Our paper assesses the technical and economic effects of adopting environmental standards aimed at favouring biodiversity on wheat production. We consider two standards with different levels of environmental stringency. We use data on French wheat production at the plot level from the period 2014–2020. We implement an endogenous switching regression model taking into account two sources of endogeneity, environmental standards adoption and inputs quantity use. Our results indicate that adopting the more stringent standard slightly decreases wheat yield and quality. In contrast, it induces a low increase in wheat price. The price premium of the more stringent environmental standard merely compensates for the negative effect of the standard’s adoption on quality.
{"title":"The technical and economic effects of biodiversity standards on wheat production","authors":"Marie Lassalas, Sabine Duvaleix, Laure Latruffe","doi":"10.1093/erae/jbad044","DOIUrl":"https://doi.org/10.1093/erae/jbad044","url":null,"abstract":"Our paper assesses the technical and economic effects of adopting environmental standards aimed at favouring biodiversity on wheat production. We consider two standards with different levels of environmental stringency. We use data on French wheat production at the plot level from the period 2014–2020. We implement an endogenous switching regression model taking into account two sources of endogeneity, environmental standards adoption and inputs quantity use. Our results indicate that adopting the more stringent standard slightly decreases wheat yield and quality. In contrast, it induces a low increase in wheat price. The price premium of the more stringent environmental standard merely compensates for the negative effect of the standard’s adoption on quality.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"19 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139644109","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We investigate the impact of severe drought shocks in Morocco’s agricultural sector. Using a staggered difference-in-differences design, we estimate that climatic shocks resulted in a job displacement of approximately 6.5 percentage points for workers exposed to severe drought events. Additionally, we observe that, overall, approximately 39 per cent of these workers remained unemployed, leading to a partial reallocation failure. These effects are significant only for severe and extreme shocks, persist for at least 5 years, and are more pronounced among informal and female workers.
{"title":"Job displacement and reallocation failure. Evidence from climate shocks in Morocco","authors":"Federica Alfani, Vasco Molini, Giacomo Pallante, Alessandro Palma","doi":"10.1093/erae/jbad043","DOIUrl":"https://doi.org/10.1093/erae/jbad043","url":null,"abstract":"We investigate the impact of severe drought shocks in Morocco’s agricultural sector. Using a staggered difference-in-differences design, we estimate that climatic shocks resulted in a job displacement of approximately 6.5 percentage points for workers exposed to severe drought events. Additionally, we observe that, overall, approximately 39 per cent of these workers remained unemployed, leading to a partial reallocation failure. These effects are significant only for severe and extreme shocks, persist for at least 5 years, and are more pronounced among informal and female workers.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"26 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138770923","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Organic inputs can be effective in reversing soil degradation and improving crop yields, but are often underused in a developing country context. This study seeks to determine whether farmer field days (FFDs) are effective in disseminating information about novel organic inputs, and the extent to which they increase demand for these products. Using experimental auctions to measure willingness to pay (WTP) among smallholder farmers in Western Kenya, we find that those farmers exposed to information from FFDs related to biochar and vermicompost, novel organic inputs, have lower WTP for the products. We present evidence that this is likely driven by two factors in particular: changes in perceptions of input profitability and heterogeneity in yields across demonstration plots within field day sites.
