Benjamin Ouvrard, R. Préget, A. Reynaud, L. Tuffery
We use a discrete choice experiment with treatments to test if voluntary adoption of smart water meters by French farmers can be fostered by (i) a collective conditional subsidy offered to farmers who adopt a smart meter only if the rate of adoption in their geographic area is sufficiently high and (ii) informational nudges. Using a sample of 1,272 farmers, we find contrasted results regarding our nudges, but we show that a conditional subsidy is an effective tool to foster adoption of smart meters. Interestingly, the willingness to pay for the conditional subsidy is equal to the subsidy amount and independent of the collective adoption threshold.
{"title":"Nudging and subsidising farmers to foster smart water meter adoption","authors":"Benjamin Ouvrard, R. Préget, A. Reynaud, L. Tuffery","doi":"10.1093/erae/jbad013","DOIUrl":"https://doi.org/10.1093/erae/jbad013","url":null,"abstract":"\u0000 We use a discrete choice experiment with treatments to test if voluntary adoption of smart water meters by French farmers can be fostered by (i) a collective conditional subsidy offered to farmers who adopt a smart meter only if the rate of adoption in their geographic area is sufficiently high and (ii) informational nudges. Using a sample of 1,272 farmers, we find contrasted results regarding our nudges, but we show that a conditional subsidy is an effective tool to foster adoption of smart meters. Interestingly, the willingness to pay for the conditional subsidy is equal to the subsidy amount and independent of the collective adoption threshold.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":" ","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48029939","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 We study how erroneous nutrition assumptions affect manufacturers’ profits and consumer surplus and how the government could intervene to improve welfare. In our model, two manufacturers produce a conventional product and a fad version misperceived to bring health benefits. We compare the laissez-faire outcome to two outcomes: one without false beliefs and the other with information provision reducing the false belief’s prevalence. We find that false beliefs about the health benefits of fad products lower consumer surplus and total welfare under some conditions. Information provision generally increases total welfare, but, in some situations, this occurs at the expense of consumer surplus.
{"title":"Competing with fad products: erroneous health beliefs and market outcomes","authors":"Christoph Bauner, Nathalie Lavoie","doi":"10.1093/erae/jbad012","DOIUrl":"https://doi.org/10.1093/erae/jbad012","url":null,"abstract":"Abstract We study how erroneous nutrition assumptions affect manufacturers’ profits and consumer surplus and how the government could intervene to improve welfare. In our model, two manufacturers produce a conventional product and a fad version misperceived to bring health benefits. We compare the laissez-faire outcome to two outcomes: one without false beliefs and the other with information provision reducing the false belief’s prevalence. We find that false beliefs about the health benefits of fad products lower consumer surplus and total welfare under some conditions. Information provision generally increases total welfare, but, in some situations, this occurs at the expense of consumer surplus.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135525472","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 examine the effects of spouses’ climate risk perceptions (CRPs), defined by their beliefs about unfavourable climatic events and associated damages, on climate change adaptation (CCA) and the observed gender gap in adaptation. Our analysis uses the intra-household data collected by independent interviews with 1,274 female and male spouses in Kenya, Uganda and Senegal. By addressing the CRP endogeneity issue using the exogenous weather shocks during data collection months as instruments, we find that a higher CRP of both female and male spouses increases their probability of adopting CCA strategies. We also find that a higher CRP of female spouses reduces the adaptation gap by increasing their relative adoption of soil and water conservation practices. Our results highlight the importance of understanding gender-differentiated behavioural and economic factors to design effective climate policy interventions.
{"title":"Intra-household risk perceptions and climate change adaptation in sub-Saharan Africa","authors":"Tsegaye Ginbo, H. Hansson","doi":"10.1093/erae/jbad011","DOIUrl":"https://doi.org/10.1093/erae/jbad011","url":null,"abstract":"\u0000 We examine the effects of spouses’ climate risk perceptions (CRPs), defined by their beliefs about unfavourable climatic events and associated damages, on climate change adaptation (CCA) and the observed gender gap in adaptation. Our analysis uses the intra-household data collected by independent interviews with 1,274 female and male spouses in Kenya, Uganda and Senegal. By addressing the CRP endogeneity issue using the exogenous weather shocks during data collection months as instruments, we find that a higher CRP of both female and male spouses increases their probability of adopting CCA strategies. We also find that a higher CRP of female spouses reduces the adaptation gap by increasing their relative adoption of soil and water conservation practices. Our results highlight the importance of understanding gender-differentiated behavioural and economic factors to design effective climate policy interventions.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":" ","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44129530","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}
{"title":"Handbook of Behavioral Economics and Climate Change","authors":"Shanali Pethiyagoda","doi":"10.1093/erae/jbad010","DOIUrl":"https://doi.org/10.1093/erae/jbad010","url":null,"abstract":"","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":" ","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-04-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41512467","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 The Chinese government has recently introduced an updated beef quality-grade system. We implemented a shelf-simulation choice experiment and estimated random parameter logit models with error components to analyse Chinese consumer willingness to pay for domestic and imported beef flank labelled with the new quality grades and other relevant beef labels. Results indicated that Chinese consumers were willing to pay more for Premium quality domestic beef compared to ungraded beef, while Regular quality beef was discounted by consumers, particularly for imported beef. The results suggest that foreign beef producers could compete more closely with domestic beef if it was labelled as Premium quality.
