Showing papers in "Agricultural and Food Economics in 2019"
TL;DR: In this paper, the authors analyzed households' food insecurity and its determinants along with the coping mechanisms opted against food insecurity in Assosa zone, western Ethiopia using a primary data collected from 276 randomly selected households for 7 consecutive days from each sample using weighed records method.
Abstract: This study analyzed households’ food insecurity and its determinants along with the coping mechanisms opted against food insecurity and shortage in Assosa zone, western Ethiopia. The study used a primary data collected from 276 randomly selected households for 7 consecutive days from each sample using weighed records method. In addition, focus group discussions and key informants interview were also used. This study employed descriptive statistics, food insecurity index and Tobit model to analyze the data. The finding of the study revealed that, in the study area, the incidence of food insecurity was 53.62%, with the depth and severity of food insecurity being 16.84% and 7.32%, respectively. The study finding also pointed out that the mean kilocalorie intake of food insecure households was 1440.37kcal/AE/day, with the minimum and maximum being 597.65 kcal and 2048.13 kcal, respectively. Furthermore, the estimated Tobit model result revealed that age of the household head, family size and off-farm and non-farm income positively affected extent of households food insecurity; whereas access to irrigation, farm income, distance to market and access to credit negatively affected the extent of households’ food insecurity. Moreover, the study also identified that reducing meal size, reducing frequency of meal served, working as a daily laborer and selling livestock’s were the top four main coping mechanisms opted against food insecurity and/or shortage. Therefore, to reverse the incidence, future interventions should focus on the aforementioned factors to build the capacity of households through enhancing their access to human, financial and physical capital.
41 citations
TL;DR: In this paper, the authors use empirical data from Uganda to estimate the actual and potential adoption rates and the adoption determinants of DTMVs under information and seed access constraints, showing that adoption rates for DTMV could have been up to 22% in 2015 instead of the observed sample adoption rate of 14% if the whole population had been exposed to them.
Abstract: Frequent droughts in sub-Saharan Africa imply water stress for rainfed agriculture and, ultimately, food insecurity, underlining the region’s vulnerability to climate change. Yet, in the maize-growing areas, farmers have been given new drought-coping options following the release and availability of drought-tolerant maize varieties (DTMVs). These varieties are being disseminated through the National Agricultural Research and Extension Systems in collaboration with seed companies; however, their adoption still appears somewhat modest, and empirical studies on their adoption potential and associated drivers are scarce. We use empirical data from Uganda to estimate the actual and potential adoption rates and the adoption determinants of DTMVs under information and seed access constraints. Adoption rates for DTMVs could have been up to 22% in 2015 instead of the observed sample adoption rate of 14% if the whole population had been exposed to them. The adoption rate could increase to 30% if seed were availed to the farming population and to 47% if seed were sold at a more affordable price to farmers. The observed adoption rate of 14% implies gaps in the potential adoption rates of 8%, 16%, and 33% because of a lack of awareness, a lack of seed access, and high seed prices, respectively. The findings underscore the role of both market and non-market-based approaches and the potential to further scale the cultivation of DTMVs in Uganda.
35 citations
TL;DR: In this article, the main role of households' capitals, institutional, and access-related factors in conditioning the decision of smallholder farmers of African indigenous vegetables (AIVs) to access pillars of competitiveness in high-value market chains (HVMCs) was determined.
Abstract: Smallholder farmers are excluded from efficient and effective participation in high-value agro-food market chains due to major competitiveness constraints and several market failures along these chains. The purpose of this study is to contribute to the competitiveness of smallholder farmers in a more coordinated and sustainable way that promote their effective and efficient participation in high-value agro-food market chains. In particular, the study aims at determining the main role of households’ capitals, institutional, and access-related factors in conditioning the decision of smallholder farmers of African indigenous vegetables (AIVs) to access pillars of competitiveness in high-value market chains (HVMCs). For this purpose, a unique household-level data from a total of 1232 rural and peri-urban AIV-producing households were surveyed, and the data obtained were analysed by using a multivariate probit model. The results suggest that about two thirds of smallholder AIV farmers had access to at least one pillar of competitiveness in HVMCs. The model results show the presence of inter-dependency of household level decisions to access multiple pillars of competitiveness in HVMCs. Furthermore, the results also reveal that coping with shocks, coupled with access to information on market prices and warnings of unexpected events, contract farming, certification and modern irrigation technologies are the main conditioning factors to the access of the pillars of competitiveness by smallholder farmers. The promotion and implementation of a well-founded mobile phone-based information access platforms, as well as effective and efficient livelihood strategies that support smallholder farmers to access pillars of competitiveness, is of critical importance towards overcoming the major competitiveness constraints along high-value agro-food chains.
