The nexus between climate change, agriculture, and poverty has become a major topic of concern, especially for dry regions, which represent a large share of the world’s population and ecosystems vulnerable to climate change. In spite of this, to date, few studies have examined the impacts of climate change on agriculture and the adaptation strategies of vulnerable farmers from emerging semi-arid regions with dualist agriculture, in which subsistence farms coexist with commercial farms.
Interaction between crop insurance and technology adoption decisions: The case of wheat farmers in Chile
This paper examines relationships between crop insurance and input technology decisions among Chilean wheat farmers. Using nationwide farm-level data, a bivariate probit model is estimated. We investigate the extent to which the adoption of production input technologies is associated with farmers’ participation in the
The aim of this paper is to study the association between weather shocks (droughts and floods) and agricultural market performance in Mozambique. To do so, we employ a dyadic regression analysis on monthly maize prices, transport costs, and spatial identification of markets as well as droughts and flooded areas. Our estimates show that, while a drought reduces price differences between markets, price dispersion increases during flood periods, an effect that is mainly driven by increases in transport costs.
This paper investigates direct and spillover effects of a social information campaign aimed at encouraging residential water savings in Colombia. The campaign was organized as a randomized field experiment, consisting of monthly delivery of consumption reports, including normative messages, for one year. Results indicate that social information and appeals to norm-based behavior reduce water use by up to 6.8% in households directly targeted by the campaign.
The impact of infrastructure shocks on agricultural markets. Evidence from the Zambezi river in Mozambique
Prior to 2009, there was no direct road connection between the southern regions of Mozambique—where the capital city is located—and the more agriculturally-productive central and northern regions. In this paper, we leverage the opening of a major road bridge to identify the impact of enhanced domestic transport infrastructure on agricultural market performance. We apply a generalized difference-in-difference estimator within a dyadic regression context.
This work presents the results of framed field experiments designed to study the joint problem of managing harvests from a common pool resource and protecting the resource from poaching. The experiments were conducted both in the field with TURF users and in the lab with university students. Our study has two objectives. First, we designed our experiments to study the effects of poaching on the ability of common pool resource users to coordinate their harvests when encroachment by outsiders is unrestricted and when the government provides weak enforcement.
Economists review Chile’s seaweed farming subsidy policy by Miguel Quiroga The high cost of starting up seaweed cultivation projects along the Chilean coastline is the main hurdle to the aquaculture industry restoring areas where this key marine resource has been heavily harvested. The productivity of farmed seaweed areas also varies greatly between aquaculture sites, which further threatens the financial viability of projects that are geared towards shoring up coastal livelihoods and supporting marine conservation.
Stakeholder perceptions of enhancement opportunities in the Chilean small and medium scale mussel aquaculture industry
The Chilean mussel aquaculture industry is a prime example of a thriving industry. However, the industry growth rate, aquaculture concessions and market prices have stabilized signaling a shift in the industry from exponential growth to, if handled correctly, economic stability. Here we used perception research, an efficient tool to inform on the implementation of management strategies, to provide policy makers with the tools necessary for the development of strategies that will aid in the sustainability of the industry through its current shift. We assessed the perception
Functional forms and price elasticities in a discrete continuous choice model of the residential water demand
During recent decades, water demand estimation has gained considerable attention from scholars. From an econometric perspective, the most used functional forms include log-log and linear specifications. Despite the advances in this field and the relevance for policymaking, little attention has been paid to the functional forms used in these estimations, and most authors have not provided justifications for their selection of functional forms. A discrete continuous choice model of the residential water demand is estimated using six functional forms (log-log, full-log, log q
Agriculture is one of the most vulnerable economic sectors to the impacts of climate change, specifically those related with expected changes in water availability. By using a hydro-economic model, this study assesses the distributional impacts of climate change, considering the geographical location of each farmer’s community and the spatial allocation of water resources at basin scale. A hydrological model, the Soil and Water Assessment Tool model, describes the basin hydrology, while farmers’ economic responses are represented using a non-linear agricultural supply model.&nbs
Is Participation in Social Organizations an Alternative to Improve Household Economic Welfare in Chile
This research aims to find the determinants of participation on social organizations in Chile through a social capital approach, as well as to evaluate the existence of a positive effect between participation and household welfare. In the case of economic and local organizations several regressions for participation and income were run.
