Land-use hysteresis triggered by staggered payment schemes for more permanent biodiversity conservation

Making conservation payment schemes permanent so that conservation efforts are retained even after the payment has been stopped, is a major challenge. Another challenge is to design conservation so that they counteract the ongoing spatial fragmentation of species habitat. The agglomeration bonus in which a bonus is added to a flat payment if the conservation activity is carried out in the neighbourhood of other conserved land, has been shown to induce the establishment of spatially contiguous habitat. I the present paper we show, with a generic spatially explicit agent-based simulation model, that the interactions between the landowners in an agglomeration bonus scheme can lead to hysteresis..

Agricultural Economics

Designing an effective small farmers scheme in France

The 2014 CAP introduced the Small Farmers Scheme (SFS), offering small farms the option of an unconditional annual lump-sum payment per farm replacing the standard first pillar direct payments. This paper assesses the acceptability in France of an extended version of the 2014 SFS for the post-2020 CAP: it includes conditions on farmers' environmental efforts and on salaried employment. The results of a discrete choice experiment conducted at the scale of France with 608 farmers receiving less than 15,000€ in first pillar payments show that an SFS with an environmental certification prerequisite is attractive to French small farmers, notably in the market gardening sector. We provide simula..

Agricultural Economics

Evaluating the contribution of nature to well-being: The case of ecosystem services related to fish-farming ponds in France

Ecosystem Services (ES) can contribute to several aspects of human well-being (WB) that we understand as the subjective perception that individuals have of their quality of life, depending on a set of factors. We compare the relative weights of the WB factors resulting from ES (ES-based) and those that do not depend on ES (non-ES-based), from an online survey (N = 1006) relating to ES linked to fish-farming ponds in France. A summary variable, the "WB profile", allows to identify individuals (38% of respondents) whose WB is strongly linked to the presence of ES (the number of ES-based WB factors is greater than the number of non-ES-based WB factors). The WB profile of these individuals is an..

Agricultural Economics

Avian influenza transmission risk along live poultry trading networks in Bangladesh

Live animal markets are known hotspots of zoonotic disease emergence. To mitigate those risks, we need to understand how networks shaped by trading practices influence disease spread. Yet, those practices are rarely recorded in high-risk settings. Through a large cross-sectional study, we assessed the potential impact of live poultry trading networks’ structures on avian influenza transmission dynamics in Bangladesh. Networks promoted mixing between chickens sourced from different farming systems and geographical locations, fostering co-circulation of viral strains of diverse origins in markets. Viral transmission models suggested that the observed rise in viral prevalence from farms to ma..

Agricultural Economics

Labelling and Information Schemes for the Circular Economy

Circular Economy Labels and Information Schemes (CELIS) compose the group of labels, certifications, standards of information schemes that fully or partially address one or more resource efficiency or circular economy elements. CELIS can play an important role in fostering circular economy activities. They can empower market actors to distinguish and discriminate products based on environmental performance, which stimulates market development and innovation in resource efficient products and services. Information systems also enable better supply chain management and allow firms to identify environmental impacts and risks in their supply chains.This paper provides an overview of the current ..

Agricultural Economics

Gendered perceptions in maize supply chains: Evidence from Uganda

In situations with imperfect information, the way that value chain actors perceive each other is an important determinant of the value chain's structure and performance. Inaccurate perceptions may result in inefficient value chains, and systematic bias in perceptions may affect inclusiveness. In a case study on perceptions in Ugandan maize supply chains, a random sample of farmers were asked to rate upstream and downstream value chain actors-agro-input dealers, traders, and processors-on a set of important attributes that included ease of access, quality of services rendered, price competitiveness, and overall reputation. These value chain actors were then tracked and asked to assess themsel..