{"title":"Show and tell: farmer field days and learning about inputs with heterogeneous yield effects","authors":"David M. A Murphy, Dries Roobroeck, David R Lee","doi":"10.1093/erae/jbad042","DOIUrl":"https://doi.org/10.1093/erae/jbad042","url":null,"abstract":"Organic inputs can be effective in reversing soil degradation and improving crop yields, but are often underused in a developing country context. This study seeks to determine whether farmer field days (FFDs) are effective in disseminating information about novel organic inputs, and the extent to which they increase demand for these products. Using experimental auctions to measure willingness to pay (WTP) among smallholder farmers in Western Kenya, we find that those farmers exposed to information from FFDs related to biochar and vermicompost, novel organic inputs, have lower WTP for the products. We present evidence that this is likely driven by two factors in particular: changes in perceptions of input profitability and heterogeneity in yields across demonstration plots within field day sites.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"242 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138740403","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Elin Martinsson, Helena Hansson, Klaus Mittenzwei, Hugo Storm
We present a novel procedure based on eco-efficiency for assessing farm-level effects of technology adoption while considering secondary effects. Secondary effects are defined as structural and behavioural adaptations to technology that may impact environmental, social or economic outcomes. We apply the procedure to automatic milking systems (AMS) in Norway and find that AMS induces secondary effects, most strongly by decreasing labour per cow and increasing herd sizes. For estimating effects of AMS we employ a novel causal machine learning approach. AMS induce heterogenous effects on eco-efficiency, negatively associated with herd expansion and labour per cow.
{"title":"Evaluating environmental effects of adopting automatic milking systems on Norwegian dairy farms","authors":"Elin Martinsson, Helena Hansson, Klaus Mittenzwei, Hugo Storm","doi":"10.1093/erae/jbad041","DOIUrl":"https://doi.org/10.1093/erae/jbad041","url":null,"abstract":"We present a novel procedure based on eco-efficiency for assessing farm-level effects of technology adoption while considering secondary effects. Secondary effects are defined as structural and behavioural adaptations to technology that may impact environmental, social or economic outcomes. We apply the procedure to automatic milking systems (AMS) in Norway and find that AMS induces secondary effects, most strongly by decreasing labour per cow and increasing herd sizes. For estimating effects of AMS we employ a novel causal machine learning approach. AMS induce heterogenous effects on eco-efficiency, negatively associated with herd expansion and labour per cow.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"32 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-12-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138679098","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abebayehu Girma Geffersa, Martin Paul Jr Tabe-Ojong
This paper examines the relationship between smallholder commercialisation and rural household welfare. Employing a comprehensive three-wave panel dataset of smallholder maize farmers in Ethiopia, we find a positive association between commercialisation and household income which translates to wealth endowments through asset ownership and accumulation. We also show that commercialisation is associated with poverty reduction by reducing the prevalence of income poverty and the poverty gap. Deep diving into who benefits most from commercialisation, we find that agricultural commercialisation is inclusive and benefits all households. However, the greatest welfare gains accrue to income-poor households, suggesting some potential for reducing rural inequality. These insights support existing evidence that smallholder commercialisation is pro-poor and could be a significant entry point for stirring income growth and development in rural areas. Consequently, supporting poor and marginalised farmers with resources needed to boost agricultural production and commercialisation are relevant steps in the right direction of ensuring integrated rural development.
{"title":"Smallholder commercialisation and rural household welfare: panel data evidence from Ethiopia","authors":"Abebayehu Girma Geffersa, Martin Paul Jr Tabe-Ojong","doi":"10.1093/erae/jbad040","DOIUrl":"https://doi.org/10.1093/erae/jbad040","url":null,"abstract":"This paper examines the relationship between smallholder commercialisation and rural household welfare. Employing a comprehensive three-wave panel dataset of smallholder maize farmers in Ethiopia, we find a positive association between commercialisation and household income which translates to wealth endowments through asset ownership and accumulation. We also show that commercialisation is associated with poverty reduction by reducing the prevalence of income poverty and the poverty gap. Deep diving into who benefits most from commercialisation, we find that agricultural commercialisation is inclusive and benefits all households. However, the greatest welfare gains accrue to income-poor households, suggesting some potential for reducing rural inequality. These insights support existing evidence that smallholder commercialisation is pro-poor and could be a significant entry point for stirring income growth and development in rural areas. Consequently, supporting poor and marginalised farmers with resources needed to boost agricultural production and commercialisation are relevant steps in the right direction of ensuring integrated rural development.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":" 896","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138475665","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study utilises structural gravity models to examine the impact of globalisation on distance in agricultural and processed food trade, the relative effects of international distance and home bias effects. The results show that larger internal distances lower domestic sales. The home bias effect is substantially larger in agricultural commodities compared to processed agricultural commodities. Omitted variable bias is observed in friction variables when the relative intra-national distance and home market bias are excluded. After controlling for relative intra-national trade costs and the home bias effect, globalisation does not lead to a smaller impact of distance on trade. Substantial heterogeneity exists when analysing individual commodities.
