Impacts of agricultural price support policy on price variability and welfare: Evidence from China's soybean market

China is a predominant soybean importer; thus, its domestic soybean policies have a large impact on world soybean market dynamics. We develop the first aggregate structural econometric model of China's soybean market and link it to the rest of the world (ROW), which allows us to analyze the impacts of China's soybean price support policy that ran from 2008 to 2013. We investigate the impacts of China's policy on the variability of their domestic and world soybean prices, and adopt a Monte Carlo simulation to evaluate the effects on distributional and aggregate welfare. Our results indicate: (a) after China's soybean price support policy, price transmission elasticity decreases, China's domestic price variability decreases, and world price variability increases; (b) China's producer surplus increases, consumer surplus decreases and the net welfare change in their domestic market is negative; and (c) although soybean exporting countries in the ROW experience significant welfare gains, the world net welfare change is negative.     

Price and yield effects of spill-overs in international agricultural research: evidence from ICRISAT and Australia

International agricultural research aimed at improving productivity in developing countries also has spill-over effects on developed countries. Research that affects the supply of commodities is also likely to affect the world price of tradeable commodities. In this paper, the effects of spill-overs to Australia from successful cost-reducing research into sorghum and chickpeas at die International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) aimed at developing countries are assessed. Genetic materials developed and distributed through ICRISAT are used in Australia to increase productivity. The price-reducing effects of successful research are incorporated into the analysis of spill-over impacts on productivity. The net effects on welfare for producers and consumers of sorghum and chickpeas in Australia and the Rest of the World (ROW) are identified. The consequences of the impacts are discussed and the implications for further funding of international agricultural research are also discussed.     

Welfare Implications of a Preferential Tariff Reduction for Agricultural Exports from Less Developed Countries vs. a Generalized Tariff Reduction

The paper presents the results of a theoretical study focusing on a comparative evaluation of the welfare effects of a preferential tariff reduction for agricultural exports from less developed countries versus a generalized tariff reduction. The results are derived using a diagrammatic approach. The analysis is developed within a partial equilibrium framework with one commodity, three large countries (importing developed country, exporting developed country, developing country), fixed exchange rates and zero transportation costs. The theoretical model makes provisions for a country to switch from being an exporter to being an importer, or vice versa, as the equilibrium price changes. Three alternative policy scenarios are analyzed: the imposition of a non-discriminatory tariff, a preferential tariff reduction, and a generalized tariff reduction. Two alternative definitions of the welfare functions are used. One is based on consumers' and producers' surplus, the other adds domestic income and changes in foreign exchange earnings/expenditure. Some methodological implications of the specific model used are discussed, along with the impact, in terms of welfare, of the policy scenarios considered.     

Public Research Policy for Today's Agricultural Biotech Research Industry

While the public sector has historically played a very significant role in the direct provision of agricultural research, the appropriate role of government in the future is no longer apparent in a world with intellectual property rights (IPRs) and a concentrated privatized biotech research industry. This study develops a search/imperfect competition framework to examine the public role. The analysis shows that private firms have inadequate incentives to invest in research for varietal improvement relative to the social optimum even with completely enforceable IPRs. A government subsidy on research output can efficiently increase the amount of applied research to the socially optimal point. Government subsidy of the research cost can have the same effect on research and development expenditure. Expanding direct applied public research increases social welfare but cannot achieve a social optimum, as it reduces the already limited incentives for private firms to invest. Finally, in situations where basic research is underprovided, government should address these market failures as part of an optimal research policy. Overall, the analysis suggests that there is a role for public support of applied research, but this role is no longer direct public involvement in applied research where IPRs are well established.     

农村金融对减少贫困的作用研究

本文运用2000—2008年我国省级面板数据,检验了农村金融发展对减少农民贫困的作用。研究表明,我国农村金融发展对减少农民贫困的作用,既存在直接效应,也存在间接效应,而间接效应的作用明显高于直接效应。因此,政府在未来制定发展农村金融的政策过程中,应该将重点放在农村金融作用的间接效应上,而不是简单片面地强调直接效应,从而保证农村金融发展能够更加有效地实现减少农村贫困的战略目标。     

人格特质对茶农有机茶技术采纳的影响

根据福建省安溪县656份的问卷调查数据,基于大五人格特质理论,运用结构方程模型分析人格特质对茶农的有机茶技术采纳行为的影响。结果表明:安溪县茶农的经营特征与其所处的技术环境对有机茶技术采纳行为不存在显著直接效应,但都通过技术采纳态度对技术采纳的行为产生正向影响作用,其中有机茶技术采纳态度起完全中介作用;人格特质对有机茶技术采纳行为既存在直接正向预测作用,又通过有机茶技术采纳态度对技术采纳行为产生间接正向预测作用,并且间接效应大于直接效应,起中介变量的作用。因此,运用人格测评工具来发挥技术采纳者的性格优势在技术采纳过程中的作用,释放有机茶技术的生态溢出效应,将为有机茶技术推广研究提供新思路。     

