The aim of this paper is to assess the potential impacts of different fertilizer subsidy reform options on the performance of the Iranian crops production sector. This is achieved using a Regional Crop Programming (RCP) model, based on Positive Mathematical Programming, which includes in total 14 crop activities and encompasses 31 administrative regions. The RCP model is a collection of micro-economic models, working with exogenous prices, each representing the optimal crop allocation at the regional level. The model is calibrated against observed data on crop acreage, yield responses to nitrogen application, and exogenous supply elasticities. Simulation results show that a total removal of nitrogen fertilizer subsidies would affect the competitiveness of crops with the highest nitrogen application rates and lead to a slight reduction of national agricultural income, at approximately 1%. This effect, which is more pronounced at the regional level, is driven by area reallocation rather than land productivity. The reallocation of nitrogen fertilizer subsidy to only strategic crops boost their production and income but increase disparity among regions and affects negatively welfare compared to the current universal fertilizer program. The transfer efficiency analysis shows that both target and universal simulated options are inefficient with an efficiency score below one.
{"title":"Impacts of fertilizer subsidy reform options in Iran: an assessment using a Regional Crop Programming model","authors":"M. Aghabeygi, K. Louhichi, S. Gomez y Paloma","doi":"10.36253/bae-10981","DOIUrl":"https://doi.org/10.36253/bae-10981","url":null,"abstract":"The aim of this paper is to assess the potential impacts of different fertilizer subsidy reform options on the performance of the Iranian crops production sector. This is achieved using a Regional Crop Programming (RCP) model, based on Positive Mathematical Programming, which includes in total 14 crop activities and encompasses 31 administrative regions. The RCP model is a collection of micro-economic models, working with exogenous prices, each representing the optimal crop allocation at the regional level. The model is calibrated against observed data on crop acreage, yield responses to nitrogen application, and exogenous supply elasticities. Simulation results show that a total removal of nitrogen fertilizer subsidies would affect the competitiveness of crops with the highest nitrogen application rates and lead to a slight reduction of national agricultural income, at approximately 1%. This effect, which is more pronounced at the regional level, is driven by area reallocation rather than land productivity. The reallocation of nitrogen fertilizer subsidy to only strategic crops boost their production and income but increase disparity among regions and affects negatively welfare compared to the current universal fertilizer program. The transfer efficiency analysis shows that both target and universal simulated options are inefficient with an efficiency score below one.","PeriodicalId":44385,"journal":{"name":"Bio-based and Applied Economics","volume":null,"pages":null},"PeriodicalIF":1.4,"publicationDate":"2022-07-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80928095","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
I. Dolgopolova, Bingqing Li, Helena Pirhonen, J. Roosen
This paper analyzes the existing literature on the effect of attribute framing on consumers’ attitudes and intentions with regard to food products. Attribute framing includes a broader interpretation of gains and losses when a product attribute is presented in a dichotomous way, such as fat vs. lean or harm vs. benefit. Meta-analysis results for the whole sample indicate that product attributes framed as gains have a higher effect on attitudes and intentions than product attributes framed as losses. Grouping studies by outcome variables, the meta-analysis demonstrates a larger effect size for studies that assess consumer attitude while for studies dealing with consumer intention, the effect size is close to zero and insignificant. We observe from the meta-regression results that the gain frame, the use of interaction terms, a specific product, and a student sample significantly influence consumers’ attitudes and intentions.
{"title":"The effect of attribute framing on consumers’ attitudes and intentions toward food: A Meta-analysis","authors":"I. Dolgopolova, Bingqing Li, Helena Pirhonen, J. Roosen","doi":"10.36253/bae-11511","DOIUrl":"https://doi.org/10.36253/bae-11511","url":null,"abstract":"This paper analyzes the existing literature on the effect of attribute framing on consumers’ attitudes and intentions with regard to food products. Attribute framing includes a broader interpretation of gains and losses when a product attribute is presented in a dichotomous way, such as fat vs. lean or harm vs. benefit. Meta-analysis results for the whole sample indicate that product attributes framed as gains have a higher effect on attitudes and intentions than product attributes framed as losses. Grouping studies by outcome variables, the meta-analysis demonstrates a larger effect size for studies that assess consumer attitude while for studies dealing with consumer intention, the effect size is close to zero and insignificant. We observe from the meta-regression results that the gain frame, the use of interaction terms, a specific product, and a student sample significantly influence consumers’ attitudes and intentions. ","PeriodicalId":44385,"journal":{"name":"Bio-based and Applied Economics","volume":null,"pages":null},"PeriodicalIF":1.4,"publicationDate":"2022-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88323098","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The main objective of this work is to review the recent achievements on the mechanisms explaining local and rural development, which underpin the current definition of rural areas in the European literature. The analysis carried out in this article acknowledges a gap between local development processes and the current representation of rural diversity by international organisations and national/regional authorities. New concepts can be drawn from this comparative analysis: 1) rural diversity cannot be explained exclusively by agglomeration forces and geographical distance from urban centres; b) multiple functions of rural areas, often rooted into sustainable agri-food systems or other forms of territorial capital, contribute to explain more autonomous roles of rural areas; c) organised or relational proximity is emerging in a context of a globalised economy and non-geographical networks, as a critical factor of connection between rural areas and distant regions/markets. This article translates these different disciplinary developments into a practical and integrated conceptual approach, in which local development processes result from three components: local resource systems, networks, institutions and enabling policies.
