E. De Marchi, A. Cavaliere, F. Pucillo, A. Banterle, Rodolfo M. Nayga
The European Union (EU) food market is characterised by the presence of several front-of-pack nutrition labels (FOPLs), some of which have only been introduced lately. While the EU Commission proposed to harmonise and possibly mandate the use of FOPLs, agreement on which label to adopt has not been reached. This review explores the main issues related to the adoption of FOPLs from both the demand-side and the supply-side perspective with the aim of providing an updated evidence-based road map for the development of future studies that can contribute to extend scientific evidence and guide future food policies.
{"title":"Dynamics of demand-side and supply-side responses to front-of-pack nutrition labels: a narrative review","authors":"E. De Marchi, A. Cavaliere, F. Pucillo, A. Banterle, Rodolfo M. Nayga","doi":"10.1093/erae/jbac031","DOIUrl":"https://doi.org/10.1093/erae/jbac031","url":null,"abstract":"\u0000 The European Union (EU) food market is characterised by the presence of several front-of-pack nutrition labels (FOPLs), some of which have only been introduced lately. While the EU Commission proposed to harmonise and possibly mandate the use of FOPLs, agreement on which label to adopt has not been reached. This review explores the main issues related to the adoption of FOPLs from both the demand-side and the supply-side perspective with the aim of providing an updated evidence-based road map for the development of future studies that can contribute to extend scientific evidence and guide future food policies.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":null,"pages":null},"PeriodicalIF":3.4,"publicationDate":"2023-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45062769","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}
Appropriately considering adjustment costs, this paper develops a robust nonparametric framework to analyse profits, prices and productivity in a dynamic context. Dynamic profit change is decomposed into a dynamic Bennet price indicator and a dynamic Bennet quantity indicator. The latter is decomposed into explanatory factors. It is shown to be a superlative indicator for the dynamic Luenberger indicator. The application focuses on 1,638 observations of French meat-processing firms for the years 2012–2019. Using m-out-of-n bootstrapped data envelopment analysis, we obtain robust estimates and confidence intervals. The components of dynamic productivity growth fluctuate substantially. However, these fluctuations are often statistically insignificant.
{"title":"Robust nonparametric analysis of dynamic profits, prices and productivity: An application to French meat-processing firms","authors":"Frederic Ang, Pieter Jan Kerstens","doi":"10.1093/erae/jbac029","DOIUrl":"https://doi.org/10.1093/erae/jbac029","url":null,"abstract":"Appropriately considering adjustment costs, this paper develops a robust nonparametric framework to analyse profits, prices and productivity in a dynamic context. Dynamic profit change is decomposed into a dynamic Bennet price indicator and a dynamic Bennet quantity indicator. The latter is decomposed into explanatory factors. It is shown to be a superlative indicator for the dynamic Luenberger indicator. The application focuses on 1,638 observations of French meat-processing firms for the years 2012–2019. Using m-out-of-n bootstrapped data envelopment analysis, we obtain robust estimates and confidence intervals. The components of dynamic productivity growth fluctuate substantially. However, these fluctuations are often statistically insignificant.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":null,"pages":null},"PeriodicalIF":3.4,"publicationDate":"2022-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138517454","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}
Yuanyuan Yi, Fredrik Carlsson, Gunnar Köhlin, Jintao Xu
This paper evaluates whether the devolution reform of forestland to household management improves allocative efficiency and household welfare through participation in forestland rental markets. Using a household panel dataset from three Chinese provinces, we find positive effects of the emerging forestland rental markets: with the reform, forestland was transferred to forestland-constrained and labour-rich households and households with higher levels of productivity in forestry. Participation in forestland rental markets increases household per-capita income and decreases the likelihood of income falling below the poverty line. We do not find any support for forestland captured by land-richer, wealthier, larger or powerful households.
