Technology,production environment,and household income: Assessing the regional impacts of technological change

This paper clarifies the factors determining the welfare effects of improved agricultural technologies when technology diffusion is unevenly distributed across production environments Household-level income effects are shown to depend primarily on: (a) whether the economy is open or closed with respect to world markets; (b) whether households are net consumers or net producers of the commodity for which technological change occurs; (c) whether households are adopters or non-adopters of the new technology; (d) the degree to which labor is mobile across agricultural regions; and (e) government intervention in commodity and/or factor markets. A review of recent empirical work indicates considerable variation in the relative strength of these various factors across countries, and that assumptions regarding the mechanism by which commodity prices are determined – endogenously as in a closed economy, or exogenously as in an open economy – is especially critical.     

Effect of modern rice varieties and irrigation on household income distribution in Nepalese villages

Since high-yielding modern rice varieties (MVs) are adopted only in favorable production environments, significant regional productivity differentials have emerged in Nepal. This study explores the distributional consequences of such differential MV adoption based on an intensive survey of favorable and unfavorable villages. We found that MV adoption increased returns to land but decreased family labor earnings from rice production, as it facilitated the substitution of hired for family labor. As a result, the differential MV adoption did not significantly worsen the household income distribution according to the results of the counterfactual Gini decomposition analysis.     

Production efficiency of Chinese agriculture: evidence from rural household survey data

A shadow-price profit frontier model is developed to examine production efficiency of Chinese rural households in farming operations. The model incorporates price distortions resulting from imperfect market conditions and socioeconomic and institutional constraints, but retains the advantages of stochastic frontier properties. The shadow prices are derived through a generalized profit function estimation. The shadow-price profit frontier is then estimated and an efficiency index based on the estimated profit frontier is computed and decomposed to household characteristics. Empirical results using data from China's Rural Household Survey for 1991 reject the neoclassical profit maximization hypothesis based on market prices in favor of the general model with price distortions. Farmers' resource endowment and education influence their response to the market restrictions, thus alter their performance in terms of efficiency. The estimated efficiency index ranges from 6% to 93% with a sample average of 62%. Households' educational level, family size and per capita net income are positively related to production efficiency. Households living in mountain areas or with family members employed by the government or state industries are relatively inefficient. Reducing market intervention, allowing right of use of farm land to be transferred among households, encouraging migration of excess farm labor, and promoting farmers' education will improve rural households' efficiency in agricultural production.     

Strategies to increase agricultural productivity and reduce land degradation: evidence from Uganda

This paper estimates a structural econometric model of household decisions regarding income strategies, participation in programs and organisations, crop choices, land management, and labour use, and their implications for agricultural production and soil erosion; based upon a survey of over 450 households and their farm plots in Uganda. Many factors have context-specific impacts and involve trade-offs between increasing production and reducing land degradation. Government agricultural extension and training programs contribute to higher value of crop production in the lowlands, but to soil erosion in the highlands. By contrast, non-governmental organization (NGO) programs focusing on agriculture and environment help to reduce erosion, but have less favourable impacts on production in the lowlands. Education increases household incomes, but also reduces crop production in the lowlands. Poverty has mixed impacts on agricultural production, depending on the nature of poverty: smaller farms obtain higher crop production per hectare, while households with fewer livestock have lower crop production. Population pressure contributes to agricultural intensification, but also to erosion in the densely populated highlands. Several household income strategies contribute to increased value of crop production, without significant impacts on soil erosion. We find little evidence of impact of access to markets, roads and credit, land tenure or title on agricultural intensification and crop production and land degradation. In general, the results imply that the strategies to increase agricultural production and reduce land degradation must be location-specific, and that there are few 'win-win' opportunities to simultaneously increase production and reduce land degradation.     

Courts and contract enforcement in transition agriculture: theory and evidence from Poland

The paper investigates theoretically and empirically the role of courts for contract enforcement in transition agriculture. In a survey of 306 Polish farmers conducted in 1999, only 38.5% respondents reported to believe that they could use courts to enforce contracts with their most important customer. Furthermore, those who believed the legal system could be used would accept significant financial losses before taking action. We develop a theoretical model, based on the costs and benefits of court enforcement, which captures the boundary between contracts to be regarded as 'enforceable' and 'not-enforceable' and, simultaneously, the threshold of taking legal action. The empirical analysis strongly supports our model: (1) the farmers' responses can be explained by cost-benefit calculations regarding the use of courts, (2) the legal 'enforceability' of contracts depends not only on the efficiency of the legal system but also on the attributes of the transaction, the contracts and the relationship between buyer and seller and (3) the threshold of taking legal action is significantly influenced by indirect costs of court enforcement, such as the disruption of a valuable business relationship, and by the availability of alternative enforcement mechanisms.     

西部城市少数民族家庭收入与消费调查报告——以兰州市为例

甘肃省兰州市是多个少数民族聚集的城市之一,每一个少数民族家庭又是城市的一个重要组成单元,少数民族家庭的经济状况也是直接关系整个城市的稳定与发展。学术界对城镇居民经济情况研究较多,但针对家庭经济状况尤其是少数民族家庭经济状况的研究甚少。为此,本文通过对兰州市三个区的200户少数民族家庭收入结构、消费储蓄结构、消费支出结构、投资积累结构、基本生活状况争睛况作了调查研究。     

The effects of current income and expected change in future income on stated preferences for environmental improvements

We formulate and test the hypothesis that expectations regarding changes in future income influences the WTP for environmental goods. For valuation of environmental goods in forests and other habitats in Denmark, we find that both current income and expected changes in future income are significant determinants for preferences. The effect of income on WTP seems to be caused by changes in preferences for environmental attributes rather than by marginal utility of income. The results suggest that to evaluate the distributional impacts of environmental improvements, researchers need a better measure of expected future consumption options than current income.     

