Farmers,Biodiversity and Plant Protection: Developing a Learning Environment for Sustainable Tree Cropping Systems

More diverse, perennial cropping systems often have better natural mechanisms for keeping pests at bay. But while scientists emphasise the broad benefits of conservation in terms of effective ecosystem functioning, farmers are more interested in biodiversity for the provision of food or of services such as shade or windbreaks. Because of their limited knowledge of the role of biodiversity in plant protection, farmers sometimes unconsciously disturb natural regulatory mechanisms. Some citrus farmers in Vietnam introduced sapodilla as an intercrop to diversify their source of income, and because this fruit tree requires little care. However, this apparently worthwhile attempt to combine two valuable crops has misfired. The ecological conditions that traditionally sustained natural pest control in citrus have been disturbed, thus trapping farmers in the pesticide treadmill. The weaver ant Oecophylla smaragdina stopped protecting citrus from stinkbugs and leaf-feeding caterpillars after facing competition from the black ant Dolichoderus thoracicus, which favours sapodilla trees as a nesting habitat. To avoid similar scenarios in the future, methods for linking scientific research on ecosystem functions with farmers' own knowledge, experience and priorities are presented. Examples are given of ways in which farmers in perennial cropping systems learn, and how scientists can facilitate this learning process.     

Structural models of complementary choices

This article reviews the rapidly growing literature on structural models of complementary choices. It discusses recent modeling developments and identifies promising areas for future research.     

Smallholders download and share videos from the Internet to learn about sustainable agriculture

Of 1,211 farmers and their representatives registered on www.accessagriculture.org, 142 participated in an on-line survey in November 2017, designed to learn farmer’s opinions of Access Agriculture, an NGO which hosts a digital platform where anyone can watch or download videos and other information for free. These farmer learning videos all convey practical information on sustainable agricultural innovations, to encourage farmer experiments. Previous experience showed that smallholders liked having their own copy of videos (e.g. on DVD), but this study showed that farmers are now starting to find their own way to the internet to pro-actively search for information. Although some farmers learn about on-line videos by social contacts, most of the farmers found the videos on www.accessagriculture.org by surfing the web. This suggests that limitations of reaching farmers with traditional forms of video distribution (e.g. DVDs and village screenings) will be partly overcome by the Internet. Youth have become the new information brokers for communities, as elders may lack the digital technology skills needed to use the Internet to get agricultural information. To share videos with other community members, youth will benefit from additional tools, such as an app, to allow easy download and sharing with limited data consumption.     

Adding and subtracting Black-Scholes: A new approach to approximating derivative prices in continuous-time models

We develop a new approach to approximating asset prices in the context of continuous-time models. For any pricing model that lacks a closed-form solution, we provide a closed-form approximate solution, which relies on the expansion of the intractable model around an “auxiliary” one. We derive an expression for the difference between the true (but unknown) price and the auxiliary one, which we approximate in closed-form, and use to create increasingly improved refinements to the initial mispricing induced by the auxiliary model. The approach is intuitive, simple to implement, and leads to fast and extremely accurate approximations. We illustrate this method in a variety of contexts including option pricing with stochastic volatility, computation of Greeks, and the term structure of interest rates.     

Using web and mobile technology to motivate pro-environmental action after a nature-based tourism experience

Nature-based tourism provides an ideal context for motivating pro-environmental action, as it draws travellers interested in the natural world and showcases unique, and often threatened, environments. This study examines efforts to motivate environmentally related behaviour in tourists' everyday lives using a technology-based intervention following an elephant seal viewing tour at California's Año Nuevo State Park. A total of 362 visitors completed pre-tour and post-tour surveys, with 94 visitors completing a final survey three months after the tour. We found that, although the intervention had little influence on conservation action overall, it was effective for a social media-related action. Post-tour conservation actions were significantly affected by emotional connection to wildlife during the tour and repeat visitation to either the same or another state park. We found that visitors' connectedness to nature increased during the three-hour tour, but returned to pre-visit levels three months later. Practical implications include that parks should encourage repeat visits, suggest an assortment of other experiences that support connecting to nature, and link their conservation messaging to visitors' close, personal, and emotional experiences with fauna. We suggest that one simple, yet effective, way to do this is through maintaining the visitor–park experience through a social media community.     

Nature-based tourism's impact on environmental knowledge,attitudes, and behavior: a review and analysis of the literature and potential future research

Although nature-based tourism is often promoted as benefiting local destinations through income generation, employment, and direct conservation support, it is also believed to influence tourists’ environmentally friendly attitudes, knowledge, and ultimately their behavior. Yet, few studies have empirically documented these outcomes, and those that do are inconsistent in the variables measured and the time frame analyzed. This paper examines the empirical research on nature-based tourism's ability to foster long-term stewardship behavior among travelers by conducting a systematic review of peer-reviewed tourism research published between 1995 and 2013. This search, focused on literature addressing changes in tourists’ environmentally related knowledge, attitudes, intentions, and actual behaviors, yielded just 30 empirical studies. Outcomes related to new environmental knowledge were commonly reported in these studies, but findings related to environmental attitudes and behaviors were inconsistent. Few studies measured environmental behavior directly, and fewer still include longitudinal assessments of persistent changes in attitudes or behaviors. We suggest potential future areas for research as well as programmatic strategies that may facilitate favorable outcomes from nature-based tourism, particularly those related to tourists’ knowledge, attitudes, and behaviors. Key areas include understanding visitors’ prior experiences and background, designing and delivering more effective interpretive messages, and using social media.     

Value co-creation among retailers and consumers: New insights into the furniture market

This paper aims to examine the applicability of a value co-creation framework that integrates the process view (customer, supplier and encounter value-creating processes), the actors’ view (the value facilitator and the value co-creator) and the role of customer knowledge in furniture retail stores using service-dominant (S-D) logic.We conducted multiple case studies to analyse retailers’ points of view and in-depth interviews to explore customers’ perspectives. Our research findings suggest that the proposed model can be effectively used to analyse value co-creation management in furniture firms, allowing researchers to identify the actions of retailers and customers and evaluate their matching. Even more importantly, this framework helps to foster value co-creation to increase the benefits for each participant during each stage of the relationship.     

Macroeconomic determinants of stock volatility and volatility premiums

How does stock market volatility relate to the business cycle? We develop, and estimate, a no-arbitrage model, and find that (i) the level and fluctuations of stock volatility are largely explained by business cycle factors and (ii) some unobserved factor contributes to nearly 20% to the overall variation in volatility, although not to its ups and downs. Instead, this “volatility of volatility” relates to the business cycle. Finally, volatility risk-premiums are strongly countercyclical, even more than stock volatility, and partially explain the large swings of the VIX index during the 2007–2009 subprime crisis, which our model captures in out-of-sample experiments.