Agricultural Economics

New Evidence on Using Expert Ratings to Proxy for Wine Quality in Climate Change Research

This paper provides new evidence on the validity of using product-level expert winescoring data as a proxy for wine quality in climate change research, using nearly 15,000 Bob Campbell ratings of New Zealand wines from 2002 to 2016. We examine two to three regression models for each of the seven most prominent varieties in New Zealand, each with 8-12 treatments. We look for a positive, concave relationship between the expert score and the growing season temperature that gives an optimal temperature value that is plausible given research from other countries. We find mixed results – only 56% of our results are consistent with expectation and give a plausible optimal temperature and 27% are ..

Agricultural Economics

Over-perception about Land Use Changes: Assessing Empirical Evidence and Linkage with Decisions and Motivated Beliefs

Perception biases documented in the literature often pertain to subject matters that are difficult to observe or measure such as one's ability. We study perception biases with respect to a concrete indicator that can be objectively measured: land use changes in a local area. We examine four hypotheses about land use change perceptions and test them with farm survey data complemented by satellite data. We discover systematic biases in farmers' perceptions about local land use changes that are consistent with motivated beliefs, and also evidence that links perceptions with intended future land conversions. Alternative explanations and policy implications are discussed.

Agricultural Economics

Droughts and Agricultural Adaptation to Climate Change

This article analyses the effects of droughts and climate variability on short-term and medium-term adaptation of Colombian rural households. I measure drought in a Differencesin-Differences (DID) framework, as an alternative to the standard approaches decomposing the effects from climate and yearly weather deviations on agricultural productivity and those using the growing degree days and harmful degree days. In the short-term and mediumterm, rural households adapt to the drought of 2010 by increasing the total area planted in crops and livestock, (increasing also the total gross agricultural productivity in value terms) and by working more on the farm. The droughts also increased the use o..

Agricultural Economics

Using contests to promote coordinated control of invasive species: An experimental evaluation

We experimentally evaluate the effect of competing for a prize on the coordinated control of invasive species in the presence of externalities. We offered prizes (merit, monetary and a combination of both) to the best performer in a contest aimed at promoting the control of rodent pests, an invasive species that is responsible for large losses in stored grain. Only monetary prizes are capable of promoting behavioral change, with relatively large effects: households in villages where prizes were offered reported losses in storage that are 25% lower than in control villages. The effect is a non-linear function of prize, with only intermediate size prizes leading to reductions in storage losses..

Agricultural Economics

Carbon leakage and agriculture: A literature review on emissions mitigation policies

The risks of carbon leakage associated with climate policies in the agricultural sector remains under-researched. Studies to date suggest that carbon pricing policies implemented by a single country, or small group of countries, reduce global emissions but also affect the international competitiveness of these countries’ agricultural sectors and induce carbon leakage. While carbon leakage can be prevented with trade-related measures that adjust emissions prices at the border, such measures applied in developed countries could potentially lead to significant welfare losses for developing countries that heavily rely on agricultural exports. That said, important caveats apply to the reviewed ..

Agricultural Economics

Developing consumption-based emissions indicators from Agriculture, Forestry and Land-use (AFOLU) activities

Understanding consumption-based emissions from Agriculture, Forestry and Land-use (AFOLU) activities is important in developing climate policy for the sector. This paper proposes a new methodology to construct indicators – CBAFOLU indicators ‒ to provide estimates of greenhouse gas (GHG) emissions arising from AFOLU activities (including fisheries) in the global supply chain of finished products. The CBAFOLU indicators identify the countries where emissions are generated and the countries where the goods that “embody” these emissions are eventually consumed. CBAFOLU indicators are provided for bilateral flows of emissions for 65 countries over 2005-15. The indicators also break down ..

Agricultural Economics

More than money? Job quality and food insecurity among employed lone mother households in the United States

This paper examines the relationship between food insecurity and the uncertainty and inadequate financial resources associated with low quality work among lone mother households in the United States. Food insecurity has increased since the start of the Great Recession and is particularly high among lone mother households. Using data from the Survey of Income and Program Participation, I find that mothers who have are employed part-time involuntarily and experienced job loss have an increased likelihood of experiencing food insecurity. This relationship holds even after controlling for multiple measures of household income, suggesting the relationship between low quality work and food insecur..