35 citations
TL;DR: In this article, a cross-sectional study was carried out in Gulu and Amuru districts of Northern Uganda to assess the sources of farm-level allocative inefficiency in rice production using the stochastic frontier approach.
Abstract: Smallholder farming, predominant in Uganda, is characterized by low productivity for most crops including rice which is gaining prominence as both a food and income crop. The low productivity is mostly attributed to allocative inefficiency. Allocative efficiency (AE) considers farmers’ ability to allocate resources efficiently, by producing the maximum possible output at minimum cost. Increasing AE requires an understanding of the specific sources of inefficiency that vary across farm enterprises, geographically and temporally. A cross-sectional study was carried out in Gulu and Amuru districts of Northern Uganda to assess the sources of farm-level allocative inefficiency in rice production using the stochastic frontier approach. Data were collected from a random sample of 200 smallholder rice farmers. Results show that the mean AE was 75%. Household size, distance to trading centre, farm size, number of crop enterprises, use of hired labour, use of ox-plough, and access to credit had significant effects on AE. We recommend adoption of technologies such as the use of ox-ploughs and reallocation of farm resources especially labour.
30 citations
TL;DR: In this paper, the authors used a choice experiment to investigate Italian millennials' preferences toward two ethical attributes of wine: carbon footprint claim and winescape aesthetic, and found that the majority of respondents seem to be interested in the carbon footprint claims, even if a group of them prefer to pay a premium price to consume high-quality wines.
Abstract: The interest in wine produced in an environmentally friendly manner is increasing in the global market among both consumers and producers. Moreover, numerous labelling and certification systems have been introduced to guarantee environmentally friendly production. Consumers can consider some environmental attributes in relation to their purchasing decisions as components of their ethical demands; such consumer behaviours can drive wine production to more sustainable models. This change depends on many factors, such as consumers’ willingness to pay for sustainable and ethical attributes and the effective communication of such attributes. Among consumers, young people belonging to the so-called millennial generation are the new wine consumers, and they represent an increasingly important segment of the global wine market. This study uses a choice experiment to investigate Italian millennials’ preferences toward two ethical attributes of wine: ‘carbon footprint claim’ and ‘winescape aesthetic’. The findings show considerable heterogeneity among respondents, the majority of whom seem to be interested in the carbon footprint claim, even if a group of them prefer to pay a premium price to consume high-quality wines. Our results indicate that winescape aesthetic does not appear to be an important attribute in guiding respondents’ preferences.
28 citations
TL;DR: In this article, the authors study the process of designing a multi-stakeholder partnership in the adoption of sustainable innovations in value chains, focusing on the design of feasible types of horizontal agreements and contractual formulas.
Abstract: The objective of the paper is to understand the process of designing a multi-stakeholder partnership in the adoption of sustainable innovations in value chains. More specifically, the focus is on the design of feasible types of horizontal agreements and contractual formulas to be implemented in the agri-food supply chain in order to introduce sustainable agricultural practices. To this purpose, the Barilla Sustainable Farming initiative, which is currently in the first phase of designing an MSP, is used as a case study.
20 citations
TL;DR: In this paper, an ex ante assessment of the effects of the Income Stabilization Tool (IST) is provided, which is a risk management tool proposed in the Common Agricultural Policy of the European Union.
Abstract: This paper provides an ex ante assessment of the effects of the Income Stabilization Tool (IST), a new risk management tool proposed in the Common Agricultural Policy of the European Union. We investigate the effects of IST on income variability and levels as well as on income inequality in the farming population. We take Italian agriculture as an example as the introduction of IST is currently under discussion there. A rich panel of 2777 farms was studied over a period of 7 years. We use stochastic simulation to derive different income inequality estimates and apply Gini decomposition approaches to assess the distributional implications of IST. We compare the current income situation with that resulting from a hypothetical implementation of IST under different policy scenarios, also accounting for reduced levels of CAP direct payments. We find that IST not only stabilizes farm income but also enhances its level and reduces income inequality in Italian agriculture. IST is more effective in reducing income inequality when farmers pay contributions to mutual funds that are proportional to their income compared to the case of flat rate contributions. Finally, results do not support the hypothesis that the impact of IST will differ if the level of direct payments were to be reduced. Thus, results seem robust enough to accommodate future policy conditions.
