{"title":"VAT do you eat? Green consumption taxes and firms' market share","authors":"Kira Zerwer","doi":"10.1111/1477-9552.12572","DOIUrl":"10.1111/1477-9552.12572","url":null,"abstract":"<p>This paper examines the role of a ‘green’ value-added tax in the competitive environment of firms. Using data on firms in Romania and leveraging the introduction of a tax reduction on organic products in 2019, I show that although the overall market for organic goods grows and potential to generate windfall profit exists, the market share of incumbent firms decreases because of intensified competition post-reform driven by new entrants competing for profits in the market. The market share decreases by about 2 percentage points after the reform. The effect depends on the relative elasticity of demand vis-à-vis supply in the market and the ability of a firm to protect its sales from new market entrants. Firms operating geographically further from the main consumer (i.e., more rural firms) and further upstream from the retail sector are more vulnerable to losing market share because urban demand is less elastic than rural demand and retail demand is less elastic than primary demand. Firms that are in markets where it is easier to switch from non-organic to organic and that are less capital intensive (i.e., have fewer fixed costs) are more vulnerable to losing market share to new market entrants.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"75 2","pages":"504-523"},"PeriodicalIF":3.4,"publicationDate":"2024-02-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139922935","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":"Emeritus Professor Anthony Kent (Tony) Giles, OBE 30 June 1928–31 October 2023","authors":"","doi":"10.1111/1477-9552.12571","DOIUrl":"https://doi.org/10.1111/1477-9552.12571","url":null,"abstract":"","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"75 1","pages":"473-474"},"PeriodicalIF":3.4,"publicationDate":"2024-02-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139716846","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":"‘Because it matters’","authors":"Brendan Bayley","doi":"10.1111/1477-9552.12567","DOIUrl":"10.1111/1477-9552.12567","url":null,"abstract":"<p>Basic economic logic, which often simplifies assessments and explanations of agricultural policy issues, is vitally important in communicating with policy-makers. Resources are limited, and there is a premium on getting decisions at least approximately right first time. Examples from southern Africa illustrate the importance of parity pricing, and its links to household food security (Lesotho), price risk, the emergence of an agricultural futures market, and its central role in allocating scarce agricultural resources (South Africa). Insights derived from an appreciation of parity pricing are relevant in other national contexts and also help explain how international grain markets operate. The parity pricing concept provides a framework for sense-checking complicated debates relating to two issues that have been prominent in recent years; first, whether and to what extent speculation in futures markets has been a driver of agricultural price spikes, and second, how far indirect land use change (ILUC), triggered by the use of agricultural feedstocks to produce renewable energy, is a material issue. These issues are likely to be of heightened importance in the face of climate change. Each emphasises that agricultural economics matters, and that it matters that we get the economics right.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"75 1","pages":"17-43"},"PeriodicalIF":3.4,"publicationDate":"2024-01-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139568116","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":"Challenges for the JAE: Thoughts from the new editor","authors":"Jonathan Brooks","doi":"10.1111/1477-9552.12569","DOIUrl":"10.1111/1477-9552.12569","url":null,"abstract":"","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"75 1","pages":"13-16"},"PeriodicalIF":3.4,"publicationDate":"2024-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139446262","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":"Assessing the potential of ICT to increase land and labour productivity in agriculture: Global and regional perspectives","authors":"Pallavi Rajkhowa, Heike Baumüller","doi":"10.1111/1477-9552.12566","DOIUrl":"10.1111/1477-9552.12566","url":null,"abstract":"<p>Increasing agricultural productivity in low- and middle-income countries (LMICs) is an important channel for reducing poverty and food insecurity. Information and communication technologies (ICT) have the potential to boost agricultural productivity by lowering transaction costs and enhancing access to information. Even though there are several micro-level studies analysing the effects of ICT on agricultural productivity, there is scant research addressing the role of ICT in agricultural productivity at the global and regional levels. Using data from 86 countries for the period 2000 to 2019 and utilising a fixed effect panel regression with a feasible generalised least square approach, we find that globally there is a positive and significant association between ICT uptake and both land and labour productivity in agriculture. In each case, however, the magnitude of the effect is much smaller than other important determinants, such as human capital, access to inputs or environmental factors. At the regional level, the relationship between ICT uptake and land productivity is not significant in Africa and Asia, while we find a significant effect on labour productivity. This finding indicates that while ICT can provide valuable information and tools for land management, the effect on land productivity might be less immediate in these regions. Finally, we revisit the question of whether ICT expansion increases agricultural productivity gaps between high-income nations and LMICs. In contrast to previous research, this study does not find significant differences in the effects of ICT on land and labour productivity between higher-income and lower-income countries.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"75 2","pages":"477-503"},"PeriodicalIF":3.4,"publicationDate":"2024-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1477-9552.12566","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139396931","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":"Agricultural Economics in the JAE: Some Editorial Reflections","authors":"David R. Harvey","doi":"10.1111/1477-9552.12568","DOIUrl":"10.1111/1477-9552.12568","url":null,"abstract":"<p>On retirement from the post of Editor in Chief of the JAE, it is appropriate that I offer some reflections on my editorship. First, I review the general performance of the journal over the period 2005-2023, and conclude that the JAE has held its own amongst our peers though this is is largely due to our authors and reviewers, rather than the Editor. Second, I consider the subject matter and citation scores of our published papers over this period, as a reflection of the evolution of the state of the art of the Agricultural Economics profession. Here, I illustrate the increasing number and subject/method range of published papers, but raise some questions about what, exactly, citations really indicate. I conclude with some reflections on the challenges and opportunities for the profession.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"75 1","pages":"3-12"},"PeriodicalIF":3.4,"publicationDate":"2023-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1477-9552.12568","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138823285","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}