Genetically Modified Crops and Product Differentiation: Trade and Welfare Effects in the Soybean Complex

A partial equilibrium four-region world trade model for the soybean complex is developed in which Roundup Ready (RR) products are weakly inferior substitutes to conventional ones, RR seeds are priced at a premium, and costly segregation is necessary to separate conventional and biotech products. Solution of the calibrated model illustrates how incomplete adoption of RR technology arises in equilibrium. The United States, Argentina, Brazil, and the Rest of the World (ROW) all gain from the introduction of RR soybeans, although some groups may lose. The impacts of RR production or import bans by the ROW or Brazil are analyzed. U.S. price support helps U.S. farmers, despite hurting the United States and has the potential to improve world efficiency.     

典型平原农区土地非农化对乡村发展影响的微观机理

深入探讨农区土地非农化对乡村发展的影响机理,是优化城乡土地资源配置、促进城乡一体化的重要途径。文章结合山东省禹城市与桓台县7个城郊型回迁社区、新型农村社区、传统型村庄的问卷调查与深度访谈资料,应用可行能力分析方法,从生态、社会及经济等3个维度构建了农户行为响应评价体系,分析了典型平原农区农户对土地非农化的行为响应特征,揭示了土地非农化对乡村发展的微观影响机理。研究表明:(1)土地非农化是城乡土地要素流动与空间重构的过程,对乡村发展的影响包括由城镇征地、村庄扩展与农村社区化产生的直接影响与城镇辐射的间接影响,提升或降低了农户行为主体的生态、社会及经济福利;(2)不同类型村庄对土地非农化直接影响的行为响应各不相同,其中,城镇征地对城郊型社区的影响最为剧烈,导致农户经济、生态福利的提升及社会福利的下降,传统型村庄受村庄扩展影响深远,降低了农户生态福利,新型农村社区具有较高的居住效用,有效提升了农户生态福利;(3)传统型村庄受土地非农化间接影响较强,经济福利得以显著提升,经济发达镇域辐射效应有效提升了新型农村社区农户的生态、经济及社会福利;(4)农户资源禀赋不同导致农户对土地非农化的行为响应存在差异;(5)适度推进城乡用地增减挂工程,调控城乡土地要素的合理流动。最后,该文提出了不同类型村庄的城乡一体化模式与调控路径。     

A general equilibrium analysis of conjunctive ground and surface water use with an application to Morocco

Groundwater resources (GW) account for nearly 30% of the world's sustainable water supplies. Yet, this resource, which is fraught with externalities, has largely been left unregulated. The economic literature on GW is predominantly of a partial equilibrium type. We analyze GW regulation in a general equilibrium setting, focusing on the stabilization value of GW under natural (drought) and economic (rural–urban water transfer) shocks. A general equilibrium approach allows evaluating direct and indirect effects of GW regulation on agriculture and nonagriculture sectors and extends the scope for water policy. The analysis is applied to Morocco by extending an existing computable general equilibrium (CGE) model to include ground and surface water (SW) resources. We study effects of (i) an increase in GW extraction cost (e.g., as a result of prolonged extraction beyond natural recharge that lowers the aquifer's water table), (ii) a transfer of SW from rural (irrigation) to urban (domestic) use, and (iii) a reduction of water availability due to severe drought. We estimate the value of GW and assess the direct (partial equilibrium) and indirect (general equilibrium) impacts. We find that GW plays a critical role in mitigating the negative effects of these types of shocks.     

土地利用对碳排放影响的作用机制和传导路径分析 ——基于结构方程模型的实证检验

研究目的：探索土地利用对碳排放影响的作用机制和传导路径,为制定土地调控碳减排政策体系提供科学依据,服务于碳中和目标。研究方法：理论框架构建法与结构方程模型相结合。研究结果：（1）农地非农化、土地出让市场化和土地开发强度是作为土地利用对碳排放影响的有效观测变量,我国省际层面土地利用对碳排放影响的总效应、直接效应和间接效应均表现为促进作用,总效应表现为土地利用水平提升1个单位,将促进碳排放增加0.159个标准单位,间接效应明显大于直接效应。（2）土地利用通过城市化、产业结构和经济增长三条路径对碳排放产生间接影响,其中,通过城市化和经济增长对碳排放表现为促进效应,影响大小分别为0.173和0.058个标准单位,通过产业结构对碳排放表现为抑制效应,影响大小为0.101个标准单位。研究结论：建立土地调控碳减排政策体系是推动碳中和目标实现的一项可行的重要手段,一方面可通过国土空间优化、生态红线划定和自然保护地整合等手段减少土地利用对碳排放的直接影响,另一方面可通过调控土地利用方式、规模、强度、结构等减少土地利用对碳排放的间接促进影响,激发土地利用的正向连锁效应。     

