[show abstract][hide abstract] ABSTRACT: In this paper we compare the use of antidumping (AD) measures in the agriculture sector by Canada and the United States, the two major users of antidumping procedures.1 We consider both the direct and indirect effects of the AD measure, and consider what factors make an AD measure more or less successful at impeding trade and when it is more likely to cause trade diversion. Specifically, we ask when the imposition of an antidumping duty restricts imports of the targeted commodity and when is there a deflection in the supply of imports from countries named in the petition to countries not named in the antidumping petition? We compare these results for that of the US and draw conclusions about the determinants of such differences, like the exchange rate, GDP and distance to partner countries. We use a modified version of the gravity model, as used in the earlier literature (Prusa (2001)) for our analysis. We find that affirmative AD cases caused trade diversion from non-named countries for agricultural products in general, but that trade diversion was particularly strong for perishable products. We also find that the more concentrated the imports, the more restrictive the AD duties.
[show abstract][hide abstract] ABSTRACT: This paper uses primary data from rural north India to show that participation in a community-level female empowerment program significantly increases access to employment, physical mobility, and political participation. The program provides support groups, literacy camps, adult education classes, and vocational training for rural women in several states of India; the data are from Uttarakhand. The paper uses instrumental variables and truncation-corrected matching on primary data to disentangle the program's mechanisms, separately considering its effect on women who work, and those who do not work but whose reservation wage is increased by participation. The analysis also finds significant spillover effects on non-participants relative to women in untreated districts. It finds consistent estimates for average treatment and intent to treat effects
[show abstract][hide abstract] ABSTRACT: We extend the model of Fullerton, Karney, and Baylis (2012 working paper) to explore cost-effectiveness of unilateral climate policy in the presence of leakage. We ignore the welfare gain from reducing greenhouse gas emissions and focus on the welfare cost of the emissions tax or permit scheme. Whereas that prior paper solves for changes in emissions quantities and finds that leakage maybe negative, we show here that all cases with negative leakage in that model are cases where a unilateral carbon tax results in a welfare loss. With positive leakage, however, a unilateral policy can improve welfare.
[show abstract][hide abstract] ABSTRACT: This paper shows that participation in a community-level female empowerment program in India significantly increases participants' physical mobility, political participation, and access to employment. The program provides support groups, literacy camps, adult education classes, and vocational training. We use truncation-corrected matching and instrumental variables on primary data to disentangle the program's mechanisms, separately considering its effect on women who work, and those who do not work but whose reservation wage is increased by participation. We also find significant spillover effects on non-participants relative to women in untreated districts.
[show abstract][hide abstract] ABSTRACT: With the potential expansion of forest conservation programs spurred by climate-change agreements, there is a need to measure the extent to which such programs achieve their intended results. Conventional methods for evaluating conservation impact tend to be biased because they do not compare like areas or account for spatial relations. We assessed the effect of a conservation initiative that combined designation of protected areas with payments for environmental services to conserve over wintering habitat for the monarch butterfly (Danaus plexippus) in Mexico. To do so, we used a spatial-matching estimator that matches covariates among polygons and their neighbors. We measured avoided forest loss (avoided disturbance and deforestation) by comparing forest cover on protected and unprotected lands that were similar in terms of accessibility, governance, and forest type. Whereas conventional estimates of avoided forest loss suggest that conservation initiatives did not protect forest cover, we found evidence that the conservation measures are preserving forest cover. We found that the conservation measures protected between 200 ha and 710 ha (3-16%) of forest that is high-quality habitat for monarch butterflies, but had a smaller effect on total forest cover, preserving between 0 ha and 200 ha (0-2.5%) of forest with canopy cover >70%. We suggest that future estimates of avoided forest loss be analyzed spatially to account for how forest loss occurs across the landscape. Given the forthcoming demand from donors and carbon financiers for estimates of avoided forest loss, we anticipate our methods and results will contribute to future studies that estimate the outcome of conservation efforts.