19 citations
TL;DR: In this article, the authors evaluate the sustainability of alternative food networks in Italy through the construction of a composite indicator, the Global Sustainability Index, which is able to provide decision-makers with indications on synergies and tradeoffs between the different dimensions of sustainability.
Abstract: The aim of the paper is to evaluate the sustainability of Alternative Food Networks in Italy through the construction of a composite indicator, the Global Sustainability Index. The index is able to provide decision-makers with indications on synergies and tradeoffs between the different dimensions of sustainability. The methodological approach is of the quantitative type, and the information used in the study comes from a direct survey that involved 226 producers. The results show that the environmental indicators that take the greatest value are those concerning problems of great impact on the actual debate such as the loss of genetic diversity and the use of packaging for agro-food products. Regarding economic sustainability, the indicator with the highest value is related to the ability of the Alternative Food Networks to diversify sales channels. This evidence confirms the producers’ increasing difficulty to adopt mono-directional strategies, favoring a differentiation of markets and, consequently, a reduction of economic risks. In terms of social sustainability, two interesting evidences emerge: the considerable importance attributed to the information of the features of the products and the increase in work involvement following participation in the Alternative Food Networks.
18 citations
TL;DR: The authors in this article investigated the theme of sustainability by exploring strategies for the adoption of sustainable innovation in the food supply chain, developing a model that assesses the effect of climate changes on farm production, as well as evaluating consumer attitudes to wine attributes, including those related to carbon footprint and winescape esthetic.
Abstract: The agricultural sector both needs to reduce its impacts and adapt its food production system to cope with environmental constraints and climate changes. This special issue includes three selected papers presented at the 53rd annual Conference of the Italian Society of Agricultural Economics discussing the future of agriculture. The fil rouge linking the three papers is the issue of sustainability that nowadays influences the functioning of the food supply chain and the behavior of all actors involved in it, from producers to consumers. The selected papers investigate the theme of sustainability by exploring strategies for the adoption of sustainable innovation in the food supply chain, developing a model that assesses the effect of climate changes on farm production, as well as evaluating consumer attitudes to wine attributes, including those related to “carbon footprint” and “winescape esthetic.” The reading of these papers provides a multifaceted light on different dimensions linking future perspectives of sustainable agriculture between globalization and local market. Papers discuss issues, propose approaches, and show empirical findings that can be useful to fuel the debate about future agricultural policies and stimulate the development of research agendas.
15 citations
TL;DR: In this paper, the authors explored the effect of the labour market and surrounding conditions (LMSC) around a farm on its succession probability, and found that LMSC variables have a non-linear effect on succession.
Abstract: The transfer of farm activity over time occurs through different pathways, among which the more frequent is intra-family farm succession. Thus, better information on farm succession determinants is crucial for understanding farm succession and informing appropriate sectoral policies. To date, substantial research has focused on the effect of farm, farmer and potential heir features on farm succession, while the role played by socio-economic conditions around a farm has been relatively less examined. Building on previous contributions, the present paper considers farm succession as the opposite of labour migration out of the agricultural sector. Thus, the effect of the labour market and surrounding conditions (LMSC) around a farm on its succession probability is explored. The aim of this paper is therefore to explore whether and to what extent the inclusion of LMSC variables may contribute to a better understanding of farm succession. Using data from a sample of 266 fruit and vegetable farms (gathered for informative purposes by a producers’ organization consortium), empirical evidence that LMSC variables play an important role in explaining the succession probability in these types of farms is provided. Specifically, the results show that (i) including LMSC variables in a farm succession analysis increases the explanatory power and robustness of the model estimates; (ii) LMSC variables have a non-linear effect on succession; and (iii) some explanatory variables (farmer education and farm age, specialization and dimension) are significant across various specifications, while other variables (farmer age, territorial location and distance of a farm from its producer organization) change their sign and/or significance when LMSC variables are included in the model. As a consequence, our findings suggest that LMSC variables should be included in farm succession and labour market analysis to provide a better estimate of farm succession probability.
