust, perceived trust, importance of trust factors business transaction, supply chain, fruit and vegetable, US, EU, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Marketing, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100473&r=agr |
| By: | Tarrant, KA; Malcolm, B |
| Abstract: | The âopennessâ of farming systems that is the focus of this paper is âopen to informationâ, in particular the way that new information from the farming systems research project, Dairy Directions, flows from research outputs to dairy farmers. Dairy Directions is a multidisciplinary research activity centred on a steering group of interested parties, mostly farmers, scientists and economists, but also drawing on extension agents, natural resource managers, water service providers, community service providers and public policy participants. The core general research question of Dairy Directions is âWhat options do farmers running different dairy farming systems have to achieve their goals in an uncertain future?â The goals analysed by the project are predominantly economic and financial â maintaining or increasing profit and cash flow, growing wealth, managing risk, preparing for succession and balancing the dairy work-life balance. Their uncertain future encompasses variability in prices, as well as the natural environment and the policy setting. |
| Keywords: | Farm Management, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100717&r=agr |
| By: | Brasili, Cristina; Fanfani, Roberto |
| Abstract: | The Italian Industrial Districts (IDs) are considered to be one of the main reasons for the rapid industrial development and success of Italy since the Second World War. The SME's have also played an important role in this. In this paper we outline the general characteristics of the ID approach and the main structural changes in the new millennium, due to them facing the process of globalization. The distinctive figures of the agrifood districts and their mosaic style of development are than analysed to highlight the similarities and differences between them and the other IDs. First show that they are more relevant and that their geographical distribution is more important than those of other recently analysed Italian ID's. The different zones of origin of agrifood districts and their specialized production is often related to typical or highâquality products, with a strong connection to territorial traditions and manufacturing skills. These characteristics make agrifood districts different in some ways from other ID's where the declining âdistrict effectâ has been noted due to the general difficulties of Italian manufacturing industries. We will analysis these general structural changes focusing on the districts of the meat industry. |
| Keywords: | Economic Development, Agrifood Districts, Industrial Districts (IDs), SMEâs role, Efficiency of firms, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, A1, C23, O1, Q10, Q17, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100456&r=agr |
| By: | Hasnah; Fleming, Euan; Villano, Renato; Patrick, Ian |
| Abstract: | The cacao industry has played an important role in terms of export earnings and employment opportunities in Indonesia since 1980s. It is the main source of income for more than one million smallholder farmers in Indonesia, who are considered poor. Most planted areas of cacao are in Eastern Indonesia; however, cacao production has developed in Western Indonesia recently, with West Sumatra designated as the area of central production. Due to the importance of cacao industry in the Indonesian economy, there is a big opportunity to explore the potential of the industry in poverty alleviation. The study uses the participatory impact pathway analysis (PIPA) method. It is a new approach to formulate a development strategy and policies proposed by the Institutional Learning and Change. This approach is used because it: (1) covers impact analysis in order to investigate the potential contribution of cacao agribusiness development to poverty alleviation, which is not covered by other participatory approaches; and (2) can be used to identify stakeholdersâ relationships for cacao agribusiness development. The use of PIPA in this study involves various tools: a participatory workshop, surveys and semi-structured interviews. Problems facing the cacao industry were identified through the workshop, including low yields and price and price instability. Lack of knowledge by farmers of agronomic practices and low quality of seedlings were considered to be the main causes of low yields by the participants. Low price of cacao beans was thought to be mainly caused by low quality of cacao beans while lack of cooperation between farmers and the village cooperative and lack of a farmersâ association were considered to be the main factors affecting price instability. Farmer survey data results show slightly different priorities from the workshop. Most cacao farmers disagreed on the problem of low yields and low price of cacao beans but a high proportion agreed on the problem of price instability and confirmed that cacao farmers face a problem of low quality of cacao beans. Most farmers do not know the cause of price instability, while improper fermentation was agreed as the main factor causing the low quality of cacao beans. |
| Keywords: | agribusiness economics and management, international development, farm management., Agribusiness, Farm Management, International Development, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100555&r=agr |
| By: | Khan, Mohammad Ismail |
| Abstract: | In Bangladesh, climatic change is likely to impact significantly upon surface and groundwater availability, as well as in other countries. The population of Bangladesh is projected to be double the current 2010 level by 2050. Demand for water will rise with the increasing demand for rice. This paper considers the optimal demand management of irrigation water with stochastic supply under climate change for a 3-year planning horizon. It also identifies the utilization of irrigation water from surface water sources to maximize the expected net social return from rice production. This is done by considering decision on dam release for rice production with reference to climate change. A stochastic dynamic programming model is developed for analyzing the levels and timing of the allocation of surface water for irrigation. The objective is to find the optimal dam release for irrigation which results in the maximum expected present value of the stream of annual net social return from rice production for the 3 years from 2012 to 2014. Net social return in a year consists of the value of rice consumed, measured by consumersâ willingness to pay for rice, less the total cost of rice production. The paper also identifies the need for irrigation infrastructure and determines the optimal investment policies for the adaptation to climate change in Bangladesh agriculture. |
| Keywords: | climate change, dam release, dynamic programming, Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100571&r=agr |
| By: | Higuchi, A; Moritaka, M; Fukuda, S |
| Abstract: | In the Peruvian jungle, there are two main cocoa marketing channels: the intermediaries and the cooperative. For example, the Acopagro Cooperative, a Peruvian organization, has contributed to the shift from illegal crops like coca to an alternative crop like cocoa which gives small scale farmers a sustainable welfare. Despite the fact that the Acopagro cooperative benefits their members by paying a fair price, supplying technical assistance and credit, many farmers still prefer commercializing their cocoa via the intermediaries. A further analysis of cocoa prices was carried out through personal interviews and a survey made between December 2009 and January 2010, of 243 farmers in Juanjui, San Martin, Peru's main cocoa production area. The outcomes demonstrate that there is not so much difference between the cocoa price that the farmers receive from the Cooperative versus through the intermediaries. The main difference is that Acopagro cooperative divides its surplus income among its members at the end of each fiscal year. These results are consistent with previous analysis1 that proved participant farmers are better paid for their product than non-participants. Moreover, there are significant differences in the agri-marketing functions performed by each marketing channel. Farmers who prefer to commercialize via the intermediaries do not choose this marketing channel mainly due to their desire to be independent in the market or their low cocoa production. Because high economies of scale are required for large volumes of produce, the cooperative should attract small scale farmers who distribute cocoa through intermediaries to become Acopagro members in order to satisfy international market demands. |
| Keywords: | Acopagro cooperative, Peruvian jungle, intermediaries, cocoa, price, agri-marketing channel, marketing channel., Agribusiness, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100558&r=agr |
| By: | Daigneault, Adam |
| Abstract: | Despite the importance of the agricultural and downstream processing sectors in the New Zealand economy, there is no tradition of using partial or general equilibrium models to evaluate policies or other measures directed at the agricultural sector. Policy-makers have instead relied on the development of ad hoc scenarios of land use change, farm budget models, and simple multiplier analysis of flow-on effects. To redress this situation, we have developed a catchment-scale partial equilibrium framework based on the US REAP model, which we have thus far calibrated for two different catchments. In this paper, we present an application of the model to the Hurunui Catchment in North Canterbury in which we assess several scenarios for the development of irrigated area under several water storage options. This application is timely, given that there are increasing pressures on water resources in the catchment, and frequent conflicts between abstractive users (mainly pastoral), recreational users (e.g. kayaking, fishing) users, and environmental needs. Currently, a private consortium are pursuing storage options similar to those that we have modelled, while a newly constituted Water Management Zone Committee is tasked with developing a strategic approach to managing water in the Hurunui and adjacent Waiau catchments. In addition, water quality limits are also being developed in the Hurunui catchment. Our modelling approach includes pastoral (dairy, sheep, beef and deer), arable, horticultural and forestry enterprises along with an array of management including various irrigation and fertiliser regimes. The model allows us to test policy scenarios for addressing environmental issues such as mitigating climate change and improving water quality, and changes in resource constraints such as water availability. Using a profit maximizing objective function we compare the impact of the proposed irrigation scenarios in the Hurunui catchment on total catchment profits and a variety of environmental parameters like greenhouse gas emissions and nutrient losses. |
| Keywords: | Partial Equilibrium Modelling, Agriculture & Forestry Sector, Land Use, Water Quality, Water Quantity, Resource /Energy Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100541&r=agr |
| By: | Komarek, Adam; Waldron, Scott; Brown, Colin |
| Abstract: | This paper develops a heterogeneous-agent model to assess the impacts of removing lucerne growing subsidies, increasing livestock numbers and including district-level equilibrium conditions on optimal farm plans in the Qingyang district of Gansu Province, China. The model is a five-year dynamic linear program that solves across 96 farm households whilst incorporating district-level constraints. The approach used allows us to observe seasonal variations in incomes, infer the distribution of a policy shock among households and highlight trade patterns at the district level. The results suggest that without lucerne growing subsidies the total area of lucerne grown by all modelled households falls by 18%. Increasing livestock numbers by 25% reduces net household incomes by 17% as changes to labour allocations reduce off-farm employment opportunities. When external trade in forages is included in the model, total livestock numbers held by all 96 households rise from 502 to 838, this highlights the benefits of integrated feed markets. Shadow prices for crop production rise when livestock numbers increase, implying that benefits exist to improving crop yields. |
| Keywords: | Heterogeneous-agent model, district-level constraints, livestock, China., Farm Management, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100573&r=agr |
| By: | Mugera, Amin; Ojede, Andrew |
| Abstract: | Recent empirical studies on agricultural productivity growth in African countries have produced mixed results; some find that uptake of new technology (technical progress) is the main source of total factor productivity growth while others point to improved use of existing technology (efficiency catch-up). This study tests for efficiency catch-up in the agricultural productivity of 33 African countries from 1966 to 2001. We use recent advances in data envelopment analysis (DEA) to generate standard and bootstrap bias corrected technical efficiency scores. In general, we find no evidence of efficiency catching-up. The standard DEA overestimated the efficiency scores of some countries due to small sample bias. |
| Keywords: | Agriculture, Efficiency Catch-up, Bootstrap DEA, Africa, International Development, Production Economics, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100687&r=agr |
| By: | Peppiette, Zelie |
| Abstract: | Assessment of the environmental outcomes associated with agricultural and rural policy is becoming increasingly important. The High Nature Value (HNV) Farmland indicator included within the EU's Common Monitoring and Evaluation Framework for rural development is taken as an example of the parameters used for environmental monitoring. The different methods used across the EU to estimate the extent and condition of HNV farmland are compared, and issues and challenges related to different approaches are discussed. |
| Keywords: | HNV, High Nature Value, environmental monitoring., Agricultural and Food Policy, Q, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99586&r=agr |
| By: | Russo, Carlo; Sabbatini, Massimo |
| Abstract: | In the absence of reliable a priori information, choosing the appropriate theoretical model to describe an industryâs behavior is a critical issue for empirical studies about market power. A wrong choice may result in model misspecification and the conclusions of the empirical analysis may be driven by the wrong assumption about the behavioral model. This paper develops a methodology aimed to reduce the risk of misspecification bias. The approach is based on the sequential application of a sliced inverse regression (SIR) and a nonparametric NadarayaâWatson regression (NW). The SIRâNW algorithm identifies the factors affecting pricing behavior in an industry and provides a nonparametric characterization of the function linking these variables to price. This information may be used to guide the choice of the model specification for a parametric estimation of market power. The SIRâNW algorithm is designed to complement the estimation of structural models of market behavior, rather than to replace it. The value of this methodology for empirical industrial organization studies lies in its dataâdriven approach that does not rely on prior knowledge of the industry. The method reverses the usual hypothesisâtesting approach. Instead of first choosing the model based on a priori information and then testing if it is compatible with the data, the econometrician selects a theoretical model based on the observed data. Thus, the methodology is particularly suited for those cases where the researcher has no a priori information about the behavioral model, or little confidence in the information that is available . |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100478&r=agr |
| By: | Berriet-Solliec, Marielle; Labarthe, Pierre; Laurent, Catherine E.; Baudry, Jacques |
| Abstract: | There is a wide range of evaluation methods. On the basis of which criteria should one method be chosen? On what scientific foundations are the results of numerous evaluations based? How can reliability and empirical validity be tested? The relevance of such questions is heightened in new fields of action such as agri-environmental policy. This paper aims to demonstrate that theoretical advances on level and types of evidence (existence, causality, effectiveness) can help resolve these issues. The main evaluation methods are classified into three main categories, according to their main goal (to learn, measure, understand) and linked to the debate on types of evidence. The analysis is illustrated by comparing evaluation methods in the field of agroenvironmental policies and farm advisory services. Attention is drawn to the shortcomings of each method with respect to corroborating facts as well as existing complementarities and trade-offs between methods in terms of empirical validity. |
| Keywords: | evaluation, evidence, agricultural extension, agri-environment, Agricultural and Food Policy, B49 H83 Q18 Q58, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99591&r=agr |
| By: | MartÃnez Soto, Moises; RodrÃguez Monroy, Carlos; FuentesâPila, Joaquin; Morris, A.; GilâAraujo, M.; Velasco, J. |
| Abstract: | The objective of this study is to characterize the cycle of knowledge in the supply chain of the industry of corn for human consumption. White corn is cultivated almost exclusively for human consumption and it has a significant value in the food supply in countries whose diet has a high proportion of this variety of corn, such as: Venezuela, México and Colombia in America, and the Republic of South Africa and Sahel countries in Africa. Corn is produced in Venezuela, under rainfed conditions and in a highly mechanized production system. The cycle of knowledge is defined as a progressive spiral in which knowledge is created, stored, transferred, applied and preserved, in order to increase the competitiveness and sustainability of organizations and companies in the food supply chain. This nonâexperimental and crossâsectional research is of a descriptive type. It was conducted in Venezuela during the second semester of 2009 in the supply chain of white corn, specifically, at the level of first tier producers (primary sector). The population is constituted by 1,754 producers of corn in the most important producing regions of the country. The representative sample was selected by the stratified sampling technique with proportional allocation: by association of corn producers and according to the grain yield. A questionnaire was designed and conducted according to the structured survey method. Its validity was verified by discriminant tests of items and its reliability through Bartlett's test, variance factorial analysis, KaiserâMeyerâOlkin and Cronbach Alpha, achieving the last one a value of 0.9276. The production units have an average area of 67.17 ha, with 1.97 permanent workers and 4.06 temporary workers. They obtained a physical productivity of 4,210.45 kg.haâ1. The Knowledge Index (KI) achieved a value of 69.78% and the Perception Index of the results (PI) was 76.06%. The Pearson correlation among these indices was positive and significant with a value of 0.51. The factorial analysis for principal components with rotated factors allows obtaining four factors from the five dimensions originally considered. These factors are: (1) knowledge creation, (2) knowledge storage, (3) knowledge transfer and application, and (4) preservation of knowledge. The results allow us to conclude that the cycle of knowledge is managed in four stages in an intuitive and predominantly tacit manner which is the reason why those practices related to explicit knowledge become the agents of differentiation. Moreover, the existence of a positive correlation between the Knowledge Index and the Perception Index of the positive results by the producer was also proven. |
