The Due diligence system in the EU’s Timber Regulation: non-tariff trade barrier or leverage effect?

This paper presents a novel spatial equilibrium model to analyse the leverage impact of the EU’s Timber Regulation on sustainable timber production. This leverage effect is an argument in favour of FLEGT but it has never been investigated thoroughly, or simultaneously for demand and supply. The leverage effect is measured in terms of the market share of sustainable timber in the total timber consumption and production of a region. Our research finds that FLEGT does not provide an incentive for sustainable timber production and consumption at global level. FLEGT creates a non-tariff trade barrier at the conventional timber markets of important producing regions (Europe and North America). This protectionist situation favours conventional timber which decreases the importance of sustainable timber. In addition, the protectionist situation decreases global welfare

Changing old habits: the case of feeding patterns in anaerobic digesters

A non-linear programming model was developed to maximize the economic profit from an anaerobic co-digester. The model consists of a combination of technical and economic equations, linked through the biogas production variable. Five scenarios were simulated. These differed with regard to substrate inlet mass flow rate, organic loading rate and hydraulic retention time. The impact on biogas production was investigated and an economic analysis was undertaken based on the concepts of profitability and Net Present Value. The model results indicate that varying the substrate inlet mass flow rate and organic loading rate could have a positive impact on the profitability of co-digesters in Flanders. This can be achieved either by increasing the interval time between feedstock input, or by feeding individual streams of feedstock separately into the system, while at the same time reducing the hydraulic retention. time

Green public procurement of certified wood : impact on international trade and global welfare

This paper investigates the impact of green public procurement (governments’ purchases) of certified wood in the EU. A spatial partial price equilibrium model is developed to analyse whether this policy impacts interregional trade flows of wood and other regions’ economic welfare. The model contains an innovative feature which allows the introduction of consumers’ willingness to pay for certified wood, and producers’ willingness to accept certified wood production in order to determine the share of certified wood in consumption and demand. The outcome of the analysis demonstrates that green public procurement of certified wood in one region can create a trade barrier for other regions and decrease other regions’ economic welfare. In the worst case scenario, other regions’ production of non-certified wood even increases. This endangers forest conservation. Cost reductions and adequate financial compensation for certified wood producers can tackle these problems

Technical efficiency of water use and its determinants, study at smallscale irrigation schemes in North-West Province, South Africa

This paper analyses the efficiency with which water is used in small-scale irrigation schemes in North-West Province in South Africa and studies its determinants. In the study area, small-scale irrigation schemes play an important role in rural development, but the increasing pressure on water resources and the approaching introduction of water charges raise the concern for more efficient water use. With the Data Envelopment Analysis (DEA) techniques used to compute farm-level technical efficiency measures and sub-vector efficiencies for water use, it was shown that under Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) specification, substantial technical inefficiencies, of 49% and 16% respectively, exist among farmers. The sub-vector efficiencies for water proved to be even lower, indicating that if farmers became more efficient using the technology currently available, it would be possible to reallocate a fraction of the irrigation water to other water demands without threatening the role of small-scale irrigation. In a second step, Tobit regression techniques were used to examine the relationship between sub-vector efficiency for water and various farm/farmers characteristics. Farm size, landownership, fragmentation, the type of irrigation scheme, crop choice and the irrigation methods applied showed a significant impact on the sub-vector efficiency for water. Such information is valuable for extension services and policy makers since it can help to guide policies towards increased efficiency

Assessing the impact of the EU Common Agricultural Policy pillar II support using micro-economic data

The paper uses the case of Flemish investment support to make a quantitative analysis of pillar II support based on micro-economic data from the FADN and the administrative dataset of the investment support fund. A dynamic panel estimation quantifies the effect of support for settingup young farmers, structural investment support and support for investments on farm diversification, animal welfare or environmental investments.. The results show that investment support for farm diversification and structural support increase the total output and the income. Environmental investment support increase costs and decrease the farm income without a significant impact on output. The conclusion for the national debate is that the structural and the diversification investment support is effective while the environmental investment support is too low to cover all additional costs in the short run. The conclusion for the international debate is that, except for the structural investment support, the Flemish investment support is not distortive for international agricultural markets.Pillar II, Investment support, decoupled subsidies, dynamic panel estimation, Flanders, Agricultural and Food Policy, Q12, Q18, Q51, Q52.,