15 citations
TL;DR: In this article, the authors focus on Solidarity Purchase Group (SPG) participants located in a highly urbanized area, with the aim to investigate the main motivations underlining their participation in a SPG and provide a characterization of them.
Abstract: Our paper focuses on Solidarity Purchase Group (SPG) participants located in a highly urbanized area, with the aim to investigate the main motivations underlining their participation in a SPG and provide a characterization of them. To this end, we carried out a survey of 795 participants involved in 125 SPGs in the metropolitan area of Milan (Italy). Taking advantage of a questionnaire with 39 questions, we run a factor analysis and a two-step cluster analysis to identify different profiles of SPG participants. Our results show that the system of values animating metropolitan SPG practitioners does not fully conform to that traditionally attributed to an alternative food network (AFN). In fact, considerations linked to food safety and healthiness prevail on altruistic motives such as environmental sustainability and solidarity toward small producers. Furthermore, metropolitan SPGs do not consider particularly desirable periurban and local food products. Observing the SPGs from this perspective, it emerges as such initiatives can flourish also in those places where the lack of connection with the surrounding territory is counterbalanced by the high motivation to buy products from trusted suppliers who are able to guarantee genuine and safe products, not necessarily located nearby.
TL;DR: In this paper, the authors employed stochastic frontier analysis (SFA) correcting for sample selection bias, to determine technical efficiency and technology gap using cross-sectional data collected from 543 rice farmers in Northern Ghana.
Abstract: This study employs stochastic frontier analysis (SFA) correcting for sample selection bias, to determine technical efficiency (TE) and technology gap using cross-sectional data collected from 543 rice farmers in Northern Ghana. The results showed that corrected sample selection TE estimates were marginally higher. Without the appropriate corrections, inefficiency is overestimated, while the gap in performance between irrigation farmers and their rainfed counterparts is underestimated. We recommend that authorities in Ghana should work with development partners, especially in the implementation of small village-dam projects, and also to expand the existing irrigation schemes. Bunds should also be constructed around rice production valleys across northern Ghana so that farmers could expand their farm sizes to increase production. It is important also that the government’s input subsidy programme be structured to cater for experienced and younger farmers who consider agriculture as a business.
TL;DR: Closeness and clusterization emerged as the most important network characteristics for early adopters to be successful in a specific new practice: the use of biodegradable mulching films containing soluble bio-based substances derived from municipal solid wastes.
Abstract: Proven that the adoption rate of a new product is influenced by the network characteristics of the early adopters, the aim of this paper is to find the network features of the early adopters associated with high adoption rates of a specific new practice: the use of biodegradable mulching films containing soluble bio-based substances derived from municipal solid wastes. We simulated the diffusion process by means of an agent-based model calibrated on real-world data. Closeness and clusterization emerged as the most important network characteristics for early adopters to be successful. The results achieved represent the basis for the breaking down of a tailored diffusion strategy to overcome the psychological and socio-economic barriers of this kind of innovation within an environmental and sustainability-oriented transition policy in a rural context.
TL;DR: In this article, the authors examine the spread of No-tillage in Italy analyzing the modalities of adoption and the factors that can influence it, including the characteristics of the natural environment, the structural features of the holdings (i.e., size) and also the presence of knowledge spillovers that are largely the result of spatial networks between farmers and other stakeholders.
Abstract: No-tillage is a farming system aiming at minimizing soil disturbance associated with the cultivation of arable crops. This technique, together with the practices of continuous soil cover and of crop rotation, also represents one of the elements of the so called Conservation agriculture, a paradigm of sustainable agriculture that is spreading in many areas of the globe. The aim of the work is to examine the spread of No-tillage in Italy analyzing the modalities of adoption and the factors that can influence it. Modalities of adoption can vary depending on whether No-tillage represents an incremental innovation within the ordinary management of the farm, or a complementary element of an alternative technological paradigm identifiable with Conservation agriculture. Factors influencing the adoption of No-tillage, widely studied in the literature, concern the characteristics of the natural environment, the structural features of the holdings (i.e. size) and also the presence of knowledge spillovers that are largely the result of spatial networks between farmers and other stakeholders. Elaborations have been first of all aimed at distinguishing the two types of modalities of adoption and subsequently at verifying the influence of the factors mentioned above, in particular through the Local Moran Index. In summary, the work describes how the diffusion of No-tillage practices can be partly ascribed to a cost saving-oriented incremental innovation process in the framework of a conventional paradigm of agriculture that mainly pertain to large size holdings. However, there is a significant number of farms where the adoption of No-tillage practices demonstrates the decision to try a more comprehensive reorganization of the way of doing agriculture, similar to the paradigm of Conservation agriculture, and in which the cognitive and relational aspects related to the aforementioned networks seem to be very important. Spatial analysis has allowed to depict two models of adaptation to the paradigm of Conservation agriculture: one is mainly concentrated in the rural areas of the central-northern Apennines, and another is located mainly in two regions of southern Italy (Puglia and Sicily).