| Keywords: | Knowledge Cycle, Industry of White Corn, Food Supply Chain, Agribusiness, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100510&r=agr |
| By: | Dilani Hirimuthugodage (Institute for Policy Studies) |
| Abstract: | The TRIPS agreement has given flexibility to all countries in selecting the protection methods and techniques for plant varieties and farmers traditional knowledge. Thus, most of the developed countries have adopted well-built intellectual property regimes using strong patent systems and plant breeder’s rights. The main reason for developed countries to choose patents for protection is due to their technological capabilities and the immense financial benefits that a patent system is expected to generate. Whereas, developing countries have weak regimes due to lack of financial and technical support. |
| Keywords: | Sri Lanka, Trade Related Intellectual Property Rights, TRIPS, Agriculture Sector |
| JEL: | F1 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:esc:wpaper:9211&r=agr |
| By: | Vanzetti, David; Oktaviani, Rina |
| Abstract: | Trade negotiators are concerned about the possible negative effects of trade liberalisation on employment in specific sectors. The agricultural sector has characteristics that make it different from industrial or service sectors. These are an informal labour force, low productivity, relative absence of regulations and a tie to land. These characteristics help the sector adjust to trade shocks. In this application, a global computable general equilibrium model is used to determine trade shocks that are passed to a single country general equilibrium model to analyse employment and wage effects for four skills levels in Indonesian agriculture. Employment tends to move with output in the primary agricultural sector where capital-labour substitution is relatively low. However, factor substitution appears to be greater in the processed agricultural sector. The employment effects of trade shocks are quite small, with the possible exception of the highly protected sugar sector. Implications for trade and labour market policies are drawn. |
| Keywords: | Indonesia, agriculture, trade, employment, Agricultural and Food Policy, International Relations/Trade, F16, Q17, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100724&r=agr |
| By: | Chiodo, Emilio; Casolani, Nicola; Fantini, Andrea |
| Abstract: | The paper analyses how different aspects connected with regulations can influence the consumersâ quality perception and the value that consumers attribute to the wine sector products. In particular, aspects concerning labelling and presentation of designations of origin, which, in turn, mirror different regulations of production methods, are considered. Consumersâ preference can allow enterprises to complying with more restrictive rules and sustain higher costs for differentiate their products and achieve higher quality. When choosing a product, consumers do not evaluate each single quality factor but the product as a whole, therefore the analysis has to be done with a methodology considering both the combination of all characteristics of the product, and the contribution of every factor to the creation of value for consumers. For this reason the value that consumers attribute to different characteristics is evaluated through an experimental economic analysis applying the method of the Conjoint analysis. |
| Keywords: | Conjoint analysis, designations of origin, wine sector regulation, consumer perception, Agricultural and Food Policy, Q 13, Q 18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99590&r=agr |
| By: | Carlos Pestana Barros; Ari Francisco de Araujo Jr.; João Ricardo Faria |
| Abstract: | This paper analyzes conflicts and violence in Brazil involving landless peasants occupying privately-owned land, for the period 2000-2008. It is the first study to be undertaken at a national level, with a contemporary data span, using a count data model that allows for heterogeneity, endogeneity and dynamics. Results from the estimated model show that the violent land occupation grows with left-wing political support for land occupation, rural population density, and agricultural credit, and decreases with poverty, agricultural productivity. The study discusses the interconnection of land reform, poverty and conflict. |
| Keywords: | Land occupation, land reform, Brazil, poverty, conflict. |
| JEL: | D74 O54 O17 J49 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:ise:isegwp:wp072011&r=agr |
| By: | Langen, Nina; Grebitus, Carola; Hartmann, Monika |
| Abstract: | âGrowing awareness among consumers about sustainability issues â ranging from recycling to fair wages for workers â are starting to shape consumer buying patternsâ (Partos 2009). Especially for conscious consumers ethical and sustainable consumption are becoming mainstream. With regard to ethical consumption the popularity is shown for instance by a growing relevance of Causerelated Marketing (CrM) campaigns in Germany. CrM is an increasingly applied marketing tool, where product purchase leads to targetâoriented donations regarding a designated cause â promoted on the product by label. However, research reveals that German consumers are sceptic with regard to the amount of money spent and have doubts towards unselfish motives of firms. At present little information is provided in CrM campaigns on how much of the sales price is spent on the âcauseâ by the respective organization. If the gap between the sum consumers assume to be contributed and the amount really spent by the companies is too large this could lead to mistrust among consumers once they become aware of this. In the long run, this might decrease willingness to pay for those products in general. Also, firmsâ reputation could be harmed (see e.g. Webb and Mohr 1998). Against this background, we aim to answer the question of (1) how much consumers assume to be contributing to the âcauseâ by purchasing the respective product and (2) whether this information is of relevance for the consumer. We investigate (i) whether consumers want products to carry a label indicating the percentage or absolute amount of money being spent on the âcauseâ, (ii) how much money should be contributed to the âcauseâ in the case of CrM, and (iii) how much consumers think companies do actually spend on the âcauseâ. In this regard, we conducted a consumer survey (n=217) in Germany in 2009. Results show that (i) consumers want to be able to evaluate the efficiency of the CrM donation. 71% want this information given in percent and 63% would like to know the exact amount of money reaching the addressee. (ii) Regarding CrM results show that 46% of respondents would pay 5.00⬠for a pound of CrM coffee if they can be sure that 20% reaches the âcauseâ. At the same time (iii) 54% of respondents believe that a maximum of 6% of the CrM price premium reaches the âcauseâ. Overall, consumers desire transparency with regard to CrM. Hence, our study enables marketers to develop efficient and effective consumerâoriented communication strategies. |
| Keywords: | Causeârelated Marketing, donations efficiency, transparent labelling, Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100467&r=agr |
| By: | Lapar, Ma. Lucila A.; Ngoc Toan, Nguyen; Zou, Chengyi; Liu, Jinyuan; Li, Xianglin; Randolph, Thomas |
| Abstract: | We employ propensity score matching (PSM) framework to examine the impact of sweet potato-based feed technology adoption on household-based pig production in Sichuan, China. An ex post survey in six villages was conducted in 2009, of which five villages were in project intervention sites (exposed area) and one village in the same township but not exposed to project intervention (non-exposed area). We randomly selected 111 households in the exposed areas from the list of households previously interviewed in a baseline survey and 53 households from non-exposed area. Matching estimators such as nearest neighbor matching (NNM), radius matching (RM) and kernel matching (KM) were used to estimate average treatment effects. Results indicate positive net benefit from adoption of sweet potato-based feeding technology, i.e., gross margin estimates of silage adopters are on average higher by 2-4 RMB per kg liveweight of output than non-adopters of similar characteristics. Silage adopters are also likely to produce 3-7 more slaughter pigs per year than non-adopters having similar characteristics, on average. Analysis of factors driving adoption indicates that sweet potato-based feed technology is not suitable in all smallholder context in Sichuan. Where this is suitable is in systems where sweet potato is an important crop, where there is limited access to input markets such as in upland or mountainous areas, where corn is not an important crop, and where households raise no more than 10 pigs given available household labor for pig raising in rural areas (generally either old people who are no longer active in the labor force, or young children who are still in school). Overall, the results show that sweet potato-based feed technology plays an important role in helping household-based pig producers become resilient, by having options in feeding strategies that help them cope with volatility in output prices (e.g., prices of live pigs as a function of retail prices of pork) and input prices (e.g., price of corn vis-Ã -vis price of pork, price of industrial feed). Exposure to the technology and its benefits through actual demonstration also appears to be more effective in engendering uptake and sustaining adoption. |
| Keywords: | Technology adoption, impact assessment, crop-livestock systems, Livestock Production/Industries, Production Economics, O22, O33, Q16, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100577&r=agr |
| By: | Wang, Xi; Curtis, Kynda; Moeltner, Klaus |
| Abstract: | As the demand for organic and natural food grows in the U.S., studies show that consumers would and do pay more for these foods than their traditional counterparts. However, the question remains as to whether consumers really understand the differences between organic and natural products versus common products. The USDA provides an official definition of organic, but there is no official definition or certification for natural products. The general lack of knowledge among consumers concerning organic and natural products can be misleading and hence, there is a need for a better understanding of how consumer pre-existing knowledge and new information regarding organic and natural products influences consumer purchasing behavior. In this study, we research the effect of providing consumers with information regarding organic and natural production processes in four separate stages on their willingness to pay (WTP) for various natural/organic meat products. Through the use of survey data collected in-person during the fall of 2007 Nevada, in which 597 surveys were completed, we examine the impact of consumer perceived knowledge of organic and natural grass-fed production processes on their WTP, whether or not new information/knowledge will modify their WTP, and the degree of modification across meat types and cuts. Meats examined vary from high-end to low-end cuts and across various meat types, such as pork and beef. The modeling will include a multinomial probit model to measure WTP and also consider the modeling issues that arise when updated preferences are included. The results of this study will be important for researchers looking to model updated consumer preferences. The purpose of our research is twofold. First, we wish to observe whether or not advertising and other promotional methods truly influence consumer demand and willingness to pay for these specialty meat products. These results will likely be important to the role of marketing and the way in which information is provided to consumers on organic and natural production methods and the potential positive effects of those methods. Additionally, the paper will show how consumers purchasing experiences and pre-existing knowledge might influence their reaction to the same information. |
| Keywords: | Marketing, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100540&r=agr |
| By: | Baldi, Lucia; Vandone, Daniela; Peri, Massimo |
| Abstract: | This paper analyzes the relationship between Global Wine Industry Share Price Indexes and composite stock market indexes using a Threshold Vector Error Correction Model (TVECM), aiming to investigate if investments in the wine sector play a role in determining financial risk and return to investors who include it in their portfolio. Whilst in most of the literature analyses the return of investments of fine wine, this paper places the focus to ânormalâ (i.e. nonâfine) wine, using data from the Mediobanca database covering companies in the wine industry listed on regulated stock market in France, US, Australia, Chile and China . The dataset cover the time period going from January 1, 2001, to the end of February 2009. The estimates of the TVECM lead to the following results: i) in more mature markets, like France and the US, the presence of a threshold in the relationship between wine index and composite index permit informed investors to make gainful investments; ii) in less mature markets, like Chile and China, there is evidence suggest that wine is not used as a financial parachute. |
| Keywords: | Wine sector, Stock Market, Threshold Cointegration, Agribusiness, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, Q11, G14, C32, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100506&r=agr |
| By: | Miller, Ana Corina; Matthews, Alan; Boysen, Ole; Donnellan, Trevor; O'Donoghue, Cathal |
| Abstract: | The purpose of this paper is to assess the impacts of further trade liberalisation on the agricultural sector in Ireland. In addition to evaluating the aggregate impacts on agricultural production as well as the spill-over effect of this on the non-agricultural sector and for overall Irish GDP, we evaluate the effects for different types of households. In order to capture economy-wide impacts of the policy reform, a CGE model was formulated and implemented using a social accounting matrix constructed for Ireland for the year 2005. Household effects are captured using representative households. The simulation results suggest a positive impact on the Irish economy as well as on the representative households. Many agricultural sectors contract in the process but a more efficient reallocation of resources into manufacturing and services sectors more than compensates those losses. |
| Keywords: | Trade policy, CAP reform, CGE model, Macro and welfare effects, Agricultural and Food Policy, International Relations/Trade, F13, D58, I3, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99598&r=agr |
| By: | Jackson, Thomas |
| Abstract: | The private decisions of farmers to invest in new technologies interest economists because these decisions influence the rate of farm productivity growth and the returns to public investment in agricultural research and development. Economic analysis of decisions to invest in new technologies on farms involves considering the effects of these decisions on the profitability and risk of the farm business. This is done routinely using whole-farm economic models and techniques such as stochastic simulation. Such analysis can be used to predict the extent to which a technology is likely to be adopted in equilibrium, when the consequences of adoption are known to all potential adopters. Until this equilibrium is reached, however, potential adopters of new technologies face uncertainty about the consequences of adoption. This alters expectations about the effects on profitability and risk of adoption, and hence alters investment decisions. The resolution of uncertainty over time through learning is therefore a key determinant of the rate at which new technologies are adopted, and hence should be represented in dynamic economic models which seek to explain these decisions. |
| Keywords: | Farm Management, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100566&r=agr |
| By: | Secco, Laura; Da Re, Riccardo; Gatto, Paola; Pettenella, Davide; Cesaro, Luca |
| Abstract: | Good governance approaches in policy formulation and implementation - based on keyconcepts like participation, networking, transparency and accountability - are more and more adopted by the EU in addressing its rural policies reforms. Public Administrations at all levels should be evaluated with respect to their capacity to respect good governance principles. First, on the basis of a meta-analysis of ongoing initiatives (e.g. the World Bankâs Worldwide Governance Indicators), a methodological framework for assessing the quality of new governance modes is presented. Secondly, on the basis of case-studies in Italy, the monitoring and evaluation tools currently used by the European Commission to assess Administrationsâ performances in rural development programs and Leader approach are compared with the proposed framework. Gaps are identified and discussed. Findings demonstrate, among others, the weakness of the European evaluation system in the analysis of the cost/benefit ratio of (local) governance and non market (environmental, social, distributive) effects. |
| Keywords: | Governance, Indicators, Rural Development Programs, Local Action Groups, Agricultural and Food Policy, R58, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99589&r=agr |
| By: | Robin Cross (Oregon State University); Andrew J. Plantinga (Oregon State University); Robert N. Stavins (John F. Kennedy School of Government, Harvard University, National Bureau of Economic Research, Resources for the Future) |
| Abstract: | We examine the value of terroir, which refers to the special characteristics of a place that impart unique qualities to the wine produced. We do this by conducting a hedonic analysis of vineyard sales in the Willamette Valley of Oregon to ascertain whether site attributes, such as slope, aspect, elevation, and soil types, or designated appellations are more important determinants of price. We find that prices are strongly determined by sub-AVA appellation designations, but not by specific site attributes. These results indicate that the concept of terroir matters economically, although the reality of terroir – as proxied for by locational attributes – is not significant |
| Keywords: | Wine, Vineyard, Hedonic Price Analysis |
| JEL: | C2 Q11 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2011.12&r=agr |
| By: | Tran, Lap; Schilizzi, Steven; Chalak, Morteza; Kingwell, Ross |
| Abstract: | Policy makers in Vietnam face difficult choices when deciding reservoir water management strategies between irrigation and fisheries. In this paper, an economic optimization model for water management is developed to facilitate policy makersâ decision making. The model includes the response of rice and fish yields to key factors including reservoir water levels, the timing and quantity of water release, and climatic conditions. The model accounts for variation in rainfall patterns, irrigation requirements, and the demand for low water levels during the fish harvest season. The model is applied to the Daton reservoir in the south of Vietnam to maximize profits in each of three production scenarios where the reservoirâs water is used for: (1) only producing rice, (2) only producing fish, and (3) producing rice and fish. Key findings are: (1) for rice production, adequate water should be released to meet rice water requirement and residual water should be stored as a source of water in the case of low rainfall; (2) for fish production, maximum water should be released prior to the fish harvest; (3) for rice and fish production, although water should be released prior to fish harvest, sufficient residual water must remain to satisfy the water requirements of rice in its remaining stages of growth. The model could be applied to other multiple-use resources such as forests, river basins, and land. |