Towards productive landscapes: Trade-offs in tree-cover and income across a matrix of smallholder agricultural land-use systems

One of the main causes of tropical forest loss is conversion to agriculture, which is constantly increasing as a dominant land cover in the tropics. The loss of forests greatly affects biodiversity and ecosystem services. This paper assesses the economic return from increasing tree cover in agricultural landscapes in two tropical locations, West Java, Indonesia and eastern Bangladesh. Agroforestry systems are compared with subsistence seasonal food-crop-based agricultural systems. Data were collected through rapid rural appraisal, field observation, focus groups and semi-structured interviews of farm households. The inclusion of agroforestry tree crops in seasonal agriculture improved the systems’ overall economic performance (net present value), even when it reduced understorey crop production. However, seasonal agriculture has higher income per unit of land area used for crop cultivation compared with the tree establishment and development phase of agroforestry farms. Thus, there is a trade-off between short-term loss of agricultural income and longer-term economic gain from planting trees in farmland. For resource-poor farmers to implement this change, institutional support is needed to improve their knowledge and skills with this unfamiliar form of land management, sufficient capital for the initial investment, and an increase in the security of land tenure.     

How to define and study farmers' management capacity: theory and use in agricultural economics

Textbooks and articles on farm management stress the importance of the management capacity of the farmer with respect to his farm results. However, explicit definitions together with an elaboration of this concept are hard to find. In this article, aspects of management capacity are grouped into: (1) personal aspects, consisting of fanner's drives and motivations, fanner's abilities and capabilities and his biographical facts such as age and education; and (2) aspects of the decision-making process, consisting of practices and procedures with respect to planning, implementation and control of decisions at the farm. Empirical studies on the role of management capacity in relation to farm results are reviewed. Frontier production functions are widely used in recent literature to estimate technical and economic efficiency of farms. However, in explaining differences in efficiency most studies do not go further than adding a biographical variabk (e.g., level of education). This study concludes that a next step would be to include aspects of the decision-making process. Longitudinal on-farm observations, which give possibilities for studying the dynamic aspects of the decision-making, are suggested to further analyze the concept of management capacity.     

Farm-scale ecological and economic impacts of agricultural change in the uplands

Recent decades have witnessed substantial losses of biodiversity in Europe, partly driven by the ecological changes associated with intensification of agricultural production. These changes have particularly affected avian (bird) diversity in marginal areas such as the uplands of the UK. Future trends for upland birds will likely be impacted by changes in agricultural support regimes, such as those currently envisaged in on-going reforms of the Common Agricultural Policy. We developed integrated ecological-economic models, using seven different indicators of biodiversity based on avian species richness and individual bird densities. The models represent six different types of farms which are typical for the UK uplands, and were used to assess the outcomes of different agricultural futures. Our results show that the impacts of these future agricultural scenarios on farm incomes, land use and biodiversity are very diverse across policy scenarios and farm types. Moreover, each policy scenario produces un-equal distributions of farm income changes and gains and losses in alternative biodiversity indicators. This shows that generalisations of the effects of policy and pricing changes on farm incomes, land uses and biodiversity can be misleading. Our results also suggest that a focus on umbrella species or biodiversity indicators (such as total species richness) can miss important compositional effects.     

中国小麦生产的技术进步模式研究

本文利用1990-2004年中国小麦生产的省区面板数据，估算这个时期的年均技术进步率，并利用特定的生产函数E—S模型测算小麦生产生物化学型技术进步指数和机械型技术进步指数，对比全国及小麦主产省份土地生产率和劳动生产率指数的变化。结果表明，该时期小麦生产呈现机械型技术进步为主的发展模式；技术进步和物质投入的增加是我国小麦单产持续增长的两大因素。未来为保证小麦单产的持续增长，必须加大对小麦生物化学型技术研发的投入，突破技术限制，为未来提供技术储备。     

Cultivated land conversion and potential agricultural productivity in China

In China there is a growing debate on the role of cultivated land conversion on food security. This paper uses satellite images to examine the changes of the area of cultivated land and its potential agricultural productivity in China. We find that between 1986 and 2000 China recorded a net increase of cultivated land (+1.9%), which almost offset the decrease in average potential productivity, or bioproductivity (−2.2%). Therefore, we conclude that conversion of cultivated land has not hurt China's national food security. We also argue that more recent change in cultivated area likely has had little adverse effect on food security.     

Reshaping the global agricultural landscape: perspectives from Brazil

This article highlights the main changes observed in Brazilian agriculture and analyzes the connections of the observed changes in global agriculture. My approach to the analysis focuses the main drivers of changes, where institutions play a central role. Three driving forces are are considered: first, the effects of global demand for food, fiber, and energy; second, the sustainability debate; and third, the bio‐energy paradigm. Each driver presents both local as well as global effects. The article does not emphasize the impact changes in Brazil had on the global agricultural landscape but argues that the impacts run from local and global changes, which cannot be discussed separately.