Dusan Drabik

Dusan Drabik
Wageningen University & Research | WUR · Department of Economics

About

90
Publications
9,227
Reads
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971
Citations
Additional affiliations
May 2014 - present
Wageningen University & Research
Position
  • Professor (Assistant)
July 2013 - April 2014
European Commission
Position
  • Grant holder
January 2013 - June 2013
Cornell University
Position
  • PostDoc Position

Publications

Publications (90)
Preprint
Full-text available
Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR) technology for rice, which makes rice resistant to its two most destructive insect pests, is an alternative to insect-resistant genetically modified (GM) rice. We advance an economic framework to determine ex ante the planting share of CRISPR rice in China under uncertainty about pe...
Article
Full-text available
Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR) technology for rice, which makes rice resistant to its two most destructive insect pests, is an alternative to insect-resistant genetically modified (GM) rice. We advance an economic framework to determine ex ante the planting share of CRISPR rice in China under uncertainty about pe...
Technical Report
Full-text available
This study systematically reviews the empirical literature of the past three decades on the capitalization of agricultural subsidies into land prices. We undertake a comprehensive meta-analysis and conduct a qualitative assessment of main econometric and data issues and their potential solutions. In total, we reviewed 26 papers published between 19...
Article
Full-text available
We review the recent theoretical and empirical literature on the capitalization of agricultural subsidies into land prices. The theoretical literature predicts that agricultural subsidies are capitalized into land prices when land supply is inelastic and land markets function well. The share of capitalized subsidies significantly depends on the imp...
Technical Report
Full-text available
The report focuses on the role that food loss and waste (FLW) could play in reducing the environmental footprint of food systems while attempting to meet the caloric and nutrient needs of a population expected to increase by 3 billion people in the next 30 years. The performance of the global food system over the last century has been extraordinary...
Article
The paper provides an economic model of food waste for consumers, intermediaries and farmers based on first principles. We distinguish between purchases and sales for each intermediary, purchases and consumption for consumers, and gross production versus sales for farmers. Because of waste at each stage of the supply chain, agents need higher sales...
Chapter
This chapter is about biofuel policies governing EU terrestrial transportation. We provide an overview of important historical and policy milestones fringing the path of ethanol and biodiesel production and consumption in the European Union. By discussing selected topics related to the biofuel production, we aim to lead the reader through the maze...
Article
Food self-sufficiency is an important contributor to food security, and one of the potential solutions to this problem is increased food production productivity through agricultural biotechnology. In this paper, we study the relationship between a country’s genetically modified (GM) food policy and the food self-sufficiency rate (SSR) under conflic...
Article
Full-text available
We develop a microeconomic model to understand food waste of consumers. We capture at-home and away-from home food consumption and distinguish between food purchases and food consumption. We allow the consumer to choose the rate of food waste at home optimally to maximize her utility. We show that consumer purchases can decline or increase with a c...
Article
Full-text available
Over 95% of post‐mortem samples from the 1918 pandemic, which caused 50 to 100 million deaths, showed bacterial infection complications. The introduc- tion of antibiotics in the 1940s has since reduced the risk of bacterial infections, but growing resistance to antibiotics could increase the toll from future influenza pandemics if secondary bacteri...
Article
The Commission's proposals on the Common Agricultural Policy (CAP) post-2020 made the Research-Innovation-Advice nexus a key priority with the aim of promoting sustainable growth in agricultural productivity and rural development. The proposal allocates €10 billion for this priority through the EU's Horizon Europe research programme, and it envisag...
Article
Full-text available
p>What are the procedures and trends for obtaining approval for imported genetically modified (GM) crops in China, and how do approval dates and length of approval in China compare with those in other countries? The answers are crucial for current food security in China and the future of crops derived by gene editing.</p
Article
In Germany, products derived from livestock who were fed GMO are not required to be labeled as GMO. However, non-GMO labeling requires compliance with the national public non-GMO production standard, including a confirmation that no GM feed was used. In addition to the national standard, firms can adopt a private collaborative certification standar...
