{"title":"How effective is a fat subsidy? Evidence from edible oil consumption in India","authors":"Jaya Jumrani, J. V. Meenakshi","doi":"10.1111/1477-9552.12510","DOIUrl":"10.1111/1477-9552.12510","url":null,"abstract":"<p>Taxes on fats and sugar-sweetened beverages are deployed in the developed world to encourage healthier diets. How effective might such fiscal instruments be in emerging economies? We evaluate the impacts of a subsidy for palm oil, introduced as part of the public distribution system in three Indian states. Using variants of the difference-in-differences approach, we find that palm oil consumption increased, particularly in rural areas, as a result of the subsidy, and traditional oils were displaced by cheaper palm oil. However, the intervention did not significantly alter overall edible oil consumption. These results are robust to different specifications, alternative estimation samples, and the exclusion of households who may have been potential beneficiaries of other interventions. Impacts were higher in Tamil Nadu than in other states, and were higher for vegetarian households in rural areas. There was only weak evidence of spillover income effects on other food groups. Given India's dual burden of malnutrition, our analysis suggests that fiscal policy interventions have the potential to effectively nudge consumer choices towards healthier edible oil consumption.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"74 2","pages":"327-348"},"PeriodicalIF":3.4,"publicationDate":"2022-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43136779","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":"Energy productivity and greenhouse gas emission intensity in Dutch dairy farms: A Hicks–Moorsteen by-production approach under non-convexity and convexity with equivalence results","authors":"Frederic Ang, Kristiaan Kerstens, Jafar Sadeghi","doi":"10.1111/1477-9552.12511","DOIUrl":"10.1111/1477-9552.12511","url":null,"abstract":"<p>The agricultural sector is currently confronted with the challenge to reduce greenhouse gas (GHG) emissions, whilst maintaining or increasing production. Energy-saving technologies are often proposed as a partial solution, but the evidence on their ability to reduce GHG emissions remains mixed. Production economics provides methodological tools to analyse the nexus of agricultural production, energy use and GHG emissions. Convexity is predominantly maintained in agricultural production economics, despite various theoretical and empirical reasons to question it. Employing non-convex and convex frontier frameworks, this contribution evaluates energy productivity change (the ratio of aggregate output change to energy use change) and GHG emission intensity change (the ratio of GHG emission change to polluting input change) using Hicks-Moorsteen productivity formulations. We consider GHG emissions as by-products of the production process by using a multi-equation model. Given our empirical specification, non-convex and convex Hicks-Moorsteen indices can coincide under certain circumstances, which leads to a series of theoretical equivalence results. The empirical application focuses on 1,510 observations of Dutch dairy farms for the period of 2010–2019. The results show a positive association between energy productivity change and GHG emission intensity change, which calls into question the potential of on-farm, energy-efficiency-increasing measures to reduce GHG emission intensity.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"74 2","pages":"492-509"},"PeriodicalIF":3.4,"publicationDate":"2022-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1477-9552.12511","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46283041","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Stéphan Marette, Anne-Célia Disdier, Anastasia Bodnar, John Beghin
{"title":"New plant engineering techniques, R&D investment and international trade","authors":"Stéphan Marette, Anne-Célia Disdier, Anastasia Bodnar, John Beghin","doi":"10.1111/1477-9552.12516","DOIUrl":"10.1111/1477-9552.12516","url":null,"abstract":"<p>New plant engineering techniques (NPETs) may significantly improve both production and quality of foods. Some consumers and regulators around the world might be reluctant to accept such products and the global market penetration of these products may remain low. We develop a parsimonious economic model for R&D investment in food innovations to identify conditions under which NPET technology emerges in the context of international trade. The framework integrates consumers' willingness to pay (WTP) for the new food, the uncertainty of R&D processes, the associated regulatory cost of approval, and the competition between domestic and foreign products. With generic applicability, the model enables the quantitative analysis of new foods that could be introduced in markets and then traded across borders. We apply the framework to a hypothetical case of apples improved with NPETs. Simulation results suggest that import bans and high values of sunk cost can reduce R&D investment in NPETs to suboptimal levels.