政府介入对政策性农业保险的运作效率影响的分析

本文从保费补贴和交易成本两个方面剖析了政策性农业保险运作效率的影响因素,认为诸多因素的共同作用决定了保费补贴的激励效果,也决定了实现既定参与率所需的财政补贴规模。同时,各种类型的交易成本通过直接或间接的方式影响着政策性农业保险的运作效率。因此,本文提出不同国家应根据本国国情确定合适的保费补贴政策。通过机制设计降低交易成本成为提高政策性农业保险运作效率的关键。     

近年来中国土地政策调控效果评价

研究目的：从直接效应和间接效应两个层面对近年来土地政策参与宏观调控的效果进行测度和评价。研究方法：文献资料法、因果分析法和统计推断法。研究结果：近年来土地宏观调控取得显著成效,基本达到预期的政策目标。研究结论：今后应进一步调整和完善土地宏观调控政策,把促进就业和人口城市化纳入土地宏观调控政策的目标控制体系。     

What is the Appropriate Counterfactual When Estimating Effects of Multilateral Trade Policy Reform?

Multilateral trade reforms, such as may eventually emerge from the WTO's Doha Development Agenda (DDA), tend to be phased in over a decade or so after agreement is reached. Given the DDA's slow progress, that implementation may not be completed before the end of the next decade. Ex‐ante analysis of the DDA's possible effects thus requires first modelling the world economy to 2030 and, in that process, projecting what trade‐related policies might be by then without a DDA. Typically, modellers assume the counterfactual policy regime to be a ‘business‐as‐usual’ projection assuming the status quo. Yet we know developing country governments tend to switch from taxing to assisting farmers in the course of economic development. This paper shows the difference made by including political economy‐determined agricultural protection growth endogenously in the baseline projection. We reveal that difference by projecting the world economy to 2030 using the Global Trade Analysis Project (GTAP) model with those two alternative policy regimes and then simulating a move to global free trade (the maximum benefit from a multilateral trade reform) in each of those two cases. The welfare effects of removing the counterfactual price distortions in 2030 are shown to be much larger in the case where agricultural protection grows endogenously than in the case assuming no policy changes over the projection period. This suggests the traditional way of estimating effects of a multilateral agricultural trade agreement may considerably understate the potential welfare gains.     

Status and financial performance of organic vegetable farming in northeast Thailand

In line with the national sustainable agriculture development policy of the Government of Thailand, organic vegetable farming (OVF) promotion projects have been implemented in several provinces of the country. Based on data collected through a questionnaire survey of 172 sample vegetable farmers in Mahasarakham Province of northeast Thailand, this study firstly assessed the status of OVF and then, analyzed the financial performance of three main vegetables cultivated, namely: morning glory, green onion and Chinese kale. Finally, sensitivity analyses of the financial performances for all three vegetables were conducted under four assumed scenarios with respect to price of synthetic fertilizers and pesticides, and yield and price of organic vegetables. The findings of the analysis on the status of OVF revealed that organic vegetable farms accounted for very small percentage of the total area used for all vegetables in the study area. Results of the financial analysis also showed that OVF was much less financially attractive than conventional vegetable farming due to low yield which usually does not come with premium price of the vegetables. Still farmers are growing organic vegetables on small scale primarily for household consumption. The findings of the sensitivity analyses indicated that the removal of direct or indirect subsidies for synthetic fertilizers and pesticides, and appreciation in the yield and price of organic vegetables can enhance the financial performance of OVF. In view of the possible rejection of radical policies that encourage OVF by discouraging conventional vegetable farming, this study suggests appropriate policy measures that could directly provide incentives for organic vegetable production and consumption.     

The Impact of an EU–US Transatlantic Trade and Investment Partnership Agreement on Biofuel and Feedstock Markets

We assess the impact of a potential TTIP bilateral free trade agreement on the EU and US bio‐economies (feedstock, biofuels, by‐products, and related competing crops) and major trade partners in these markets. The analysis develops a multi‐market model that incorporates bilateral trade flows (US to EU, EU to US, and similarly with third countries) and is calibrated to the OECD‐FAO baseline for 2013–2022 to account for recent policy decisions. The major policy reforms from a TTIP involve tariff and TRQ liberalisation and their direct contractionary impact on US sugar supply, EU biofuel production, and indirect negative effect on US high fructose corn syrup (HFCS) production. EU sugar and isoglucose production expand along with US ethanol and biodiesel and oilseed crushing. EU sugar would flow to the US, US biofuels and vegetable oil to the EU. We further quantify non‐tariff measures (NTM) affecting these trade flows between the EU and the US. EU oilseed production contracts, and EU crushing expands with improving crushing margins following reduced NTM frictions. Our analysis reveals limited net welfare gains with most net benefits reaped by Brazil and not the two trading partners of the TTIP.     

