Australian Journal of Agricultural and Resource Economics最新文献

China attaches importance to the development of standards in agri-food sectors, especially the harmonisation of national standards with international standards. Our study matches agri-food product standards and firm-product customs data for the period from 2000 to 2015. We perform an empirical analysis using the ‘distance to the frontier’ model to identify the effects of the internationalisation of China's agri-food product standards on the quality upgrading of firms' exported products. The results suggest that when Chinese standards are harmonised with international measures, there is a significant positive impact on quality upgrading. In addition, this international standards–quality relationship is nonmonotonic; that is, firm-level products that are far from the quality frontier are more likely to upgrade quality in response to an increase in standards. Conversely, national standards have not demonstrated good trade performance and have no significant quality-promoting effect on firms' export products. These results are robust to various checks. Moreover, the heterogeneous effects further suggest that the positive correlation between international standards and quality upgrading is even stronger for modified versions of international standards, in smaller-sized firms and foreign-invested firms. Finally, the quality upgrading effects of international standards induce an increase in both the extensive and the intensive margins of firms' exports.

Adaptability of a seed variety to a wide range of environmental conditions is important in farmers' variety adoption decisions, especially with the increased environmental volatility induced by climate change. Despite the apparent need for information, variety trial reports generally report average relative yields, but they do not provide farmers with measures of variety adaptability. Our theoretical model postulates that the adaptability of seed varieties matters in farmers' variety adoption choices. To test this conjecture, and to measure the magnitude of the effect, we develop a new measure of variety adaptability and estimate an empirical model of adoption in Western Canada. We find that a 1% increase in the adaptability of a variety will increase its adoption by 0.45%. This effect is statistically and economically significant. Our results imply that adding a measure of variety adaptability to crop variety guides could enhance the adoption of superior crop varieties, benefiting both farmers and breeders.

Australia, and particularly the Murray–Darling Basin (MDB), has the most mature and adopted water markets globally. Water trading is an important policy tool to deal with water scarcity issues, demonstrating allocative, dynamic and productive efficiency benefits. At the same time, water markets have been controversial in Australia. Markets have been blamed for a range of issues, including claims of unsustainability, inequity, farm bankruptcy, farmer distress and farm exit. This study reviews the MDB water trade literature and finds little evidence to support such myths. Arguably, the biggest misconception is that critics do not separate water markets from the meta-governance institutional structures that define them. Perceived water market failures are often due to governance issues – not water trade per se. This is not to say that market failure does not exist, it does, and indeed, there are also serious distributional issues that need addressing (e.g., water property entitlements for indigenous stakeholders). As such, water market design and governance need to adapt and evolve as problems arise and the market matures. However, in an era of increasing water scarcity, enabling water trade remains one of the most important instruments available to assist in water sharing, reallocation and farm adaptation to climate change.

The use of improved crop varieties can increase agricultural productivity and enhance the welfare of farmers. This study examined whether the adoption of improved maize varieties (IMV) is associated with the increased welfare of farmers in rural Ethiopia. A panel data set with 1886 observations collected in three waves from 2009/10 to 2014/15 were used for the analysis. The adoption decision was modelled using a double-hurdle model, and the welfare effect of IMV adoption was estimated using a fixed-effects instrumental variable approach. Our findings reveal that IMV affects the welfare of farmers. Specifically, we found that IMV adoption increases households' income, asset ownership and maize consumption while also reducing income poverty. The poverty estimates indicate that a 10% increase in the area allocated to IMV was associated with a 4.79% reduction in the probability of being below the $1.90 poverty line. However, the poverty-reducing effect of IMV adoption was heterogeneous across households, with the most pronounced effect experienced by households with extensive landholdings. Our findings suggest that facilitating access to IMV and land under cultivation can effectively improve farmers' welfare and reduce poverty in rural Ethiopia.

Expanding access to solar photovoltaics (PV) may help to reduce the incidence of energy poverty. Yet, little is known about the strength and magnitude of this relationship. This paper uses cross-sectional survey data from the Australian Bureau of Statistics to conduct a retrospective analysis of the effects of having rooftop solar PV for Australian households. As the main identification challenges are the potential for omitted variables and reverse causality, we present results for regressions controlling for potential confounders and also use an instrumental variable approach. The study finds that having solar PV is associated with a large decrease in the likelihood of experiencing energy poverty based on objective indicators that compare household incomes and energy bills. Having solar PV is also associated with a reduction in self-reported difficulty in paying bills on time, although this effect is less robust across estimations. The findings could inform future policies for promoting residential solar PV through an improved understanding of likely impacts.

Experiments are often used to study individual decision-making under controlled circumstances. Due to their low opportunity costs and high availability, university students are frequently recruited as the study population. Even though they are rather untypical with regard to many characteristics (e.g. age and income) compared to the representatives of the social group of interest, the experimental behaviours of students are sometimes prematurely generalised to other social groups or even to humans in general. Given the widespread challenges in the agricultural and environmental sector, it is particularly interesting to address farmers' decision-making. We analyse whether agricultural students can be used to approximate the behaviour of farmers in simple economic experiments, which are often used to measure risk aversion, impatience, positive reciprocity, negative reciprocity, altruism and trust. Moreover, we consider the role of systematically varied monetary incentives. We find no differences between agricultural students and farmers in their risk aversion; farmers' positive reciprocity and trust are positively associated with the incentive level, which cannot be observed with agricultural students. Findings regarding altruism in the two populations are mixed and challenge the finding of earlier studies of students being less pro-social. Agricultural students are a lower boundary of impatience and negative reciprocity. These heterogeneous results suggest that scientific inference from agricultural students to farmers should be made cautiously. However, we do not deal with a representative sample of our target population (e.g. gender). Replication studies are required to evaluate the generalisability of our findings.

Finding ways to stimulate the diffusion of water-saving irrigation systems is essential to mitigate the negative impacts of climate change on water supply. We analyse the spatial diffusion of more efficient irrigation strategies in São Paulo, Brazil, comparing the two most common irrigation technologies: conventional sprinkler irrigation and the localised irrigation. We use longitudinal municipal-level information for 2006 and 2017 and test different spatial panel models' specifications, representing different hypotheses about technological transfer channels. Our results highlight how the diffusion of water-saving irrigation systems (localised irrigation) in one municipality is strongly influenced by the diffusion in neighbouring municipalities. Membership in cooperatives or farmers' associations plays a significant role in this technological transfer. On the other hand, the diffusion of less efficient systems (sprinkler irrigation) depends fundamentally on the local availability of water and unobservable factors in the neighbourhood. The discussion highlights how easing knowledge transmission may contribute to the diffusion of more sustainable agriculture practices.

An explicit policy objective of the tradable individual fishing quota programs introduced for various reef-fish species in the Gulf of Mexico in 2007 and 2010 was to restore cost-effectiveness by reducing the fishery's significant excess capacity. To gauge the success of this policy shift from a common-pool to a catch shares system, we construct a simple model of vessel participation that takes into account the regulatory systems as well as environmental and economic variables. Calibrating our model with historical data from 1990 to 2020, we show how changes in the total allowable catch, biomass, dockside prices, and the regulatory system can explain the observed contraction of the fleet size. We find that only about half of the initial contraction was due to the switch from a common-pool to a tradable quota system, the remainder being driven by the simultaneously occurring biomass recovery on the one hand and a participation-inflating contest for catch shares prior to the regime change on the other.