| Keywords: | Multiple-use resources, reservoir water management, optimization, irrigation, fisheries, and stochastic, Production Economics, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100721&r=agr |
| By: | Fraser, Iain; Sharma, Abhi; Bailey, Alastair |
| Abstract: | In this paper we consider the adoption of pest management technologies by farmers in UK cereal crop systems. While for the majority of UK farmers chemical control of pest outbreaks remains important, there are a range of non-chemical approaches and management practices that can be used to control pest populations. However, few of these alternatives produce levels of control that compare with chemical use in isolation. In this paper we consider the determinants of adoption of different combinations of individual pest management technologies. Based on survey data we first construct sets of pest management technologies before modelling the decision problem as a multiple adoption process to examine variation in the adoption of these technology sets. Our results indicate that the choice of technologies adopted can be related to specific aspects of farm level activity and type. |
| Keywords: | Agribusiness, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100549&r=agr |
| By: | Le Roy, Anne; Millot, Guillaume |
| Abstract: | Using figures seems to create rigour, objectivity, knowledge and it facilitates comparisons. Consequently, an evalution without figures is hardly conceivable. Nonetheless, objectivity and precision can be just an impression given the fact that figures are constructions built on a modeled description of reality. The simplification of reality operated through a figure can hide subtle elements regarding the way public policies work. If figures can legitimately be used in evaluation, every kinds of figures and evaluations are not equivalent. Therefore, our main research question is what place for figures in evalution? This contribution relates to research about policy evaluation, seen as a mean to produce knowledge useful for the understanding of policies and their implementation. Based on the analysis of the evaluations of rural development policies conducted by the French ministry of agriculture our goal is to increase practical and theoretical knowledge of those policies through well-designed evalutions. |
| Keywords: | Data, evaluation, methods, rural development policies, Agricultural and Food Policy, R58, Q18, H50, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99600&r=agr |
| By: | Van der Straeten, Bart; Buysse, Jeroen; Nolte, Stephan; Lauwers, Ludwig H.; Claeys, Dakerlia; Van Huylenbroeck, Guido |
| Abstract: | Within the framework of the nitrate directive, member states have the possibility to apply for derogation, i.e. increasing fertilization standards under certain conditions. Several EU regions have made use of this possibility but all in a different way. In 2009, 6 different derogation policies were worked out. This paper focuses on the differences between the applied policies and makes an assessment of the impact of these differences on the application rate of derogation, the manure surplus and the costs to allocate the manure. Based on the MP-MAS model described by Van der Straeten et al. (2010) the different scenarios are applied on a single case area (Flanders) and the economic effects have been simulated. Results show large differences between the policy alternatives, leading to the conclusion that member states not only have to focus on the permission to allow derogation or not but also at the details of the derogation policy. Granting derogation at parcel level instead of farm level increases the potential effect of derogation, the height of the increase in fertilization standards under derogation determines the application rate of derogation: a higher increase leads to a higher application rate. |
| Keywords: | Nitrate directive, MAS-model, derogation, Flanders, Agricultural and Food Policy, Q12, Q18, Q51, Q52, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99426&r=agr |
| By: | Karanja, Francis; Rama, Ismo |
| Abstract: | Tradeable development rights (TDRs) are market based instruments that allow a right to develop a parcel of land to move from one parcel to another. We examine TDRs as a potential instrument for achieving the economic objective of allocating development to its highest value use in Victoria. TDRs are examined as a tool within Victoriaâs existing planning system for rural land, which has a number of objectives. Design considerations for applying TDRs in Victoria include the need to consider modifying development entitlements from a right to apply (RTA) to a right to develop (RTD). It will also be important to address potential infrastructure externalities. Additional challenges include developing a suitable metric, addressing potential development hotspots and non-quantity development attributes, considering potential leaks, clarifying distributional impacts, and addressing credible commitment mechanisms. We consider the potential for TDRs to contribute to a series of land use outcomes. We find that using TDRs to protect agricultural does not appear to address underlying market failures that may contribute to excessive urban sprawl and encroachment on agricultural land. TDRs offer a potential source of adjustment income, although other instruments may assist in a more effective and transparent manner. TDRs can be directed to protecting native vegetation; however, Victoria has existing and emerging instruments in place to target this objective. Finally, TDRs offer potential for the more efficient allocation of well specified development rights, which would require modification of the existing planning framework to accommodate the design challenges noted above. |
| Keywords: | Land Economics/Use, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100701&r=agr |
| By: | Strahl, Wibke; Dax, Thomas; Hovorka, Gerhard |
| Abstract: | This paper reflects the demand for taking account of the territorial dimension in the application of Common Agricultural Policy (CAP) more comprehensively. While this has been addressed in rural development discourse to a wide extent over the last two decades and consensus for regionalized strategies is emerging, programme evaluation is in general still limited to the analysis of policy interventions at the national level. This implies that conclusions on the territorial effects of CAP are largely missing.Therefore the intention of this paper is to provide a regional analysis of CAP expenditures for pillar 1 and pillar 2, and to demonstrate and assess their actual territorial impacts, represented on the basis of the NUTS 3 region âObersteiermark Westâ: The territorial analysis presented is an example to reduce this gap (national vs territorial) in the evaluation of CAP. |
| Keywords: | CAP expenditure, regional analysis, territorial effectiveness, Agricultural and Food Policy, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:98980&r=agr |
| By: | Trang, Truong Thi Thu; Vanzetti, David |
| Abstract: | The global financial crisis in 2008-2009 has affected almost all countries. Vietnam was hit by a large fall in export demand and foreign direct investment. Many governments quickly prescribed stimulus packages and Vietnam was no exception. It reduced taxes and increased government spending, mainly by subsidizing loans to state-owned enterprises. The question is what the stimulated impact is, if any, and whether a better outcome could have been achieved by a different mix of policies. In this paper, we use a simple general equilibrium model to quantify the impact of the various components of the stimulus package on the whole economy as well as agricultural sector. The results suggest that, in the short run at least, the stimulus package marginally stabilised national production and income. The package led to a reduction in total welfare because it favoured the non-agricultural sector. The poor in the agricultural sector could be better off if the investment policy were to boost demand for agricultural products. Furthermore, the risk of inflation and real exchange rate appreciation could undermine national competitiveness. |
| Keywords: | Vietnam, fiscal stimulus, agriculture, International Development, Public Economics, E62, D58, Q17, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100722&r=agr |
| By: | Verdouw, Cor N.; Beulens, Adrie J.M.; Trienekens, Jacques H.; Wolfert, Sjaak |
| Abstract: | Agriâfood companies increasingly participate in demandâdriven supply chains that are able to adapt flexibly to changes in the marketplace. The objective of this presentation is to discuss a process modelling framework, which enhances the interoperability and agility of information systems as required in such dynamic supply chains. The designed framework consists of two parts: an object system definition and a modelling toolbox. The object system definition provides a conceptual definition of business process in demandâdriven supply chains from a systems perspective. It includes an application of the Viable Systems Model of Stafford Beer to supply chains, and classifications of business processes, control systems and coordination mechanisms. The modelling toolbox builds on the terminology and process definitions of SCOR and identifies three types of process models: i) Product Flow Models: visualize the allocation of basic transformations to supply chain actors and the related product flows from input material into end products (including different traceability units based on the GS1 Global Traceability Standard); ii) Thread Diagrams: visualize how orderâdriven and forecastâdriven processes are decoupled in specific supply chain configurations (positions Customer Order Decoupling Points), and how interdependences between processes are coordinated; iii) Business Process Diagrams: depict the sequence and interaction of control and coordination activities (as identified in Thread Diagrams) in BPMN notation. The framework is applied to several agriâfood sectors, in particular potted plants and fruit supply chains. The main benefits are: i) It helps to map supply chain processes, including its control and coordination, in a timely, punctual and coherent way; ii) It supports a seamless translation of highâlevel supply chain designs to detailed information engineering models; iii) It enables rapid instantiation of various supply chain configurations (instead of dictating a single blueprint); iv) It combines sectorâspecific knowledge with reuse of knowledge provided by generic crossâindustry standards (SCOR, GS1). |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100477&r=agr |
| By: | Komarek, Adam; MacAulay, T. Gordon |
| Abstract: | Using an expected mean-variance model the changes in farm enterprise levels and indirect utility were examined under conditions of risk aversion, budget constraints and gross margin variance. An extension of the comparative statics of the expected mean-variance model was adopted by introducing a budget constraint into the constrained optimisation problem. A 10-year expected mean-variance whole-farm model was solved for a farm in the wheat-sheep zone of Australia to provide an empirical example. Results were obtained using no planning horizon (the static model) and then with a five-year rolling planning horizon (the dynamic model). In addition, enterprise levels were constrained to match levels observed on the farm so as to compare incomes between the constrained and unconstrained models. For a cash constrained, risk averse, farmer it was found that they are likely to have larger expenditures than less risk averse operators in order to obtain the same indirect utility. Enterprise levels differed between the dynamic and static models, and a dynamic model was used to help explain inter-temporal decision-making. Risk aversion reduced the set of possible welfare improving production activities available to a farmer. |
| Keywords: | Whole-farm modelling, enterprise selection, risk., Farm Management, Q12, C61, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100574&r=agr |
| By: | Monasterolo, Irene; Pagliacci, Francesco |
| Abstract: | Several progresses have been made in evaluating the development policies for rural areas in the last years; many indicators1 have been set for assessing the effectiveness of Common Agricultural Policy (CAP) and Rural Development Policies (RDPs) and their role on the convergence process of the EU members, but a shared definition of rurality is still missing. The results obtained at the level of growth and development by the most lagging behind areas, are far from being satisfactory (Brasili, 2005). The evaluation of the policies and programmes introduced evidenced lack of institutional planning and implementing abilities, and an insufficient targeting of policies and payments (Mantino, 2010). The experience of the 10 New Member States (NMSs)2 showed how the current CAP and Cohesion policy, designed for the EU-15 (Csaki et al. 2010), arenât enough for addressing the regional specificities, hindering a process of development which is already weakened by the effects of the unfinished transition. This paper aims at offering a methodological contribution for evaluating the EU membership, with particular attention to the CAP, in Hungary. We chose this Country among the 10 NMSs because of the relevance (96%) of the rural areas on the total land3, and given the historical socio-economic role played by agriculture. The authors believe that more targeted â and therefore efficient â policies for agricultural and rural areas require a deeper knowledge of their structural and dynamic characteristics. Therefore, in order to identify the changes occurred before (2003) and after (2007) the EU membership on agricultural and rural areas, we use the following multivariate statistics methodologies: Principal Components Analysis, applied to the set of 42 variables, and Cluster Analysis on the results obtained by the Principal Components Analysis. Then, we offer a preliminary evaluation of the distribution of Single Area Payment Scheme (SAPS)4, using the information on the applications provided at the County level by the Hungarian Paying Agency to show correlations with the leading factors. |
| Keywords: | Agricultural and rural development policy evaluation, rural areas, policy targeting, EU enlargement, Agricultural and Food Policy, O18, P25, R58, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:98988&r=agr |
| By: | Huffaker, Ray |
| Abstract: | In âdissipativeâ dynamical systems, variables evolve asymptotically toward lowâdimensional âattractorsâ that define their dynamical properties. Unfortunately, realâworld dynamical systems are generally too complex for us to directly observe these attractors. Fortunately, there is a methodââphase space reconstructionââthat can be used to indirectly detect attractors in realâworld dynamical systems using time series data on a single variable (Broomhead and King, 1985; Schaffer and Kott, 1985; Kott et al, 1988; Williams,1997). Armed with this knowledge, we can formulate more accurate and informative models of realâworld dynamical systems. We begin by introducing the concept of phase space attractors within the context of a dynamic ISLM model. We next demonstrate how phase space reconstruction faithfully reproduces one of the modelâs attractors. Finally, we discuss how phase space reconstruction fits into a more general âdiagnosticâ modeling approach that relies on historical data to guide and test the deterministic formulation of theoretical dynamical models. As an example of diagnostic modeling, we test how closely the attractor generated by the dynamic ISLM model visually approximates the attractor reconstructed from time series data on realâworld interest rates. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100455&r=agr |
| By: | Ãzkan, Åeyda; Farquharson, Bob; Hill, Julian; Malcolm, Bill |
| Abstract: | In this study, the possible impacts of different prices of carbon on farm profitability in two dairy farm businesses with different feeding systems operated over five years were analysed. The feeding systems were a ryegrass pasture-based system (RM) and a complementary forage-based system (CF). Data were obtained from a five year farmlet trial which was applied to a scaled up representative farm model. As a first look, a carbon charge was imposed on the systems as they currently operate to gauge the order of magnitude of a carbon charge on dairy systems if they were to continue to operate essentially the same system following the impost of a cost of carbon. The main finding of this study was that overall net present value (NPV) of five years of annual operating profit for each system, at five per cent discount rate, decreased when a price on carbon, as a direct cost, was included. Compared with the status quo situation where there was no effect of a price on carbon on farm operating profit, a price of $15/t CO2-eq on carbon reduced the net present value of five years of operating profit by about 6 per cent for the RM farm system and 5 per cent for the CF farm system (equivalent to $70 000/farm and $66 000/farm). A carbon price of $25/t CO2-eq reduced the overall net present value by about 10 per cent and 9 per cent in the RM and the CF systems respectively (equivalent to $114 000/farm and $110 000/farm). |
| Keywords: | dairy cow, pasture-based feeding system, carbon cost, operating profit, Environmental Economics and Policy, Farm Management, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100710&r=agr |
| By: | Schuh, Bernhard; Lukesch, Robert; Michaelk, Jeane; Kaufmann, Peter; Pufahl, Andrea; Schiller, Simone; Koorberg, Pille; Beaufoy, Guy; Pinay, Gilles; Moran, Dominique; Gomann, Horst; Storti, D.; Rossi, P.; Paracchini, Marie-Luise |
| Abstract: | The Common Monitoring and Evaluation Framework (CMEF) provides a single framework for monitoring and evaluation of all EU Rural Development Programmes (RDP) in the current programming period (2007-2013). It provides continuity from previous periods and constitutes a significant simplification as regards assessment of results and impacts, while at the same time offering greater flexibility to Member States. The European Evaluation Network for Rural Development has published a Working Paper on Approaches for assessing the impacts of the Rural Development Programmes in the context of multiple intervening factors. The aim of the Working Paper is to inspire and to encourage programme evaluators, not to restrict or constrain them. From a methodological perspective, the three common socio-economic impact indicators of the CMEF (economic growth, employment creation, labour productivity) are more closely related than the four common environmental impact indicators (reversing biodiversity decline, maintenance of High Nature Value faming and forestry, improvement in water quality, contribution to combating climate change). |
| Keywords: | assessment of impacts, Rural Development Programmes, policy evaluation, EU policy, Agricultural and Food Policy, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99365&r=agr |
| By: | Sotte, Franco |
