Agriculture Under the Public Eye: Who Cares for What

Agriculture Under the Public Eye: Who Cares for What? The new CAP is becoming geared towards a more sustainable agriculture that takes account of the needs of future generations. Achieving sustainability, however, means meeting three challenges-, (a) profit - strengthening the viability and competitiveness of the agricultural sector; (b) planet - the ecological challenge of promoting good environmental practices; and (c) people-the social challenge to improve the living conditions and economic opportunities in rural areas. In the food chain we see responses to consumer concerns about food safety, quality and welfare issues through the development and implementation of mandatory and voluntary quality control and assurance schemes. And the consolidation and internationalisation of the food retailing and the manufacturing industry is expected to continue. An important duality has emerged. On the one side, we find a state system of regulation, on the other a system of self-regulation, largely driven by the major forces in supply chain management, the food retailers in particular. A simple and effective regulatory environment for the agri-food complex is essential if we are to achieve our competitiveness goals. One of the priorities for discussion by politicians, therefore, should be whether current and expected policy and industry developments should lead to a review of the balance between markets and government, ‘who cares for what?’ l'agriculture aux yeux des politiques publiques qui doit faire quoi? La nouvelle PAC est maintenant bien orientée vers une agriculture plus durable, en mesure de tenir compte des besoins des générations futures. Une véritable durabilityé suppose cependant que soient relevés trois défis: a) le profit - renforcer la viabilityé et la compétitivité du secteur agricole; b) la planète - le défiécologique de promouvoir des pratiques favorables à l'environnement; c) les gens - le défi social d'améliorer les conditions de vie et les opportunités économiques dans les zones rurales. Du côté des filières alimentaires, la réponse à trouver aux inquiétudes des consommateurs vis à vis de la qualityé sanitaire et organoleptique des produits devrait pouvoir venir de l'élaboration de contrôles de qualityé et de systèmes d'assurances, à appliquer sur la base du volontariat ou à rendre obligatoires. En même temps, il faut s'attendre à la continuation du mouvement vers l'affermissement du rôle des industries alimentaires et du commerce de détail, ainsi qu'à leur internationalisation. Un système dual vient d'émerger: d'un côté, un système de réglementations étatiques, de l'autre, une autodiscipline, pilotée par les plus solides des maillons de la filière, en particulier les grandes surfaces. Un environnement réglementaire à la fois simple et efficace est essentiel pour atteindre l'objectif de compétitivité du complexe agroalimentaire, II en résulte que, pour les pouvoirs publics, une des grandes questions à discuter est de savoir dans quelle mesure l' évolution des conditions politiques et celle du développement industriel imposent une révision de l'équilibre actuel entre les marchés et les autorités gouvernementales; en d'autres termes, qui doit faire quoi ? Landwirtschaft in der öffentlichen Meinung; Wer ist wofür zuständig? Die neue GAP wird gerade auf eine nachhaltigere Landwirtschaft hin ausgerichtet, welche die Bedürfnisse der kommenden Generationen berücksichtigt. Nachhaltigkeit kann jedoch nur erzielt werden, wenn den folgenden drei Herausforderungen Rechnung getragen wird: (a) Ökonomie – Stärkung der Leistungs- und Wettbewerbsfähigkeit des Landwirtschaftssektors; (b) Ökologie – Förderung umweltgerechter Verfahrensweisen; und (c) Soziales - Verbesserung der Lebensbedingungen und der wirtschaftlichen Lage im ländlichen Raum. Im Bereich der Nahrungsmittelkette wird den Bedenken der Verbraucher hinsichtlich der Nahrun gsmittelsicherheit, der Qualität und der Wohlfahrt durch die Entwicklung und Implementierung von obligatorischen und freiwilligen Qualitätskontrollen und Sicherheitsprogrammen Rechnung getragen. Es ist davon auszugehen, dass sich die Konsolidierung und Lnternationalisierung im Bereich des Lebensmitteleinzel-handels und der weiterverarbeitenden Industrie fortsetzen wird. Es ist eine bedeutsame Dualität entstanden. Auf der einen Seite erfolgt eine Regulierung seitens des Staates, auf der anderen Seite erfolgt eine Selbstregulierung durch die Vermarktungskette, insbesondere durch den Lebensmitteleinzelhandel. Eine sowohl einfache als auch wirksame Regulierung der Agrar- und Ernährungswirtschaft ist von grundlegender Bedeutung für das Erreichen unserer Wettbewerbsziele. Daher sollte in der Politik mit Priorität diskutiert werden, ob die gegenwärtige und zukünftige Politik und auch die industrielle Entwicklung zu einem neuen Gleichgewicht zwischen Markt und Staatseingriffen führen sollte: Wer ist wofür zuständig?     

On the conceptualization of theoretical constructs

An attempt is made to bridge the gap between the theorists and modellists approaches to the conceptualization of theoretical constructs. The former approach assumes that every theoretical construct has a surplus meaning over and above its operationalization and measurement as a concept. The latter approach denies this: it only accepts theoretical constructs as functions of relations between observations, i.e. measured concepts.This gap can be bridged by explicating the definition of a theoretical construct before making attempts to operationalize and measure it. An explicated definition should cover all relevant aspects (or: facets) of a construct, systematically brought together in an ideal type model. On this basis, operationalization of the construct can be directly linked to model elements, so that any possibly remaining surplus value is made explicit. The distance between theoretical construct and the measured concept can then be made as small as seems feasible; in principle, the distance can be made zero. The manner in which conservative ideology is conceptualized in a longitudinal research project in the Dutch electorate is presented as an example of this strategy.     

