22 pages, Many stated preference studies have shown that individuals’ attitudes play an important role in explaining their behaviour and helping to disentangle preference heterogeneity. When responses to attitudinal questions are introduced into discrete choice models, a suitable approach that corrects for potential endogeneity must be adopted. We use a discrete choice experiment to analyse the preferences of residents regarding the use of agri-environmental practices in the peri-urban area of Milan (Italy). A detailed analysis of these preferences is relevant for policymakers as farmers on the peri-urban fringe are often asked to provide environmental services to urban-dwellers. We apply a latent class model that we extend to include indicators of individuals’ attitudes towards the relationship between agriculture and the environment. Besides the application of the control function approach to deal with endogeneity, our main contribution is the use of a refutability test to check the exogeneity of the instruments in the agri-environmental setting. Our results show that attitudinal indicators help to disentangle the preference heterogeneity and that the respondents’ willingness-to-pay distribution differs according to the indicators’ values.
24 pages, We present a systematic review of the extensive body of research on farmer risk preference measurement across Europe. We capture the methodological developments over time and discuss remaining challenges and potential areas for further research. Given the constantly evolving policy environment in Europe, and increasing climate-change related risks and uncertainties, there is large value to be gained from enhancing our understanding of this fundamental aspect of farmers’ decision-making processes and consequent actions.
20 pages, To achieve social sustainability, there is a need to incorporate social metrics of farmers’ well- being into agricultural monitoring systems. We contribute to the operationalisation of the measurement of farmers’ well- being by determining how farm- level factors influence farmers’ satisfaction with their work and quality of life. Using a data sample of 1099 farms that are part of the Farm Accountancy Data Network (FADN) in nine European countries, we tested a set of hypotheses related to work satisfaction and life quality perception based on a structural equation model. Satisfaction with on- farm work has a significant and substantial influence on satisfaction with quality of life. Farm- level aspects, such as working time, age of assets, financial situation of the farm and community engagement, significantly influenced farmers’ satisfaction with farming, but their joint effect explained less than one- fifth of the satisfaction. The results suggest that agricultural information systems intended to monitor and compare sustainability progress on farms would benefit from the integration of a metric measuring social concerns from the farmers’ point of view
17 pages, Rural households in developing countries often depend on agriculture for their livelihoods. However, many also pursue off-farm economic activities either to complement their farm income or because they lack access to agricultural land. Rural off-farm employment is often informal and temporary. Searching for jobs can be associated with high transaction costs, which may be a constraint on some households’ participation in off-farm employment. The increasing spread of mobile phones may help to reduce these transaction costs. Here, we test the hypothesis that mobile phone ownership increases rural households’ participation in off-farm employment and—through this mechanism—also improves household income. We use nationally representative panel data from rural India and regression models with household fixed effects to control for confounding factors and unobserved heterogeneity. We find that mobile phone ownership is positively associated with the likelihood of participating in various types of off-farm employment, including casual wage labour, salaried employment and non-agricultural self-employment. This association is larger in female-headed than in male-headed households. The estimates also show that mobile phone ownership is positively associated with household income, partly channeled through the off-farm employment mechanism.
24pgs, Increasingly, the health claims made by food products focus on the marketing of specific molecular enrichments. Research exploring consumers’ willingness to pay (WTP) for health claims assumes that individuals hold perfect information on the benefits of the enrichment, and that their valuations depend solely on whether or not they need to improve their health. While health interventions are aimed at individuals at higher health risk, consumers may be unaware of the health risks that they face, limiting the effectiveness of a generic targeting strategy. Using an orthogonal experimental design, we explore the impact of two factors on the WTP for vitamin D enrichment in eggs: whether the information is person-specific or generic; and the presence of a health claim explaining the vitamin D enrichment. Results indicate that it is the provision of information, not the health claim, that influences WTP. Both generic and personalised information lead to similar increases in the WTP for vitamin D enrichment. While we only observe a direct effect of generic information on the WTP for vitamin D enrichment, personal information may also operate by increasing the perceived risk of vitamin D deficiency. Our results support the use of personalised health information during the choice task as a means of increasing the sales of healthy products.