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"74 2","pages":"349-368"},"PeriodicalIF":3.4,"publicationDate":"2022-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1477-9552.12516","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45979181","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Group heterogeneity and the economic effect of farmer organisation participation: Empirical evidence from Taiwan","authors":"Min-Han Tsai, Yir-Hueih Luh","doi":"10.1111/1477-9552.12515","DOIUrl":"10.1111/1477-9552.12515","url":null,"abstract":"<p>We explore the effects of different farmer organisations on smallholder farmers' economic performance. The average treatment effect of switching between different farmer organisations is examined. In addition, based on the premise that a higher level of social capital is accumulated through participation in multiple farmer organisations, we also investigate how the economic consequences of farmer organisation membership vary with the intensity of participation. Our conceptual model explicitly includes social capital to provide a micro-foundation and a theoretical justification for the linkage between farmer organisation participation and the economic outcome. This indicates that participating in different types of farmer organisations is beneficial for farm households only when the returns from social capital investment outweigh the time cost of participation. Our empirical results suggest that membership of farmer organisations that are more homogeneous in terms of member specialty and similarity in production and marketing activities results in a significant increase in farm sales revenue and net returns. This result supports the view that technological proximity accentuates knowledge spillovers within the farmer organisations, and thus leads to better economic outcomes. In line with the prediction of the theoretical model, the average treatment effect of participation is found to increase with the number of organisations that farmers belong to. Moreover, results from the quantile regression provide empirical evidence supporting increasing returns to social capital accumulated through participation in several farmer organisations.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"74 2","pages":"473-491"},"PeriodicalIF":3.4,"publicationDate":"2022-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47284789","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":"Unconstrained trade: The impact of EU cage bans on exports of poultry-keeping equipment","authors":"Shon M. Ferguson","doi":"10.1111/1477-9552.12513","DOIUrl":"10.1111/1477-9552.12513","url":null,"abstract":"<p>This study evaluates the impact of conventional cage bans for laying hens in the EU on exports of poultry-keeping equipment. Using detailed data on international trade in poultry-keeping equipment combined with an event study regression approach yields several new findings. The results suggest that the cage bans were associated with an increase in intra-EU trade, and also an increase in exports of poultry equipment from EU member states to non-EU countries where conventional cages are still permitted. The results suggest that some banned cages were likely exported to countries outside the EU to be used in egg production.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"74 2","pages":"435-449"},"PeriodicalIF":3.4,"publicationDate":"2022-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1477-9552.12513","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44615755","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Mismeasurement and efficiency estimates: Evidence from smallholder survey data in Africa","authors":"K. Abay, T. Wossen, J. Chamberlin","doi":"10.2499/p15738coll2.134983","DOIUrl":"https://doi.org/10.2499/p15738coll2.134983","url":null,"abstract":"","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":" ","pages":""},"PeriodicalIF":3.4,"publicationDate":"2022-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43292487","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}
Kibrom A. Abay, Tesfamicheal Wossen, Jordan Chamberlin
{"title":"Mismeasurement and efficiency estimates: Evidence from smallholder survey data in Africa","authors":"Kibrom A. Abay, Tesfamicheal Wossen, Jordan Chamberlin","doi":"10.1111/1477-9552.12514","DOIUrl":"https://doi.org/10.1111/1477-9552.12514","url":null,"abstract":"<p>Smallholder agriculture in sub-Saharan Africa is commonly characterised by high levels of technical inefficiency. However, much of this characterisation relies on self-reported input and production data, which are prone to systematic measurement error. We show theoretically that non-classical measurement error introduces multiple identification challenges and sources of bias in estimating smallholders' technical inefficiency. We then empirically examine the implications of measurement error for the estimation of technical inefficiency using smallholder farm survey data from Ethiopia, Malawi, Nigeria and Tanzania. We find that measurement error in agricultural input and production data leads to a substantial upward bias in technical inefficiency estimates (by up to 85% for some farmers). Our results suggest that existing estimates of technical efficiency in sub-Saharan Africa may be severe underestimates of smallholders' actual efficiency and what is commonly attributed to farmer inefficiency may be an artefact of mismeasurement in agricultural data. Our results raise questions about the received wisdom on African smallholders' production efficiency and prior estimates of the productivity of agricultural inputs. Improving the measurement of agricultural data can improve our understanding of smallholders' production efficiencies and improve the targeting of productivity-enhancing technologies.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"74 2","pages":"413-434"},"PeriodicalIF":3.4,"publicationDate":"2022-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50153467","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}
Raushan Bokusheva, Lukáš Čechura, Subal C. Kumbhakar