{"title":"Globalisation and agri-food trade","authors":"Jeff Luckstead","doi":"10.1093/erae/jbad038","DOIUrl":"https://doi.org/10.1093/erae/jbad038","url":null,"abstract":"This study utilises structural gravity models to examine the impact of globalisation on distance in agricultural and processed food trade, the relative effects of international distance and home bias effects. The results show that larger internal distances lower domestic sales. The home bias effect is substantially larger in agricultural commodities compared to processed agricultural commodities. Omitted variable bias is observed in friction variables when the relative intra-national distance and home market bias are excluded. After controlling for relative intra-national trade costs and the home bias effect, globalisation does not lead to a smaller impact of distance on trade. Substantial heterogeneity exists when analysing individual commodities.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"105 41","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-11-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138455284","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Our objective is to identify the individual flexibility of dairy farms, which may be the result of heterogeneous input adjustment costs, based on their observed short-run responses to price variations. For this purpose, we propose an analytical framework based on the panel smooth transition regression model with farm-specific threshold parameters. Our model is estimated using data from a sample of French dairy farms over the period 2007–2018. Our empirical results reveal heterogeneous levels of flexibility for these farms, with the most flexible farms appearing to be more autonomous both financially and in terms of animal feed.
{"title":"Identifying heterogeneous flexibility of dairy farms using a panel smooth transition regression approach","authors":"Elodie Letort, Fabienne Femenia","doi":"10.1093/erae/jbad037","DOIUrl":"https://doi.org/10.1093/erae/jbad037","url":null,"abstract":"Our objective is to identify the individual flexibility of dairy farms, which may be the result of heterogeneous input adjustment costs, based on their observed short-run responses to price variations. For this purpose, we propose an analytical framework based on the panel smooth transition regression model with farm-specific threshold parameters. Our model is estimated using data from a sample of French dairy farms over the period 2007–2018. Our empirical results reveal heterogeneous levels of flexibility for these farms, with the most flexible farms appearing to be more autonomous both financially and in terms of animal feed.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"11 7","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-11-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138293441","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Yuanyao Lee, Madhu Khanna, Luoye Chen, Rui Shi, Jeremy Guest, Elena Blanc-Betes, Chongya Jiang, Kaiyu Guan, Tara Hudiburg, Evan H De Lucia
Abstract Cellulosic biofuels from non-food feedstocks, while appealing, continue to encounter uncertainty about their induced land use change (ILUC) effects, net greenhouse gas (GHG) saving potential and their economic costs. We analyse the implications of multiple uncertainties along the biofuel supply chain from feedstock yields, land availability for production to conversion to fuel in the refinery on these outcomes. We find that compared to corn ethanol, cellulosic biofuels have a substantially smaller and less uncertain ILUC-related GHG intensity and lead to larger GHG savings at lower welfare costs of abatement, indicating the potential to make robust and substantial contributions to cost-effective climate change mitigation.
