Willingness to Pay and QALYs: What Can We Learn about Valuing Foodborne Risk?

This paper examines the value of reducing foodborne risk. Previous research on the valuation of health risk has been dominated by the study of mortality risk. However, in most cases foodborne illnesses are non‐fatal, so we focus on individuals' preferences for reducing morbidity risk, while also including a realistic, if remote, chance of death. We use a contingent valuation method on a Swedish sample and we estimate a value of a statistical illness consistent with previous findings in the literature. We also examine how willingness to pay (WTP) varies with the expected change in quality‐adjusted life years (QALYs) and estimate the WTP per QALY. We find that WTP increases with, though less than proportionally to, a change in QALYs. However, our results also suggest that respondents may have found it difficult to evaluate compound risks of both morbidity and mortality simultaneously.     

What Do Farmers Want From Agri‐Environmental Scheme Design? A Choice Experiment Approach

Agri‐environmental schemes (AES) have had a limited effect on European agriculture due to farmers’ reluctance to participate. Information on how farmers react when AES characteristics are modified can be an important input to the design of such policies. This article investigates farmers’ preferences for different design options in a specific AES aimed at encouraging nitrogen fixing crops in marginal dry‐land areas in Spain. We use a choice experiment survey conducted in two regions (Aragón and Andalusia). The analysis employs an error component random parameter logit model allowing for preference heterogeneity and correlation amongst the non‐status quo alternatives. Farmers show a strong preference for maintaining their current management strategies; however, significant savings in cost or increased participation can be obtained by modifying some AES attributes.     

What Drives Marginal Abatement Costs of Greenhouse Gases on Dairy Farms? A Meta‐modelling Approach

This paper examines the relationships between the marginal abatement costs (MAC) of greenhouse gas (GHG) emissions on dairy farms and factors such as herd size, milk yield and available farm labour, on the one hand, and prices, GHG indicators and GHG reduction levels, on the other. A two‐stage Heckman procedure is used to estimate these relationships from a systematically designed set of simulations with a highly detailed mixed integer bio‐economic farm‐level model. The resulting meta‐models are then used to analyse how MAC vary across farm‐level conditions and GHG measures. We find that simpler GHG indicators lead to significantly higher MAC, and that MAC strongly increase beyond a 1–5% emission reduction, depending on farm attributes and the chosen indicator. MAC decrease rapidly with increasing farm size, but the effect levels off beyond a herd size of 40 cows. As expected, the main factors driving gross margins per dairy cow also significantly influence mitigation costs. Our results indicate high variability of MAC on real life farms. In contrast to time consuming simulations with the complex mixed integer bio‐economic programming model, the meta‐models allow the distribution of MAC in a farm population to be efficiently derived and thus could be used to upscale to regional or sector level.     

What carbon farming activities are farmers likely to adopt? A best–worst scaling survey

Transferring carbon from the atmosphere into terrestrial sinks through carbon sequestration practices (so-called ‘carbon farming’) has been proposed as an important component in Australia’s efforts to mitigate greenhouse gas emissions. We use a Best–worst scaling survey to determine which carbon sequestration practices farmers would be most and least likely to adopt, and what factors were most important in any potential adoption decision. The survey was distributed to dryland cropping and mixed crop-livestock farmers in Western Australia. Farmers ranked improved soil quality and reduced soil erosion as the most important potential co-benefits of carbon farming. Factors discouraging farmers from participating in carbon farming contracts were policy and carbon price uncertainty and the uncertain impact of carbon farming practices on productivity and profitability. Farmers had strong preferences for stubble retention and no-till cropping practices as carbon farming strategies. The practices that farmers preferred least were applying biochar and planting trees. Farm and farmer characteristics, including (lack of) awareness of carbon farming policies and opinions about climate change, influence the potential willingness to adopt different carbon farming practices. Given recent policy uncertainty and farmer preferences revealed in this study, it is important to communicate potential co-benefits (rather than opportunities to earn compensation or carbon credits) to increase farmers’ engagement in carbon sequestration activities.     

What is the most suitable methodological approach to demarcate peri-urban areas? A systematic review of the literature

Unexceptionally all metropolitan areas throughout the world are surrounded by peri-urban areas that are neither urban nor rural in the conventional sense. Peri-urban areas are transition spaces, where the changes in different land uses are incessantly occurring. Determining the boundaries of these areas are critical to develop appropriate policies to manage and preserve them. The perpetual transition in peri-urban landscapes makes the boundary demarcation of these areas highly difficult. This paper aims to answer the question of what the most suitable methodological approach to demarcate peri-urban areas is. In order to address this question, the study undertakes a systematic review of the relevant literature. The findings show that a generic method does not exist to demarcate peri-urban areas as characteristics of peri-urban areas are not uniform across the globe. This paper advocates that techniques for peri-urban demarcation should be geographically specific, and in every case the regional and local contexts–e.g., political system, institutional arrangement, societal characteristic, environmental qualities, and economic drivers that underpin the peri-urban development—should be considered. The study provides insights to policymakers in order to determine peri-urban boundaries by tailoring available peri-urban demarcation techniques to their regional and local contexts.     