| Abstract: | The aim of this paper is to suggest the adoption of an "evidence based" approach in the analysis of CAP expenditure. The debate on CAP expenditure is generally based on ex-ante images of the budget as presented in the Multiannual Financial Framework and, before each financial year, on the budget appropriations for commitments. But this differs significantly from the actual payments as recorded ex-post in the Financial Reports. These differences are mainly concentrated on structural policies (such as regional and rural development policy), while they do not exist, or are minimal, in the mere transfer policies (such as in Pillar 1 of the CAP). Based as it is on a partial and distorted image of the expenditure, the analysis and discussion on the CAP reform is distorted as well. |
| Keywords: | CAP expenditure, financial reports, evidence based approach, CAP reform, Agricultural and Food Policy, H5, F5, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99835&r=agr |
| By: | Marawila, TD; Ancev, T; Odeh, I |
| Abstract: | In this study a spatially explicit economic analysis was employed to determine the land use change in a traditional coconut growing district of Sri Lanka. From a theoretical model of land use, an econometric framework was developed to incorporate spatial and individual effects that would affect the land use decision. Markovian transition probabilities derived from the econometric analysis and spatial analysis was used to predict the land use change over the next 30 years. The results revealed that the fragmentation and conversion of coconut lands to urban continue in the areas close to the urban centre and also with less productive lands. Spatial analysis provides further evidence of the positive trend of conversion of coconut lands to urban uses close to the urban areas. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100583&r=agr |
| By: | Zanasi, Cesare; Rota, Cosimo |
| Abstract: | The importance of organizational issues to assess the success of international development project has not been fully considered yet. An analysis of the literature on the project success definition, focused on the success criteria and success factors, was carried out by surveying the contribution of different authors and approaches. Traditionally projects were perceived as successful when they met time, budget and performance goals, assuming a basic similarity among projects (universalistic approach). However, starting from a nonâuniversalistic approach, the importance of organizationâs effectiveness, in terms of relations sustainability, emerged as a dimension able to define and assess a project success (Belassi W., Tukel O.I., 1996). Based on previous research contributions on the factors influencing the relations between organizations (Zanasi C., Rota C., 2009), the paper expands the analysis of the influence of human resource management on organizational climate that, in turn, influences the relation sustainability between project manager and project team involved in international cooperation for development. A detailed analysis of these relations is provided and a research hypothesis are built. A questionnaire on previous contributions was adapted to collect data for a Structural Equation Modelling (SEM) analysis. Five dimensions of organizational climate (Zeitz G. et al., 1997) (trust, communication, innovation, job challenge, social cohesion), four dimensions of human resource management (Snell S.A., Dean J.W, 1992) (staff recruitment, training, performance appraisal, reward system) and two dimension for sustainable relations (Fisher C., Reynolds N., 2008) (relations quality and strength) are reported and measured by using a 5 point Likert scale. The sample size is still in progress. The first results on internal consistency reliability coefficients (Cronbachâs alpha) are satisfactory. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100464&r=agr |
| By: | Acworth, William; Edwards, Astrid |
| Abstract: | With agriculture occupying approximately sixty per cent of Australiaâs land surface, policy makers, scientists and land managers are becoming increasingly interested in opportunities to sequester greenhouse emissions through land use change. The announcement of the Labor Governmentâs Carbon Farming Initiative brings Australian agriculture a step closer to participating in recognised domestic and international climate change mitigation action. In this paper, the costs and opportunities for carbon sequestration options under the Carbon Farming Initiative are assessed. The following section discusses the substantial hidden costs that may be associated with an offset trading scheme and potential for these costs to substantially shrink the size of the market. The paper concludes by presenting some potential solutions to the challenges raised and identifies some critical questions for policy makers. |
| Keywords: | carbon trading, Resource /Energy Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100528&r=agr |
| By: | Asioli, Daniele; Boecker, Andreas; Canavari, Maurizio |
| Abstract: | Since 2005, the implementation of a traceability system is mandatory to all European food chain operators. The balance of costs to build and maintain the traceability system and benefits of traceability depends on the firmÂfs traceability objectives and its resources, as reflected in characteristics, such as adopted quality management systems (QMS) or firm size. Mora and Menozzi (2005) mention that the cost of traceability is lower when firms already have a QMS in place. Moreover, US producers exporting to multiple destinations, in particular EU and Japan, need to comply with more stringent traceability regulations (De Souza Monteiro and Caswell 2004). This may request the adoption of more sophisticated and costly traceability systems. Food operators tend to have a good understanding of traceability cost, while performance benefits are usually more difficult to grasp (Verdenius 2006). This research aims at improving the understanding of how expected and actual costs and perceived benefits are influenced by firm characteristics (Meuwissen et al. 2003). This paper proposes a conceptual decision model that incorporates firm characteristics and both expected and actual costs and benefits of traceability. It is hypothesized that firm characteristics influence both expected and actual costs and benefits, while the level of traceability is influenced by expected and actual costs and perceived benefits as well as firmsÂf characteristics. Costs can be divided into implementation and operation/maintenance costs. Benefits can arise from compliance with regulatory requirements, enhanced recall performance, improved marketing performance and increased supply chain efficiency (Sparling and Sterling 2004). The analysis uses a sample of 60 Italian fish processing businesses that were surveyed in 2008. Indicators of firmÂfs characteristics such as number of QMS certifications, operations complexity, firm size and complexity of customer requirements, are entered as independent variables in regression analyses to predict expected and actual costs and perceived benefits which were measured on 9Â]point semantic scales and constant sum scales. The findings show that none of the firm characteristics investigated influence costs, while firm size and QMS certifications influence benefits in different ways. Somewhat surprisingly, firm size was found to be negatively correlated with expected and actual benefits; i.e. larger firms reported lower benefits both expected exÂ]ante and realized exÂ]post traceability system implementation. Finally, the number of QMS certifications is positively associated with expected benefits; i.e. expected benefits increase with the number of QMS certifications acquired by a firm, but no association with actual perceived benefits of traceability was found. |
| Keywords: | Traceability, firm characteristics, business performance, fishery operators, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100502&r=agr |
| By: | Materia, Valentina C.; Camaioni, Beatrice |
| Abstract: | The aim of the paper is twofold: to present a preliminary analysis of the distribution of the Rural Development (RD) expenditure for specific measures related to human capital across EU and to investigate which factors may explain the variation of intensity of spending between the regions. In particular, a descriptive analysis of the budget and of the expenditure for EU 27 will be presented. A linear regression model (OLS) is also presented in order to verify which factors weigh more in determining the spending decisions for the European regions. The analysis is carried out taking into account the EAFRD expenditures for the measures related to human capital for the period 2007-2008 at NUTS2 level. |
| Keywords: | Rural Development, Human Capital, distribution of the Expenditure, Agricultural and Food Policy, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:100280&r=agr |
| By: | Hughes, Neal |
| Abstract: | The ABARE (now ABARES) survey of irrigation farms in the MurrayâDarling Basin began in 2006â07 and provides a comprehensive farm-level panel dataset, which, to date, has seen limited econometric analysis (Ashton et al. 2009). At present, three complete years of irrigation survey data are available: 2006â07, 2007â08 and 2008â09. In each year, approximately 850 farms are sampled. As with the ABARES broadacre surveys, the irrigation survey is a rotating (unbalanced) panel dataset.This study makes use of the irrigation survey data to estimate production functions at both the farm and enterprise (crop/livestock activity) level. In addition to the traditional categories of input use (land, labour, capital and materials), the study incorporates measures of water use, tree and vine capital and local seasonal rainfall. The analysis incorporates fixed effects models to take advantage of the surveyâs panel structure, as well as consideration of potentially endogenous inputs via instrumental variable methods. The study focuses on the short-run marginal revenue product of water implied by the estimated production functions. The results provide an encouraging demonstration of the kind of analysis that can be undertaken with the irrigation survey dataset. The estimated marginal product curves showed horticulture farms to have the steepest marginal product curve and broadacre farms to have the most elastic. There remain a number of promising areas for potential future research using the dataset, particularly if the survey were to continue for a longer and more representative sample of years. |
| Keywords: | Research Methods/ Statistical Methods, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100564&r=agr |
| By: | Terluin, Ida J.; Berkhout, Petra |
| Abstract: | For the evaluation of the EU Rural Development Policy in the programming period 2007-2013, the European Commission has designed a Common Monitoring and Evaluation Framework (CMEF). Given a widespread lack of enthusiasm and the complexity of the CMEF, in this paper a comparative analysis of 22 evaluation methods of rural development policy is conducted in order to explore whether an alternative approach for the evaluation of the EU Rural Development Policy exists. The mixed case study approach is identified as potential alternative. This approach combines the analysis of data on input and output with in-depth interviews. First results of testing this method in the mid-term evaluation of the EU Rural Development Policy 2007-2009 in the Dutch NUTS2 region of Zeeland indicate that this approach might be a promising alternative to the CMEF. It is easier to implement and renders useful insight into the question why measures have been effective. |
| Keywords: | Evaluation methods, EU Rural Development Policy, mixed case-study approach, Agricultural and Food Policy, R500, R580, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:98987&r=agr |
| By: | Calabrese, Chiara; Mack, Gabriele |
| Abstract: | This paper analyses different direct payments system for the Swiss alpine region based on the multi-agent model SWISSland. Moreover, the future demand and management of the alpine pastures are simulated under different scenarios until 2020. In the model, agents are representing existing summer farms and are able to interact with each other. The results imply that the current direct payment system for the Swiss alpine region is effective and able to maintain a stable development until 2020. Since the land management in the alpine region is the activity that provides public goods, it would be reasonable to enforce payments that maximize the area of summered land. A change to contributions coupled to the surfaces could achieve the desired management of the alpine pastures meaning, at the same time, a need of proper monitoring systems. |
| Keywords: | multi-agent models, policy analysis, simulation, alpine region, Agricultural and Food Policy, C16, Q18., |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99370&r=agr |
| By: | Beuermann, Diether W. (Department of Economics, University of Maryland) |
| Abstract: | This paper provides evidence on the effects of access to telecommunications technologies on agricultural profitability and human capital investment decisions among highly isolated villages in rural Peru. I exploit a quasi-natural experiment, in which the Peruvian government through the Fund for Investments in Telecommunications (FITEL) provided at least one public (satellite) payphone to 6,509 rural villages that did not previously have any kind of communication services (either landlines or cell phones). The intervention provided these phones mainly between years 2001 and 2004. I show that the timing of the intervention was uncorrelated with baseline outcomes and exploit differences in timing using a uniquely constructed (unbalanced) panel of treated villages spanning the years 1997 through 2007. The main findings suggest that phone access generated increases of 16 percent in the value per kilogram received by farmers for their agricultural production, and a 23.7 percent reduction in agricultural costs. Moreover, this income shock translated into a reduction in child (6 – 13 years old) market work of 13.7 percentage points and a reduction in child agricultural work of 9.2 percentage points. Overall, the evidence suggests a dominant income effect in the utilization of child labor. |
| Keywords: | Telecommunications Technologies, Peru, Child Labor |
| JEL: | O1 O3 Q13 Q16 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:rbp:wpaper:2011-002&r=agr |
| By: | Hafi, Ahmed |
| Abstract: | There are significant benefits in integrating a biological spread model into economic assessment of the cost of pest incursions (such as varroa mite or Mexican feather grass) on agricultural industries.To illustrate the potential usefulness of an integrated approach, a generic bioeconomic model is developed by linking a simple stochastic pest spread module, built around a set of logistic spread equations, and a partial equilibrium module of the market for an affected agricultural industry. The pest spread module estimates the damage over time, while the partial equilibrium module estimates the resultant effect of a reduction in supply on the commodity market. The estimated effects on market variables are then used to estimate the cost of a pest outbreak. In this study, the cost of a hypothetical pest outbreak is estimated for three scenarios: (1) do nothing; (2) control actions to slow the spread; and (3) control actions aimed at eradication of the pest. The estimates are derived for a large number of random values of the spread rates specified in the logistic functions. The study also presents the frequency distribution of benefits of implementing the two control strategies. |
| Keywords: | pest spread, logistic functions and partial equilibrium model, Research Methods/ Statistical Methods, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100554&r=agr |
| By: | Laurent, Catherine E.; Trouve, Aurelie |
| Abstract: | Evidence-based or evidence-aware policy approaches are used in many different sectors (health, education, etc.). These approaches are less common in agriculture but are gradually emerging. Analysis of debates surrounding this trend sheds light on the particular nature of the difficulties faced by public decision-makers who are willing to use available scientific knowledge. After examining certain misunderstandings which arise in the international debate over evidence-based policy approaches, this paper addresses two specific issues: (i) the problems of competing evidence for using knowledge in the design of public policies and (ii) the potential role of rationalization tools in a possible "depoliticisation" of public decision-making. |
| Keywords: | knowledge, agriculture, policy, evidence, Agricultural and Food Policy, B29, D8, Q01, O3, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99833&r=agr |
| By: | Veeman, Michelle; Ding, Yulian; Adamowicz, Wictor |
| Abstract: | Interest in the influence of trust on consumersâ responses to food risk perceptions associated with Canadian instances of BSE motivates this study, in which Canadian householdsâ expenditures on fresh meat are assessed in the context of the first three recurring risk events in which bovine spongiform encephalopathy (BSE) was found to have affected Canadian cows. Engel Curve analysis focusing on the dynamics of the monthly meat expenditure shares for a selected sample of 437 Canadian households for 2002 through 2005 is applied based on data on household expenditures for meat purchased by a national sample of Canadian households from the Nielsen Homescan® Canadian panel, supplemented by survey responses on BSE risk perceptions and measures of trust. Two sets of models are estimated: Engel curves in differences with instruments in levels and Engel curves in levels with instruments in differences. It is found that habit persistence limited householdsâ reductions of beef purchases following the first BSE event and that that trust limited householdsâ reduction in beef expenditure shares following the subsequent two BSE cases. Significant seasonal effects and a significant negative influence on beef expenditure shares are also found, consistent with the trend of declining consumption of beef in Canada since the late 1990s. |
| Keywords: | BSE, Generalized Method of Moments (GMM), trust, Consumer/Household Economics, D12, C29, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100725&r=agr |
| By: | Warr, Peter; Yusuf, Arief Anshory |
| Abstract: | Indonesia has set the target that by the year 2020 its emissions of greenhouse gases will be reduced by 26 per cent relative to business-as-usual conditions. This paper analyzes the effectiveness of a subsidy to the use of land in forestry as a means of achieving this goal. The analysis uses a general equilibrium model of the Indonesian economy characterized by explicit treatment of land use, disaggregated by industry and by region. The results of the analysis indicate that the subsidy cost of permanently reducing carbon emissions by 26% is a little over US$1 per metric tonne of carbon emissions abated. This cost needs to be compared with that of alternative instruments and with the price of carbon that might be agreed under the proposed REDD scheme (Reducing Emissions through Deforestation and Land Degradation), to be administered through the World Bank and the UN. |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100730&r=agr |
| By: | Veveris, Armands |
| Abstract: | The paper analyses methodological and practical solutions that have been introduced to assess the impact of the Rural Development Programme 2007-2013 in Latvia. The work on the development of the evaluation of the impact of rural support is only in progress, the range of data sources is not large either. Therefore the author offers a solution how the evaluation of the RDP is organized in Latvia, with the resources and the amount of information available, and what activities are planned in the future. Special attention is devoted to the development of the methodology for calculating the direct economic effect, including the principles of the formation of the group of the affected farms and the control group, as well as the choice of the range of indicators for the analysis of measures. The approached mentioned in the research has already been applied when writing the Mid-term evaluation report. |