Evolution of harvesting strategies: replicator and resource dynamics

Abstract. Economic theories of managing renewable resources, such as fisheries and forestry, traditionally assume that individual harvesters are perfectly rational and thus able to compute the harvesting strategy that maximizes their discounted profits. The current paper presents an alternative approach based on bounded rationality and evolutionary mechanisms. It is assumed that individual harvesters face a choice between two harvesting strategies. The evolution of the distribution of strategies in the population is modeled through a replicator dynamics equation. The latter captures the idea that strategies yielding above average profits are demanded more than strategies yielding below average profits, so that the first type ends up accounting for a larger part in the population. From a mathematical perspective, the combination of resource and evolutionary processes leads to complex dynamics. The paper presents the existence and stability conditions for each steady-state of the system and analyzes dynamic paths to the equilibrium. In addition, effects of changes in prices are analyzed. A main result of the paper is that under certain conditions both strategies can survive in the long-run. Correspondence to: J. Noailly     

The influence of contractual and relational factors on the effectiveness of third party logistics relationships

Outsourcing has become popular in both management literature and practice, but few studies have examined the effects of two important and potentially complementary elements – contractual and relational elements – on the effectiveness of logistics outsourcing relationships. It is theorized that contract formality, the thoroughness of contract negotiations, trust and commitment increase the effectiveness of 3PL provider–client relationships. For empirical validation a survey was carried out in the 3PL industry among both 3PL providers and clients. Using PLS path modelling, we observed that for both LSPs and clients, contract formality, trust and commitment are all positively related to relationship effectiveness. The results for negotiation thoroughness are mixed. The model explains 59% (LSPs) and 60% (clients) of the variance in relationship effectiveness. It is concluded that both ‘hard’ contractual aspects and ‘soft’ relationship aspects are important for effective supply chain collaboration. Theoretical and managerial implications are provided.     

Spatial patterns of biodiversity conservation in a multiregional general equilibrium model

Migration dynamics and local biodiversity are interrelated in a way that is likely to affect patterns of regional specialisation. We assess this relationship with a New Economic Geography model that has been extended with biodiversity. Biodiversity is heterogeneous, and responds to habitat availability. The results indicate that a symmetric pattern of regional specialisation is more likely, and that additional equilibria may emerge as the marginal utility of biodiversity increases. In the policy analysis we focus on the case where the overall social optimum is symmetric and show that it can be supported as a non-cooperative Nash equilibrium. However, multiple Nash equilibria may exist.     

Spatial Evolution of Social Norms in a Common-Pool Resource Game

We study the conditions for the emergence of cooperation in a spatial common-pool resource (CPR) game. We consider three types of agents: cooperators, defectors and enforcers. The role of enforcers is to punish defectors for overharvesting the resource. Agents are located on a circle and they only observe the actions of their two nearest neighbors. Their payoffs are determined by both local and global interactions and they modify their actions by imitating the strategy in their neighborhood with the highest average payoffs on average. Using theoretical and numerical analysis, we find a large diversity of equilibria to be the outcome of the game. In particular, we find conditions for the occurrence of equilibria in which the three strategies coexist. We also derive the stability of these equilibria. Finally, we show that introducing resource dynamics in the system favors the occurrence of cooperative equilibria.      

Preparing for catastrophic climate change

We study optimal adaptation to climate change when the harmful consequences of global warming are associated with uncertain occurrence of abrupt changes. The adaptation policy entails the accumulation of a particular sort of capital that will eliminate or reduce the catastrophic damage of an abrupt climate change when (and if) it occurs. The occurrence date is uncertain. The policy problem involves balancing the tradeoffs between the (certain) investment cost prior to occurrence and the benefit (in reduced damage) that will be realized after the (uncertain) occurrence date. For stationary economies the optimal adaptation capital converges monotonically to a steady state. In most cases, investment begins immediately. However, if the initial adaptation capital exceeds a pre-specified threshold level, which lies above the optimal steady state, investment is delayed while the capital stock decreases (due to depreciation) and commences only when it reaches this threshold level. For growing economies the optimal adaptation capital stock approaches the maximal economic level above which further accumulation is ineffective.     

The optimal depletion of exhaustible resources: A complete characterization

We provide the closed form solution to the Dasgupta–Heal–Solow–Stiglitz (DHSS) model. The DHSS model is based on the seminal articles Dasgupta and Heal, 1974, Solow, 1974 and Stiglitz (1974) and describes an economy with two assets, man-made capital and a nonrenewable resource stock. We explicitly characterize, for such an economy, the dynamics along the optimal trajectory of all the variables in the model and from all possible initial values of the stocks. We use the analytical solution to prove several properties of the optimal consumption path. In particular, we show that the initial consumption under a utilitarian criterion starts below the maximin rate of consumption if and only the resource is abundant enough and that under a utilitarian criterion, it is not necessarily the present generation that benefits most from a windfall of resources.     

Characterizing the sustainability problem in an exhaustible resource model

We provide a general condition under which consumption can be sustained indefinitely bounded away from zero in the continuous time Dasgupta–Heal–Solow–Stiglitz model, by letting augmentable capital substitute for a non-renewable resource. The assumptions made on the production function are mild, thus generalizing previous work. By showing that Hartwick?s rule minimizes the required resource input per unit of capital accumulation, and integrating the required resource input with respect to capital, we obtain a complete technological characterization without reference to the time path. We also use the characterization result to establish general existence of a maximin path.