The goal of this research is to estimate, using semi parametric (SNP) techniques, the recreational benefits related to one strategic ecosystem of high moors in Colombia. This technique was used during the travel cost method estimation process due to its flexibility. The chosen SNP technique corresponded to the Fourier flexible form, adjusting a Poisson model, such that the truncation and endogenous stratification biases in the data base could be taken into account.
Participation in Organizations, Technical Efficiency and Territorial Differences: A Study of Small Wheat Farmers in Chile
The lack of efficient individual solutions for small farmers either in the market or through the State has resulted in a search for collective spaces to strengthen their productive capacities, where participation in organizations emerges as a relevant factor to obtain higher efficiency levels.
In most developing countries non-irrigation status often dominates adoption of traditional and modern irrigation technology. In this paper, we study the effect of production risk on irrigation technology choice among small-scale farmers in Chile, applying sample selection and discrete choice models. We find that more educated farmers, with credit access, receiving extension services, and living in communes with more adopters are more likely to use modern irrigation techniques.
Economic development in low income settings is often associated with an expansion of higher-value agricultural activities. Since these activities often bring new risks, an understanding of cropland decisions and how these interact with shocks is valuable. This paper uses data from Mozambique to examine the effect of weather shocks on cropland decisions. We account for the bounded nature of land shares and estimate a Pooled Fractional Probit model for panel data. Our results show that crop choice is sensitive to past
Share Contract Choices and Economic Performance: Empirical Evidence from the Artisanal Fisheries Sector in Chile
Typically, crew members in fisheries are remunerated through a share of the total revenues. However, there is little empirical evidence on the mechanisms by which revenues are distributed to labor and capital, and how these distributions affect economic performance. Under an agency problem framework, we estimate a dose-response function to study the formation of contracts and identify the marginal effects of changes in crew profit shares on fishing returns in Chilean artisanal fisheries. The results support share contract choices
¿Ha contribuido el desarrollo de la salmonicultura en la Región de Los Lagos a la reducción de la pobreza rural? Una mirada empírica desde ingreso
We analyze if poorest people in rural localities of Región de Los Lagos, Chile have benefited in terms of poverty alleviation with salmon farms establishment within 1992-2002 period. In order to assess the impact of this event on poverty, we compare areas with and without salmon farms. We calculate poverty rates through small area estimation models at household level and we approach through differences in differences. Our findings suggest, that poverty decreased more in localities with salmon farms than in those who do not. We also identify geographic distances, betw
Aquaculture is on the most dynamic food production systems in the world, with a fast expansion, especially in developing countries. Among this sector, the Chilean mussel industry has experienced a substantial increase, turning Chile into one of the leading producers and global exporters of mussels. Among the different links in the mussel production chain, the natural seed collection conducted by artisanal fishers of southern Chile has been a fundamental pillar for the development of the industry. Often, this sub-sector has been thought of as a homogeneous group
Fishery management of straddling stocks is conditional on available knowledge about relevant environmental shocks, such as El Niño events, affecting stock behavior. But knowledge of these issues is scant, particularly in developing world fisheries.
This paper explores the factors underlying both innovation choices and intensity among small-scale aquaculture producers.
Does the location of salmon farms contribute to the reduction of poverty in remote coastal areas? An impact assessment using a Chilean case study
We test if the establishment of salmon farms in remote coastal areas had a significant impact on poverty reduction in the period 1992–2002 in Los Lagos Region, Chile.
The Effect of Collective Rights-Based Management on Technical Efficiency: The Case of Chile’s Common Sardine and Anchovy Fishery
This article analyzes the initial effect of introducing a cooperative catch shares allocation system (CCS) on the technical efficiency of artisanal vessels operating in pelagic fisheries in south-central Chile.
Lessons from a pilot program to induce stove replacements in Chile: Design, implementation and evaluation
We present the design, implementation, and evaluation of a subsidy program to introduce cleaner and more efficient household wood combustion technologies.