{"title":"Consumer preferences for beef quality grades on imported and domestic beef","authors":"Shijun Gao, Carola Grebitus, Karen DeLong","doi":"10.1093/erae/jbad009","DOIUrl":"https://doi.org/10.1093/erae/jbad009","url":null,"abstract":"Abstract The Chinese government has recently introduced an updated beef quality-grade system. We implemented a shelf-simulation choice experiment and estimated random parameter logit models with error components to analyse Chinese consumer willingness to pay for domestic and imported beef flank labelled with the new quality grades and other relevant beef labels. Results indicated that Chinese consumers were willing to pay more for Premium quality domestic beef compared to ungraded beef, while Regular quality beef was discounted by consumers, particularly for imported beef. The results suggest that foreign beef producers could compete more closely with domestic beef if it was labelled as Premium quality.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-04-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135543689","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}
The economic effects of global warming have gained considerable attention in the recent economic literature. While the relationship between rainfall and agriculture is well known, precipitations alone do not capture the soil water availability, which depends on the evaporation of the water (potential evapotranspiration [PET]). This paper presents evidence of the relationship between aridification and agricultural productivity. We show that areas that have experienced increased precipitations have become arider due to increased PET. We then project future aridification patterns. We find that the global arid area will increase by 3.9 per cent by 2040. This implies a global loss of about 20 million tons of maize, 19 million tons of rice, 8 million tons of soybeans and 21 million tons of wheat until 2040 if no action to combat desertification is taken.
{"title":"Aridification, precipitations and crop productivity: evidence from the aridity index","authors":"Maurizio Malpede, M. Percoco","doi":"10.1093/erae/jbad006","DOIUrl":"https://doi.org/10.1093/erae/jbad006","url":null,"abstract":"\u0000 The economic effects of global warming have gained considerable attention in the recent economic literature. While the relationship between rainfall and agriculture is well known, precipitations alone do not capture the soil water availability, which depends on the evaporation of the water (potential evapotranspiration [PET]). This paper presents evidence of the relationship between aridification and agricultural productivity. We show that areas that have experienced increased precipitations have become arider due to increased PET. We then project future aridification patterns. We find that the global arid area will increase by 3.9 per cent by 2040. This implies a global loss of about 20 million tons of maize, 19 million tons of rice, 8 million tons of soybeans and 21 million tons of wheat until 2040 if no action to combat desertification is taken.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":" ","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-04-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41990445","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}
Martin Paul Jr. Tabe-Ojong, Emmanuel Nshakira-Rukundo, Bisrat Haile Gebrekidan
Abstract The coronavirus disease (COVID-19) risks rolling back many of the efforts and global successes recorded in reducing poverty and food insecurity. We undertake a systematic search and review of the growing microeconomic literature on the association between COVID-19 and food insecurity in Africa, discussing its implications for food policy and research. Furthermore, we review the various coping strategies households employ to build resilience to COVID-19. The evidence indicates that COVID-19 is associated with an increase in food insecurity both ex-ante and ex-durante. Given the covariate nature of COVID-19 and associated control mechanisms, current evidence is short of providing clear causal learning. We provide some potential interesting areas where future efforts can be geared to improve learning on the relationship between COVID-19, food insecurity, and building resilience to shocks.
{"title":"COVID-19 and food insecurity in Africa: A review of the emerging empirical evidence","authors":"Martin Paul Jr. Tabe-Ojong, Emmanuel Nshakira-Rukundo, Bisrat Haile Gebrekidan","doi":"10.1093/erae/jbad008","DOIUrl":"https://doi.org/10.1093/erae/jbad008","url":null,"abstract":"Abstract The coronavirus disease (COVID-19) risks rolling back many of the efforts and global successes recorded in reducing poverty and food insecurity. We undertake a systematic search and review of the growing microeconomic literature on the association between COVID-19 and food insecurity in Africa, discussing its implications for food policy and research. Furthermore, we review the various coping strategies households employ to build resilience to COVID-19. The evidence indicates that COVID-19 is associated with an increase in food insecurity both ex-ante and ex-durante. Given the covariate nature of COVID-19 and associated control mechanisms, current evidence is short of providing clear causal learning. We provide some potential interesting areas where future efforts can be geared to improve learning on the relationship between COVID-19, food insecurity, and building resilience to shocks.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135628714","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 presents an innovative empirical application to the assessment of agri-environment measures on environmental and economic efficiency. Using a multi-equation representation with desirable technology and its accompanying undesirable by-production technology, we investigate the effects of agri-environment measures on farm-level environmental and economic efficiency. A combination of propensity score matching and a difference-in-difference approach is used to estimate the policy effect. The application focuses on a balanced sample of Bavarian dairy farms surveyed between 2013 and 2018. Results suggest that agri-environment schemes do not alter farms’ economic efficiency, whereas environmental efficiency does not seem to be stimulated by schemes participation.