{"title":"Allocative efficiency or misallocation of resources? The emergence of forestland rental markets and the forest devolution reform in China","authors":"Yuanyuan Yi, Fredrik Carlsson, Gunnar Köhlin, Jintao Xu","doi":"10.1093/erae/jbac028","DOIUrl":"https://doi.org/10.1093/erae/jbac028","url":null,"abstract":"This paper evaluates whether the devolution reform of forestland to household management improves allocative efficiency and household welfare through participation in forestland rental markets. Using a household panel dataset from three Chinese provinces, we find positive effects of the emerging forestland rental markets: with the reform, forestland was transferred to forestland-constrained and labour-rich households and households with higher levels of productivity in forestry. Participation in forestland rental markets increases household per-capita income and decreases the likelihood of income falling below the poverty line. We do not find any support for forestland captured by land-richer, wealthier, larger or powerful households.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":null,"pages":null},"PeriodicalIF":3.4,"publicationDate":"2022-11-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138504592","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}
A. Varacca, L. Arata, Elena Castellari, P. Sckokai
The Common Agricultural Policy reform 2013–2020 has conditioned 30 per cent of the direct payments to greening requirements. Our study investigates whether one of these requirements, the ecological focus area (EFA) obligation, has led to environmental improvements while preserving farms’ economic sustainability. We apply a regression discontinuity design approach on a sample of Italian arable crop farms. Our results suggest that the EFA requirement has no significant effects on farms’ application of fertilisers, pesticide expenditure, crop diversification or economic performance. However, farmers reacted to the EFA requirement by changing their crop mix, mostly by increasing their share of leguminous crops.
{"title":"Does CAP greening affect farms’ economic and environmental performances? A regression discontinuity design analysis","authors":"A. Varacca, L. Arata, Elena Castellari, P. Sckokai","doi":"10.1093/erae/jbac026","DOIUrl":"https://doi.org/10.1093/erae/jbac026","url":null,"abstract":"\u0000 The Common Agricultural Policy reform 2013–2020 has conditioned 30 per cent of the direct payments to greening requirements. Our study investigates whether one of these requirements, the ecological focus area (EFA) obligation, has led to environmental improvements while preserving farms’ economic sustainability. We apply a regression discontinuity design approach on a sample of Italian arable crop farms. Our results suggest that the EFA requirement has no significant effects on farms’ application of fertilisers, pesticide expenditure, crop diversification or economic performance. However, farmers reacted to the EFA requirement by changing their crop mix, mostly by increasing their share of leguminous crops.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":null,"pages":null},"PeriodicalIF":3.4,"publicationDate":"2022-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46729498","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}
Lauren Chenarides, Carola Grebitus, Jayson L Lusk, Iryna Printezis
Although choice experiments (CEs) have emerged as the most popular stated preference method in applied economics, the method is not free from biases related to order and presentation effects. This paper introduces a new preference elicitation method referred to as a calibrated CE (CCE), and we explore the ability of the new method to alleviate starting-point bias. The new approach utilises the distribution of preferences from a prior CE to provide real-time feedback to respondents about our best guess of their willingness-to-pay (WTP) for food attributes and allows respondents to adjust and calibrate their values. The analysis utilises data collected in 2017 in two US cities, Phoenix and Detroit, on consumer preferences for local and organic tomatoes sold through supermarkets, urban farms and farmers’ markets to establish a prior preference distribution. We re-conducted the survey in May 2020 and implemented the CCE. Conventional analysis of the 2020 CE data shows that WTP is strongly influenced by a starting point: the higher the initial price respondents encountered, the higher the absolute value of their WTP. Despite this bias, we show that when respondents have the opportunity to update their WTP when presented with the best guess, the resulting calibrated WTP is much less influenced by the random starting point.