Article
Full-text available
Taking the European Union (EU) as a case study, we simulate the application of non-uniform national mitigation targets to achieve a sectoral reduction in agricultural non-carbon dioxide (CO2) greenhouse gas (GHG) emissions. Scenario results show substantial impacts on EU agricultural production, in particular, the livestock sector. Significant incr...
Article
Full-text available
We analyze the impact of land fragmentation on production diversification in rural Albania. Albania represents a particularly interesting case for studying land fragmentation as the fragmentation is a direct outcome of land reforms. The results indicate that land fragmentation is an important driver of production diversification of farm households...
Chapter
Water is a key input into production of agricultural crops that are processed into biofuels. We find that most EU Member States mandate higher shares of biodiesel relative to ethanol, thus essentially predetermining the use of water domestically and internationally (through trade in biofuels) because first-generation biodiesel can only be produced...
Article
We build a tractable partial equilibrium model to study the interactions between the EU biofuel policies (mandate and double-counting of second-generation biofuels) and first- and second-generation biodiesel production. We find that increasing the biodiesel mandate results in a higher share of first-generation biodiesel in total diesel fuel, but le...
Article
Economists have been unanimous that developing countries' policy responses to high food grain prices in 2007-2008 in restricting exports and promoting imports increased both world food grain price levels and volatility. Furthermore, the literature emphasizes the self-defeating aspects of policy responses: world prices increase even further, thereby...
Article
Full-text available
This paper analyzes the impact of ethanol policies on price transmission along the food supply chain. We consider the US corn sector and its vertical links with food and ethanol (energy) markets. We find that ethanol is a source of imperfect price transmission in the food supply chain. Ethanol, however, alters price transmission only under a bindin...
Article
We advance a conceptual framework to put the debate about food versus fuel in the European Union into perspective. We show that many of the problems identified for the food and bioenergy production in the European Union have been priced via several rules and regulations, including water use, fertilizer and pesticide use, and protection of habitats....
Article
Facing a huge fiscal burden due to imports of its entire petroleum demand in the face of ample supply of agricultural land to produce biofuels, Zambia has recently introduced a biofuel mandate. However, a number of questions, particularly those related to the economics of biofuels, have not been fully investigated yet. Using an empirical model, thi...
Technical Report
Full-text available
This study analyzes the seed, feed, energy, fertilizer, and plant protection agents farm input sectors from two perspectives: the demand side and the supply side. Average input shares in the EU-27 for seeds and fertilizers declined while they increased for feeds. Market concentration is the largest in the plant protection agents sector followed by...
Article
Sugarcane in Brazil is processed into sugar and/or ethanol, often in flex plants that can switch between the two products. We develop an economic model of flex plants, export demands, and two domestic fuel demand curves for a blend of ethanol with gasoline consumed by conventional cars, and ethanol consumed only by flex cars. We analyze the market...
Conference Paper
Full-text available
According to the European Council's recent agreement on domestic climate and energy goals, greenhouse gas emissions from sectors outside the EU’s Emission Trading Scheme have to be cut by 30% below 2005 levels by 2030. So far no decision has been taken on agriculture's specific involvement in mitigation obligations or on how mitigation targets woul...
Technical Report
Full-text available
The report presents an overview of the historical and projected development of agricultural GHG emissions in the EU. The major objective of the report is to present the improvements made in the CAPRI modelling system with respect to GHG emission accounting and especially regarding the implementation of endogenous technological mitigation options. F...
Article
Building, maintaining and applying the integated Modelling Platform for Agro-economic Commodity and Policy Awards (iMAP) has been a long-term project (since 2005) at the Joint Research Centre Institute for Prospective Technological Studies (JRC-IPTS), whose aim is to deliver in-house policy support to the european Commission. iMAP is the result of...
Article
This chapter provides an overview of international biofuel polices and their main impacts on food prices and land use. Global biofuel production has experienced a rapid growth by increasing from almost a zero level in 1970 to 29 billion gallons in 2011; the United States, the European Union, and Brazil account for around 90 % of the global biofuel...
