{"title":"Farmers as prosumers: Evidence from cadmium-contaminated rice in China","authors":"Li Zhou, Bei Liu, Zongzhi Liu, Jinhua Zhao","doi":"10.1111/ajae.12497","DOIUrl":"https://doi.org/10.1111/ajae.12497","url":null,"abstract":"<p>We study farmer responses in rice production and consumption to China's cadmium-contaminated rice (CCR) event in 2013. We show that the CCR event reduced both rice production and consumption but did not significantly affect the quantity and price of rice sold by farmers in areas affected by cadmium pollution. Households with young children reduced their rice production and consumption by a larger amount than others, whereas the responses are reversed for households with elderly people. The decrease in rice production was mainly driven by the decrease in farmers' consumption of self-produced rice instead of through price or income channels, indicating that farmers are prosumers who make production decisions not purely to maximize profit but also to satisfy their own consumption needs. Farmers being prosumers helped promote production side responses to new information about food safety.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"107 2","pages":"635-654"},"PeriodicalIF":4.2,"publicationDate":"2024-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143404806","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}
Eric C. Edwards, Nathan P. Hendricks, Gabriel S. Sampson
{"title":"The capitalization of property rights to groundwater","authors":"Eric C. Edwards, Nathan P. Hendricks, Gabriel S. Sampson","doi":"10.1111/ajae.12494","DOIUrl":"https://doi.org/10.1111/ajae.12494","url":null,"abstract":"<p>There is limited empirical evidence on the value of formal property rights to natural resources when they are not transferable, and there is regulatory uncertainty about enforcement. This paper takes a hedonic approach to understanding how three core features of groundwater property rights—access, allocation, and seniority—are capitalized into agricultural land values in the High Plains Aquifer region of Kansas. We find that groundwater access rights confer an average land value premium of 71%, or $1445/acre in 2019 dollars. Water rights having larger allocations and more seniority are more highly valued in the land market. The seniority effect is small but is consistent with more junior rights facing greater regulatory risk of curtailment. Taken together, these results suggest that the land market capitalizes constraints to groundwater pumping provided by groundwater property rights. We use our empirical estimates to quantify the distributional costs of modifying existing patterns of pumping, a common challenge of groundwater management organizations seeking to improve the sustainability of extraction.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"107 2","pages":"390-410"},"PeriodicalIF":4.2,"publicationDate":"2024-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143404314","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}
Dela-Dem Doe Fiankor, Bernhard Dalheimer, Gabriele Mack
{"title":"Pesticide regulatory heterogeneity, foreign sourcing, and global agricultural value chains","authors":"Dela-Dem Doe Fiankor, Bernhard Dalheimer, Gabriele Mack","doi":"10.1111/ajae.12496","DOIUrl":"https://doi.org/10.1111/ajae.12496","url":null,"abstract":"<p>Regulations on the production and consumption of goods are very heterogeneous across countries. Whereas the effects of regulations on exports are well known, the responses of importers to heterogeneous and frequently changing country-specific regulations are not well understood. We combine Swiss firm-level import customs transaction data with country-product-year-specific maximum residue limits to investigate the effect of pesticide regulatory heterogeneity on firm-level imports and assess the moderating role of firm size and global value chain participation. Relying on a global sourcing model, we find that regulatory heterogeneity reduces imports but less so in larger and diversified firms. Participating in global value chains also improves firms' flexibility toward heterogeneous regulation. Business diversification—although reducing the gains from trade and scale—could help firms cope with heterogeneous international regulations.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"107 2","pages":"611-634"},"PeriodicalIF":4.2,"publicationDate":"2024-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.12496","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143404315","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":"Short-run subsidies and long-run willingness to pay: Learning and anchoring in an agricultural experiment in Ethiopia","authors":"Solomon Balew, Erwin Bulte, Menale Kassie","doi":"10.1111/ajae.12498","DOIUrl":"https://doi.org/10.1111/ajae.12498","url":null,"abstract":"<p>We study how temporary provision of an agricultural innovation at zero cost affects long-run demand for that innovation. Our experimental design enables us to distinguish between an “anchoring effect” of subsidies and a “learning effect.” We document large and persistent anchoring and learning effects. For the innovation that we consider, an integrated pest management (IPM) package for Ethiopian smallholder farmers, the learning effect dominates the anchoring effect, so temporary subsidized provision promotes long-run technology diffusion.