TL;DR: In this article, the authors evaluate the consumer response to both the environmental and animal welfare aspects of more sustainable food systems by determining the characteristics of a consumer segment for sustainably produced beef using contingent valuation methods and estimating the marginal willingness to pay (MWTP) for animal welfare compliance and the environmental benefits derived from sustainable intensification within the identified consumer segment, employing a Discrete Choice Experiment (DCE).
Abstract: To promote the adoption of more sustainable cattle production systems in Colombia (mainly silvopastoral systems with improved forages), some sector stakeholders have proposed the development of differentiated, higher value beef products. However, there have been no rigorous estimations of local market potential and consumer preferences for these hypothetical products yet. On the other hand, while there are clear efforts concerning the environmental impacts of cattle production, its animal welfare implications have taken a secondary place. This research attempts to evaluate the consumer’s response to both the environmental and animal welfare aspects of more sustainable food systems by (i) determining the characteristics of a consumer segment for sustainably produced beef using contingent valuation methods and (ii) estimating the marginal willingness to pay (MWTP) for animal welfare compliance and the environmental benefits derived from sustainable intensification within the identified consumer segment, employing a Discrete Choice Experiment (DCE). In addition, the study estimates the effect of information on consumer’s MWTP for environmentally friendlier beef. Results show that consumers within the identified segment are willing to pay on average 40.2% more for beef certified with both animal welfare and eco-friendly standards, with an increase of nearly 10% after being provided with information of the sector’s environmental impacts. These findings support some of the current climate change mitigation strategies in the national cattle industry while highlighting relevant opportunities and trade-offs in the context of a developing country.
TL;DR: In this article, the authors studied the relationship between environmental uncertainty and performance in the rice supply chain in the Ayeyarwaddy Region, Myanmar by using a purposive and stratified random sampling method, and analyzed this data via descriptive statistics, an exploratory factor analysis, data envelopment analysis (DEA), and Tobit regression analysis.
Abstract: In this paper, we study the relationship between environmental uncertainty and performance in the rice supply chain in the Ayeyarwaddy Region, Myanmar. Efficiency is one of the important performance indicators in both supply chain and agribusiness. In this regard, the objectives of the study are to identify the different sources of uncertainty perceived by the different actors in the supply chain, to measure the rice supply chain efficiency, and to study the impact of the environmental uncertainty on the supply chain efficiency. The data of 215 respondents is collected from the Ayeyarwaddy Region by using a purposive and stratified random sampling method, and we analyze this data via descriptive statistics, an exploratory factor analysis, data envelopment analysis (DEA), and Tobit regression analysis. The scores for the technical, pure, and scale efficiency show a very low performance of the rice supply chain in the Ayeyarwaddy Region resulting from the fact that most of the rice businesses are too small and need to expand their operating size. We found that this global rice supply chain performance is significantly impacted by the planning and control uncertainty and the climate uncertainty. Therefore, mitigation initiatives must be developed such as financial insurance mechanisms and extension services should be widespread. Both aim to improve the impact of the climate adverse conditions and to increase the efficiency of resource utilization in the supply chain. Moreover, the actors should organize themselves in cooperatives such that the scale of operations can be increased and information is captured and shared between different parties in the supply chain. This is crucial to operational control and planning because a higher quality of information input will increase the quality of managerial decision making.
TL;DR: In this paper, a large-scale nationally representative sample of household data from five pooled cross-section surveys conducted by the Zimbabwe Vulnerability Assessment Committee (ZimVAC) was used to assess gender differences in the vulnerability to food and nutrition insecurity, usage of consumption-based and livelihoods-based coping strategies, and the existence of gender heterogeneity in the correlation of usage of such coping strategies.