| Keywords: | Evaluation, methods, impact, data., Agricultural and Food Policy, Q14, C18, O38, O47., |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99360&r=agr |
| By: | Anania, Giovanni; Scoppola, Margherita |
| Abstract: | The paper focuses on the importance of the assumptions made about market structure and firm behaviors in empirical trade policy analysis. It does it with reference to the most recent changes in the EU import regime for bananas, namely the Economic Partnership Agreements and the December 2009 WTO agreement on bananas. The paperâs contribution to the literature on the issues addressed is threefold: it develops two original models which incorporate imperfectly competitive market structures in a spatial modeling framework; it provides an assessment of the degree of market power in international banana trade and, finally, it assesses how the analysis of the implications of the most recent changes in the EU import regimes for bananas is affected by the assumptions made regarding the prevailing market structure. |
| Keywords: | Bananas, Economic Partnership Agreements, WTO, Agricultural and Food Policy, International Relations/Trade, Q17, Q18, F13, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:98985&r=agr |
| By: | Buysse, Jeroen; Frija, Aymen; Van Der Straeten, Bart; Nolte, Stephan; Lauwers, Ludwig H.; Claeys, Dakerlia; Van Huylenbroeck, Guido |
| Abstract: | For practical considerations, it is in some case impossible to simulate MAS models at population level. The current paper shows that MAS models applied to samples with heterogeneous costs of interactions between agents have biased results. Heterogeneous costs of interactions in MAS models can come from the spatial dimension in MAS models or from fixed costs per interaction. The paper presents two correction procedures to remove the sampling bias and to increase the reliability of the outcome. The correction procedures can be very promising for future applications of MAS models because it becomes possible to deploy more complex models without bias on more detailed datasets that are only available at sample level, which will be the case for country- or EU-wide MAS applications. |
| Keywords: | MAS, bias, correction, resampling, Agricultural and Food Policy, Q12, Q18, Q51, Q52, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99599&r=agr |
| By: | Redmond, Thomas; Nolan, Elizabeth; Martin, Peter |
| Abstract: | Intellectual Property Regimes (IPRs) have been justified on the basis that they promote innovation, but it is not always clear that they do so. Empirical studies of IPRs in an Australian context have been limited. Plant variety protection is one form of IPR. The passing of the Australian Plant Breederâs Rights Act of 1994 has been followed by significant commercialisation of the wheat breeding industry. The purpose of this paper is to consider whether this commercialisation has benefited wheat productivity through varietal improvement. We estimate a linear crop production function, using a random effects Hausman Taylor estimator to evaluate differences in genetic contributions to productivity between public and private wheat varieties commercially released in NSW over the period 1992-2009 using crop varietal data. Results from the Hausman Taylor estimator show that private varieties, on average, have outperformed public varieties over the period, suggesting that Plant Breederâs Rights has promoted productive innovation in wheat. However, when we consider the best performing genetics of the varieties, public varieties have, in some years, outperformed privately bred varieties. |
| Keywords: | genetic change, technical change, innovation, wheat breeding, intellectual property, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100702&r=agr |
| By: | Fitriani, Rahma; Harris, Michael |
| Abstract: | The Jakarta Metropolitan area has experienced urban sprawl. Existing planning processes do not appear to manage sprawl effectively. The aim of this study is to empirically analyse the contribution of spatial externalities on sprawl, and its effect on proximate agricultural land and conservation areas. A residential location choice model incorporating externalities is constructed, and a Tobit panel data analysis is conducted using grid-based land use data. The analysis finds significant empirical evidence regarding the contribution of neighbourhood development externalities to sprawl. Implications for policy are discussed. |
| Keywords: | sprawl, Jakarta, urban development, spatial externalities, International Development, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100700&r=agr |
| By: | Sesmero, Juan; Perrin, Richard; Fulginiti, Lilyan |
| Abstract: | We extend data envelopment analysis (DEA) to decompose the economic efficiency of a sample of ethanol plants into internal (technical and allocative) and boundary (marketing) sources. This decomposition allows us to evaluate the channels through which different plant characteristics affect plant performance. Results show that plants are very efficient from a technical point of view. Plants with higher production volumes seem to perform better not because of economies of scale but because they can secure more favorable prices (higher marketing efficiency) and execute production plans accordingly (higher allocative efficiency). This may rationalize the increase in the size of the average plant observed in the industry in recent years despite evidence of close to constant returns to scale. This suggests that plants may have incentives to horizontally integrate. Our results do not seem to point towards the existence of strong incentives to vertically integrate. Plants seem to have achieved significant improvements in performance through experience and learning-by-doing. Plants that are privately owned do not seem to perform better that those owned by farmersâ cooperatives. |
| Keywords: | corn ethanol, data envelopment analysis, economic efficiency decomposition, marketing efficiency, mergers, Crop Production/Industries, Marketing, Production Economics, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100709&r=agr |
| By: | Grieve, John; Lukesch, Robert; Weinspach, Ulrike; Fernandes, Pedro Alfonso; Brakalova, Marina; Cristiano, Simona; Geissendorfer, Manfred; Nemes, Gustav; O´Gready, S.; Sepulveda, Rodrigo Ortiz; Pfefferkorn, Wolfgang; Pollerman, Kim; Pylkkanen, Paivi; Ricci, Carlo; Slee, William |
| Abstract: | The Helpdesk of European Evaluation Network for Rural Development supported by a group of external experts has prepared a Working Paper on âCapturing the impacts of Leader and measures to improve the Quality of life (QoL) in rural areasâ. The working paper provides methodological support for evaluators, managing authorities and other interested parties. The main evaluation challenges include: assessing the âdouble scopeâ of Leader (it is both a process and generates impacts); the need to adequately define what is QoL in the context of Rural Development Programmes (RDPs); tackling the qualitative nature of the effects; identifying contributions from small-scale interventions; and the fact that the EUâs Common Monitoring and Evaluation Framework (CMEF) requires assessment of impacts ultimately at programme level. The working paper is targeted primarily at practitioners involved in the evaluation of the current RDPs (2007-2013). It proposes a framework of reference which provides a conceptual model in order to assess Quality of Life around four dimensions â environment, socio-culture, economy and governance. |
| Keywords: | Rural development, impact evaluation, leader, quality of life, Agricultural and Food Policy, Q18, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99363&r=agr |
| By: | Ziggers, Gerrit Willem; Gagalyuk, Taras; Hanf, Jon |
| Abstract: | This article provides several contributions to the general understanding of governance in networks and the achievement of private and common goals. A simple, integrated framework for understanding why firms collaborate and under which conditions they establish durable networks that succeed in achieving goals is provided. Network theory is extended by explicitly distinguishing between dyadicâlevel governance and networkâlevel governance conditions, and by identifying exchange conditions that promote governance.This way issues as how networks evolve, how they are governed, and ultimately, how collective outcomes might be generated can be better comprehended. This is especially relevant to policy planners and those having a perspective that goes beyond the performance of individual organizations |
| Keywords: | Agribusiness, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100465&r=agr |
| By: | Lopolito, Antonio; Giannoccaro, Giacomo; Prosperi, Maurizio |
| Abstract: | An emerging requirement for the evaluation of the rural development policy is the adoption of an objective method accounting for both material and immaterial achievements, and measuring the performance in order to understand the degree of accomplishment of policy objectives. In this paper we propose a Data Envelopment Analysis (DEA) approach capable of dealing with economic and social indicators, to measure the (relative) technical efficiency of a set of Local Action Groups (LAGs) operating within the LEADER programme. An evaluation exercise referred to eight LAGs located in Italy, is provided to demonstrate the effects of the inclusion of social capital indicator in the evaluation of the LAGsâ performances. In particular, the DEA allows to measure the relative efficiency of the LAGs and to identify the causes of the inefficiency. The outcomes of the analysis may represent a valuable information support for periodical policy review and for the enhancement of best practices. |
| Keywords: | Rural Development, LEADER, social capital, DEA, Agricultural and Food Policy, Q18, R58, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99429&r=agr |
| By: | Sheng, Yu; Gray, Emily; Mullen, John |
| Abstract: | This paper uses time-series data to examine the relationship between public research and development (R&D) and extension investment and productivity growth in Australian broadacre agriculture. The results show that public R&D investment has significantly promoted productivity growth in Australiaâs broadacre sector over the past five decades (1953 to 2007). Moreover, the relative contributions of domestic and foreign R&D have been roughly equal, accounting for an estimated 0.6 per cent and 0.63 per cent of annual total factor productivity (TFP) growth in the broadacre sector, respectively. The elasticity of TFP to knowledge stocks of research (both domestic and foreign) and extension were estimated to be around 0.20â0.24 and 0.07â0.15, respectively. The ranges reflect the alternative distributions of benefits flowing from knowledge stocks that were assumed in the analysis. The elasticities translated into internal rates of return (IRRs) of around 15.4â38.2 per cent and 32.6â57.1 per cent a year for research and extension, respectively. While such rates are less than the average IRR of around 100 per cent reported in the international literature, they are consistent with previous estimates for Australian agriculture in the order of 15â40 per cent. |
| Keywords: | R&D, total factor productivity, agriculture, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100712&r=agr |
| By: | Dentoni, Domenico; English, Francis |
| Abstract: | A large number of empirical studies have recently explored the processes and the conditions under agri-food companies acquire and develop market orientation (e.g. Martin et al. 2009), entrepreneurship (e.g. Holster 2008) and innovation (e.g. Verhees 2005), which have been proven to have a positive relationship with their performance (e.g. Micheels and Gow 2008). A much smaller number of studies focused on how agri-food firms can acquire the capabilities that are necessary to become market-oriented and innovative (e.g. Anderson & Narus 2007), specifically market sensing and customer linking (Day 1994). As a number of public-private partnership projects are attempting to enhance agri-food companies' market orientation and innovation, it is useful to identify which research and dissemination methods effectively develop these capabilities and under which conditions. To attempt to start filling this gap, this study analyses under which conditions public-private projects based on research and dissemination manage to foster market-sensing and customer-linking capabilities of small agri-food firms. Fostering these capabilities in small firms is particularly challenging, as they have limited resources to absorb the new information, learn and apply strategic changes as a result of the learning process. The case of five knowledge-building Seafood Cooperative Research Centre projects based on supply chain mapping and benchmarking methods with the oyster, wild prawn, farmed prawn and finfish industries provides the instrumental cases to the study. We collected data both quantitatively and qualitatively to gain more insight on the cause-effect relationship among variables (Eisenhardt 1989). Then, we analysed data with a structural equation model, whose multivariate statistic approach allows a rigorous analysis of the relationships between latent variables such as market-sensing and customer-linking capabilities and attitudes. Preliminary results can be summarized as follows. First, an estimation of profit margins that different customers make along the chain and an assessment of customers' needs, when customers'concentration and rivalry along the chain is low, are crucial to foster small farms' capabilities. Second, informal networks play a key role for fostering these capabilities from few small firms to the majority of the target. |
| Keywords: | Agribusiness, Marketing, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100543&r=agr |
| By: | Wittwer, Glyn |
| Abstract: | Murray-Darling Basin communities have suffered recurring and prolonged droughts over the past decade. Now that the rains have returned, these communities see the Sustainable Diversion Limits (SDLs) planned by the Commonwealth as a new threat. Modelling with TERM-H2O assumes that since the SDL process is voluntary, Commonwealth purchases will proceed slowly over the next 12 years. This gives farmers time to utilize water saving technologies as they emerge. This is in contrast to the relatively rapid purchase of 920 GL up until September 2010 that has already occurred. These relatively rapid sales reflect hardship associated with drought. If the Commonwealth is to reach the 3500 GL target, it may need to pay over $4 billion more to farmers for water (2010 dollars). The Commonwealthâs budget constraint will limit the volume purchased. Implementing (SDLs) will raise the price of water and the asset value of water held by farmers. At the same time, the value of irrigated land will fall, partly offsetting the increase in the asset value of water. This means that some irrigators may gain more than others. Those who do best will be those whose water entitlements have a high value relative to the value of their land. Under a voluntary scheme that proceeds slowly and gives time for further water savings to occur, there will be modest job losses across the basin. These might fall to 500 jobs below forecast by the year 2026. The extent to which farmers who sell water to the Commonwealth leave the region will have a moderate influence on regional outcomes. TERM-H2O is the only model which has been calibrated by using the drought of 2006-07 to 2008-09 to estimate regional impacts. In the drought scenario, over 6,000 jobs were lost in the short term relative to forecast across the basin. Therefore, SDL impacts are much smaller than drought impacts. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100733&r=agr |
| By: | Kuehne, G; Llewellyn, Rick S.; Pannell, D; Wilkinson, R; Dolling, P; Ewing, M |
| Abstract: | A wealth of evidence exists about the adoption of new practices and technologies in agriculture but there does not appear to have been any attempt to simplify this vast body of research knowledge into a model to make quantitative predictions across a broad range of contexts. This is despite increasing demand from research, development and extension agencies for estimates of likely extent of adoption and the likely timeframes for project impacts. This paper reports on the reasoning underpinning the development of ADOPT (Adoption and Diffusion Outcome Prediction Tool). The tool has been designed to: 1) predict an innovationâs likely peak extent of adoption and likely time for reaching that peak; 2) encourage users to consider the influence of a structured set of factors affecting adoption; and 3) engage R, D & E managers and practitioners by making adoptability knowledge and considerations more transparent and understandable. The tool is structured around four aspects of adoption: 1) characteristics of the innovation, 2) characteristics of the population, 3) actual advantage of using the innovation, and 4) learning of the actual advantage of the innovation. The conceptual framework used for developing ADOPT is described. |
| Keywords: | Adoption, Diffusion, Prediction, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100570&r=agr |
| By: | Jayasinghe-Mudalige, UK; Udugama, JMM; Ikram, SMM |
| Abstract: | The effect of a set of private/market (i.e. financial implications, internal efficiency, market response) and public/non-market (i.e. government regulation, judiciary/legal system) incentives for a firm to act voluntarily on environmental quality is examined. It uses the levels of adoption of five solid waste management practices [SWMPs], namely: (1) 3R system; (2) Composting; (3) Good manufacturing practices; (4) Biogas unit, and (5) ISO 14000 by food processing sector in Sri Lanka in response to the prevalence of each incentive at the firm as the case. The data collected from 325 firms through in-depth interviews and site inspections and supported by a validated structured questionnaire were analyzed using the principles of Structural Equation Modeling. The âAnalysis of Moment Structuresâ (AMOS) software was used to establish the relationships between the levels of adoption of SWMPs and the strength of each incentive. The results show that firmsâ response to environment is relatively low, i.e. 49.2% did not adopt a single practice, while only 28%, 12%, 7.4%, 3.1% and 0.3%, respectively, have adopted 1, 2, 3, 4 or all practices. Firms tend to adopt a higher number of SWMPs as the relative strength of an each incentive perceived by the decision maker of firm gets increases. Firms put a higher weight on the impact on regulation and legal system than the private incentives and the firm size has a substantial impact on its response to the environment. The results highlight the importance of bringing the current public regulatory regimes in developing countries like Sri Lanka towards co-regulation, which is practiced by developed countries like Australia and Canada to facilitate businesses to come up with own solutions for environmental and food quality, as the outcome of this analysis points out that firmsâ compliance to the recommended SWMP was not triggered satisfactorily by the private/voluntary action. |
| Keywords: | Environment management, Food processing sector in Sri Lanka, Incentives, Regulation, Solid waste management, Voluntary adoption, Farm Management, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100567&r=agr |