Can carbon-trading schemes help to protect China's most diverse forest ecosystems? A case study from Xishuangbanna,Yunnan

Xishuangbanna has been largely transformed from biodiverse natural forests and mixed-use farms into monoculture rubber plantations in just twenty years. This conversion has expanded into forests previously protected by the community and onto marginal sites at high-elevation. Market-based ecosystem payments, especially carbon financing, are potential tools to prevent further forest loss in China. Here, we compare rubber net present value (NPV), carbon sequestration, and seed-plant species diversity for Xishuangbanna given three land-use scenarios: Business-As-Usual (BAU), Economic Oriented Scenario (EOS) and Conservation Oriented Scenario (COS) using a previously published spatial map of rubber profitability. The EOS achieved the greatest rubber profit but caused substantial reductions in natural forest area, biodiversity and carbon stocks. The EOS also requires substantial immigration of workers into a remote and ecologically important region with little social infrastructure for basic security, food security, health-care and education, causing frequently ignored costs. As expected, the COS will maintain the highest levels of natural forest area, sequester 57% more carbon, and 71% more biodiversity than EOS. Given the conservation value of the carbon stores and rich biodiversity residing in Xishuangbanna's natural forests, reducing rubber NPV only marginally would probably cost less than attempting to recover these resources. We recommend that rubber plantations be limited to established, productive lowland areas whilst protecting intact high-elevation forest and reforesting low-productivity plantations. These actions will enhance carbon sequestration and biodiversity conservation. Management policies focused solely on profits, like the EOS scenario, will fail to sustain the entire range of natural resources and ecosystem services. The prices in the carbon market would have to be considerably larger than they are currently to compete with the profitability of rubber.     

What does Malawi's Fertiliser Programme do to Private Sector Fertiliser Sales? A Quasi‐Experimental Field Study

Malawi implemented reforms to its Farm Input Subsidy Program (FISP) during the 2015/16 agricultural season that allowed certain large‐scale, private sector fertiliser dealers to sell subsidised fertiliser at their network of retail stores in select districts on a pilot basis. At the same time, small‐scale independent fertiliser dealers were excluded from participating in the pilot. We use a unique panel dataset of large‐scale corporate fertiliser dealers and small‐scale independent fertiliser dealers collected before and after the policy change to estimate the impacts of the FISP on those who participated in the pilot and those who did not, using a difference‐in‐differences estimator. Results indicate that large‐scale dealers who sold the FISP fertiliser under the pilot programme in 2015/16 did not have their commercial sales either crowded‐in or crowded‐out by the FISP pilot. Instead, the average volume of fertiliser sold at each of their retail stores increased by 59% due to an increase in subsidised fertiliser sales. Conversely, small‐scale independent fertiliser dealers who were not allowed participate in the pilot had their commercial sales crowded‐out by the programme. They experienced a 60% decline in the volume of commercial fertiliser sales on average at each store. This implies that the FISP reforms have mainly benefited large‐scale fertiliser dealers who sell 90% of the fertiliser in Malawi, but caused some harm to the many small‐scale independent fertiliser dealers who sell about 10% of the private sector's fertiliser in Malawi, but often operate their businesses in more remote areas.     

A Holistic vs. an Attribute‐based Approach to Agri‐Environmental Policy Valuation: Do Welfare Estimates Differ?

Different economic valuation methodologies can be used to value the non‐market benefits of an agri‐environmental scheme. In particular, the non‐market value can be examined by assessing the public’s willingness to pay for the policy outputs as a whole or by modelling the preferences of society for the component attributes of the rural landscape that result from the implementation of the policy. In this article we examine whether the welfare values estimated for an agri‐environmental policy are significantly different between an holistic valuation methodology (using contingent valuation) and an attribute‐based valuation methodology (choice experiment). It is argued that the valuation methodology chosen should be based on whether or not the overall objective is the valuation of the agri‐environment policy package in its entirety or the valuation of each of the policy’s distinct environmental outputs.     

Can life cycle assessment be used to evaluate plant breeding objectives to improve supply chain sustainability? A worked example using porridge oats from the UK

The challenge for agricultural production in the 21st century is to produce sufficient high-quality food whilst minimizing impact. Life cycle assessment (LCA) can help by identifying the parts of a supply chain with the greatest environmental impact, and to determine which technologies – for example plant breeding – may be most appropriately employed to minimize negative impacts. A ‘plough-to-plate’ LCA of a porridge oat production chain was undertaken using data that corresponds to the inputs and outputs of an indicative supply chain. The greatest environmental impact of the porridge oats life cycle occurs in crop production and cooking. There are traits for oats that are available for manipulation by plant breeders, which can influence these areas; these include yield, nitrogen use efficiency and beta-glucan content. Therefore plant breeding may be a useful strategy for improving the sustainability of the crop. However LCA cannot be a definitive tool to guide plant breeding and therefore this approach needs to compliment others. Nevertheless this study highlights that porridge oat supply chain sustainability would benefit from an integrated effort stretching from the geneticist to consumer; a finding that is likely to be relevant to other food supply chains.     

A model of the U.S. food system: What are the determinants of the state vulnerabilities to production shocks and supply chain disruptions?

We adapt a Ricardian general equilibrium model to the setting of U.S. domestic agri-food trade to assess states’ vulnerability to adverse production shocks and supply chain disruptions. To this end, we analyze how domestic crop supply chains depend on fundamental state-level comparative advantages—which reflect underlying differences in states’ cost-adjusted productivity levels—and thereby illustrate the capacity of states to adapt to and mitigate the impacts of such disruptions to the U.S. agricultural sector. Based on the theoretical framework and our estimates of the model's structural parameters obtained using data on U.S. production, consumption, and domestic trade in crops, we undertake simulations to characterize the welfare implications of counterfactual scenarios depicting disruptions to (1) states’ agricultural productive capacity, and (2) interstate supply linkages. Our results emphasize that the distributional impacts of domestic supply chain disruptions hinge on individual states’ agricultural productive capacities, and that the ability of states to mitigate the impacts of adverse production shocks through trade relies on the degree to which states are able to substitute local production shortfalls by sourcing crops from other states.