{"title":"Rural areas between locality and global networks. Local development mechanisms and the role of policies empowering rural actors","authors":"Francesco Mantino","doi":"10.36253/bae-12364","DOIUrl":"https://doi.org/10.36253/bae-12364","url":null,"abstract":"The main objective of this work is to review the recent achievements on the mechanisms explaining local and rural development, which underpin the current definition of rural areas in the European literature. The analysis carried out in this article acknowledges a gap between local development processes and the current representation of rural diversity by international organisations and national/regional authorities. New concepts can be drawn from this comparative analysis: 1) rural diversity cannot be explained exclusively by agglomeration forces and geographical distance from urban centres; b) multiple functions of rural areas, often rooted into sustainable agri-food systems or other forms of territorial capital, contribute to explain more autonomous roles of rural areas; c) organised or relational proximity is emerging in a context of a globalised economy and non-geographical networks, as a critical factor of connection between rural areas and distant regions/markets. This article translates these different disciplinary developments into a practical and integrated conceptual approach, in which local development processes result from three components: local resource systems, networks, institutions and enabling policies.","PeriodicalId":44385,"journal":{"name":"Bio-based and Applied Economics","volume":null,"pages":null},"PeriodicalIF":1.4,"publicationDate":"2022-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82234952","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this study, an integrated system dynamics model was developed for scenario analysis in sub-sectors of the Kheirabad River Basin in southwestern Iran where managing water resources is seriously challenging due to population growth and periodic drought. Afterward, the variability of water demand and supply under baseline scenario and different water demand management policies, including water conservation and water pricing, was evaluated. Findings illustrated that with increasing population and cropland area if no further demand management policies were implemented, the total water demand and withdrawal of water resources increase by more than 0.75% annually. The annual surface water availability during 2018-2030 is expected to decrease by around -1.23%. Under these circumstances, the sustainability index of the water resources system is equal to 0.703, indicating that the water system would not be able to meet the total water demand in the near future. However, the water resource sustainability index increases significantly by improving irrigation efficiency and changing crop patterns at the basin. Also, the reduction in per capita water demand and domestic water pricing under the competition structure would help to improve the sustainability index to 0.963 and 0.749, respectively.
{"title":"Sustainable water resources management under population growth and agricultural development in the Kheirabad river basin, Iran","authors":"G. Layani, M. Bakhshoodeh, M. Zibaei, D. Viaggi","doi":"10.36253/bae-10465","DOIUrl":"https://doi.org/10.36253/bae-10465","url":null,"abstract":"In this study, an integrated system dynamics model was developed for scenario analysis in sub-sectors of the Kheirabad River Basin in southwestern Iran where managing water resources is seriously challenging due to population growth and periodic drought. Afterward, the variability of water demand and supply under baseline scenario and different water demand management policies, including water conservation and water pricing, was evaluated. Findings illustrated that with increasing population and cropland area if no further demand management policies were implemented, the total water demand and withdrawal of water resources increase by more than 0.75% annually. The annual surface water availability during 2018-2030 is expected to decrease by around -1.23%. Under these circumstances, the sustainability index of the water resources system is equal to 0.703, indicating that the water system would not be able to meet the total water demand in the near future. However, the water resource sustainability index increases significantly by improving irrigation efficiency and changing crop patterns at the basin. Also, the reduction in per capita water demand and domestic water pricing under the competition structure would help to improve the sustainability index to 0.963 and 0.749, respectively.","PeriodicalId":44385,"journal":{"name":"Bio-based and Applied Economics","volume":null,"pages":null},"PeriodicalIF":1.4,"publicationDate":"2022-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76540943","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Over the past decade, the term bioeconomy has emerged in both policy and academic discourse. Implying a technology-driven approach to wealth generation from organic materials, the term has taken hold with so far limited critical engagement. It is a contestable rather than contested term. Noting the rise of numerous other ‘economies’ (blue, green, circular) on a similar timeframe, this paper undertakes a critical discourse analysis of academic literature and UK/EU policy documents using the term ‘bioeconomy’ to produce a contextualised understanding of how it is used in both theoretical and practical contexts. Our analysis shows that bioeconomy, as with the other ‘sustainability’ economies, which we term the ‘S-economies’, prioritises the economy and the markets as the solution brokers for the environmental and economic problems they seek to address. The apparent fragmentation of the theory and policy concerning the environmental sustainability of economic activity is expressed through the variability of terms that aspire to establish multiple economies functioning at the same time. Limited empirical analysis of the existing ‘bioeconomy’ is symptomatic of the dissociation between theory and practice, emphasizing technological approaches favouring capital intensive approaches over local solutions. The S-economies, including the bioeconomy, are an attempt to bypass economic structural realities that otherwise would need to be addressed.
