60 research outputs found

    Rebel Recruitment in a Coffee Exporting Economy

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    Recent literature in the political economy of civil war has pointed to the importance of (changes) in the economic environment for the understanding of conflict dynamics. Three channels, negative income shocks, the presence of exportable commodities and indiscriminate violence inflicted on one’s community are considered as drivers of conflict. This paper studies these channels with a new fifteen-year panel of community level data on Burundi whose coffee sector is intimately intertwined with the civil war. We find that indiscriminate violence inflicted at the start of the civil war (1993) continued to affect recruitment throughout the entire civil war. We also find that decreases in the producer price of coffee increases recruitment. Aiming to distinguish the resentment aspect from the opportunity aspect in low producer prices, we perform robustness tests with different specifications and with year-province rainfall shocks affecting overall agricultural income, not just coffee. Results indicate that it is the opportunity cost mechanism that drives increased recruitment.Civil war, recruitment, indiscriminate violence, coffee, rainfall

    A Phoenix in Flames? Portfolio Choice and Violence in Civil War in Rural Burundi

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    This paper challenges the idea that farmers revert to subsistence farming when confronted with violence from civil war. While there is an emerging macroeconomic consensus that wars are detrimental to development, we find contrasting microeconomic evidence. Using several rounds of (panel) data at the farm and community level, we find that farmers in Burundi who are confronted with civil war violence in their home communities increase export and cash crop growing activities, invest more in public goods and reveal higher levels subjective welfare evaluations. We interpret this in the light of similar recent micro-level evidence that points to post-traumatic growth effects after (civil) warfare. Our results are confirmed across specifications as well as in robustness analyses.Civil war, investment, post-traumatic growth

    A Phoenix in Flames? Portfolio Choice and Violence in Civil War in Rural Burundi

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    This paper challenges the idea that farmers revert to subsistence farming when confronted with violence from civil war. Macro-economic evidence on economic legacies of civil war suggests that civil wars, while obviously disastrous in the short run, do notCivil war, investment, post-traumatic growth

    The maximum incremental social tolerable irreversible costs (MISTICs) and other benefits and costs of introducing transgenic maize in the EU-15

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    The decision to release a new transgenic crop variety for planting in the European Union (EU) is a decision under irreversibility and uncertainty. We use a real option model to assess the ex-ante incremental benefits and costs of the decision to release Bt maize and HT maize in the EU-15 member states. The analysis uses Eurostat data for modelling the benefits and costs of non-transgenic maize using partial equilibrium models. The farm-level benefits and costs of Bt maize and HT maize are derived from field trials conducted within the EU-funded ECOGEN project in combination with secondary data sources. Adoption curves, hurdle rates and Maximum Incremental Social Tolerable Irreversible Costs (MISTICs) are calculated at country level for selected EU-15 member states. In general, the results show that the MISTICs on a per capita level are very small confirming previous results calculated in values for the year 1995. The MISTICs per farm are much larger. This indicates a problem for decision makers.agriculture policy, biotechnology, GMOs, MISTICs,technical change

    Bt and Ht Corn versus Conventional Pesticide and Herbicide Use. Do Environmental Impacts Differ?

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    In this paper we empirically assess and compare the environmental impact of pesticide programs for Bt, Ht (glufosinate) and conventional corn in Europe, employing the Environmental Impact Quotient. We use field trial data from Narbons, France 2004 as well as secondary data. Our results show that management of Bt corn has a lower environmental impact than conventional corn programs. Herbicide treatment of the Ht variety also has a much lower environmental impact than that of the two conventional programs. Our empirical findings support the argument of lower environmental and health impacts with respect to pesticide use when growing Bt and Ht corn. The outcomes are relevant for environmental benefit-cost analysis of Bt and Ht corn.EIQ, pesticide use, Bt, Ht corn, Crop Production/Industries, Environmental Economics and Policy, Q10, Q16,

    Correcting for multiple destination trips in recreational use values using a mean-value approach; An application to Bellenden Ker National Park, Australia

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    This paper focuses on an empirical application of the travel cost method, to estimate the recreational use value of Bellenden Ker National Park, part of the Wet tropics World Heritage Area Queensland, Australia. Walking appears to be one of the main activities associated with recreational experiences in the region. Substantial socio-economic as well as environmental benefits are expected to be gained if the areas was to be developed further, with regard to walking tracks, provided that this would be done in an environmentally sustainable way. Two overnight tracks within the park have been selected to obtain information about visitors’ experiences with the tracks in the past, to address specific needs for possible future developments. A standard assumption for interpreting travel costs as a valid proxy for the price of a trip is that the travel cost be incurred exclusively to visit that particular site. However, this assumption often proves to be invalid as people tend to combine destinations. We propose a method commonly used in multi-criteria decision-making to correct for multiple trip bias. A value of $AUS 15.2 mln has been estimated as the net present value of recreational use in 2001 values at about six percent real rate of interest in perpetuity. This value appears to be rather small compared to other TCM studies undertaken in the area, for national parks that were similar in size and visitor numbers.multi-criteria analysis, multiple trip bias, travel cost method, Wet Tropics World Heritage Area, Resource /Energy Economics and Policy,

    Does ignoring multidestination trips in the travel cost method cause a systematic bias?

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    The present paper demonstrates that treating multidestination trips (MDT) as single‐destination trips does not involve any systematic upward or downward bias in consumer surplus (CS) estimates because the direct negative effect of a price increase (treating MDT as a single‐destination trip) is offset by a shift in the estimated demand curve. Still, ignoring MDT can greatly underestimate or overestimate the CS. In addition, we demonstrate that there is a sound theoretical basis for using preference information for allocating travel costs between different sites included in the MDT package. A novel extreme value approach is proposed, which does not require any overly restrictive assumptions about consumer preferences. This approach is applied to the zonal travel cost model of the Bellenden Ker National Park, Australia. Parametric and non‐parametric estimation techniques are used for calculating CS estimates, and the effects of different MDT treatments and estimation methods are compared.Research Methods/ Statistical Methods,
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