| By: | Cacho, Oscar; Hester, Susie |
| Abstract: | Invasive species can cause significant damage to natural environments, agricultural systems, human populations and the economy as a whole. Biological invasions are complex dynamic systems which are inherently uncertain and their control involves allocation of surveillance and treatment resources in space and time. A complicating factor is that there are at least two types of surveillance: active and passive. Active surveillance, undertaken by pest control agencies, has high sensitivity but generally low coverage because of its high cost. Passive surveillance, undertaken by the public, has low sensitivity and may have high coverage depending on human population density. Its effectiveness depends on the extent to which information campaigns succeed in engaging the public to help locate and report pests. Here we use a spatio-temporal model to study the efficient allocation of search and treatment resources in space and time. In particular we look for complementarities between passive and active surveillance. We identify strategies that increase the probability of eradication and/or decrease the cost of managing an invasion. We also explore ways in which the public can be engaged to achieve cost-effective improvements in the probability of detecting and eradicating a pest. |
| Keywords: | search theory, invasive species, dispersal, passive surveillance., Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100535&r=agr |
| By: | Rolfe, John; Windle, Jill |
| Abstract: | Key policy issues relating to protection of the Great Barrier Reef from pollutants generated by agriculture are to identify when measures to improve water quality generate benefits to society that outweigh the costs of reducing pollutants. The research reported in this paper makes a key contribution in several key ways. First, it uses the improved science understanding about the links between management changes and reef health to bring together the analysis of costs and benefits of marginal changes, helping to demonstrate the appropriate way of addressing policy questions relating to reef protection. Second, it uses the scientific relationships to frame a choice experiment to value the benefits of improved reef health, and links improvements explicitly to changes in âwater quality unitsâ. Third, the research demonstrates how protection values are consistent across a broader population, with some limited evidence of distance effects. Fourth, the information on marginal costs and benefits that are reported provide policy makers with key information to help improve management decisions. The results indicate that while there is potential for water quality improvements to generate net benefits, high cost water quality improvements are generally uneconomic. One implication for policy makers is that cost thresholds for key pollutants should be set to avoid more expensive water quality proposals being selected. |
| Keywords: | Choice modelling experiment, attribute definition, input output definition, Environmental Economics and Policy, Q. 15, Q51, Q57, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100705&r=agr |
| By: | Schrobback, Peggy; Mallawaarachchi, Thilak; Quiggin, John |
| Abstract: | People are part of a complex natural system and have the ability to actively interfere with their environment. Collective decisions made by governments represent social rules that limit the extent of peopleâs interference with the environment that support them. Environmental decisions made by governments usually carry an ethical bias and are limited by the perception of the risks and uncertainties that may affect societyâs well-being in the medium to long run. The recently published Guide to the proposed Basin Plan represents a draft for a legislative instrument that aims to reclaim some of the water back onto the environment to safeguard declining natural ecosystems in the Murray-Darling Basin. By limiting diversions into agricultural uses, irrigators in particular are encouraged to adapt water use to produce more with less; it may also affect some ecosystems that have become part of the modified landscape in the Basin. While humans may discriminate between endemic and modified components of the landscape, the rest of the biome is already adapting, with varying levels of success, to what they experience in their own setting. The policymakers' task is compounded as the changes in the social systems may be enforced through other institutional adjustments brought about by climate change, globalisation and as a response to the GFC. It seems plausible that uncertainty will rule the day and adaptation to allow efficient decision-making under information asymmetry may provide opportunities to compete better. This study assesses the complexities in collective decision-making for improving the environmental assets in the Basin and what could help minimise the impacts on the agricultural systems and improve the resilience of rural communities in the long run. |
| Keywords: | Environmental decision-making, uncertainty, risk, trade-off, collective choices, resilience, Murray-Darling Basin, Environmental Economics and Policy, Political Economy, Public Economics, Resource /Energy Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100708&r=agr |
| By: | Graham, PW; Brinsmead, TS; Reedman, LJ |
| Abstract: | Bio-energy is expected to become increasingly attractive in the future owing to its potential to contribute to lowering greenhouse gas emissions, increasing rural and regional employment and improving energy security through substituting for oil imports. The volume of sustainable biomass resources that are economically competitive but do not significantly impact on food production is expected to slowly expand as new feedstock varieties and refining pathways are developed. However, these volumes will remain limited relative to total energy and transport sector fuel demand. Limited biomass resources will be allocated to the sector that is most able to afford them. This will depend on the price of existing fossil fuel products and the relative cost of converting biomass into substitute final fuels such as bio-derived electricity, ethanol blends, biodiesel and bio-derived jet fuel. It will also depend on factors such as the availability and cost of alternative fuel and energy sources, government policies including excise rates, and the emission intensity of each sector. This paper presents a number of alternative cost curves for bio-energy resource to final energy costs and applies a partial equilibrium model of the electricity and transport sectors, called the Energy Sector Model (ESM), to determine where the limited biomass resources are likely to be allocated under various scenarios. Preliminary projections are presented for biomass uptake in each of the electricity, road and aviation sectors to 2050. |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100553&r=agr |
| By: | Charles F. Mason (Department of Economics & Finance, University of Wyoming); Andrew J. Plantinga (Department of Agricultural and Resource Economics, Oregon State University) |
| Abstract: | Governments contracting with private agents for the provision of an impure public good must contend with agents who would potentially supply the good absent any payments. This additionality problem is centrally important in the use of carbon offsets as part of climate change mitigation. Analyzing optimal contracts for forest carbon sequestration, an important offset category, we conduct a national-scale simulation using results from an econometric model of land-use change. The results indicate that for an increase in forest area of 50 million acres, annual government expenditures with optimal contracts are about $4 billion lower compared than under a uniform subsidy. |
| Keywords: | Carbon Sequestration, Incentive Contracting, Offsets, Additionality |
| JEL: | Q2 D8 L15 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2011.13&r=agr |
| By: | Powell, Janine; Scott, Fiona |
| Abstract: | A whole farm budget for a representative farm in the Lower Namoi Valley in northern NSW was used to analyse the financial implications of a comparative rotational experiment of four cotton-based rotations conducted in recent years at the Australian Cotton Research Institute, near Narrabri. The model was used to compare the rotations, which highlighted the importance of crop selection for the financial performance of the business. Apart from providing a broad brush picture of financial performance, the model also had a stochastic component which was used to analyse the effect of variable commodity prices on the whole farm profitability of each rotation. Mean results indicated a positive return for all rotations within the representative farm budgets for the Lower Namoi Valley, indicating that given restricted irrigation water availability and average commodity prices, each rotation would ensure that the business returned a profit. The rotations varied in resilience to commodity price variability from 74% to 99.5% probability to return a positive farm operating surplus. |
| Keywords: | Financial Economics, Research Methods/ Statistical Methods, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100698&r=agr |
| By: | Lui, Donsheng; Chen, Xie; Liu, Jianjie; Peng, Wei; Yuan, Mei; Huang, Dong |
| Abstract: | This paper uses a 10 years monitoring data set of 100 counties to examine the process, implementation and impacts of Chinaâs Conversion of Cropland to Forests Program (CCFP). A theoretical framework was constructed to explain the development of CCFG. We find that CCFG was originate from economic growth and will fulfill its goal by economic growth as it closely linked with rural poverty; Constrains such as income decline will finally be solved along with policy adjustment and economic growth; Huge amount of subsidies had been successfully delivered to farmers under strong administration and innovative policy; due to incentive incompatibility between farmersâ private interests and public benefit, we assume that CCFG only achieved second best ecological goals, but a better sustainability. The policy still faces many uncertainties due to climate change, rural development progress, et al. |
| Keywords: | International Development, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100536&r=agr |
| By: | Edwards, Claire; Eigenraam, Mark |
| Abstract: | The production and consumption of environmental goods and services are subject to many of the problems associated with public goods. Due to their non-rival and non-excludable nature, incentives for individuals to invest in their production are often absent. To address this market failure, government agencies have used a number of policy mechanisms to procure the supply of environmental outcomes on behalf of society. Recently, conservation tenders focussing on private land have been a favoured policy instrument used by many government agencies to purchase environmental outcomes in the public interest. The majority of these environmental tenders have focussed on a single environmental outcome. It is contended in this paper that multiple environmental outcomes tenders can be more cost-effective than single outcome tenders as decisions are based on information regarding a wider set of environmental outcomes â a more complete picture. Tenders that focus on more than one outcome capitalise on economies of scope in the production of environmental outcomes, as well as incorporating synergies and trade-offs into decision making. In this paper the results from a synthetic analysis of the benefits derived from running multiple-outcome tenders are compared to single outcome tenders, to empirically estimate potential cost-effectiveness gains. The baseline policy of running a multiple-outcome tender is compared to three alternative policy options: running a single outcome tender, running three single outcome tenders simultaneously, and running three single outcome tenders consecutively. Results indicate that significant cost effectiveness gains can be made by running a multiple-outcome tender compared to the three policy alternatives. These results are analysed, and advantages and limitations of applying multiple-outcome tenders in the field are discussed. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100545&r=agr |
| By: | Win, Heijman; Milic, Branislav B.; Bogdanov, Natalija LJ |
| Abstract: | In the search for an adequate set of indicators to measure the level of pro-rural aspirations of Local Governments (LG), the main existing approaches to endogenous development have been examined. However, the conclusion must be that none of them seem to fit the needs completely. For this reason, a new index, the Municipal Rural-Sensitive Index (MRSI), has been developed, representing the base for the Rural Sensitive Evaluation Model (RSEM). The MRSI integrates the key features of the LEADER (Liaison Entre Actions de Développement Rural) philosophy, consisting of 41 rural-sensitive indicators, grouped into 3 categories and 7 sub-categories. The resulting MRSI scores allow a quick comparison between LGs, show changes over time and assists in establishing a framework for institutional and guided rural development advancing towards set standards. This paper outlines the development of the RSEM and methods of use, including the calculation methodology. It also shows the main features of the RSEM as demonstrated from its application to test cases. |
| Keywords: | Evaluation, Model, LEADER, Local Government, Agricultural and Food Policy, C52, C54, H11, O21, R58., |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99417&r=agr |
| By: | Polyakov, Maksym; Pannell, David; Rowles, Alexei; Park, Geoff; Roberts, Anna |
| Abstract: | The spatial pattern of landscape reconstruction makes a substantial difference to environmental outcomes. We develop a spatially explicit bio-economic model that optimises the reconstruction of a heavily cleared landscape through revegetation. The model determines the spatial priorities for revegetation that minimises economic costs subject to achieving particular improvements in habitat for 29 woodland-dependent bird species. The study focuses on the Avoca catchment (330 thousand ha) in North-Central Victoria. Our model incorporates spatial pattern and heterogeneity of existing and reconstructed vegetation types. The revegetation priorities are identified as being: sites in the vicinity of existing remnants, riparian areas, and parts of the landscape with diverse land uses and vegetation types. Optimal reconstruction design is affected by opportunity costs due to the loss of agricultural production and the costs of revegetation. 1 Centre for Environmental Economics and Policy, School of Agricultural and Resource Economics, University of Western Australia, Crawley, WA, 6009 2 Department of Primary Industries, Rutherglen, RMB 1145 Chiltern Valley Rd, Rutherglen, Victoria, 3685 3 North Central Catchment Management Authority, PO Box 18, Huntly, Victoria, 3551 |
| Keywords: | landscape reconstruction, biodiversity, optimisation, habitat, Environmental Economics and Policy, Land Economics/Use, Q57, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100697&r=agr |
| By: | Molnár, Adrienn; Gellynck, Xavier; Weaver, Robert D. |
| Abstract: | Organizations no longer compete as independent entities, but as chains (Christopher 1998; Cox 1999; Lambert and Cooper 2000), and these organizations more and more realize the performance potential of chains (Pearson and Samali 2005; Gellynck, Vermeire and Viaene 2006). Being part of a wellâperforming chain generates important performance benefits for the individual organization (Zhenxin, Hong and Edwin 2001). As a result, there is increasing interest in the performance of chains as a research subject (Beamon 1998). A vast group of authors (Neely, Mills, Platts, Gregory and Richards 1994; Neely, Gregory and Platts 1995; Beamon 1998; Christopher 1998; Beamon 1999; Li and O'Brien 1999; Van der Vorst 2000; Gunasekaran, Patel and Tirtiroglu 2001; Lambert and Pohlen 2001; Gunasekaran, Patel and McGaughey 2004; Van Der Vorst 2006) endorses the need to address the measurement of chain performance. Nonetheless, previous studies investigating chain performance have considered multiple individual chains, but rather compared groups of chain members. Some notable exceptions of such analysis are Spekman et al. (1998), Lu et al. (2006) or Clare et al. (2002). Second, with regard to measuring performance of chains active in the agriâbusiness sector or in the traditional food [2] sector in particular, (Aramyan 2007) notes a number of challenges. First, this type of firm does not typically gauge their performance in a standardized way that allows comparison (Collins, Henchion and Reilly 2001), implying the collection of secondary data from these firms are highly challenging. Further, chains belonging to different sectors may have different characteristics such as chain length, closeness of chain relationships and types of process links (Lambert and Cooper 2000) possibly influencing their performance. Consequently, chain performance measurement being carried out in other sectors might reveal differences as compared to performance measurement of traditional food chains. Therefore, traditional food as a potential focus of chain performance measurement cannot remain neglected. |
| Keywords: | Agribusiness, Farm Management, Food Consumption/Nutrition/Food Safety, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100508&r=agr |
| By: | Cagliero, Roberto; Cristiano, Simona; Pierangeli, Fabio; Tarangioli, Serena |
| Abstract: | The research starts from the necessity to create specific tools for evaluating the impacts of rural development policies on fragile areas. The study is motivated by the need for developing an appropriate evaluation method that leads to gather meaningful information for a broader understanding of the quality of life in rural areas, including the subjective well-beingâs dimensions and its determinants and feeds the policy designs on this specific domain. The multidimensional nature of quality of life is a main challenge in terms of evaluation. Indeed, within the Rural Development Programmes 2007-2013, the enhancement of the quality of life in rural areas is one of the major strategic objectives to be addressed by a menu of measures. Selections of some current literature on the multidimensional nature of quality of life have been used as conceptual basis for analysing the extent to which the European evaluation framework for rural development programmes (EC 1999, 2006, 2010) - based on the intervention logic model, the use of economic indicators and evaluative questions - is able to capture the relevant dimensions of well-being rural peopleâs lives. A part of the research is based on the analysis of ex-post evaluations carried out in Italy. The evaluations are expected to assess the improvement of quality of life in rural areas as effect of programmesâ implementation. The paper provides two different experiences of quantification of quality of life in rural area: a synthetic measure of marginality as a proxy of quality of life indicators (in Piedmont) and a synthetic index of quality of life (in Emilia Romagna). The paper proposes a wider integrated evaluation approach to be used in the context of the evaluation of impacts of rural development programmes, that through the combined utilization of quantitative and qualitative indicators and additional evaluative questions, allows a more comprehensive assessment of quality of life in rural areas. |
| Keywords: | evaluation, quality of life, marginality, qualitative indicators, Agricultural and Food Policy, O180, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99427&r=agr |