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"107 2","pages":"655-669"},"PeriodicalIF":4.2,"publicationDate":"2024-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.12498","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143404299","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":"Evaluating the impact of the fourth round of China's poverty alleviation program","authors":"Kaixing Huang, Yaxuan You","doi":"10.1111/ajae.12495","DOIUrl":"https://doi.org/10.1111/ajae.12495","url":null,"abstract":"<p>This study evaluates the impact of China's fourth round of the poverty alleviation program, which targeted 14 contiguous destitute areas containing 680 counties and a population of 240 million. From 2012 to 2019, China allocated a total of 813.6 billion yuan (US$126.1 billion), primarily to economic development programs within these 14 areas. Using county-level data from 2006 to 2019, our difference-in-differences and difference-in-discontinuities estimates suggest that the program increased GDP per capita in the 14 areas by over 45% from 2012 to 2019, with substantial gains observed in both the agricultural and nonagricultural sectors. Our preferred estimates suggest that the rate of return to the program ranged from 155.8% to 165.8%. Using data from over 14,500 rural households from 2006 to 2015, we find that the program significantly elevated rural income and reduced rural poverty. Although the income growth of extremely poor households was driven more by agricultural income growth, the income growth of relatively poor households primarily resulted from nonagricultural sources.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"107 2","pages":"583-610"},"PeriodicalIF":4.2,"publicationDate":"2024-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143404559","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}
Corey Lang, Casey J. Wichman, Michael J. Weir, Shanna Pearson-Merkowitz
{"title":"Cost misperception and voting for public goods","authors":"Corey Lang, Casey J. Wichman, Michael J. Weir, Shanna Pearson-Merkowitz","doi":"10.1111/ajae.12492","DOIUrl":"https://doi.org/10.1111/ajae.12492","url":null,"abstract":"<p>Public good provision is often determined through referendums by voters, who weigh benefits against costs. However, perceptions of benefits and costs may be incorrect, which could in turn lead to voter error and misallocation of public goods. Using real-world referendums, we evaluate voter perceptions of the private costs of providing public goods by conducting three exit polls of New England voters and an online survey of California voters. By comparing cost perceptions to actual tax incidence, we find pervasive evidence that voters misperceive costs. Fewer than 20% of voters in our samples reported perceived costs within 25% of estimated actual costs. These findings are unsurprising given the ubiquity of opaque language explaining the financial consequences of public good referendums. In addition, our analysis suggests that actual costs have no statistical bearing on voter choice, but at least in the New England sample, voter approval is affected by perceived costs. Thus, a substantial proportion of voters are making decisions based in part on inaccurate costs, which in some cases lead to people voting against their preferences and potential misallocation of public funds. Further, researchers who match voter approval with estimated actual cost are unlikely to obtain accurate cost responsiveness or valuation estimates.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"107 2","pages":"558-582"},"PeriodicalIF":4.2,"publicationDate":"2024-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143404687","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":"Double cropping as an adaptation to climate change in the United States","authors":"Matthew Gammans, Pierre Mérel, Ariel Ortiz-Bobea","doi":"10.1111/ajae.12491","DOIUrl":"https://doi.org/10.1111/ajae.12491","url":null,"abstract":"<p>A warming climate expands the frost-free season, plausibly allowing for increased cropping intensity in temperate regions. This paper assesses the potential of multiple cropping to offset the projected negative effects of climate change on agricultural yields in the United States. We use cross-sectional variation in observed land cover, soil characteristics, and climate to estimate farmers' propensity to double-crop winter wheat with soybeans. Our estimates imply that under current economic conditions, a 3°C warming would result in an increase of 2.1 percentage points in the share of current soybean area double cropped, primarily driven by expansions in cooler regions. A fixed-effects panel model of county yields further indicates that yields of double-cropped soybeans are about 12% lower than those of single-cropped soybeans. Accounting for changes in cropping intensity and attendant effects on soybean yields, we project that at current prices, a 3°C warming would induce a shift in cropping intensity that increases revenue from soy systems by 1.3% overall, offsetting only a small fraction of the revenue impacts of predicted yield declines.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"107 2","pages":"532-557"},"PeriodicalIF":4.2,"publicationDate":"2024-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143404807","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}
Astrid Cullmann, Julia Rechlitz, Greta Sundermann, Nicole Wägner