{"title":"A calibrated choice experiment method","authors":"Lauren Chenarides, Carola Grebitus, Jayson L Lusk, Iryna Printezis","doi":"10.1093/erae/jbac011","DOIUrl":"https://doi.org/10.1093/erae/jbac011","url":null,"abstract":"Although choice experiments (CEs) have emerged as the most popular stated preference method in applied economics, the method is not free from biases related to order and presentation effects. This paper introduces a new preference elicitation method referred to as a calibrated CE (CCE), and we explore the ability of the new method to alleviate starting-point bias. The new approach utilises the distribution of preferences from a prior CE to provide real-time feedback to respondents about our best guess of their willingness-to-pay (WTP) for food attributes and allows respondents to adjust and calibrate their values. The analysis utilises data collected in 2017 in two US cities, Phoenix and Detroit, on consumer preferences for local and organic tomatoes sold through supermarkets, urban farms and farmers’ markets to establish a prior preference distribution. We re-conducted the survey in May 2020 and implemented the CCE. Conventional analysis of the 2020 CE data shows that WTP is strongly influenced by a starting point: the higher the initial price respondents encountered, the higher the absolute value of their WTP. Despite this bias, we show that when respondents have the opportunity to update their WTP when presented with the best guess, the resulting calibrated WTP is much less influenced by the random starting point.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":null,"pages":null},"PeriodicalIF":3.4,"publicationDate":"2022-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138517459","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}
J. Zeilinger, A. Niedermayr, Abdul Quddoos, J. Kantelhardt
Adaptation is a key strategy to mitigate the detrimental effects of climate change on agriculture. Econometric studies are extensively used to account for adaptation within impact assessment, but are generally based on the assumption of fully adapted farms. Building on increasing evidence of potential limitations of adaptation, we develop a conceptual framework which allows us to relax this assumption and empirically analyse climate change adaptation at the farm level. Our findings indicate under-adaptation of Austrian farms, contradicting the assumption of full adaptation. In the context of ongoing climate change, this calls for further development and implementation of effective farm-level adaptation measures.
{"title":"Identifying under-adaptation of farms to climate change","authors":"J. Zeilinger, A. Niedermayr, Abdul Quddoos, J. Kantelhardt","doi":"10.1093/erae/jbac025","DOIUrl":"https://doi.org/10.1093/erae/jbac025","url":null,"abstract":"\u0000 Adaptation is a key strategy to mitigate the detrimental effects of climate change on agriculture. Econometric studies are extensively used to account for adaptation within impact assessment, but are generally based on the assumption of fully adapted farms. Building on increasing evidence of potential limitations of adaptation, we develop a conceptual framework which allows us to relax this assumption and empirically analyse climate change adaptation at the farm level. Our findings indicate under-adaptation of Austrian farms, contradicting the assumption of full adaptation. In the context of ongoing climate change, this calls for further development and implementation of effective farm-level adaptation measures.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":null,"pages":null},"PeriodicalIF":3.4,"publicationDate":"2022-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42083505","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}
Iordanis Parikoglou, G. Emvalomatis, F. Thorne, M. Wallace
This paper investigates the impact of the engagement of individual farmers with Farm Advisory Services (FAS) on total factor productivity (TFP) growth, as a relevant indicator of competitiveness under the vision of sustainable intensification. Using farm-level data from the Irish dairy sector between 2008 and 2017, we estimate a random-coefficients stochastic frontier model and construct a TFP growth index, extending Orea (2002) such that the contribution of FAS becomes an additional component of the index. The results indicate that the main driver of TFP growth was technical change and efficiency gains; a negative scale effect slowed down TFP growth, but this impact was counteracted by the positive contribution of FAS to productivity growth.
{"title":"Farm Advisory Services and total factor productivity growth in the Irish dairy sector","authors":"Iordanis Parikoglou, G. Emvalomatis, F. Thorne, M. Wallace","doi":"10.1093/erae/jbac024","DOIUrl":"https://doi.org/10.1093/erae/jbac024","url":null,"abstract":"\u0000 This paper investigates the impact of the engagement of individual farmers with Farm Advisory Services (FAS) on total factor productivity (TFP) growth, as a relevant indicator of competitiveness under the vision of sustainable intensification. Using farm-level data from the Irish dairy sector between 2008 and 2017, we estimate a random-coefficients stochastic frontier model and construct a TFP growth index, extending Orea (2002) such that the contribution of FAS becomes an additional component of the index. The results indicate that the main driver of TFP growth was technical change and efficiency gains; a negative scale effect slowed down TFP growth, but this impact was counteracted by the positive contribution of FAS to productivity growth.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":null,"pages":null},"PeriodicalIF":3.4,"publicationDate":"2022-10-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46696703","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}
Even though recognised to be of increasing importance, robust estimations of European farmers’ risk preferences are still scarce. Using an incentivised lab-in-the-field experiment with farmers, free of learning bias, this paper analyses the structurally derived parameters of risk preferences based on the cumulative prospect theory. The sector studied is the apple and pear sector in Flanders, Belgium. Farmers are found to be highly risk-averse and to distort probabilities by overweighting a small probability of desirable outcomes. However, there is no evidence of loss aversion on average, unlike previous studies. Moreover, investigating the heterogeneous effects shows that some farmers significantly differ from the representative agent by still being extremely loss-averse. The results of this piece of research prove the need to consider heterogeneity within and across sectors when assessing farmers’ risk preferences.