Chapter
The previous chapter emphasized the importance of the complex structure of the US mandate and how the nested mandates interact with one another. Brazilian sugarcane ethanol is central to the outcome, being an advanced biofuel. Brazil was the world’s largest ethanol producer until the United States surpassed it in the mid-2000s, but Brazil is still...
Chapter
The controversy over biofuel policies has sparked debate not only on what caused the high levels of grain and oilseed prices, but also the alleged increase in price volatility and its potential deleterious effects. To illustrate, take two headlines, each involving a Cornell professor: “Cornell’s Per Pinstrup-Andersen: Don’t Believe the Hype (and Da...
Chapter
The previous chapter developed the required analytical framework in order to determine how much of the food grain and oilseed price increase observed over the last several years is due to biofuel policies. We established the price links between corn and ethanol, and between ethanol and gasoline. However, we failed to provide empirical estimates of...
Chapter
The purpose of this chapter is to critically assess a burgeoning literature that uses high-frequency time series (HFT) econometric analysis (using daily, weekly or monthly data) that frantically seeks a link between feedstock and biofuel prices (say corn and ethanol), biofuel and gasoline/diesel prices, or directly between feedstock (e.g., corn) an...
Chapter
Biodiesel averaged 20 percent of total world biofuel production by volume in the period 2010–2012.1 Biodiesel is expected to reach 25 percent of total biofuel volume by 2025. However, its share in vehicle miles traveled is higher because a gallon of biodiesel obtains 91.3 percent of the miles traveled compared to a gallon of diesel whereas ethanol...
Chapter
So far, we have emphasized the importance of the crop-biofuel-energy-crude oil price links, and the resulting two states of nature where corn prices can go no lower than when locked onto crude oil prices through ethanol and gasoline prices, and with tax credits.1 To illustrate the importance of price links and how quantity (sectoral supply/demand)...
Chapter
We have analyzed the great food commodity price boom since late 2006 using a strict meat-and-potatoes approach. We do not discuss tulip manias or Malthus’ revenge. We do not wax poetic about how Henry Ford had ethanol as his fuel of choice for the Model-T (this time is different) or that prohibition was a conspiracy to monopolize the gasoline marke...
Chapter
This chapter will contribute to the understanding of how this price spiral happened, which has quickly become one of the most analyzed period of food commodity price movements in history. As Timmer and Dawe (2010, 8) state: No lessons from the food crisis are of much relevance without understanding how this price spiral happened.
Chapter
Most academics analyze issues through the lens of their own expertise. Therefore, it should be no surprise when a recently minted Nobel Prize-winning behavioral economist wrote in the New York Times that: Commodities followed the euphoria cycle that we had along with housing. Shiller (2008)
Chapter
The models developed in this book span different feedstocks, biofuels, and countries and, therefore, we have already come across several important interactions. For example, we closed the previous chapter on how the expiring US tax credit impacted Brazilian ethanol prices. In the chapter before that, we showed how the complex structure of the US ma...
Chapter
Recall in Chapter 1 that corn prices almost doubled in the six months beginning in September 2006, precipitating the Mexican tortilla crisis in January 2007 and India’s ban of wheat exports the following month. This was the beginning of a long list of countries restricting exports (export bans, export taxes, value-added tax rebates, and actions by...
Chapter
Wright (2011,32) argues that: Recent price spikes are not as unusual as many discussions imply. Further, the balance between consumption, available supply, and stocks seems to be as relevant for our understanding of these markets as it was decades ago …the tools at hand are capable of explaining the main forces at work.
Conference Paper
Full-text available
The European Commission started to reflect on a new policy framework on climate and energy for 2030. Identifying the best options for agriculture to contribute to future GHG emission reductions in the EU requires a comprehensive analysis of a wide range of possible policies, technological and management measures. In this context the CAPRI model has...
Article
A theoretical and empirical model is developed to analyze the effect of a biodiesel mandate, a tax exemption (tax credit) and an exogenous diesel price shock on world soybean and canola markets. The jointness in crushing oil and meal from the oilseed reduces the size of the link between biodiesel and oilseed prices. A diesel price shock with a mand...