| By: | Xu, Jintao; Zhang, Haipeng; Bennett, Jeff; Wang, Xuehong; Eigenraam, Mark |
| Abstract: | This article focuses on the program of Ecological Afforestation on barren lands, degraded arable lands, harvested sites and sloped farmland in Sichuan, China. Farmers were given the opportunity to propose afforestation activities for which they would be paid an specified amount. These bids and predictions of the expected environmental benefits to be generated were used to assess the net benefit of each proposal. Most features of the bidding scheme were successfully implemented and improvements in the economic efficiency of the afforestation scheme were observed. The market-based approach is demonstrated to be a practical way forward for Ecological Afforestation in China. The bidding scheme showed savings of approximately 110,000 Yuan when compared to past grant based programs. However, the bidding scheme is shown to increase the transaction costs of achieving the policy goal, by about 30 per cent compared to the previous âcommand and controlâ regime. When transaction costs are accounted for there are still cost savings when compared to the command and control approach.Finding effective methods to reduce transaction costs will be key to any future implementation of the Ecological Afforestation bidding scheme. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100735&r=agr |
| By: | Pisani, Elena; Franceschetti, Giorgio |
| Abstract: | The academic literature makes evident that the main immaterial contribution of the LEADER approach (LA) consists in the promotion of social capital in rural areas. Therefore the insertion of LA in the framework of Rural Development Programmes (RDPs) should be considered as a powerful opportunity to promote rural development initiatives by means of a bottom-up methodology, much more focused on social relationships among local actors. These aspects open new opportunities also in terms of evaluations of RDPs and of LA, in the context of the already established Common Monitoring and Evaluation Framework (CMEF). The objective of this paper is to present a methodology for the definition of the Relative Index of Social Capital Promotion (RISCP) to be used in the ongoing evaluation of RDPs. The RISCP doesnât represent an impact indicator, but it measures the potential social capital that could be promoted by means of the logic of intervention of selected measures of the RDPs. |
| Keywords: | social capital, rural development programmes, evaluation, index, Agricultural and Food Policy, Z0, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99582&r=agr |
| By: | Gibbon, Candice; Nolan, Elizabeth |
| Abstract: | We estimate a hedonic pricing model to quantify the relationship between clean price of lots of wool and individual lot characteristics for all superfine, fine, medium and broad wool types. We expand on existing literature by controlling for key macroeconomic conditions at the time of sale and are able to examine the longer term trend in global demand for wool by utilizing data over a number of selling seasons. Our results indicate fibre diameter, strength, breed group, vegetable matter base and fleece contamination play a key role in the purchase decision. Premiums accrue for finer, strong wool which has been grower classed, while discounts have been identified for wool tainted by branding contamination, unscourable colour or the presence of skin pieces. Key market conditions such as world economic growth, price of substitutes and exchange rates with key trading partners have been found to significantly affect Australiaâs competitiveness in the global market for wool. |
| Keywords: | Agribusiness, Demand and Price Analysis, Livestock Production/Industries, Marketing, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100552&r=agr |
| By: | Mayer, Walter H. |
| Abstract: | One of the outcomes of the EC-FP7 project âFuture Farmâ was showing the need of INTEGRATION, something that PROGIS has been doing for 15 years. Within the whole sector agricultureâforestry-environment-risk management there is an enormous need for integration that is not available yet, because of on side the existing admin-sector-structures plus on the other side diverse public and/or private interests with opposite directions and in many cases the not streamlined interest of ALL involved parties. On the other hand we have the nature that is fully integrated and should be managed by us! Nothing happens without being related to something else within the nature. We have to be more aware of this and have also to understand that ICT will be the driver of integration as data and based on it these information is necessary and urgently needed for public and for private structures. We can do it separately, doing things in parallel and multiple times with multiple costs and reduced results. The other option is to cooperate on an integrative model! |
| Keywords: | Commons, farm management, valuation of land, ICT, Farm Management, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99433&r=agr |
| By: | Timar, Levente |
| Abstract: | The economic model I use to describe landownersâ land use decisions is a standard discrete choice random utility maximization model.1 Land is of heterogeneous quality, and suitability for the various uses depends on (multiple dimensions of) quality. Therefore, at any given time, potential benefits derived from each parcel vary by use. As economic conditions change, production technologies advance and the farmer accumulates human capital, the relative desirability of land use alternatives may change on any parcel. When the top-ranked alternative changes due to these forces, the farmer converts the parcel to a different use. The observed pattern of land use therefore represents a snapshot of outcomes from a dynamic process. |
| Keywords: | Land Economics/Use, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100719&r=agr |
| By: | Calatrava-Requena, Javier; Gonzalez-Roa, Maria Carmen |
| Abstract: | As part of the evaluation of the activity of a districtâs local development group (LAG), valuation by local society could be a potential element of interest. In this paper we present a social valuation of the LAG activity in the Guadix-Marquesado district (south-eastern Spain), where the contingent valuation method is one of the analytical elements used. A number of results show how the LAG has now become part the institutional network closest to local society, which values the increased welfare that its activity generates slightly more than its actual annual operating expenses. This somehow socially legitimizes the public funding it receives. Other results pertaining to change perception, familiarity with LAG activities and the scalar valuation of its social impact are also included. |
| Keywords: | Social evaluation, Rural development, Contingent valuation method, Willingness to pay., Agricultural and Food Policy, O43, R11, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:100041&r=agr |
| By: | Jean-Louis Arcand, Aude-Sophie Rodella-Boitreaud, Matthias Rieger (IHEID, The Graduate Institute of International and Development Studies, Geneva) |
| Abstract: | This paper estimates the causal impact of landmines on child health and household expenditures in Angola by exploiting geographical variations in landmine intensity. We generate exogenous variation in landmine intensity using the distance between communes and rebel headquarters. As predicted by our theoretical model of rebel mining, landmine intensity is found to be a decreasing function of the distance to a set of rebel headquarters. Instrumental variables estimates, based on two household surveys and the Landmines Impact Survey, indicate that landmines have large and negative effects on weight-for-age, height-for-age and household expenditures. We discuss our results with respect to the costs and benefits of landmine clearance. |
| Keywords: | civil war, landmines, instrumental variables, household expenditures, height-for-age, weight-for-age, Angola. |
| Date: | 2011–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:gii:giihei:heidwp06-2011&r=agr |
| By: | Perks, Christopher; McGill, Kristin; Curtotti, Robert |
| Abstract: | The total factor productivity of the Commonwealth Trawl Sector of the Southern and Eastern Scalefish and Shark Fishery is estimated for the period 1996â97 to 2008â09 using vessel-level data and a traditional approach that captures the production decisions of fishers. The paper develops a replicable methodology and calculates benchmark productivity estimates by which future estimates for other Commonwealth fisheries can be evaluated. Productivity estimates presented in this paper are based on vessel-level financial and catch data collected by ABARES in its annual survey of the fishery and the application of the Fisher index method. The analysis of trends in productivity offers important new information to decision-makers. Changes in the way in which fishers organise the transformation of inputs into outputs have a direct impact on firm-level economic performance. Changes in productivity at the vessel level illustrate the response of the fleet to policy settings in the fishery and, more broadly, to environmental factors. This is of particular value for fishery managers when they consider policy instrumentsâsuch as fish stocks, technology and fleet structureâthat might affect the drivers of productivity growth in fisheries. |
| Keywords: | Agribusiness, Resource /Energy Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100694&r=agr |
| By: | B. LARIVIÈRE; T. L. KEININGHAM; B. COOIL; L. AKSOY |
| Abstract: | The overwhelming majority of research in marketing has treated commitment as a one or two dimensional construct and largely disregarded temporal effects when investigating the relationship between satisfaction, commitment and customer loyalty. This under-specification of the commitment construct and cross-sectional nature of studies has the potential to misrepresent these relationships. This research uses a three-component model of commitment (affective, calculative, normative) and situational triggers to examine their impact on customers’ share of wallet (SOW). The data consists of 269 households whose banking relationships were tracked for two years. The results showed that changes in affective, calculative and normative commitment each have a significant positive association with change in share of wallet when one adjusts for the effects of customer characteristics such as age and tenure with company. The baseline level of calculative commitment, and changes in affective commitment provide the best explanations for changes in SOW, and when this information on commitment is used, contemporaneous changes in satisfaction has no significant incremental value as a predictor for changes in SOW. Finally the analysis reveals a two-segment customer model which demonstrates how managers can be misled if they assume that everyone will react to satisfaction and commitment improvement efforts similarly. |
| Keywords: | Customer Satisfaction, Affective Commitment, Calculative Commitment, Normative Commitment, Share-of-Wallet |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:11/700&r=agr |
| By: | Lobb, Alexandra E. |
| Abstract: | A lack of awareness and understanding of risk and uncertainty can lead to poor decision making and higher costs for policy providers, as not accounting for them may produce policy which is inflexible and with a negative effect on welfare. Further, misunderstanding of and/or failure to account for risk and uncertainty can inhibit research and development for policy to which environmental economics can contribute (for example, in developing effective measures of sustainability). The aim of this project is to develop guidelines for âBest Practiceâ approaches to risk and uncertainty in environmental economics for guiding policy development and implementation, taking into account key issues such as costs, irreversibility, adaptation and dynamics. These guidelines are developed by examining the frameworks commonly used by environmental economists to account for risk and uncertainty (such as the Precautionary Principle and Cost Benefit Analysis) as well as specifically developed theories (e.g. Quigginâs Rank Dependent Utility Theory), borrowing from other disciplines (e.g. Prospect Theory) and drawing attention to lesser known ideas (e.g. Shackleâs Model). |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100580&r=agr |
| By: | Fraser, Rob |
| Abstract: | This paper extends the multi-period agri-environmental contract model of Fraser (2004) so that it contains a more realistic specification of the inter-temporal penalties for noncompliance, and therefore of the inter-temporal moral hazard problem in agrienvironmental policy design. On this basis it is shown that a farmer will have an unambiguous preference for cheating early over cheating late in the contract period based on differences in the expected cost of compliance. It is then shown how the principal can make use of this unambiguous preference to target monitoring resources intertemporally, and in so doing, to encourage full contract duration compliance. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100550&r=agr |
| By: | Horne, Avril; Freebairn, John; O'Donnell, Erin |
| Abstract: | Policy to protect river ecosystems has changed rapidly in Australia and the mechanisms to both establish and manage environmental water are still evolving. Policy has moved from providing a fixed environmental target (albeit varying between years) to one in which the environment can actively participate in the market, with the possibility of better fulfilling variable water requirements. However, the inherent nature of the Sustainable Diversion Limit (SDL), established under the Water Act 2007, is that it represents a fixed allocation to the environment. This paper considers the interaction the new SDL for the Murray Darling Basin and potential issues arising from the interaction with the government buyback intiative. While both the SDL and buyback have been discussed extensively, the interaction between the two policies has received little debate. Pairing these two policy initiatives will have implications for the flexibility of an environmental water reserve (EWR) and the ability for ongoing trade between the environment and consumptive water users. Our position is that the SDL, or preferably rules based water, should reflect an absolute minimum limit on environmental water requirements, while the buyback should provide the EWR with tradable water rights with the flexibility to respond to shifts in the environmental water demand curve by providing environmental water over and above the SDL. If both a buyback and minimum flow rules are in place, the SDL will provide little additional benefits but increase administrative costs and reduce flexibility. This has significant implications for the way the SDL and buyback strategy are structured. |
| Keywords: | Environmental water, water markets, instream flows, sustainable diversion limits (SDLs), Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100561&r=agr |
| By: | Coria, Jessica (Department of Economics, School of Business, Economics and Law, Göteborg University); Calfucura, Enrique (Department of Economics, McGill University and CIREQ, Canada; and Facultad de Economia y Empresa, Universidad Diego Portales, Santiago. Chile.) |
| Abstract: | A large part of the literature analyzing the links between biodiversity conservation and community development assumes that nature-based tourism managed by indigenous communities will result not only in conservation of natural resources but also in increased development. In practice, indigenous communities have often failed to implement successful ecotourism projects due to a combination of factors, including isolation and a lack of financial resources, management skills, and infrastructure. Based on a review of experiences, we analyze the complex interaction among the factors shaping the success and failure of ecotourism experiences in indigenous communities, and we stress the need for a better approach to indigenous-based ecotourism. Moreover, use of complementary economics instruments and marketing of so-called charismatic species may be crucial elements for maximizing revenues of the ecotourism activities. |
| Keywords: | ecotourism; biodiversity; ICDP; indigenous communities |
| JEL: | Q50 |
| Date: | 2011–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0489&r=agr |
| By: | Ioana Chioveanu (Universidad de Alicante); Ugur Akgun (Charles Rivers Associates) |
| Abstract: | This paper considers the use of loyalty inducing discounts in vertical supply chains. An upstream manufacturer and a competitive fringe sell differentiated products to a retailer who has private information about the level of stochastic demand. We provide an analysis of the market outcomes when the manufacturer uses two-part tariffs (2PT), all-unit discounts (AU) and market share discounts (MS). We show that retailer’s risk attitude affects manufacturer’s preferences over these three pricing schemes. When the retailer is risk-neutral, it bears all the risk and all three schemes lead to the same outcome. When the retailer is risk-averse, 2PT performs the worst from manufacturer’s perspective but it leads to the highest total surplus. For a wide range of parameter values (but not for all) the manufacturer prefers MS to AU. By limiting retailer’s product substitution possibilities MS makes the demand for manufacturer’s product more inelastic. This reduces the amount (share of profits) the manufacturer needs to leave to the retailer for the latter to participate in the scheme. |
| Keywords: | vertical contracts, loyalty discounts, private information, market share discounts. |
| JEL: | J42 J12 J13 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:ivi:wpasad:2011-03&r=agr |
| By: | Berling, Peter (Lund University); Martinez de Albeniz, Victor (IESE Business School) |
| Abstract: | In this paper, we analyze expediting decisions in a continuous-time, continuous-stage serial supply chain facing a Poisson demand process. For each unit in the chain, one must decide at which speed it should be moved downstream, given the state of the system, so as to minimize total supply chain costs. We decompose the problem into a set of one-dimensional subproblems that can be easily solved and characterize the optimal expediting policy: under quite general assumptions, the optimal speed of a given unit accelerates upstream, and then slows down downstream. We finally provide a case study where we estimate the benefits of expediting compared to a fixed transportation speed and show them to be significant. |
| Keywords: | lead-time management; optimal control; unit-tracking decomposition; |
| Date: | 2011–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0906&r=agr |
| By: | Tompkins, Jean-Marie; Hearnshaw, Edward; Cullen, Ross |