Abstract: On the basis of a large-scale nationally representative sample of household data from five pooled cross-section surveys conducted by the Zimbabwe Vulnerability Assessment Committee (ZimVAC), this study assesses the existence of gender differences in the vulnerability to food and nutrition insecurity, usage of consumption-based and livelihoods-based coping strategies, and the existence of gender heterogeneity in the correlation of usage of such coping strategies when confronted by food and nutrition insecurity. The study offers three main findings. Firstly, female-headed households are more susceptible to food and nutrition insecurity than those headed by males. Secondly, female-headed households are more likely to employ consumption-based coping strategies than their male counterparts, but there is no statistically significant difference in the usage of livelihoods-based coping strategies. Finally, whilst there is little evidence of gender heterogeneity in the correlation of the usage consumption-based coping strategies, there is overwhelming evidence that female-headed household heads are less likely to adopt livelihoods-based coping strategies when confronted with food and nutrition insecurity. The sum total of these findings is that whilst female-headed households are more prone to food insecurity than their male counterparts, they are less able to use livelihoods-based coping strategies to weather household food and nutrition insecurity than their male counterparts.
TL;DR: In this paper, the authors used a quadratic programming in linearized version and the sumex utility function, which is representable as sum of products of polynomials and exponential functions, to simulate risk aversion for specific traits of the E-V frontier.
Abstract: Important sources of risk in agriculture are yield and price fluctuations caused by unpredictable and uncontrollable events, inducing income volatility and adding considerable complexity to farmers’ decisions. The literature suggests that these events could affect farmers’ risk aversion in decision making and justify their preferences for risk minimizing and safety-first survival, rather than a profit maximization strategy. The aim of this study is to test this hypothesis by using a quadratic programming in linearized version and the sumex utility function, which is representable as sum of products of polynomials and exponential (or “polynex”) functions to simulate risk aversion for specific traits of the E-V frontier (Nakamura, Mathematical Soc Sci 31:39–47, 1996). The linear approximation of the utility function is obtained with the MOTAD approach, consisting in the minimization of errors generated by total absolute deviations of gross income from the expected value (Hardaker et al. Rev Mark Agric Econ 59:9–22, 1991). This method allows different portfolio simulations to be run of selected cereal and oilseed crops as risky prospects, by varying the risk parametrically. The results obtained confirm the hypothesis that risk affects farmers’ decisions and that crop diversification is a viable strategy as a hedge against risk.
TL;DR: In this article, the authors applied the ordered Heckman two-stage method to examine the evolving consumer trend and to determine the key factors that affect consumers' choices, finding that demographic variables such as gender and income do not significantly influence the decision on whether or not to consume whey, but exercise type is highly influential.
Abstract: Despite the fast-rising popularity of whey protein sports supplements over recent years, there has been little research to investigate the driving forces behind the consumer choices. Using a consumer dataset collected in Ireland, we applied the ordered Heckman two-stage method to examine the evolving consumer trend and to determine the key factors that affect consumers’ choices. The study found that demographic variables, such as gender and income, do not significantly influence the decision on whether or not to consume whey, but exercise type is highly influential. The desire for power and strength is a stable key consumption driver, with endurance and flexibility becoming more important in the expansion of this industry. The study also found that whey is under-consumed by older age groups and under-promoted based on country of origin affiliation. Findings of the study provide further insights to relevant literature and have direct implications to the sports supplement industry as well as the dairy ingredient industry.
TL;DR: This paper examined the impact of food labels that make unsupported claims of food safety and labels that provide information to support such claims on consumer choices and examined consumers' willingness to pay for beef products with these different food safety labeling cues.
Abstract: We examine the impact of food labels that make unsupported claims of food safety and labels that provide information to support such claims on consumer choices and examine consumers’ willingness to pay for beef products with these different food safety labeling cues. Empirical results from a survey of grocery shoppers in a Midwestern city in the USA show that more than two thirds of respondents who received a label with unsubstantiated food safety claims chose this option and were willing to pay the highest price premium for it, compared to the less preferred labeling options that provided information to support food safety claims.