{"title":"Understanding the bioeconomy: a new sustainability economy in British and European public discourse","authors":"Irene Sotiropoulou, P. Deutz","doi":"10.36253/bae-9534","DOIUrl":"https://doi.org/10.36253/bae-9534","url":null,"abstract":"Over the past decade, the term bioeconomy has emerged in both policy and academic discourse. Implying a technology-driven approach to wealth generation from organic materials, the term has taken hold with so far limited critical engagement. It is a contestable rather than contested term. Noting the rise of numerous other ‘economies’ (blue, green, circular) on a similar timeframe, this paper undertakes a critical discourse analysis of academic literature and UK/EU policy documents using the term ‘bioeconomy’ to produce a contextualised understanding of how it is used in both theoretical and practical contexts. Our analysis shows that bioeconomy, as with the other ‘sustainability’ economies, which we term the ‘S-economies’, prioritises the economy and the markets as the solution brokers for the environmental and economic problems they seek to address. The apparent fragmentation of the theory and policy concerning the environmental sustainability of economic activity is expressed through the variability of terms that aspire to establish multiple economies functioning at the same time. Limited empirical analysis of the existing ‘bioeconomy’ is symptomatic of the dissociation between theory and practice, emphasizing technological approaches favouring capital intensive approaches over local solutions. The S-economies, including the bioeconomy, are an attempt to bypass economic structural realities that otherwise would need to be addressed.","PeriodicalId":44385,"journal":{"name":"Bio-based and Applied Economics","volume":null,"pages":null},"PeriodicalIF":1.4,"publicationDate":"2022-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87101114","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study explored the view that distributors have towards the most valued wine attributes by consumers in the US market, applying the discrete choice experiments technique. Furthermore, to explore the extent to which the distributors’ perspective may reflect consumers’ preferences, the results are analyzed considering previous evidence with consumers in the same market. The results from a scaled multinomial logit, mixed logit and generalized logit models reveal similarities with consumer studies’ findings, especially for the influence of medals/awards, the origin of the wine, grape variety, and price, and it also identifies possible trends in the market. This evidence suggests that data collected using the knowledge and experience of wine distributors generates valuable information through a smaller sample at a lower cost than through applying consumer surveys, which is relevant in large markets with a higher number of consumers.
{"title":"The distributors’ view on US wine consumer preferences. A discrete choice experiment","authors":"L. Lourenço-Gomes, T. Gonçalves, J. Rebelo","doi":"10.36253/bae-10801","DOIUrl":"https://doi.org/10.36253/bae-10801","url":null,"abstract":"This study explored the view that distributors have towards the most valued wine attributes by consumers in the US market, applying the discrete choice experiments technique. Furthermore, to explore the extent to which the distributors’ perspective may reflect consumers’ preferences, the results are analyzed considering previous evidence with consumers in the same market. The results from a scaled multinomial logit, mixed logit and generalized logit models reveal similarities with consumer studies’ findings, especially for the influence of medals/awards, the origin of the wine, grape variety, and price, and it also identifies possible trends in the market. This evidence suggests that data collected using the knowledge and experience of wine distributors generates valuable information through a smaller sample at a lower cost than through applying consumer surveys, which is relevant in large markets with a higher number of consumers.","PeriodicalId":44385,"journal":{"name":"Bio-based and Applied Economics","volume":null,"pages":null},"PeriodicalIF":1.4,"publicationDate":"2022-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87457546","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In Italy, wine is an integral part of most people’s habits and lifestyles. The advent of a traumatic event like the Covid pandemic brought profound changes to people’s lives: economic instability and normality disruption led consumers to revise their priorities and modify their consumption and purchase behavior. This study analyses the impact of socio-demographic, psychological, and context-related modifications induced by the pandemic on wine consumption and purchase patterns. Participants completed an online, structured survey, and the sample is constituted by Italian wine consumers. Logistic regression and descriptive techniques are applied to analyze data. Results highlight that wine consumption is a deeply rooted habit among Italian consumers, which resisted the great context modifications that occurred with the pandemic. Moreover, changes in wine consumption are connected to that of other alcoholic beverages. Significant short-term and potential long-term effects are discussed. Information collected is paramount to understanding wine consumers’ reactions and behavioral changes induced by the pandemic and effectively plan marketing strategies during new infection peaks.