[show abstract][hide abstract] ABSTRACT: We build a simple analytical general equilibrium model and linearize it, to find a closed-from expression for the effect of a small change in carbon tax on leakage – the increase in emissions elsewhere. The model has two goods produced in two sectors or regions. Many identical consumers buy both goods using income from a fixed stock of capital that is mobile between sectors. An increase in one sector’s carbon tax raises the price of its output, so consumption shifts to the other good, causing positive carbon leakage. However, the taxed sector substitutes away from carbon into capital. It thus absorbs capital, which shrinks the other sector, causing negative leakage. This latter effect could swamp the former, reducing carbon emissions in both sectors.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
[show abstract][hide abstract] ABSTRACT: Methane from livestock manure accounts for ∼6.6% of total greenhouse gas (GHG) emissions in the United States, and 1.1% of total emissions in Canada. Methane is 25 times more potent than CO2 as a GHG and is emitted into the atmosphere from enteric emissions and manure. Livestock operators can reduce CH4 emissions and may qualify for credits for its capture by utilizing manure management practices such as anaerobic digesters. Thus, livestock producers can play a role in reducing GHG emissions while also earning C offset credits. This paper has two related objectives. First, using data from Canada, we explore the economics of adoption of anaerobic digesters for Canadian dairy and hog producers. Second, using this example, we explore the institutional framework in place for livestock based GHG emissions and the sources of uncertainties facing both producers and consumers with regard to C offsets. From these two objectives we hope to better understand the potential gains for livestock producers, and consumers of CH4 based offsets, and identify potential institutional innovations needed to allow the offset market to function efficiently.This paper is part of the special issue entitled: Greenhouse Gases in Animal Agriculture – Finding a Balance between Food and Emissions, Guest Edited by T.A. McAllister, Section Guest Editors; K.A. Beauchemin, X. Hao, S. McGinn and Editor for Animal Feed Science and Technology, P.H. Robinson.
[show abstract][hide abstract] ABSTRACT: Trade barriers can cause output to be diverted to other countries and into other products. We study the effect of a voluntary price restraint (VPR) on Mexican tomatoes entering the United States. The diversion caused by the VPR is statistically and economically significant - representing over four-fifths of the direct effects of the trade barrier. When the VPR was binding, Mexico exported more tomatoes to Canada, the United States cut back on exports while Canada increased their exports to the United States. The VPR also diverted fresh tomatoes in Mexico into paste production, which was then exported to the United States.
Canadian Journal of Economics. 01/2010; 43(1):127-151.
[show abstract][hide abstract] ABSTRACT: Agri-environmental policies (AEPs) in the United States and the European Union are examples of payments for environmental services that pay farmers to reduce the negative externalities of agricultural production, while serving as a means to transfer public funds to farmers. We show that despite similar origins, AEPs in the two regions differ both in their specific objectives and in their implementation. For example, AEPs in most member states of the EU-15 have the additional objective of using agriculture as a driver for rural development. This objective is achieved by compensating farmers for the private delivery of positive public goods, such as attractive landscapes, produced by agriculture. The rationale is market failure, and there is empirical evidence that Europeans are willing to pay for such positive externalities. No comparable provision exists in U.S. policy. By contrast, U.S. AEPs focus almost entirely on reducing agriculture's negative externalities, such as soil erosion. Second, we find that U.S. programs are more targeted than their EU counterparts, and take opportunity cost into account. The EU programs, on the other hand, address a wider range of externalities, and are focused more on the paying for a particular farming process than reducing specific negative externalities. The EU takes a broader view of AEPs than does the United States, both in terms of type of activity that can be funded, and by using less targeting by land characteristics, and so the European program could be more easily used as a mechanism for transferring income to producers. Despite this, we find evidence that many of the amenities targeted by the programs are demanded by the population.
[show abstract][hide abstract] ABSTRACT: Capacity constraints on production have major effects on a standard monopoly, a monopoly that price discriminates between two submarkets, and a monopoly that sells in two submarkets and faces a price control in only one.
Journal of Industrial Organization Education 01/2008; 3(1):1-1.