Agricultural Economics

Index insurance for coping with drought-induced risk of production losses in French forests

Drought-induced risk of forest dieback is increasing due to climate change. Insurance can be a good option to compensate potential financial losses associated with forest production losses. In this context, we developed an ex ante index-based insurance model to cope with drought-induced risk of forest dieback. We applied this model to beech and oak forests in France. We defined and then compared different indices from simple ones relying on rainfall indices to more complex ones relying on the functional modelling of forest sensitivity to water stress. After the calibration of the contract parameters, an insurance scheme was optimized and tested. We showed that optimal insurance contracts gen..

Agricultural Economics

Irrigation Organizations: Water Storage and Delivery Infrastructure

In 2018, 40 percent of all water applied to irrigated cropland came from an off-farm water source. Irrigation districts, ditch companies, acequias, and other water delivery organizations use infrastructure such as canals, reservoirs, and turnouts to transport, store, and deliver off-farm water to farms and ranches. This infrastructure is a critical part of an organization’s ability to meet the water needs of irrigated agriculture. The U.S. Department of Agriculture’s 2019 Survey of Irrigation Organizations is a nationally representative review of the water management organizations that deliver water to farms or influence on-farm groundwater use. This report leverages these survey data to..

Agricultural Economics

AgriLOVE: agriculture, land-use and technical change in an evolutionary, agent-based model.

This paper presents a novel agent-based model of land use and technological change in the agricultural sector under environmental boundaries, finite available resources and changing land productivity. In particular, we model a spatially explicit economy populated by boundedly-rational farmers competing and innovating to fulfill an exogenous demand for food, while coping with a changing environment shaped by their production choices. Given the strong technological and environmental uncertainty, farmers learn and adaptively employ heuristics which guide their decisions on engaging in innovation and imitation activities, hiring workers, acquiring new farms, deforesting virgin areas and abandoni..

Agricultural Economics

The Impact of "Grow to Sell" Agricultural Extension on Smallholder Horticulture Farmers: Evidence from a Market- Oriented Approach in Kenya

This paper evaluates the impact of a market-oriented agricultural extension program called Smallholder Horticulture Empowerment and Promotion (SHEP) in Kenya. The SHEP approach prioritizes practical training for farmers to act as producers in a market by encouraging decentralized decision-making. Using a cluster randomized controlled trial (RCT) over a two-year period, we find that, on average, SHEP increased horticultural income significantly by 70% and the positive effect was more pronounced in vulnerable households whose head of household is female, less educated or older. The effect is not relevant to horticultural experience prior to the intervention. Our findings suggest that a market-..

Agricultural Economics

Food security and structural adjustment: Empirical evidence on the food price dilemna in South African

Agricultural Economics

Farm to Market Grain Movement

Agricultural Economics

An Empirical Model of Bargaining with Equilibrium of Fear: Application to Retail Mergers in the French Soft Drink Industry

We develop a framework of bilateral oligopoly with a sequential two-stage game in which manufacturers engage in bilateral bargains with retailers competing on a downstream market. We show that bargaining outcomes depend on three different bargaining forces and can be interpreted in terms of "equilibrium of fear". We estimate our framework using data on soft drink purchases in France and find that retailers have a higher bargaining power than manufacturers. Using counterfactual simulations, we highlight that retail mergers always increase retailers' fear of disagreement which weakens their bargaining power vis-à-vis manufacturers and leads to higher wholesale and retail prices.

Agricultural Economics

Cost Implications of Participant Product Selection in USDA’s Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

USDA’s Special Supplemental Nutrition Program for Women, Infants and Children (WIC) is the third-largest food assistance program in the United States. WIC participants are required to select fixed quantities of WIC-approved foods except for fruits and vegetables, for which they receive a cash-value voucher. Participants may lack an explicit economic incentive to minimize food costs by shopping at low-cost WIC-authorized vendors or selecting less expensive products, brands, or packages of foods. Thus, each WIC State agency faces the challenge of simultaneously controlling program costs and supporting participants’ satisfaction by providing options when they shop for WIC foods. WIC State a..

Agricultural Economics