Book
Full-text available
The global food crises of 2008 and 2010 and the increased price volatility revolve around biofuels policies and their interaction with each other, farm policies and between countries. While a certain degree of research has been conducted on biofuel efficacy and logistics, there is currently no book on the market devoted to the economics of biofuel...
Article
This is the first paper to analyze the impact of biofuels on the price transmission along the food chain. We analyze the U.S. corn sector and its vertical links with food and ethanol (energy) markets. We find that biofuels affect the price transmission elasticity in the food chain compared to a no biofuel production situation but the effect depends...
Article
We develop an economic model of flex plants, export demands and two domestic fuel demand curves: E25, a 25 percent blend of ethanol with gasoline consumed by conventional cars, and E100, ethanol consumed only by flex cars. This allows us to analyze the market impacts of specific policies, namely the E25 blend mandate, fixing gasoline prices below w...
Article
Full-text available
Indirect land use change, an agricultural market leakage, has been a major controversy over the Environmental Protection Agency’s (EPA) requirement for corn-ethanol to reduce greenhouse gas (GHG) emissions by 20 percent relative to gasoline it is assumed to replace. This paper shows that corn-ethanol policies generate far greater carbon leakage in...
Article
This paper synthesizes and critiques three approaches to the analysis of the recent booms in food grains and oilseeds commodity prices: the ‘perfect storm’; statistical time-series models; and models explaining how biofuels linked the fuel and agricultural markets, thus giving rise to a new era of commodity prices. We find that biofuel policies and...
Article
AbstractOECD countries’ biofuels policies, derived from energy and environmental legislation and activated by high oil prices, were the primary cause of not only the sudden spike in grain and oilseed prices in 2007–2008 but also of the ensuing price volatility. Even though developing countries have a comparative advantage in biofuels production, th...
Article
Biofuel policies are a subset of policies designed to achieve energy security, an improved environment, enhanced agricultural incomes, technological change, and overall economic benefits, with increased domestic energy production creating green jobs and foreign exchange savings. In assessing this broad spectrum of proclaimed policy goals with the o...
Article
Using an empirical model, this study provides some insights into the functioning of the oilseed-biodiesel-diesel market complex in a large country that determines the biodiesel price, reflecting market equilibrium changes resulting from volatility in the crude oil price. Oilseed crushing produces joint products -- oil and meal -- and this weakens t...
Article
Biofuels policies have a large impact on food-grain commodity prices, first and foremost by linking biofuel prices to feedstock prices. The multiplier effect of higher biofuel prices on feedstock prices is shown to be very large (about 4) and the biofuel price premiums due to biofuel policies are also very high (above the tax credits) compared to w...
Article
A tractable general equilibrium model is developed to analyze the welfare implications of a biofuel blend mandate and consumption subsidy in the presence of pre-existing labor and fuel taxes. The tax interaction and revenue recycling effects are significant relative to the overall costs of the policies and to previous partial equilibrium studies. W...
Article
This paper presents a general equilibrium model of the U.S. economy and estimates the optimal corn ethanol consumption subsidy and blend mandate in two different fiscal environments: a labor market with a pre-existing tax and a fixed governmental revenue requirement, and an undistorted labor market. We first derive analytical formulas for the optim...
Article
We provide a possible explanation for the sudden appearance of milk dispensers throughout Slovakia between 2009 and 2010. We identify three main factors: (i) higher profits earned by selling raw milk through dispensers relative to those earned through milk processing plants, (ii) very short pay-back period of dispensers, and (iii) high cumulative d...
Article
A conceptual framework is advanced that determines world biodiesel prices, the policy parameters in the country establishing the price, and the binding mandate or tax exemption. The effect of a tax credit differs with international trade compared to traditional closed economy analysis. The U.S. “splash & dash” program, with its $1/gallon tax credit...
Article
We develop an analytical framework to assess the market effects of alternative biofuel policies (including subsidies to feedstocks). U.S. corn-ethanol policies are used as an example to study the effects on corn prices. We determine the ‘no policy’ ethanol price; analyze the implications for the ‘no policy’ corn price and resulting ‘water’ in the e...