Christoph Schulze, Katarzyna Zagórska, Kati Häfner, Olimpia Markiewicz, Mikołaj Czajkowski, Bettina Matzdorf
{"title":"Using farmers' ex ante preferences to design agri-environmental contracts: A systematic review","authors":"Christoph Schulze, Katarzyna Zagórska, Kati Häfner, Olimpia Markiewicz, Mikołaj Czajkowski, Bettina Matzdorf","doi":"10.1111/1477-9552.12570","DOIUrl":"10.1111/1477-9552.12570","url":null,"abstract":"<p>Ensuring that farmers' ex ante preferences are accounted for is crucial for the design of effective agri-environmental contracts. We present a systematic review of 127 discrete choice experiment (DCE) studies of farmers' preferences with respect to agri-environmental contracts. DCE studies evaluate two central features of farmers' behaviour: (1) their willingness to accept land use prescriptions, such as fertiliser use, application of pesticides, restrictions on cropping, livestock management, integration of silvopasture, maintaining soil health or water use restrictions; and (2) their responses to variations in incentive and commitment criteria, such as reward schemes, monitoring regimes, technical assistance, flexibility of agreements, administrative burden and collaborative implementation. Our analysis considers how these different elements are interlinked and applied in experiments to simulate farmers' decision-making processes. We examine recent methodological improvements in explaining farmer behaviour, including the accommodation of preference heterogeneity, the combining of discrete (enrolment) and continuous decisions, and the incorporation of farmers' sense of identity. DCEs have been applied for the ex ante analysis of different policy instruments to inform the European Common Agricultural Policy and agri-environmental schemes outside the EU. The results of this systematic review may be useful in informing the future design of such agri-environmental programmes. The database underpinning this systematic literature review may help peer scientists to (a) compare, validate and triangulate their own findings with respect to other experimental approaches, (b) use previous willingness-to-accept (WTA) measures as priors for their own study design, and (c) identify research gaps regarding farmers' preferences for agri-environmental measures.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"75 1","pages":"44-83"},"PeriodicalIF":3.4,"publicationDate":"2023-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1477-9552.12570","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138823289","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}
Robert Finger, Viviana Garcia, Chloe McCallum, Jens Rommel
{"title":"A note on European farmers' preferences under cumulative prospect theory","authors":"Robert Finger, Viviana Garcia, Chloe McCallum, Jens Rommel","doi":"10.1111/1477-9552.12565","DOIUrl":"10.1111/1477-9552.12565","url":null,"abstract":"<p>Explaining farmer decision making using cumulative prospect theory is of increasing importance. We present a systematic review on European farmers' preferences under the cumulative prospect theory framework. We identified 17 studies covering 2324 farmers from 12 European countries. All studies report that (on average) farmers are: (i) risk averse, (ii) loss averse, and (iii) overweight small probabilities and underweight large probabilities. However, there is a large heterogeneity across and within studies. These findings have implications for the analysis and design of policy and insurance.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"75 1","pages":"465-472"},"PeriodicalIF":3.4,"publicationDate":"2023-10-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1477-9552.12565","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"71512797","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}
Melina Lamkowsky, Miranda P. M. Meuwissen, Harold A. B. van der Meulen, Frederic Ang
{"title":"How limiting is finance for Dutch dairy farms? A dynamic profit analysis","authors":"Melina Lamkowsky, Miranda P. M. Meuwissen, Harold A. B. van der Meulen, Frederic Ang","doi":"10.1111/1477-9552.12562","DOIUrl":"10.1111/1477-9552.12562","url":null,"abstract":"<p>Accessibility to financial resources is considered a prevalent problem in the agricultural sector. We develop an approach to quantify the long-term opportunity costs of financial constraints in relation to peers who do not face any financial constraints. Using data on past financial performance, we assess creditworthiness and the size of an additional accessible bank loan to farmers. Combining this with data on reported expenditure, we determine the accessible finance. We quantify the opportunity cost as the forgone dynamic profit (intertemporal profit in current-value terms) from financial constraints. Using data envelopment analysis, we apply our approach to 264 specialised Dutch dairy farms for the years 2006–2017 and explore the potential impact of changes in finance provision for several scenarios. Our results show an increasing gap between frontrunners and other farmers, as the latter generate progressively less dynamic profit in comparison to their best peers. The gap between the dynamic profit of the average farm and that of its best peers from their production and investment decisions made over the span of 1 year grew from €40,040 in 2009 to €114,548 in 2017. However, the growth is not driven by insufficient access to finance. Financial constraints can only explain 6% of the forgone dynamic profit in 2009 and as little as 1% for 2017. The number of farms classified as financially constrained in comparison to their peers decreases in our sample from 44% in 2009 to 8% in 2017. This suggests that non-financial factors are driving the growing gap.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"75 1","pages":"382-403"},"PeriodicalIF":3.4,"publicationDate":"2023-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1477-9552.12562","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43084919","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":"Agricultural domestic support under the WTO, experience and prospectsBy Lars Brink, David Orden, Cambridge: Cambridge University Press, 2023, Publisher's prices: £95, $125. ISBN: 978-1-316-51405-4","authors":"David Blandford","doi":"10.1111/1477-9552.12551","DOIUrl":"10.1111/1477-9552.12551","url":null,"abstract":"","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"74 3","pages":"941-943"},"PeriodicalIF":3.4,"publicationDate":"2023-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47291033","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}