{"title":"Quantifying uncertainties in greenhouse gas savings and abatement costs with cellulosic biofuels","authors":"Yuanyao Lee, Madhu Khanna, Luoye Chen, Rui Shi, Jeremy Guest, Elena Blanc-Betes, Chongya Jiang, Kaiyu Guan, Tara Hudiburg, Evan H De Lucia","doi":"10.1093/erae/jbad036","DOIUrl":"https://doi.org/10.1093/erae/jbad036","url":null,"abstract":"Abstract Cellulosic biofuels from non-food feedstocks, while appealing, continue to encounter uncertainty about their induced land use change (ILUC) effects, net greenhouse gas (GHG) saving potential and their economic costs. We analyse the implications of multiple uncertainties along the biofuel supply chain from feedstock yields, land availability for production to conversion to fuel in the refinery on these outcomes. We find that compared to corn ethanol, cellulosic biofuels have a substantially smaller and less uncertain ILUC-related GHG intensity and lead to larger GHG savings at lower welfare costs of abatement, indicating the potential to make robust and substantial contributions to cost-effective climate change mitigation.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"158 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135723658","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Using a hybrid multi-regional input–output approach, we traced sustainability footprints of a nutrient recovery strategy from sewage sludge applied in Italy. We then compared the results with the most common landfilling practice. Overall, accounting for indirect global upstream effects, using sewage sludge for organic fertiliser production generates more jobs and reduces more greenhouse gas emissions than landfilling. By contrast, landfilling stimulates the whole economy more, generating higher indirect turnover and reduces energy carrier use more. Finally, we accounted for uncertainties in these results using an error propagation method based on Monte Carlo simulations.
{"title":"Recycling sludge in agriculture? Assessing sustainability of nutrient recovery in Italy","authors":"G Tassinari, S Boccaletti, C Soregaroli","doi":"10.1093/erae/jbad035","DOIUrl":"https://doi.org/10.1093/erae/jbad035","url":null,"abstract":"Abstract Using a hybrid multi-regional input–output approach, we traced sustainability footprints of a nutrient recovery strategy from sewage sludge applied in Italy. We then compared the results with the most common landfilling practice. Overall, accounting for indirect global upstream effects, using sewage sludge for organic fertiliser production generates more jobs and reduces more greenhouse gas emissions than landfilling. By contrast, landfilling stimulates the whole economy more, generating higher indirect turnover and reduces energy carrier use more. Finally, we accounted for uncertainties in these results using an error propagation method based on Monte Carlo simulations.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"120 2","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135510915","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Vincenzina Caputo, Angelos Lagoudakis, Robert Shupp, Claudia Bazzani
This study compares a real choice experiment (RCE) with three commonly used experimental auction (EA) mechanisms (Becker–DeGroot–Marschak, random nth price auction (RNPA), second price auction (SPA)) to determine whether willingness to pay (WTP) estimates differ across these elicitation methods. We use quality labels on eggs as the empirical application and find that the SPA, RNPA and RCE yield similar WTP estimates, while the BDM mechanism generally produces higher WTP estimates. We also compare these EAs and the RCE in an induced value setting and find that the BDM auction produces greater deviations from the underlying value than the other EAs and RCE. We suggest that RCEs may be preferable to BDMs for collecting WTP estimates in logistically difficult experimental settings.
{"title":"Comparing experimental auctions and real choice experiments in food choice: a homegrown and induced value analysis","authors":"Vincenzina Caputo, Angelos Lagoudakis, Robert Shupp, Claudia Bazzani","doi":"10.1093/erae/jbad033","DOIUrl":"https://doi.org/10.1093/erae/jbad033","url":null,"abstract":"This study compares a real choice experiment (RCE) with three commonly used experimental auction (EA) mechanisms (Becker–DeGroot–Marschak, random nth price auction (RNPA), second price auction (SPA)) to determine whether willingness to pay (WTP) estimates differ across these elicitation methods. We use quality labels on eggs as the empirical application and find that the SPA, RNPA and RCE yield similar WTP estimates, while the BDM mechanism generally produces higher WTP estimates. We also compare these EAs and the RCE in an induced value setting and find that the BDM auction produces greater deviations from the underlying value than the other EAs and RCE. We suggest that RCEs may be preferable to BDMs for collecting WTP estimates in logistically difficult experimental settings.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"29 35","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"71492646","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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