{"title":"Drinking Covid-19 away: wine consumption during the first lockdown in Italy","authors":"Giulia Gastaldello, Daniele Mozzato, L. Rossetto","doi":"10.36253/bae-10044","DOIUrl":"https://doi.org/10.36253/bae-10044","url":null,"abstract":"In Italy, wine is an integral part of most people’s habits and lifestyles. The advent of a traumatic event like the Covid pandemic brought profound changes to people’s lives: economic instability and normality disruption led consumers to revise their priorities and modify their consumption and purchase behavior. This study analyses the impact of socio-demographic, psychological, and context-related modifications induced by the pandemic on wine consumption and purchase patterns. Participants completed an online, structured survey, and the sample is constituted by Italian wine consumers. Logistic regression and descriptive techniques are applied to analyze data. Results highlight that wine consumption is a deeply rooted habit among Italian consumers, which resisted the great context modifications that occurred with the pandemic. Moreover, changes in wine consumption are connected to that of other alcoholic beverages. Significant short-term and potential long-term effects are discussed. Information collected is paramount to understanding wine consumers’ reactions and behavioral changes induced by the pandemic and effectively plan marketing strategies during new infection peaks.","PeriodicalId":44385,"journal":{"name":"Bio-based and Applied Economics","volume":null,"pages":null},"PeriodicalIF":1.4,"publicationDate":"2022-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77008041","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Based on data mainly from the International Comparison Program for 156 countries, we conduct a global cross-sectional estimation of an extended rank-3 MAIDADS demand system for nineteen commodity groups including agri-food detail for integration in a Computable General Equilibrium model. We render both marginal budget shares and commitment terms depending on the implicit utility level and consider age shares on the population, the Gini-Coefficient, the share of Islamic population, a sea access indicator and mean temperatures as further explanatory variables. We find that especially demographic factors, the share of Islamic population and mean temperature considerably improve model selection statistics and the fit of commodity groups with a low fit in a variant where prices and income only are used. Graphics of the estimated Engel curves, with details for agro-food commodity groups, highlight income dynamics of budget shares.
{"title":"Estimating a global MAIDADS demand system considering demography, climate and norms","authors":"W. Britz","doi":"10.36253/bae-10488","DOIUrl":"https://doi.org/10.36253/bae-10488","url":null,"abstract":"Based on data mainly from the International Comparison Program for 156 countries, we conduct a global cross-sectional estimation of an extended rank-3 MAIDADS demand system for nineteen commodity groups including agri-food detail for integration in a Computable General Equilibrium model. We render both marginal budget shares and commitment terms depending on the implicit utility level and consider age shares on the population, the Gini-Coefficient, the share of Islamic population, a sea access indicator and mean temperatures as further explanatory variables. We find that especially demographic factors, the share of Islamic population and mean temperature considerably improve model selection statistics and the fit of commodity groups with a low fit in a variant where prices and income only are used. Graphics of the estimated Engel curves, with details for agro-food commodity groups, highlight income dynamics of budget shares.","PeriodicalId":44385,"journal":{"name":"Bio-based and Applied Economics","volume":null,"pages":null},"PeriodicalIF":1.4,"publicationDate":"2022-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74592496","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The objective of this paper is to provide a review of recent economic literature related to the Bioeconomy, in particular aimed at identifying relevant pathways for future research in this field. The paper is organised in four main parts. First, we illustrate the economic role of the Bioeconomy and its key statistics in the EU. Second we review economic topics related to the Bioeconomy production in a mainly private (company, consumer, market) perspective. Then we extend our attention to the review of wider social and environmental aspects with a focus on ecosystem services. Finally, we discuss the interplay of the above topics and cross cutting issues in the attempt to identify the most promising pathways for further research. While the economic literature is growing fast in all the fields of the Bioeconomy, we highlight in particular the need of more economic research focusing on transitions and innovation. However, we also highlight the need to take a system perspective and accounting explicitly for the trade-offs among the many objectives that the Bioeconomy is expected to target and to better account of the costs and benefits affecting different stakeholder groups.
