Trade, GMOs, and Environmental Risk: Are Policies Likely to Improve Welfare?

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Controversy over the EU import ban on food from genetically modified organisms (GMOs) forced the EU to change course and institute a mandatory labeling scheme. This study first examined how different policies for the production and use of GMOs might influence the market outcome in consumer food markets. Second, it evaluated the welfare effects of the policy measures, finding that mandatory labeling often increases both domestic welfare and global welfare, while trade bans more likely decrease global welfare.

 

Policy Design

Determinants of Household Fuel Choice in Major Cities in Ethiopia

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This paper examines the multiple fuel choices of urban households in major Ethiopian cities, using panel data collected in 2000 and 2004. The results suggest that as urban and rural households’ total expenditures rise, they use more types of fuels (including wood) and spend more on the fuels consumed. The results also support arguments that multiple fuel use better describes the fuel-choices of households in developing countries, as opposed to the idea that households switch to more expensive but cleaner fuels as incomes rise.

 

Energy

Comments on Simon Dietz and Nicholas Stern's Why Economic Analysis Supports Strong Action on Climate Change: A Response to the Stern Review's Critics

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When the Stern Review challenged the conventional wisdom and called for strong and immediate action on climate change, reactions were initially fierce. However, the ensuing debate has shown a new consensus in the making.

This article contains three contributions to this discussion posted by: Robert Mendelsohn, Thomas Sterner and U. Martin Persson, and John P. Weyant.

Climate Change

Determinants of Soil Capital

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Explaining soil capital facilitates a better understanding of constraints and opportunities for increased agricultural production and reduced land degradation. The diversity in farmers’ soil capital, production strategies, and general farming systems (including conservation investments) points to the value of internalizing these aspects in the formulation of the government’s policies and extension advice on sustainable agriculture.

 

Agriculture

Production Function Analysis of Soil Properties and Soil Conservation Investments in Tropical Agriculture

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EfD Authors:

This paper integrates traditional economic variables, soil properties, and variables on soil conservation technologies to estimate agricultural output among small-scale farmers in Kenya’s central highlands. The study finds that integrating traditional economics and soil science is invaluable, especially as omitting measures of soil capital can cause omitted-variable bias. The central policy implication is that while fertilizers are generally beneficial, their application is a complex art, and more is not necessarily better.

 

Agriculture

Fuel demand elasticities for energy and environmental policies: Indian sample survey evidence

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India has been running large-scale interventions in the energy sector over the last decades. Still, there is a dearth of reliable and readily available price and income elasticities of demand to base these on, especially for domestic use of traditional fuels.

Climate Change, Energy

Climate change impacts on Namibia’s natural resources and economy

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Climate change is likely to exacerbate the dry conditions already experienced in southern Africa. When rainfall does come, it is likely to be in bursts of greater intensity, leading to erosion and flood damage. However, these predictions have had very little influence on policy in southern African countries.

Climate Change

Does Ethnicity matter for Trust? Evidence from Africa

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This paper proposes that ethnicity coupled with ethnic nepotism may reduce interpersonal generalised trust.

We use the 2001 wave of the World Values Survey data for eight African countries to test this claim, and show that while ethnicity and ethnic nepotism are each important in affecting generalised trust levels, their interaction has a self-reinforcing and negative effect on trust levels. The results underscore the importance of institutions in controlling ethnic nepotism and thus partly in mitigating the adverse effects of ethnicity on trust.

Experiments

Fast Track Land Reform, Tenure Security, and Investments in Zimbabwe

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EfD Authors:

There is evidence that the Fast Track Land Reform Program created insecurity among its beneficiaries and adversely impacted investments in soil conservation. However, households in the study that believed investing in land enhanced tenure security invested significantly more in soil conservation measures than other households.

 

Agriculture, Policy Design