{"title":"Who are the loss-averse farmers? Experimental evidence from structurally estimated risk preferences","authors":"I. Bonjean","doi":"10.1093/erae/jbac020","DOIUrl":"https://doi.org/10.1093/erae/jbac020","url":null,"abstract":"\u0000 Even though recognised to be of increasing importance, robust estimations of European farmers’ risk preferences are still scarce. Using an incentivised lab-in-the-field experiment with farmers, free of learning bias, this paper analyses the structurally derived parameters of risk preferences based on the cumulative prospect theory. The sector studied is the apple and pear sector in Flanders, Belgium. Farmers are found to be highly risk-averse and to distort probabilities by overweighting a small probability of desirable outcomes. However, there is no evidence of loss aversion on average, unlike previous studies. Moreover, investigating the heterogeneous effects shows that some farmers significantly differ from the representative agent by still being extremely loss-averse. The results of this piece of research prove the need to consider heterogeneity within and across sectors when assessing farmers’ risk preferences.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":null,"pages":null},"PeriodicalIF":3.4,"publicationDate":"2022-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44085094","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}
In this article, we quantify the impact of the crop diversification measure implemented in France as part of the 2013 common agricultural policy greening reform. We exploit a discontinuity in the constraints imposed on farms larger and smaller than 30 ha, respectively, and apply regression differences-in-differences with a regression discontinuity set-up on land use data collected from a representative sample of French farmers. We find that farms greater than 30 ha increased compliance with the measure and the number of crops grown on their lands and that farms larger and smaller than 30 ha responded differently to the reform.
{"title":"Ex post analysis of the crop diversification measure of CAP greening in France","authors":"A. Sauquet","doi":"10.1093/erae/jbac022","DOIUrl":"https://doi.org/10.1093/erae/jbac022","url":null,"abstract":"\u0000 In this article, we quantify the impact of the crop diversification measure implemented in France as part of the 2013 common agricultural policy greening reform. We exploit a discontinuity in the constraints imposed on farms larger and smaller than 30 ha, respectively, and apply regression differences-in-differences with a regression discontinuity set-up on land use data collected from a representative sample of French farmers. We find that farms greater than 30 ha increased compliance with the measure and the number of crops grown on their lands and that farms larger and smaller than 30 ha responded differently to the reform.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":null,"pages":null},"PeriodicalIF":3.4,"publicationDate":"2022-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45543393","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}
Bradley Rickard, Shuay-Tsyr Ho, F. Livat, A. Okrent
We developed a survey to collect information on consumers’ intentions to discard 15 food products when exposed to different date labels. Results show that the use of certain date labels has the capacity to reduce food waste, but the reductions would happen differentially across food groups. When we examine the nutritional implications, we find that a shift from the ‘Best by’ date label to the ‘Best if Used by’ date label would increase total household purchases of energy and lead to a disproportional increase in purchases of fats, cholesterol and protein.
{"title":"Date labels, food waste and supply chain implications","authors":"Bradley Rickard, Shuay-Tsyr Ho, F. Livat, A. Okrent","doi":"10.1093/erae/jbac021","DOIUrl":"https://doi.org/10.1093/erae/jbac021","url":null,"abstract":"\u0000 We developed a survey to collect information on consumers’ intentions to discard 15 food products when exposed to different date labels. Results show that the use of certain date labels has the capacity to reduce food waste, but the reductions would happen differentially across food groups. When we examine the nutritional implications, we find that a shift from the ‘Best by’ date label to the ‘Best if Used by’ date label would increase total household purchases of energy and lead to a disproportional increase in purchases of fats, cholesterol and protein.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":null,"pages":null},"PeriodicalIF":3.4,"publicationDate":"2022-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43078927","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}