{"title":"Do agri-environment measures help improve environmental and economic efficiency? Evidence from Bavarian dairy farmers","authors":"Amer Ait Sidhoum, P. Mennig, J. Sauer","doi":"10.1093/erae/jbad007","DOIUrl":"https://doi.org/10.1093/erae/jbad007","url":null,"abstract":"This study presents an innovative empirical application to the assessment of agri-environment measures on environmental and economic efficiency. Using a multi-equation representation with desirable technology and its accompanying undesirable by-production technology, we investigate the effects of agri-environment measures on farm-level environmental and economic efficiency. A combination of propensity score matching and a difference-in-difference approach is used to estimate the policy effect. The application focuses on a balanced sample of Bavarian dairy farms surveyed between 2013 and 2018. Results suggest that agri-environment schemes do not alter farms’ economic efficiency, whereas environmental efficiency does not seem to be stimulated by schemes participation.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":" ","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47862006","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}
Rayner Tabetando, Djomo Choumbou Raoul Fani, C. Ragasa, Aleksandr Michuda
This study explores the responses of rural land markets to rainfall shocks in Uganda and Kenya. This study matches the panel data on farm households with rainfall shocks constructed using high-resolution precipitation and temperature data. In both countries, access to credit plays a key role in defining households’ land market responses to rainfall shocks. Households with access to credit respond to rainfall shocks by acquiring more farmland through increased participation in land rental and sales markets. Pathway analyses suggest that exposure to rainfall shock has an impact on land rental prices. There is some evidence that similar to grain reserves and livestock, land markets can provide an avenue for households to respond to rainfall shocks.
{"title":"Land market responses to weather shocks: evidence from rural Uganda and Kenya","authors":"Rayner Tabetando, Djomo Choumbou Raoul Fani, C. Ragasa, Aleksandr Michuda","doi":"10.1093/erae/jbad005","DOIUrl":"https://doi.org/10.1093/erae/jbad005","url":null,"abstract":"\u0000 This study explores the responses of rural land markets to rainfall shocks in Uganda and Kenya. This study matches the panel data on farm households with rainfall shocks constructed using high-resolution precipitation and temperature data. In both countries, access to credit plays a key role in defining households’ land market responses to rainfall shocks. Households with access to credit respond to rainfall shocks by acquiring more farmland through increased participation in land rental and sales markets. Pathway analyses suggest that exposure to rainfall shock has an impact on land rental prices. There is some evidence that similar to grain reserves and livestock, land markets can provide an avenue for households to respond to rainfall shocks.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":" ","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-03-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41604769","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 analyse the signalling effect of a strategy known as eponymy whereby owners integrate their name into the company name. Using microdata from German food processors, we find that eponymous companies generate 2.8 per cent-points higher return on assets, which implies additional yearly profits of €253,000 for a median-sized company. The eponymy effect increases with ownership concentration, indicating that the more control an owner holds over the company, the stronger the signalling. Long names ranking low in the alphabetical order mitigate the effect. This study applies a novel approach to investigate the causal effect of firm naming and thus has implications for food processors.
{"title":"Firm names and profitability in German food processing","authors":"S. Hirsch, Murad Khalilov, T. Dalhaus, A. Mishra","doi":"10.1093/erae/jbad004","DOIUrl":"https://doi.org/10.1093/erae/jbad004","url":null,"abstract":"\u0000 We analyse the signalling effect of a strategy known as eponymy whereby owners integrate their name into the company name. Using microdata from German food processors, we find that eponymous companies generate 2.8 per cent-points higher return on assets, which implies additional yearly profits of €253,000 for a median-sized company. The eponymy effect increases with ownership concentration, indicating that the more control an owner holds over the company, the stronger the signalling. Long names ranking low in the alphabetical order mitigate the effect. This study applies a novel approach to investigate the causal effect of firm naming and thus has implications for food processors.","PeriodicalId":50476,"journal":{"name":"European Review of Agricultural Economics","volume":" ","pages":""},"PeriodicalIF":3.4,"publicationDate":"2023-02-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42015455","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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