{"title":"Estimating persistent and transient technical efficiency and their determinants in the presence of heterogeneity and endogeneity","authors":"Raushan Bokusheva, Lukáš Čechura, Subal C. Kumbhakar","doi":"10.1111/1477-9552.12512","DOIUrl":"10.1111/1477-9552.12512","url":null,"abstract":"<p>We develop an estimation procedure that generates consistent estimates of the technology parameters, long-run (persistent) and short-run (transient) technical inefficiencies and the marginal effects of their determinants for the stochastic frontier model developed by Colombi et al. (2014, <i>Journal of Productivity Analysis</i> 42, 123) and Kumbhakar et al. (2014, <i>Journal of Productivity Analysis</i> 41, 321). Our approach accounts for three sources of potential endogeneity: (i) unobserved heterogeneity; (ii) simultaneity of input use with both types of technical efficiency; (iii) potential correlation of the noise term with the regressors. Using this approach we examine the effect of direct payments and farm size on the persistent and transient technical efficiency of French crop farms before and after the European Union's Common Agricultural Policy decoupling reform of 2003. Our results show that subsidy payments per hectare of utilised agricultural land had a significant positive effect on persistent technical efficiency and a significant negative effect on transient technical efficiency during the period before decoupling. For the period after the reform, the effect of subsidies is found to be significantly negative for persistent technical efficiency and insignificant for transient technical efficiency. The overall effect of subsidies on technical efficiency is found to be negative in both periods, albeit substantially lower in the period after decoupling. The effect of farm size on technical efficiency is found to be significant only for the period prior to the reform: it reduced persistent technical inefficiency but increased transient technical inefficiency during that period.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"74 2","pages":"450-472"},"PeriodicalIF":3.4,"publicationDate":"2022-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1477-9552.12512","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46485108","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Farm technical and environmental efficiency and subsidy redistribution in Ireland: A simulation approach of possible performance and equity effects","authors":"Maria Martinez Cillero, Miguel Tovar Reaños","doi":"10.1111/1477-9552.12509","DOIUrl":"10.1111/1477-9552.12509","url":null,"abstract":"<p>We investigate the relationship between EU Common Agricultural Policy environmental payments, and dairy and beef farm level competitiveness and environmental performance. We use an Irish panel of farm level financial data for the years 2000–2017 and apply stochastic frontier analysis. Our estimates identify a positive relationship between technical efficiency and the Green, Low-Carbon, Agri-Environment Scheme for dairy farms, in contrast with the negative relation identified for previous payments of this kind such as the Rural Environment Protection Scheme for both beef and dairy. We then simulate increases in the first type of environmental payments financed through reductions in decoupled payments. We use alternative scenarios for payment redistribution such as flat allocation, allocation to farms with low stocking rates or proportional reallocation of payments. We find that under the second scenario, marginal environmental gains can potentially be achieved for dairy farms. For beef farms, the proportional allocation performs best regarding environmental gains. We also find that under this scenario, the impacts on income inequality can be smoothed for both farm types.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"74 2","pages":"394-412"},"PeriodicalIF":3.4,"publicationDate":"2022-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1477-9552.12509","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44749893","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The role of family life-cycle events on persistent and transient inefficiencies in less favoured areas","authors":"Andrew P. Barnes","doi":"10.1111/1477-9552.12506","DOIUrl":"10.1111/1477-9552.12506","url":null,"abstract":"<p>Family farms dominate less favoured areas (LFAs) within Europe, and family life-cycle conditions, such as succession and retirement, affects how these farms adapt to changing circumstances. Past studies of on-farm technical efficiency have not directly addressed these conditions, but they may explain why some farms are more efficient than others, especially as the farm family model dominates most farming systems. Motivated by the UK's withdrawal from the EU and the debate around establishing replacement support policies, we apply a multi-step model to measure both transient and persistent inefficiencies using a panel of LFA cattle and sheep farms in Scotland over the period 2003–2020. We find a greater prevalence of persistent compared to transient inefficiency, which suggests that structural problems still exist. Farms with planned succession are found to have higher persistent efficiencies, whereas farmers nearing retirement have lower levels. Other factors, such as dependence on subsidy, off-farm activity and classification as severely disadvantaged tend to compound these lower efficiencies. We argue that life-cycle conditions should not be ignored in studies of farm technical efficiency. Within the scope of framing a new agricultural policy for UK administrations, these results inform the debate on support for LFAs, as well as the promotion of support towards generational renewal to ease transition across farm family life-cycle events.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"74 1","pages":"295-315"},"PeriodicalIF":3.4,"publicationDate":"2022-09-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1477-9552.12506","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41847303","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}