Does population pressure induce farm intensification? Empirical evidence from Tigrai Region,Ethiopia

The scarcity of land for crop and livestock production is critical in countries with growing populations. The idea that increasing population density leads to natural resource depletion and economic failure, as predicted by Malthus, or rather to farm intensification, as hypothesized by Boserup, motivates this research. This article examines how high population pressure in northern Ethiopia influences smallholders’ farm intensification by applying recursive estimation with a control function approach using data from 518 randomly selected farmers. Although our empirical results are more in favor of the Boserupian hypothesis, the findings also reveal that both Malthusian and Boserupian forces coexist. Consistent with Malthus theory, high population pressure is found to be associated with small farm size and herd size. Population pressure affected both technology use (breed cow, stall feeding, and modern cattle feed) and output supply (milk yield, milk income, and straw output). As predicted by Boserup's theory, the use of modern input and output supply initially increases with increasing population pressure but declines again when population densities pass a critical threshold (800 persons/km²), supporting Malthus’ hypothesis. The estimation results also revealed that both milk and straw supply responded positively to prices. Free grazing and stall feeding are found to be complementary activities. Likewise, crop farm income and off‐farm job have a nonlinear relation with population pressure, implying that both initially increase and then decrease with rising population pressure.     

Transport scenarios in a company strategy

The environmental company strategy of the case company Oslo Sporveier includes scenarios for the development of person transport in Oslo up to year 2016. The basis for three different scenarios is described. This paper presents the use of scenarios as background for environmental reporting. Emissions, energy, land and time use from person transport in the three different scenarios were determined. The scenarios were (i) a private car scenario, where the main growth in person transport is to be met with a strong increase in the use of private cars, (ii) a public transport scenario, where the increase in person transport is to be taken care of with a strong increase in the public transport, and (iii) the sustainability scenario, with a reduction in total person transport, increased share of public transport and walking/bicycling, and reduced share of private car use. The total energy use, CO₂ emissions, NO_x emissions and particle emissions from person transport in Oslo are reduced in all three scenarios compared with the situation in 1996. The reduction is smallest in the private car scenario and largest in the sustainability scenario. The land use increases in the private car scenario and the public transport scenario, while there is a reduction in land use in the sustainability scenario. The total time consumption connected to person transport increases in all three scenarios. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.     

Wage Rigidity,Inflation, and Institutions

We study the possible existence of downward nominal wage rigidity (DNWR) at wage growth rates different from zero in aggregate data. Even if DNWR prevails at zero for individual workers, compositional effects might lead to falling aggregate wages, while changes in relative wages combined with DNWR might lead to positive aggregate wage growth. We explore industry data for 19 OECD countries, over the 1971–2006 period. We find evidence for a floor on nominal wage growth at 6 percent in the 1970s and 1980s, at 1 percent in the 1990s, and at 0.5 percent in the 2000s. Furthermore, we find that DNWR is stronger in country‐years with strict employment protection legislation, high union density, centralized wage setting, and high inflation.     

The case of the high-risk safety product

After several days of meetings, J.F. Winchester, president of MDC Industries, felt no closer to a decision. MDC, a manufacturer of wall and ceiling panels, was considering whether to exercise an option to buy a new and safer wallboard technology. The product was being touted as revolutionary, but, Winchester wondered, could MDC afford to carry the flag? According to its inventor, Robert Goerner, Smoke-Safe would be a vast improvement over standard safety-rated wallboard. With almost the same flame-retardant properties, Smoke-Safe had the advantage of giving off almost no fumes or smoke in fire tests. And, Winchester knew, most fire-related deaths are from smoke, not flames. Indeed, the numbers were grimly persuasive: 82% of fire-related injuries involving standard panels were caused by smoke inhalation. What's more, Smoke-Safe would cost about the same to manufacture as MDC's current wallboard. But MDC had several other good options for spending the $5 million Goerner was asking; building plastics was only one of its profit centers. And the prospect of launching a campaign to change building codes in order to market Smoke-Safe, which could spark a fight with competitors, was daunting. Since its current wallboard gave MDC only 18% of the wallboard market, many industry insiders speculated whether MDC had the market clout to influence major cities to revise their codes. Six experts in marketing, law, and ethics advise MDC Industries on how it can balance ethical and business imperatives in making its decision.     

Do fertilizer subsidies crowd out organic manures? The case of Malawi

We assess the impacts of the Malawian Farm Input Subsidy Program on manure use at the farm plot level using more than 3,000 farm plot observations from six districts in central and southern Malawi over three years (2006, 2007, and 2009). The probabilities and intensities of manure use were investigated with the correlated random effects (CRE) probit and tobit models. The endogeneity of access to fertilizer subsidies and fertilizer use intensity was controlled for with a control function approach. Both the probability of manure use and intensity of manure use were positively correlated with the intensity of fertilizer use. A 1% increase in fertilizer use intensity is associated with a 1.94%–1.96% increase in the intensity of manure use outside the subsidy program and a 0.62%–1.66% increase in manure use with the subsidy program. A 1% increase in average fertilizer price was associated with a 0.43%–0.76% increase in the probability of manure use and a 3.5%–5.3% increase in the intensity of manure use.     

Infant industry characteristics and decentralisation policy in South Africa∗

The policy of decentralisation of industry in South Africa is effected through a system of incentives and subsidies designed towards shifting resources from the urban areas to the rural areas. This paper examines this policy in the light of the infant industry argument for protection and its economic efficacy. In particular, the analysis is applied to a comparison of manufacturing industry in the Black States and in the rest of South Africa. Furthermore, the relationship between estimated differential subsidy rates granted to a sample of decentralised firms is examined in terms of their differential infant industry characteristics and capital intensity.