{"title":"The Bioeconomy in economic literature: looking back, looking ahead","authors":"D. Viaggi, F. Bartolini, M. Raggi","doi":"10.36253/bae-10881","DOIUrl":"https://doi.org/10.36253/bae-10881","url":null,"abstract":"The objective of this paper is to provide a review of recent economic literature related to the Bioeconomy, in particular aimed at identifying relevant pathways for future research in this field. The paper is organised in four main parts. First, we illustrate the economic role of the Bioeconomy and its key statistics in the EU. Second we review economic topics related to the Bioeconomy production in a mainly private (company, consumer, market) perspective. Then we extend our attention to the review of wider social and environmental aspects with a focus on ecosystem services. Finally, we discuss the interplay of the above topics and cross cutting issues in the attempt to identify the most promising pathways for further research. While the economic literature is growing fast in all the fields of the Bioeconomy, we highlight in particular the need of more economic research focusing on transitions and innovation. However, we also highlight the need to take a system perspective and accounting explicitly for the trade-offs among the many objectives that the Bioeconomy is expected to target and to better account of the costs and benefits affecting different stakeholder groups.","PeriodicalId":44385,"journal":{"name":"Bio-based and Applied Economics","volume":null,"pages":null},"PeriodicalIF":1.4,"publicationDate":"2022-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90254568","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Quality assurance is a dominant feature of organic production and, currently, third-party certification is recognized as the official authenticity assurance strategy by the majority of worldwide organic regulations. This model, however, is less accessible to smallholders because it is costly and its application time-consuming. Furthermore, this certification system has been accused on several fronts to be responsible for the standardization of the organic production process leading to a “conventionalization” of organic productions. Contextually, in several countries, groups of small producers have started to implement alternative quality assurance systems for their organic products, better known as Participatory Guarantee Systems. Research to date has not yet determined how these models can survive within a highly competitive market such as that of certification. In this framework, the paper aims to theoretically unveil and explain the alternative certification phenomenon and its coexistence with third-party certification by applying an evolutionary game (rationally bounded agents that adopt the more rewarding strategy). The results of simulations suggest that symbolic attributes such as localness, healthiness, quality, producers and consumers embeddedness can differentiate products guaranteed by alternative schemes, meeting consumers’ preference. The discussion of findings provides an assessment of the performance of both quality assurance systems, explain their coexistence within the organic market, identify critical aspects, and suggest some policy implications.
{"title":"The evolution of organic market between third-party certification and participatory guarantee systems","authors":"Gianluca Iannucci, G. Sacchi","doi":"10.36253/bae-10470","DOIUrl":"https://doi.org/10.36253/bae-10470","url":null,"abstract":"Quality assurance is a dominant feature of organic production and, currently, third-party certification is recognized as the official authenticity assurance strategy by the majority of worldwide organic regulations. This model, however, is less accessible to smallholders because it is costly and its application time-consuming. Furthermore, this certification system has been accused on several fronts to be responsible for the standardization of the organic production process leading to a “conventionalization” of organic productions. Contextually, in several countries, groups of small producers have started to implement alternative quality assurance systems for their organic products, better known as Participatory Guarantee Systems. Research to date has not yet determined how these models can survive within a highly competitive market such as that of certification. In this framework, the paper aims to theoretically unveil and explain the alternative certification phenomenon and its coexistence with third-party certification by applying an evolutionary game (rationally bounded agents that adopt the more rewarding strategy). The results of simulations suggest that symbolic attributes such as localness, healthiness, quality, producers and consumers embeddedness can differentiate products guaranteed by alternative schemes, meeting consumers’ preference. The discussion of findings provides an assessment of the performance of both quality assurance systems, explain their coexistence within the organic market, identify critical aspects, and suggest some policy implications.","PeriodicalId":44385,"journal":{"name":"Bio-based and Applied Economics","volume":null,"pages":null},"PeriodicalIF":1.4,"publicationDate":"2022-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73781761","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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