{"title":"External costs of water pollution in the drinking water supply sector","authors":"Astrid Cullmann, Julia Rechlitz, Greta Sundermann, Nicole Wägner","doi":"10.1111/ajae.12490","DOIUrl":"https://doi.org/10.1111/ajae.12490","url":null,"abstract":"<p>Nitrate pollution from agricultural production is a major threat to water resources worldwide. This study quantifies the consequences of groundwater nitrate pollution for the drinking water supply sector by estimating the effect of groundwater nitrate pollution on the costs of water utilities. In doing so, we contribute to the estimation of the external costs of agricultural nonpoint pollution associated with drinking water supply. Empirical evidence is based on fixed effects regressions using large panel data sets on water supply companies and groundwater sampling sites in Germany. Local nitrate pollution at the abstraction plant is approximated using spatial interpolation. Our findings reveal that water suppliers incur substantial costs through groundwater nitrate pollution in terms of increased treatment and total costs. The estimated cost elasticities range from 0.048 to 0.052 for treatment costs and up to 0.019 for total costs. For an average firm, these estimates imply annual increases in treatment and total costs of €39,000 and €116,000, respectively, for a 10 milligrams per liter increase in groundwater nitrate concentrations.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"107 2","pages":"504-531"},"PeriodicalIF":4.2,"publicationDate":"2024-08-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.12490","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143404300","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":"Integration of the US cannabis market","authors":"Barry K. Goodwin","doi":"10.1111/ajae.12488","DOIUrl":"10.1111/ajae.12488","url":null,"abstract":"<p>I examine the degree to which markets for cannabis are integrated using semiparametric models of spatial price linkages among US states. US attitudes toward the use of cannabis have evolved and, at the same time, laws restricting its use have been eliminated in many states. Cannabis presents the case of a unique commodity for which any interstate trade is explicitly illegal. A voluminous empirical literature has examined spatial arbitrage, trade, and market integration. Most of these studies utilize linear time series regression models. More recent work has considered increasingly more nonlinear models of market integration. I utilize fully nonlinear semiparametric generalized additive models to evaluate the spatial integration of US cannabis markets. The results confirm important nonlinearities in price relationships. Nonlinear price transmission elasticities are derived from the nonparametric modeling results. The results suggest that California cannabis markets are largely integrated with states across the nation. I find that California, which is a leading cannabis exporter, plays a price leadership role. Production of cannabis in California far exceeds the amount that can be legally grown and sold, and much of this cannabis is exported to other states. Colorado, a second primary cannabis market, generally operates in isolation from cannabis markets in other states. The likely mechanism integrating cannabis markets is the thriving trade in illegal cannabis, which has long preceded recent state-level legislative actions that have legalized cannabis use.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"107 2","pages":"440-464"},"PeriodicalIF":4.2,"publicationDate":"2024-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ajae.12488","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141923875","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-saved seed, royalty rates, and innovation in plant breeding","authors":"Adrien Hervouet, Stéphane Lemarié","doi":"10.1111/ajae.12489","DOIUrl":"https://doi.org/10.1111/ajae.12489","url":null,"abstract":"<p>Seed innovation is one major factor for improving agricultural productivity. For some self-pollinated varieties, such as wheat, farmers have the option to buy certified seed from seed dealers or to use their own farm-saved seed. Historically, farmers could use farm-saved seeds for free, which led to reduced incentives to innovate for private breeding companies. In recent decades, several countries have established different royalty systems for farm-saved seeds to favor research investment. We developed a theoretical model to compare these different systems. We compared six stylized systems by analyzing their impact on incentives to innovate, as well as production efficiencies at both the seed and agricultural production levels. Our findings indicate that royalty systems allowing for a certain proportion of farm-saved seeds result in improved welfare. The systems that lead to the highest total welfare levels are those in which the royalty level on farm-saved seeds is regulated. This includes systems where the royalty is either directly defined by a regulator (as in the French or UK systems) or imposed to match the royalty level of the certified seeds (as in the Australian system). The Australian system performs better under high research costs. Conversely, under low research costs, the best system is either the French or the UK system, depending on the relative cost of producing farm-saved seeds versus certified seeds. In conclusion, it is possible to design efficient royalty systems to create and produce innovation, in a context where farmers can self-produce this innovation.</p>","PeriodicalId":55537,"journal":{"name":"American Journal of Agricultural Economics","volume":"107 2","pages":"465-503"},"PeriodicalIF":4.2,"publicationDate":"2024-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143404297","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}