Interaction between Crop Insurance and Technology Adoption Decisions:The Case of Wheat Farmers in Chile
This paper examines relationships between crop insurance participation and input technology decisions among Chilean wheat farmers. Using nation-wide farm-level data from the National Agriculture and Forestry Census (INE 2007) a bivariate probit model is estimated. In this regard, we investigate the extent to which the adoption of certain production input technologies is associated with the participation of farmers in the state-promoted agriculture climate risk insurance program.
Fuel choices and fuelwood use for residential heating and cooking in urban areas of central-southern Chile: the role of prices, income, and the availability of energy sources and technology
This paper analyzes empirically the determinants of fuel choices and intensity of fuelwood use for residential heating and cooking in central-southern Chile.
We present a novel policy framework to evaluate and pursue growth in aquaculture considering four boundaries: biological productivity, environmental constraints to that productivity, policy that inhibits or promotes different kinds of aquaculture, and social preferences that determine aquaculture markets.
The adoption of good practices for the economic valuation of environmental services (ES) has strong implications in the evaluation and design of a Payment for Environmental Services program.
The authors used a Bayesian estimation approach to estimate a quantile binary regression and the WTP distribution in the context of a contingent valuation PES application.
Are mussel seed collectors responsive to economic incentives? Empirical evidence from the Benthic Resource Management Areas in Chile
We specify a model to analyze the participation and supply decisions of coastal producers performing with mussel seed uptake.
We analyzed whether a competitive market can behave non-competitively when it is temporarily outside of its long-run equilibrium trajectory.
We study how aggregate employment adjusted in the Chilean economy to the so called Asian Crisis.
In this study, we measure the value of sanitary restrictions in terms of forgone profits. For this, we model the short-run trade-off between biosecurity and profits in the aquaculture industry.
The Role of Information in Changing Tourist Behavioral Preferences at the Humboldt Penguin Reserve in Northern Chile
With considerable focus on ecotourism's potential to contribute to conservation, it is increasingly important to understand the implications of ecological information in triggering sustainability-relevant attitudes and actions. This study assesses whether people who have ecological information regarding the negative impact of their recreational behavior on penguins’ stress will choose to remain farther away from the penguins to avoid that impact although this option will reduce the personal benefits of their tourism experience.
Water Variability and the Economic Impacts on Small-Scale Farmers. A Farm Risk-Based Integrated Modelling Approach
Strengthening the planning of hydrological resources to optimize the use ofwater in agriculture is a key adaptation measure of the Chilean agricultural sector to cope with future climate change. To address this challenge, decision-makers call for tools capable of representing farmers’ behaviours under the likely stresses generated by future climate conditions. In this context, of special concern are the effects of water variability on small-scale farmers, who commonly operate with narrow profit margins and who lack access to financial resources and technological knowledge.
Interactions between CAP Agricultural and Agri-Environmental Subsidies and Their Effects on the Uptake of Organic Farming
We analyze the effects of the interactions that the two pillars of the European Union Common Agricultural Policy—market support and rural development—have on farmers’ uptake of organic farming practices. Special attention is given to the 2003 reform, which substantially altered the relative importance of the two types of support by decoupling direct agricultural payments from the production of a specific crop. In our empirical analysis we study the case of Sweden, making use of the variation in the timing of farmers’ decisions regarding participation in support programs.
The regulatory choice of noncompliance in the lab: effect on quantities, prices, and implications for the design of a cost-effective policy
Recent theoretical developments show the conditions under which it is cost effective for the regulator to induce perfect compliance in cap and trade programs. These conditions are based on the ability that a regulator with perfect information has to induce the firms to emit any desired level with different combinations of the number of permits supplied to the market and the monitoring probability, assuming that firms are expected profits maximizers. In this paper we test this hypothesis with a series of laboratory experiments.
We investigate whether a social information campaign aimed at reducing water use causes a spillover effect on the use of electricity. On average, water use decreased by 6 percent for a treatment group for whom we conducted a social information campaign on their use of water, compared with that of a control group. We identify a spillover effect on electricity use among households that had efficient use of water before the campaign. The effect is sizeable; this group has almost 9 percent lower use of electricity after the campaign compared with the control group.
