On-Farm Costos of Reducing environmental degradation under risk

Farmers respond to environmental regulations by adjusting production practices so as to comply while minimizing their loss in expected income. Ultimately the cost of agro environmental regulation is determined by farm level adjust¬ments. Our farm level simulation framework assesses economic and environmental impacts of hypothetical pesticide restrictions in the context of continuing soil conservation efforts.

An asset-based approach to social risk management : a conceptual framework

There is increasing concern about the vulnerability of poor and near-poor rural households, who have limited capabilities to manage risk and often resort to strategies that can lead to a vicious cycle of poverty. Household-related risk is ususally considered individual or private, but measures to manage risk are actually social or public in nature. Furthermore, various externality issues are associated with household-related risk, such as its links to economic development, poverty reduction, social cohesion, and environmental quality. Hence the need for a holistic approach to risk management, or"social risk management,"which encompasses a broad spectrum of private and public actions. An asset-based approach to social risk management is presented, which provides an integrated approach to considering household, community, and extra-community assets and risk-management strategies. The conceptual framework for social risk management focuses on rural Sub-Saharan Africa. The report concludes with several suggestions on moving from concepts to actions.Health Economics&Finance,Insurance&Risk Mitigation,Banking Law,Environmental Economics&Policies,Banks&Banking Reform

Incorporating life cycle external cost in optimization of the electricity generation mix

The present work aims to examine the strategic decision of future electricity generation mix considering, together with all other factors, the effect of the external cost associated with the available power generation technology options, not only during their operation but also during their whole life cycle. The analysis has been performed by integrating the Life Cycle Assessment concept into a linear programming model for the yearly decisions on which option should be used to minimize the electricity generation cost. The model has been applied for the case of Greece for the years 2012-2050 and has led to several interesting results. Firstly, most of the new generating capacity should be renewable (mostly biomass and wind), while natural gas is usually the only conventional fuel technology chosen. If externalities are considered, wind energy increases its share and hydro-power replaces significant amounts of biomass-generated energy. Furthermore, a sensitivity analysis has been performed. One of the most important findings is that natural gas increases its contribution when externalities are increased. Summing-up, external cost has been found to be a significant percentage of the total electricity generation cost for some energy sources, therefore significantly changing the ranking order of cost-competitiveness for the energy sources examined

Risk in agriculture as impediment to rural lending: the case of North-Western Kazakhstan

On the basis of portfolio selection theory, this paper finds that whole-farm risk must be regarded as a major reason for the low level of credit flow to agriculture in North-western Kazakhstan. A quadratic programming model was used in order (a) to demonstrate the comparatively high overall risk exposition of a typical farm, (b) to show that an inflow of working capital could contribute to risk reduction, and (c) to illustrate short-term risk management strategies. Although there may be a role for the government in reducing risk exposition of agriculture in its current form, natural and economic constraints suggest to pave the way for structural reforms that reduce the importance of agriculture in the rural economy. -- G E R M A N V E R S I O N: Auf Grundlage der Portfolio selection-Theorie kommt dieser Beitrag zu dem Ergebnis, dass das einzelbetriebliche Risiko in der Landwirtschaft Nordwest-Kasachstans als ein Hauptgrund für geringen Kreditzufluss angesehen werden muss. Ein quadratisches Programmierungsmodell wurde verwendet, um (a) die vergleichbar hohe Riskoexposition eines typischen Betriebes zu verdeutlichen, (b) zu zeigen, daß ein Zufluss von Umlaufkapital zur Risikoreduktion beitragen kann und (c) kurzfristige Risikomanagement-Strategien zu illustrieren. Obwohl es bestimmte Politikoptionen zur Verminderung des Risikos in der Landwirtschaft in ihrer gegenwärtigen Form gibt, legen natürliche und ökonomische Rahmenbedingungen tiefgreifendere Strukturreformen nahe. Diese sollten dazu beitragen, mittelfristig die Bedeutung der Landwirtschaft im ländlichen Raum zu verringern.Agricultural credit,Kazakhstan,Portfolio selection theory,Risk programming,Agrarkredit,Kasachstan,Portfolio selection-Theorie,Risiko-Programmierung

Linking Economic Policy and Environmental Outcomes at a Watershed Scale

Do the most promising policies to promote sustainable upland farming originate at the local or national level? Will coordination of local and national efforts produce better outcomes? This paper uses an optimization-simulation model of the Manupali watershed in the Philippines to investigate these issues. It compares the economic and environmental effects of four sets of stylized policy changes: (1) local policies that restrict some forms of land use; (2) local attempts to subsidize environment-friendly technologies; (3) a crop-specific tax levied on vegetable production; and (4) a hybrid approach that seeks to coordinate local technology initiatives with a broader-based national pricing policy.watershed, soil conservation, economy-environment linkage, upland farming

Stochastic utility-efficient programming of organic dairy farms

Opportunities to make sequential decisions and adjust activities as a season progresses and more information becomes available characterise the farm management process. In this paper, we present a discrete stochastic two-stage utility efficient programming model of organic dairy farms, which includes risk aversion in the decision maker’s objective function as well as both embedded risk (stochastic programming with recourse) and non-embedded risk (stochastic programming without recourse). Historical farm accountancy data and subjective judgements were combined to assess the nature of the uncertainty that affects the possible consequences of the decisions. The programming model was used within a stochastic dominance framework to examine optimal strategies in organic dairy systems in Norway

CGIAR Research Program on Forests, Trees and Agroforestry - Plan of Work and Budget 2020

There were no significant changes in 2019 to FTA’s theory of change1. FTA plans all its work on the basis of its operational priorities. These, in turn, focusresearch towards major development demands and knowledge gaps, orienting FTA towards the implementation of the SDGs and other global commitments. Three operational priorities were added in 2020 (see list in Appendix 1) to better delineate pre-existing research areas addressing development bottlenecks needing dedicated investment and visibility: smallholder tree-crop commodities, tree seeds and seedlings delivery systems, and foresight. FTA organized in 2019, at the request of its ISC, a joint ISC-FTA workshop on impact assessment methods for the program. Based on the outcomes of this workshop FTA will, inter alia, revisit in 2020 its impact pathways and end of programme outcomes, and if need be, corresponding adjustments to the ToC of FTA and/or of its FPs will be made

CGIAR Research Program on Forests, Trees and Agroforestry - Plan of Work and Budget 2020

There were no significant changes in 2019 to FTA’s theory of change1. FTA plans all its work on the basis of its operational priorities. These, in turn, focusresearch towards major development demands and knowledge gaps, orienting FTA towards the implementation of the SDGs and other global commitments. Three operational priorities were added in 2020 (see list in Appendix 1) to better delineate pre-existing research areas addressing development bottlenecks needing dedicated investment and visibility: smallholder tree-crop commodities, tree seeds and seedlings delivery systems, and foresight. FTA organized in 2019, at the request of its ISC, a joint ISC-FTA workshop on impact assessment methods for the program. Based on the outcomes of this workshop FTA will, inter alia, revisit in 2020 its impact pathways and end of programme outcomes, and if need be, corresponding adjustments to the ToC of FTA and/or of its FPs will be made