TL;DR: In this article, a simple methodology for assessing and predicting climate change effects on agricultural yields is presented, in which the marginal product of key production inputs (e.g., labor and land) is estimated through the estimation of production functions, and the authors predict future agricultural sector performance by assuming a future with climate-induced changes in the land use and in agricultural labor use, under different IPCC scenarios.
Abstract: In this paper, we have constructed and tested a simple methodology for assessing and predicting climate change effects on agricultural yields. The methodology follows two steps. First, we econometrically estimate the marginal product of key production inputs (e.g., labor and land), through the estimation of production functions. Then, we predict future agricultural sector performance, by assuming a future with climate-induced changes in the land use and in agricultural labor use, under different IPCC scenarios. We also assume that no dramatic technological change in agriculture production will occur in the near future, so that the selected inputs will present the same marginal product. We assume that the agricultural sector might develop differently under different climate change-induced scenarios and that the use of land and labor will change accordingly. In this way, we are able to compute predictions on the agricultural sector performance in the future, under very different circumstances. We apply the methodology for predicting the sector performance of the Veneto region in 2030. Results differ according to the selected IPCC scenario and consequent input use variations. In the selected case study, for instance, land presents a very high productivity and climate-induced changes in the land use might dramatically (positively and negatively) affect agricultural yields under different IPCC scenarios. In this perspective, the climate change adaptation and mitigation policies and options should primarily aim at the preservation of land productivity in Veneto.
TL;DR: This paper examined the intra-gender nutrition outcome both with and without the presence of household level shock using Living Standards Measurement Study-Integrated Survey (LSMS) panel data in Ethiopia.
Abstract: This paper examines the intra-gender nutrition outcome both with and without the presence of household level shock using Living Standards Measurement Study-Integrated Survey (LSMS) panel data in Ethiopia. We used a mixed-effect estimation strategy to analyze how parents’ gender preference affects resource allocation between boys and girls, and nutrition outcomes. We used a gender dummy and found that child gender dummy interaction with household level shock index variables does not have a significant effect on child nutrition. The results indicate that nutrition equality could be due to (1) the girls’ biological bodily development that causes differences in trouble tolerance such that the girls’ nutrition remains the same as that of boys and (2) the boys’ physical exercises which cause weight loss such that it brings their nutrition down making it equal to that of the girls’. The results suggest the need for energy food supplementation for boys and a need for equal care for both girls and boys.
TL;DR: In this article, the effect of industry structure and social capital on traders' profitability and resilience was assessed using Bayes Model Averaging regression techniques to draw inferences from a random, representative and systematically selected sample of maize traders in the central region of Malawi.
Abstract: Industry structure and social capital could affect traders, market performance and distribution of economic resources such as food. This study assesses the effect of industry structure and social capital on traders’ profitability and resilience. We use Bayes Model Averaging regression techniques to draw inferences from a random, representative and systematically selected sample of maize traders in the central region of Malawi. We complement our results with key informant prior information from industry experts and literature. Results indicate that at the local market level, few traders dominate but competition increases when we consider the entire district and region. Results also show that interaction with distant traders and brokers is associated with more profitable and resilient businesses. While we find evidence that social capital is positively associated with business profitability, results do not strongly support the hypothesis that other measures of social capital such as tribal and religious affiliation have an effect on traders’ resilience. Noteworthy, as the unit of closeness among traders decreases to family ties, profits tend to increase. This suggests a more group and kin selective evolutionary stable strategy among maize traders.
TL;DR: In this article, the authors analyzed the link between world prices and producer prices of rubber in Cote d'Ivoire using monthly data from 2006 to 2016, and gave special attention to structural breaks in the data and asymmetry in the transmission process.
Abstract: This article analyzes the link between world prices and producer prices of rubber in Cote d’Ivoire. Using monthly data from 2006 to 2016, we gave special attention to structural breaks in the data and asymmetry in the transmission process. Empirical results validate the presence of two breaks in the data series, both in 2008 and 2011 corresponding to a general surge in commodity prices. A multivariate threshold vector error correction model (TVECM) allows us to test the presence of asymmetry. The results strongly support the linearity hypothesis against k-regime TVECM. From there, a linear VECM reveals that changes in rubber world prices are strongly transmitted to Ivorian producer prices. In case of a world price permanent decrease, this will be devastating for small producer incomes, since financial markets are essentially missing in those rural areas and switching costs for perennial crops are huge. Some recommendations are given to prevent such a crisis.