Article
We estimate the role of biofuel policies in determining which country is the biofuel price leader in world markets using a cointegration analysis and the Vector Error Correction (VEC) model. Weekly prices are analyzed for the EU, U.S, and Brazilian ethanol and biodiesel markets for the 2002-2010 and 2005-2010 time periods, respectively. The U.S. bl...
Article
Full-text available
This paper analyzes carbon leakage due to reduced emissions from deforestation (RED). We find that leakage with RED is good because the policy induces afforestation that contributes to a further carbon sequestration. By ignoring the domestic component of carbon leakage, the literature can either overestimate or underestimate leakage, depending on t...
Article
Full-text available
Kliauga, de Gorter, and Just (2008) and de Gorter, Drabik, and Just (2010) argue that the United States and the European Union establish the world ethanol and biodiesel prices, respectively. We test these theories using a cointegration analysis and the Vector Error Correction (VEC) model. Weekly price series are analyzed for the major global biofue...
Article
Full-text available
This paper analyzes carbon leakage due to reduced emissions from deforestation (RED). We find that leakage with RED is good because the policy induces afforestation that contributes to a further carbon sequestration. By ignoring the domestic component of carbon leakage, the literature can either overestimate or underestimate leakage, depending on t...
Article
Carbon leakage in the fuel market due to alternative biofuel policies is shown to have two components: a market leakage (or 'indirect output use change') effect and an emissions savings effect. We also distinguish between domestic and international leakage and show how omitting the former can bias leakage estimates. International leakage is always...
Article
We show carbon leakage depends on the type of biofuel policy (tax credit versus mandate), the domestic and foreign gasoline supply and fuel demand elasticities, and on consumption and production shares of world oil markets for the country introducing the biofuel policy. The components of carbon leakage – market leakage and emissions savings – are c...
Article
Full-text available
Leakage in the fuel market differs, depending on whether ethanol production is determined by a tax credit or consumption mandate. Two components of market leakage are distinguished: domestic and international. Leakage with both a tax credit and a consumption mandate depends on market elasticities and consumption/production shares, with the former h...
Article
In Western Europe, the USA and other developed countries agriculture is dominated by small family farms. In Central and Eastern European countries (CEECs) a dual structure of farms exists. There are large corporate farms (CF) and small family farms (FF) in CEECs. This article shows that both CF and FF specialise in commodities in which they have a...
Article
The paper analyses the agri-food trade specialisation pattern in Slovakia prior to and after its accession to the European Union in the period 2000 -2005. The most competitive Slovak agri-food commodities in trade with the examined trade groupings were consumer-oriented products. Degree of agri-food trade specialisation dropped over the period for...
Article
Full-text available
In the paper we analyze economic university research and education in transition countries. University system differs from industry in the nature of output that it produces. University system is engaged in production of public goods rather than private goods. The sector also suffers from the measurement problem of quality of its output. We argue th...
Article
Full-text available
Migration flows are shaped by a complex combination of self-selection and out-selection mechanisms. In this paper, the authors analyze how existing diasporas (the stock of people born in a country and living in another one) affect the size and human-capital structure of current migration flows. The analysis exploits a bilateral data set on internat...
Article
In the paper we analyze economic university research and education in transition countries. University system differs from industry in the nature of output that it produces. University system is engaged in production of public goods rather than private goods. The sector also suffers from the measurement problem of quality of its output. We argue th...
Article
Full-text available
In Western Europe, USA and other developed countries agriculture is dominated by small family farms. In Central and Eastern European Countries (CEEC) and Former Soviet Union (FSU) dual structure of farms exists. There are large corporate farms (CF) and small family farms (FF) in CEEC and FSU. Our paper shows that both CF and FF specialize in commod...
Article
The paper analyzes the changes in agricultural trade patterns in Slovakia that occured during the gradual trade liberalization due to European Union enlargement in 2004. The results indicate that approximately 30% of the increase in agricultural imports from the EU15 and CEECs between 2000 and 2005 was due to the discriminatory trade liberalization...