[show abstract][hide abstract] ABSTRACT: European Union (EU) agri-environmental programmes (AEPs) represent a significant step in the regionÃ‚Â’'s efforts to decouple agricultural output from production and export subsidies. While AEPs comprise only a small share of EU agricultural support, they have two possible external impacts: 1) the composition of the EU'Ã‚Â’s imports and exports may change as their producers become more market responsive; and 2) the WTO'Ã‚Â’s Green Box (subsides considered minimally trade distorting and hence not disciplined) may become increasingly contentious. Our concern is with the drivers of AEPs in the EU and their implications for Canada.
[show abstract][hide abstract] ABSTRACT: The United States and Canada are similar in many ways, yet they have taken different approaches to agricultural policy. This paper discusses what affect the different constitutional arrangements have had on the development of agricultural policy. Constitutions can affect the policy bargaining process in several ways: they determine who has access to the bargaining process, what is the legal set of policy options and what is the admissible coalition. The two countries' Constitutions differ in where regions have access to the bargaining process, the use of the courts and the size of the admissible coalition. These differences have led to divergent policies, which are evidenced by the response to the recent drop in commodity prices.
Canadian Journal of Agricultural Economics/Revue canadienne d agroeconomie 07/2005; 49(4):493 - 504. · 0.72 Impact Factor
[show abstract][hide abstract] ABSTRACT: The EU has argued that some agricultural subsidies are needed to provide the optimal amount of externalities (both positive and negative) produced by agriculture. The argument is that agriculture is "multifunctional" and externalities such as rural development and landscape would be underproduced, while some forms of pollution (such as nitrogen runoff) would be overproduced without government intervention. Meanwhile, the United States has raised the concern that multifunctionality is primarily an argument to transfer income to producers. In this paper, we discuss the motivation for the EU agri-environmental measures and empirically test for those underlying causes. We find that the programs are not targeted at those regions with the highest environmental need, but neither are they purely a substitute for traditional forms of agricultural subsidies. Demand for general environmental expenditure does influence agri-environmental expenditure as well, as does political structure.
[show abstract][hide abstract] ABSTRACT: The challenge for any trade agreement is to be adaptable enough to enable countries to address legitimate non-trade concerns (NTC) while being restrictive enough to limit harm to other countries and to assist the creation of free international markets. In this paper, we focus on how environmental NTC have been addressed in agricultural policy in the USA and the European Union (EU) and the resulting implications for trade agreements. For example, programmes in the USA discourage production on environmentally sensitive land, while the EU encourages extensive production. While these and other differences will affect production and trade, the different approaches to agri-environmental policy affect the degree to which the two regions can use agri-environmental policy to offset commodity payments. This difference in flexibility will, in turn, affect how easily the two regions can accept a trade agreement that mandates greater reductions in trade-distorting price supports.
International Journal of Agricultural Resources, Governance and Ecology. 02/2005; 4(3-4).
[show abstract][hide abstract] ABSTRACT: Supply management has been shown to increase the price of milk. Technological change has induced (and allowed) processors to substitute alternative inputs, many of which can be imported tariff-free, for the traditional ingredients to lower costs and maximize profit. Meanwhile, there has been a great deal of consolidation in the dairy processing industry. We analyse the effect of these trends on cheese quality by measuring the increase in casein imports. Results suggest that supply management is negatively affecting cheese quality, by increasing casein imports due to the higher milk price. Furthermore, we were able to calculate that approximately 9.8% of specialty cheese is produced used casein. A 22% ad valorem tariff is needed to drive casein imports down to zero.
[show abstract][hide abstract] ABSTRACT: This paper examines the link between federalism, rent-seeking and free-riding behaviour. Using data from the Canadian dairy industry, we test four hypotheses of the determinants of rent-seeking expenditure and the role of free-riding. First, we find that provinces do not cooperate with each other when lobbying the federal government for trade protection. Second, some provinces are found to free ride on the rent-seeking expenditure of the larger (more influential) provinces. Third, the cost of rent-seeking increases when the federal government is forced to make a decision regarding the future of the protectionist policies. Fourth, institutional changes under the 1994 GATT raised the rent-seeking cost of maintaining protectionist policies.
Canadian Public Policy 01/2003; 29(2):145-161. · 0.38 Impact Factor