Global market shocks and poverty in Vietnam: the case of rice

World food prices have experienced dramatic increases in recent years. These “shocks” affect food importers and exporters alike. Vietnam is a major exporter of rice, and rice is also a key item in domestic production, employment, and consumption. Accordingly, rice price shocks from the world market have general equilibrium impacts and as such, their implications for household welfare are not known ex ante. In this article, we present a framework for understanding the direct and indirect welfare effects of a global market shock of this kind. We quantify transmission of the shock from global indicator prices to domestic markets. Then we use an applied general equilibrium model to simulate the economic effects of the price changes. A recursive mapping to a nationally representative household living standards survey permits us to identify in detail the ceteris paribus effects of the shock on household incomes and welfare. In this analysis, interregional and intersectoral labor market adjustments emerge as key channels transmitting the effects of global price shocks across sectors and among households.     

Impact of the Sloping Land Conversion Program on rural household income: An integrated estimation

The objective of this study is to identify the pathways of the potential impacts of the Sloping Land Conversion Program (SLCP) on household income and quantify these impacts along the identified pathways. We fulfill this objective by developing an integrated analytic framework and using data collected from Wuqi county of Shaanxi for the period 2004–2010. This integrated analytic framework enables us to formulate a structural equation model for testing hypotheses regarding the direct and indirect impacts of the SLCP. It is found that the direct effect of the SLCP on household income is positive but very small and insignificant, suggesting that retiring cropland has, at least, not reduced income from farming. Moreover, the SLCP has had a much higher and even increasing indirect impact on household income through promoting labor transfer and relaxing liquidity constraints. Overall, the SLCP's total impact on household income ranged from 3% in 2004 to 9% in 2010 excluding the insignificant direct impact. The research and policy implications of our work are discussed.     

Explaining National Border Effects in the QUAD Food Trade

Using a ‘structural’ gravity‐like model, this paper first provides estimates of bilateral ‘border effects’ in food trade among the QUAD countries (the US, Canada, Japan and the EU) at the ISIC (International Standard Industrial Classification) four‐digit level (18 food sectors). It then investigates the underlying reasons for border effect, assessing the role played by policy barriers (tariffs, non‐tariff barriers to trade (NTBs) and domestic support) with respect to barriers unrelated to trade policy, such as information‐related costs, cultural proximity and preferences. In contrast to several previous findings, our results show that policy trade barriers, especially in the form of NTBs, are part of the story in explaining national border effects. Interestingly, in all country pair combinations, NTBs significantly dominate the trade reduction effect induced by tariffs. However, results show that elements linked to information‐related costs and consumer preferences matter a great deal in explaining the magnitude of border effects. These findings have implications for the economic and welfare‐related significance of national borders.     

Ex Ante Research Evaluation and Regional Trade Flows: Maize in Kenya

Public sector investment in agricultural research is an important component of developing country efforts to bolster staple cereal production in the face of rapid population growth. This paper uses a spatial equilibrium model to evaluate the potential impact of maize research in six regions of Kenya. The application highlights the important role of research in meeting future food needs, as well as the geographic variability of producer and consumer benefits from technology and trade policy options. Despite significant research induced supply shifts, Kenya will require additional production increases of 1.5 to 2 per cent per year to meet stated goals of self-sufficiency in maize production with open markets. Import restrictions can ensure self-sufficiency and generate producer welfare gains at greater expense to the majority of Kenyans who are net consumers of maize. In the debate over trade policy, public sector investments in maize research should be seen as a potential mechanism to compensate producers for welfare losses associated with market liberalisation.     

A MODEL OF THE COMMON AGRICULTURAL POLICY

Several efforts have been made since 1980 to estimate the costs and benefits of the European Community's Common Agricultural Policy (CAP). This paper summarises the approach and method adopted in developing one such effort, which aims to provide results at country, commodity and interest group level both for the CAP as a whole, and for changes in it. Economic analysis of the effects of price changes in the CAP is carried out with the use of direct and crossprice elasticities of supply and demand for sixteen major commodities, using base levels of production, consumption, and gross trade flows in each member state, along with rest-of-world data. A number of CAP instruments, such as subsidies, levies, quotas and ‘green’ exchange rates, are built into the calculations and can be varied, along with support prices, to produce new situations in domestic markets and in world price levels. Both financial (budgetary) and welfare (economic surplus) effects of such exogenous price changes can be calculated. Certain policy changes, such as a move to ‘free’ markets, involve endogenous calculation of equilibrium prices. Trend projections subject to a priori constraints are used to produce results for years beyond the extent of data currently available. The types of model run commonly carried out are discussed, along with several strategic judgments that became necessary in carrying out the research. Finally, questions concerning the future development and use of the model are addressed.