| Abstract: | In recent times, there has been increasing demand in the Canterbury region of New Zealand for the abstraction of water from rivers. The impact of this demand has lead to unacceptable minimum river flows and has adversely affected river ecology. In an effort to resolve these issues dams have been constructed. To evaluate the impact of these dam projects on all river values, an ecosystem services approach is developed. This ecosystem services approach coupled with various evaluation methods are applied for the purposes of assessing the cost-effectiveness of the Opuha Dam and the sustainability of the Opihi river system now modified by the Opuha Dam. To evaluate the cost-effectiveness of this dam project cost utility analysis is applied through the development of an ecosystem services index (ESI). The index is constructed from the aggregation of normalized indicators that represent each ecosystem service and preferential weights of each ecosystem service. The evaluation of sustainability is considered both according to weak and strong criteria. Weak sustainability is evaluated by a non-declining ecosystem services index over time. Strong sustainability is evaluated by the thresholds or safe minimum standards where an ecosystem service, as represented by an indicator, should not pass below. Fifteen ecosystem services provided by the Opihi river were identified and data for forty-two indicators was compiled to assess the provision of these services pre- and post-dam. Fifteen regional and six local stakeholder representatives were interviewed to elicit preferential weights for each ecosystem service. Assessment of both the ESI and safe minimum standards indicates that since dam construction the river has progressed towards both weak and strong sustainability in its provision of ecosystem services. The cost-effectiveness of the dam however was poor. While further work remains to refine the approach, namely to develop more effective indicators of river ecosystem services, the work does present a novel method to evaluate the impacts of dams on river systems. |
| Keywords: | Cost utility analysis, dam projects, ecosystem services, impounded river systems, indicators and sustainability., Environmental Economics and Policy, Q15, Q25, Q27, Q51, Q58, Q57, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100720&r=agr |
| By: | Constant, Labintan |
| Abstract: | Nowadays climate change event and poor population vulnerability become more severe and natural resources scarcity intensity increased. In order to mitigate climate change negative effects adaptive policies such as poverty reduction Strategy and National Adaptation Plan of Action (NAPA) as effectiveâs responsive strategies. There are also farmers traditional adaptation methods which are consider as local mainstreaming climate change adaptation framework. This paper has explore subjective qualitative evaluation of climate change risk management framework strategic and link its with poverty reduction strategy in the Sahel .Sahel is one of the most vulnerable areas in the world with lower HDI(0.2%) and have the highest poverty rate (over 45% of the people live below the poverty line). The study was focused on 9 Sahel countries (Senegal, Mauritania, Mali, Niger, Burkina-Faso, Nigeria, Chad, Soudan and Eritrea) and their Poverty Reduction Strategy Papers (PRSP) and National Adaptation Programmes of Action (NAPA) by assessing criteria such as: a) the consideration of climate change scenarios and the vulnerabilities of the country; b) the analysis of poverty-climate links; and c) the climate change institutional framework of the country. However Soudan and Eritrea donât have PRSP and Nigeria donât have NAPA. The results show that most Sahel countries does not included Climate change 2 effect in their PRSP (except Burkina-Faso) but have a better performance with NAPA framework elaboration. Burkina-Faso is Climate risk management model country in the region but policies have failed because of farmerâs difficult conditions to get access to credit and lack of good technical supports. NAPA and PRSP objectives did not achieved because majority of poor were excluded, inefficiency in domestic accounting systems and inefficient monitoring. Furthermore, donors funding problems, natural disasters such as floods or droughts; biophysical modeling and simulation insufficient data, lack of skilled labor are others reason. To conclude, it is illustrates that mainstreaming natural hazards into PRSP and the development of NAPA are a step forward into establishment of institutional process to incorporate climate change into national policies. The World Bank and the UNFCCC should coordinate efforts to support developing countries in their efforts to incorporate adaptation to climate change in PRSP. Country need to strength the coordination, networks and information flows between ministries, at different levels of government and civil society to have more efficient integration of climate change variables into poverty reduction and development strategies. Country's should also have sustainable funding and should not rely only on donor. Policies should target more vulnerable peoples, need good policies implementation and good monitoring. |
| Keywords: | Sahel, Climate Change, Poverty Reduction, Adaptation Strategy., Resource /Energy Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100537&r=agr |
| By: | Dentoni, Domenico; English, Francis |
| Abstract: | Researchers have widely analysed the economic, managerial, social and psychological drivers of industry adoption of R&D outputs both in the international (e.g. Rogers 2003) and Australian context (e.g. Pannell et al. 2006). Many of these studies have mainly focused on the drivers of industry adoption of technical research, whose value - increasing productivity or decreasing costs within a firm's boundaries - is generally more tangibly perceived by the industry (Pralahad 1993). On the other hand, research has not focused on the drivers of industry adoption of R&D outputs stimulating market development, whose value - identifying and exploiting a market opportunity outside the boundaries of the firm - is usually more uncertain and difficult to be perceived (Pralahad 1993). At the same time, the industry uptake of research for market development is crucial in current agri-food systems, where companies increasingly need to be consumer-responsive in order to sustain their competitive advantage and survive. To attempt to start filling this gap, we explored the factors influencing industry adoption of R&D in marketing by taking a case-based grounded theory approach (Glaser and Strauss 1967; Eisenhardt 1989). Thirty-five market development projects conducted by the Australian Seafood Cooperative Research Centre, in collaboration with a number of industry and research partners, provided the instrumental cases for this study. Although limited to the seafood sector, by comparing and contrasting cases in sub-sectors with very different characteristics (oyster, wild prawn, rock lobster, abalone, tuna, salmon, finfish, sardines, barramundi) this study empirically explores factors related to 1) individual firms' characteristics and capabilities, 2) firms' organization within their industry and with external stakeholders 3) the project scope of the value proposition and industry engagement process. Results show that although individual firms' characteristics and the governance and structure of their industry associations influences the industry uptake, the scope of value proposition and the process of industry engagement are in determining industry uptake. In particular, the focus of consumer/market research, the timely communication among partners and the industry acquisition of market-sensing capabilities are three key elements influencing the industry uptake of the public market development research outputs. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100542&r=agr |
| By: | Theara Horn (Graduate School of Economics, Osaka University) |
| Abstract: | From data collected by questionnaire survey of three communes in the Kandal province of Cambodia, where public water supply remains inaccessible, this study estimates the demand function for drinking water and finds that the price elasticity is between -0.26 and -0.29. Based on this, and given the price set by the Phnom Penh Water Supply Authority, expansion of service would increase per capita water consumption by 9.8 liters per day, increase consumer surplus by 4.6 percent of total expenditure and decrease the number of households surviving on less than 30 liters of water per day by 5.3 percent. A simulation is used to calculate the water price such that the benefit of water connection exceeds the cost. |
| Keywords: | Water Service Access Expansion, Infrastructure Development, Welfare, Cambodia |
| JEL: | H44 H54 L95 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:osk:wpaper:1108&r=agr |
| By: | Hone, Simon |
| Keywords: | Inframarginal economics is a combination of marginal and total cost-benefit analysis (across corner solutions). It has been applied extensively in analysing trade issues, however, there have been few environmental applications. While there is debate over the contribution of inframarginal economics to the analysis of aggregate economic phenomena, inframarginal economics is central to understanding agent-level decisions. This paper applies inframarginal methods to investigate the efficient allocation of water among ecosystems. The Australian Government is acquiring billions of dollars of water for environmental uses through a number of programs. Allocating this water efficiently will require information on preferences and environmental production functions, as well as the development of analytical frameworks capable of examining corner solutions. Within a general inframarginal framework, this paper investigates the conditions under which corner solutions are likely to be efficient. In particular, corner solutions may arise when environmental production functions are convex but are also possible under âwell behavedâ functions., Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100560&r=agr |
| By: | Pfumayaramba, Tichaona |
| Abstract: | Flue cured tobacco has been an important crop for the Zimbabwean economy historically in terms of foreign currency earnings and employment creation. Between 1980 and 2000, there is a general increase in tobacco output, followed by a sharp decline from 2001 up to 2008 and then output starts to increase again. Flue cured tobacco output as measured by the quantity that is delivered to the auction floors is used to estimate supply elasticity. The objective is to determine if flue-cured tobacco supply is price elastic and whether price incentives alone will boost supply in the short -run. Time series data on flue cured tobacco output, prices, production costs, prices of major competing crops, the exchange rates and inflation are analysed to model the price elasticity of flue cured tobacco between 1980 and 2010. The Augmented Dickey âFuller unit root test is performed to test the variables for stationarity. The data generating processes show these data series to be non-stationary and therefore OLS estimations would be biased. The data series are differenced and the Engel-Granger procedure is performed to test for cointegration. The Error Correction Model approach is used to estimate flue cured tobacco supply. Flue cured tobacco supply is found to be price inelastic in the short ârun. |
| Keywords: | Supply elasticity, stationary data, cointegration, error correction model., Research Methods/ Statistical Methods, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100696&r=agr |
| By: | Gutierrez, Luciano; Sassi, Maria |
| Abstract: | The paper starts from the critiques to the Barro-style methodology for convergence analysis with the aim of reviewing the econometric approaches for testing spatial effects in convergence process related to both cross sectional and panel data regressions, a framework that is applied to a sample of 80 regions of the EU-15 at NUTS-2 level over the time period from 1980 to 2007. The empirical analysis compares results from approaches and, at the same time, provides empirical evidence from techniques that are now widely recognised in the understanding of regional growth and the influence of space but never or rarely applied to the agricultural context. Results point out the complexity of the process of agricultural regional convergence in Europe that cannot be adequately captured by the non-spatial growth regression models that have dominated the research and policy debate in this field. Evidence for convergence and spatial dependence emerges especially when estimations refers to spatial panel models while the effects of spatial heterogeneity and the existence of convergence clubs come out from the geographically weighted regression approach. The paper represents a point of departure for further researches in this field whose most important directions are underlined. |
| Keywords: | Convergence, Spatial approaches, Non spatial approaches, Community/Rural/Urban Development, C21, C33, Q19., |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99362&r=agr |
| By: | Kerr, Suzi; van Bentham, Arthur |
| Abstract: | Voluntary opt-in programs to reduce emissions in unregulated sectors or countries have spurred considerable discussion. Since any regulator will make errors in predicting baselines and participants will self-select into the program, adverse selection will reduce effciency and possibly environmental integrity. In contrast, pure subsidies lead to full participation but require large nancial transfers. We present a simple model to analyze this trade-off between adverse selection and infra-marginal transfers. We find that increasing the scale of voluntary programs both improves effciency and reduces transfers. We show that discounting (paying less than full value for offsets) is ineffcient and cannot be used to reduce the fraction of offsets that are spurious while setting stringent baselines generally can. Both approaches reduce the cost to the offsets buyer. The eects of two popular policy options are less favorable than many believe: Limiting the number of osets that can be one-for-one exchanged with permits in a cap-and-trade system will lower the offset price but also quality. Trading ratios between offsets and allowances have ambiguous environmental effects if the cap is not properly adjusted. This paper frames the issues in terms of avoiding deforestation but the results are applicable to any voluntary offset program. |
| Keywords: | Environmental Economics and Policy, deforestation, osets, adverse selection, REDD, climate change policy, opt-in., |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100569&r=agr |
| By: | Francisco J. Medina-Albaladejo (Universidad de Murcia) |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:aub:uhewps:2010_05&r=agr |
| By: | Lindner, Robert K.; McLeod, Paul |
| Abstract: | A prevalent problem in shared fisheries is competition between commercial and recreational fishers for access to a resource that is subject to increasing utilisation pressure. For most shared fisheries in New Zealand, the commercial sector is efficiently managed with a regime of individual transferable quota (ITQ), but the recreational fishing is only minimally managed. A model is developed that can be used to explore the size of the total allowable catch (TAC) that is both sustainable AND maximises the value to the NZ economy of the combined commercial and recreational catch when the commercial catch is regulated via a total allowable commercial catch (TACC) while the recreational catch (RC) is self regulating. Determinants of the optimal catch allocation include: ⢠the relative size of annual value to recreational fishers vis-à -vis the value of one unit of ACE to the commercial fishing sector from a unit decrease in the TACC ⢠the relation between value to recreational fishers and size of stock biomass ⢠the biology, and in particular the population dynamics of the fishery ⢠the nature of the functional relationship between the self regulating recreational catch and stock biomass. The model can be applied to a fishery of interest by quantifying the above variables and relationships. |
| Keywords: | economics management shared fishery catch allocation, Resource /Energy Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100579&r=agr |
| By: | Akpalu, Wisdom (Department of History, Economics and Politics, Farmingdale State College, State University of New York); Vondolia, Godwin K. (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | Fishers in developing countries do not have the resources to acquire advanced technologies to exploit offshore fish stocks. As a result, the United Nations Convention on the Law of the Sea requires countries to sign partnership agreements with distant water fishing nations (DWFNs) to exploit offshore stocks. However, for migratory stocks, the offshore may serve as a natural marine reserve (i.e., a source) to the inshore (i.e., sink); hence these partnership agreements generate spatial externality. In this paper, we present a bioeconomic model in which a social planner uses a landing tax (ad valorem tax) to internalize this spatial externality. We found that the tax must reflect the biological connectivity between the two patches, intrinsic growth rate, the price of fish, cost per unit effort and social discount rate. The results are empirically illustrated using data on Ghana.<p> |
| Keywords: | Spatial fishery management; ad valorem tax; exclusive economic zone; developing countries |
| JEL: | N57 Q22 Q28 Q56 Q57 |
| Date: | 2011–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0490&r=agr |
| By: | Nemes, Veronica; La Nauze, Andrea; O'Neill, James |
| Abstract: | In environmental markets, parties frequently exchange obligations through environmental contracts. These contracts imply a distribution of risk between parties. The main focus of our paper is to identify contracts that enable risk in environmental markets to be reduced, distributed at least cost, or managed efficiently. The risks that we consider are: moral hazard risk, price risk, exogenous environmental risk, measurement risk and production risk. The first section of our paper outlines some of the contracts currently utilised in financial and insurance markets to achieve these objectives. These are: futures and options contracts, spread contracts, weather contracts and catastrophe bonds. We then provide a snapshot of current applications of these contracts both in real markets and in the literature. Finally we discuss some possible applications in the environmental sector and indicate how the use of these contracts may alter the way government manages environmental assets and responsibilities. We also suggest a staged process to the introduction of contracts that recognises the current limitations faced by government. This paper does not propose new or novel contracts for tackling the problems of risk in exchange. Rather it extends the application of existing contractual arrangements to a new type of problem: environmental markets. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100576&r=agr |
| By: | Mwebaze, Paul; Bennett, Jeff |
| Abstract: | The economic value of biological collections in three major botanic gardens in Australia was estimated using the Travel-Cost (TC) and Contingent Valuation (CV) methods. The study used truncated count data models to control for the non-negative integer and truncation properties of the number of visits to botanic gardens in Canberra, Melbourne and Sydney. We estimate consumer surplus values of approximately $34 per trip to each botanic garden, resulting in the total social welfare estimate of approximately $96.9 million in 2010 Australian dollars. This result is relatively high compared to similar studies conducted in other countries. Willingness to pay (WTP) for entry fees and or higher parking charges for access to botanic gardens were also investigated. Results indicate a positive mean WTP of approximately $3-$4 per trip per person. These findings will be useful for resource management decisions in the botanic gardens and other biological collections in Australia. |
| Keywords: | Economic value, botanic gardens, biological collections, willingness to pay, travel-cost method, contingent valuation method., Resource /Energy Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100688&r=agr |
| By: | Hohnen, Laura; Godden, David; Balding, Jeremy; Adams, David |
| Abstract: | Improvements in air quality for some criteria pollutants in Sydney, Wollongong and the Lower Hunter have been achieved, whilst further improvements are required for others. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100559&r=agr |