15pgs, Research has suggested to not solely include cognitive processes but also affective processes in economic choice modeling. Studying Medjool dates, we conducted a laboratory experiment combining choice experiments and eye-tracking to account for cognitive processes. In addition, participants indicated their level of worry related to production practices to account for affective processes. Our results show that consumers worry more about pesticide residues than genetic modification in foods. They also pay more attention to labels related to these production practices compared to other labels; and the production practice labels received the highest willingness to pay (WTP). Results from linear regressions show that both cognitive and affective processes are associated with WTP. Especially in the full model for WTP for pesticide-free labeling an increase of attention by 1 s increases WTP on average by $0.10 and an increase of the level of worry from one category to the next increases WTP on average by $0.17. Overall, results show that including both cognitive and affective processes as explanatory variables is important when determining factors associated with WTP.
22 pages, Smallholder farmers in developing countries encounter multiple barriers in access to inputs and technology, which prevent them from reaping the benefits from market participation. Women farmers face additional constraints due to gender norms that further limit their engagement in productive activities. While collective action has been shown to improve access to markets and economic outcomes for farmers overall, the evidence on the effects of cooperative membership for women smallholders remains limited. We investigate empirically the economic benefits of collective action for women farmers in the honey sector in Ethiopia. Relying on a rich data set on women honey producers, both cooperative members and non-members, we evaluate the effects of belonging to a cooperative on three outcome variables through coarsened exact matching and regression analysis. Our results indicate that cooperative membership significantly increases the market price and the production quantity and, while the average effect on the share of product marketed is statistically insignificant, significant differences emerge for women with given characteristics. These results are shown to be robust to a number of tests that address biases from selection on observables and unobservables. An analysis of the heterogeneous effects of household membership in multiple groups finds that membership of self-help groups or farmer associations amplifies the positive outcomes from belonging to a formal cooperative. Finally, qualitative findings derived from the same communities indicate self-reported improvements in agency and self-esteem among women members, thus reinforcing the importance of the quantitative findings.
15 pages, This paper studies Chinese grape growers’ time discounting and its implications for the adoption of technology that can reduce the negative effects of increasing precipitation. Using primary data collected in Xinjiang Province, we undertook a contingent valuation of rain covers that protect fruit from rain and estimated a discounted utility model using these data. Using a hierarchical Bayesian approach, we find that local grape growers discount the future very heavily, with a discount rate of 0.17 per year, which is almost four times higher than the Chinese market interest rate. Farmers also tend to underestimate the benefits of adopting covers, with their purchase decisions appearing to largely depend on their past actual losses rather than future anticipated losses. These findings have broader implications for policies promoting proactive adaptation in response to likely increased rainfall in the region. Targeting farmers who give lower weight to events far off in the future and understanding that many farmers may tend only to make adoption decisions that have strong short-term benefits could improve the efficacy of climate policies that target agricultural technologies.
25pgs, We combine farm accounting data with high-resolution meteorological data, and climate scenarios to estimate climate change impacts and adaptation potentials at the farm level. To do so, we adapt the seminal model of Moore and Lobell (2014) who applied panel data econometrics to data aggregated from the farm to the regional (subnational) level. We discuss and empirically investigate the advantages and challenges of applying such models to farm-level data, including issues of endogeneity of explanatory variables, heterogeneity of farm responses to weather shocks, measurement errors in meteorological variables, and aggregation bias. Empirical investigations into these issues reveal that endogeneity due to measurement errors in temperature and precipitation variables, as well as heterogeneous responses of farms toward climate change may be problematic. Moreover, depending on how data are aggregated, results differ substantially compared to farm-level analysis. Based on data from Austria and two climate scenarios (Effective Measures and High Emission) for 2040, we estimate that the profits of farms will decline, on average, by 4.4% (Effective Measures) and 10% (High Emission). Adaptation options help to considerably ameliorate the adverse situation under both scenarios. Our results reinforce the need for mitigation and adaptation to climate change.