Social Norms and Information Diffusion in Water-Saving Programs Evidence from a Randomized Field Experiment in Colombia
This paper investigates direct and spillover effects of a social information campaign aimed at encouraging residential water savings in Colombia. The campaign was organized as a randomized field experiment, consisting of monthly delivery of consumption reports, including normative messages, for one year. Results indicate that social information and appeals to norm-based behavior reduce water use by up to 6.8 percent in households directly targeted by the campaign.
Quota compliance under a Territorial Use Rights in Fisheries: an Experimental Analysis of Complementarities of Formal and Informal Enforcement with Changes in Abundance
We explore the effects of different enforcement mechanisms, including formal (external), informal (local), and both together, on individual compliance behavior under a system of territorial use rights in fisheries (TURFs).
This thesis consists of three self-contained chapters on issues related to spillover effects of behavioral and policy interventions aimed at reducing negative incentives provided by consumption and production subsidies, and discusses the implications for environmental policy design. The first two chapters investigate spillover effects of a behavioral intervention aimed at incentivizing residential water savings in Colombia.
Se estudia la evolución de la actividad acuícola en Chile y el impacto de los cambios regulatorios sobre las decisiones de localización de los centros de cultivo. Este estudio considera un análisis descriptivo del desarrollo espacio-temporal de los centros de cultivo. Enseguida, utilizando un panel de datos, se estimó un modelo de elección de sitios con el objetivo de explorar los factores determinantes de la elección de ubicación de los centros acuícolas. Los resultados del análisis sugieren la existencia de un claro patrón de desarrollo espacio-temporal de la acuicultura en Chile.
ITQ Markets with administrative costs: An application to the industrial common sardine and anchovy fishery in Chile
Using numerical simulations of the mixed common sardine and anchovy fishery of central-southern Chile, we study the effects of the distribution of administrative costs between the government and the fishing industry in an individual transferable quota system. Consistent with recent theoretical results, we find that the level and distribution of the administrative costs between the public and private sector affects the period-by-period equilibrium quota price and number of active vessels.
We study the compliance behavior of artisanal fishermen in central-southern Chile. Our empirical analysis explores the role of individual morality, perception of legitimacy, and peer effects as determinant factors in the decision to violate regulations. We control for potential simultaneity bias in the peer effects variable. Our results find evidence that moral standing, peer effects, and legitimacy considerations are important for fishermen’s compliance decisions. Policy implications to improve compliance with regulations in artisanal fisheries are discussed.
Quota Compliance in TURFs: An Experimental Analysis on Complementarities of Formal and Informal Enforcement with Changes in Abundance
We explore the effects of different enforcement mechanisms, including formal (external), informal (local), and both together, on individual compliance behavior under a system of territorial use rights in fisheries (TURFs). Our design considers different stock abundance levels and the effect that such differences may exert on extraction decisions and compliance behavior. The analysis is based on a framed field experiment conducted with artisanal fishers in central-southern Chile.
This study evaluates the impact on poverty produced by the establishment of salmon aquaculture in rural localities of Los Lagos region in Chile in the period 1992 - 2002.
The EfD Report 2014/15 gives you an excellent overview of the EfD centres´ achievements during 2014 and ongoing work during 2015. Ranging from interesting policy stories on how economic research is put to use around the world to collaborative research programs, a wide range of publications, and our academic capacity building program.
The Effect of Organizational Characteristics on the Technical Fishing Efficiency within a Collective Quota (CQ) System
This research examines empirically the initial impact of artisanal organizations’ characteristics on the technical efficiency of Chile’s common sardine and anchovy artisanal fishery fleet operating in a collective quota (CQ) system.
Collective rights in artisanal fisheries and the trade-offs in fisheries policies: An analysis of distributive policies
The potential effects of a redistributive fishing quota policy on the profits and employment of the artisanal fisher organizations is analyzed within a multi-objective programming model.
We study the effects of different tax schemes used in fisheries management in combination with an individual transferable quota system. We focus on the effects of taxes on equilibrium quota prices and on violations under the assumption that enforcement to induce compliance is imperfect and costly.
This paper studies the effects of different tax schemes used in fishery management in combination with an Individual Transferable Quota (ITQ) system. It focuses on the effects of taxes on equilibrium quota prices and violations under the assumption that enforcement to induce compliance is imperfect and costly. The use of taxes is motivated by the regulator’s need to recover costs for enforcement activities.