Title: Impacts of Greenhouse Gas Emission Regulations on the U.S. Sugar Industry

Authors: Taylor, Richard D.; Koo, Won W.

Abstract: The objective of this study is to evaluate the changes in U.S. sugar production and Greenhouse Gas (GHG) emissions from the sugar industry if the United States regulates GHG emissions from domestic sugar processing facilities. A spatial equilibrium model is developed to optimize sugar production in the United States under a base scenario and three different levels of CO2e taxes or prices of carbon offsets. This research focuses on U.S. sugar production, both beet and cane sugar. In the model the United States is divided into 6 beet growing regions and 4 cane growing regions. The model also includes Mexico as a domestic sugar growing region as Mexico has the ability to export unlimited amount of sugar into the United States under NAFTA. A rest of the world region is included because the United States imports sugar from about 40 different nations. The results indicate that sugar production by the U.S. beet sugar industry will decrease substantially if carbon emissions are taxed in the United States. Production in the U.S. cane industry will also decrease, but only slightly. Sugar imports from Mexico will increase but the majority of the imported sugar will come from other countries as Mexico’s ability to increase sugar production is limited. GHG emissions will decrease, but only slightly, because the GHG emissions that are reduced in the United States are replaced by GHG emission in other nations as U.S. sugar production is shipped overseas. However the impacts on the U.S. sugar industry would be substantial with GHG emission regulations.

Title: The Optimal Climate Policy Portfolio when Knowledge Spills Across Sectors

Authors: Massetti, Emanuele; Nicita, Lea

Abstract: This paper studies the implications for climate policy of the interactions between environmental and knowledge externalities. Using a numerical analysis performed with the hybrid integrated assessment model WITCH, extended to include mutual spillovers between the energy and the non-energy sector, we show that the combination between environmental and knowledge externalities provides a strong rationale for implementing a portfolio of policies for both emissions reduction and the internalisation of knowledge externalities. Moreover, we show that implementing technology policy as a substitute for stabilisation policy is likely to increase global emissions.

Title: The Impact of Mergers on the Degree of Competition in the Banking Industry

Authors: Cerasi, Vittoria; Chizzolini, Barbara; Ivaldi, Marc

Abstract: This paper analyses the relation between competition and concentration in the banking sector. The empirical answer is given by testing a monopolistic competition model of bank branching behaviour on individual bank data at county level (départements and provinces) in France and Italy. We propose a measure of the degree of competiveness in each local market that is function also of market structure indicators. We then use the econometric model to evaluate the impact of horizontal mergers among incumbent banks on competition and discuss when, depending on the pre-merger structure of the market and geographic distribution of branches, the merger is anti-competitive. The paper has implications for competition policy as it suggests an applied tool to evaluate the potential anti-competitive impact of mergers.

Title: On the Green Side of Trade Competitiveness? Environmental Policies and Innovation in the EU

Authors: Valeria, Costantini; Mazzanti, Massimiliano

Abstract: This paper aims to explore how the competitiveness of the EU economy, here captured by export dynamics over the medium run (1996-2007), has been affected by environmental regulation both on the public and private sector side. The strong and weak versions of the Porter hypothesis are tested by specifying the export dynamics of five aggregated manufacturing sectors classified by their technological or environmental content using a dynamic panel data estimator applied to a theoretically-based gravity model. When testing the strong version on export performances of manufacturing sectors, the overall effect of environmental policies does not conflict with export competitiveness. When testing the weak version using export flows of environmental goods, environmental policies, as well as innovation activities, all foster competitive advantages of green exports. Public policies and private innovation patterns trigger higher efficiency in the production process, thus turning the perception of environmental protection actions as a production cost into a net benefit. These results constitute useful advice for policy makers involved in the new wave of environmental tax reforms and green recovery packages currently debated at European Union level.

Title: A Real Options Framework for Analyzing Program Participation as Human Capital Investments: The Case of the Average Crop Revenue Election (ACRE) Program

Authors: Mitchell, Paul D.; Rejesus, Roderick M.; Coble, Keith H.; Knight, Thomas O.

Abstract: We develop a real options framework to model producer participation in a subsidy program as a human capital investment to learn how the stochastic subsidy affects returns and how to adapt production activities to new program incentives, formally linking the framework to a multinomial logit specification for empirical applications. Analysis of farmer intentions for participation in the ACRE program created by the 2008 Farm Bill finds that reluctance to participate was driven largely by risk aversion and perceptions about income risk from yield and price variability, consistent with the theory that uncertainty creates an option value discouraging human capital investments.

Title: Economic Impact of Foreign Exports on the Wisconsin Economy

Authors: Deller, Steven

Abstract: Increasingly discussions of what can be done to improve Wisconsin’s economy look to international markets as a potential source of growth for Wisconsin goods and services. For the most recent available data Wisconsin’s exports amount to almost $22 billion annually, with the majority of that originating in manufacturing, especially from the production of industrial machinery. This level of foreign exports generates about 115,000 jobs and about $10.5 billion of total income for Wisconsin, with those figures capturing only the “direct” effects of exports and not the potential multiplier effects once the products are sold. In ten years’ time from 1996-97 to 2007-08 foreign exports from Wisconsin nearly doubled.

Title: The U.S. Agricultural Sector and the Macroeconomy

Authors: Baek, Jungho; Koo, Won W.

Abstract: The effects of the exchange rate, the U.S. agricultural price, the domestic income, and the interest rate on the U.S. net farm income are investigated in a cointegration framework. For this purpose, the Phillips-Hansen fully-modified cointegration (FM-OLS) procedure is applied to annual data for the period 1957–2008. Results suggest that there exists the long-run equilibrium relationship between the U.S. net farm income and the selected macroeconomic variables. We also find that the exchange rate and U.S. agricultural price are more important than other variables in determining the U.S. net farm income.

Title: Discussion: The Economics of Animal Welfare

Authors: Hudson, Darren

Abstract: This discussion highlights some of the strengths and weaknesses of the literature on animal welfare. Most pointedly, the literature on the economics of animal welfare is quite scant. As exemplified by these papers, however, there is a growing body of literature, especially those related to added costs of production and consumer demand for animal welfare attributes.

Title: Verifying Credence Attributes in Livestock Production

Authors: Olynk, Nicole J.; Tonsor, Glynn T.; Wolf, Christopher A.

Abstract: Livestock producers can respond to increasing consumer demand for certain production process attributes by providing verifiable information on the practices used. Consumer willingness to pay data were used to inform producer decision-making regarding selection of verification entities for four key production process attributes in the production of pork chops and milk. The potential for informing farm-level decision-making with information about consumer demand for product and production process attributes exists beyond the two products assessed as example cases in this analysis.

Title: The Economics of Regulations on Hen Housing in California

Authors: Sumner, Daniel A.; Matthews, William A.; Mench, Joy A.; Rosen-Molina, J. Thomas

Abstract: Beginning January 1, 2015, conventional cage housing for egg-laying hens is scheduled to be prohibited in California. We consider the economic implications of the new hen housing regulations on the California shell egg industry. Our data show that egg production is more costly using noncage systems than conventional cages. The main result of the new regulations will be a drastic reduction in the number of eggs produced in California, a large increase in egg shipments from out of state, little if any change in hen housing for eggs consumed in California, and little change in egg prices in California.

Title: Drivers of Resident Support for Animal Care Oriented Ballot Initiatives

Authors: Tonsor, Glynn T.; Wolf, Christopher A.

Abstract: Recent high profile incidents and public debates in the United States have highlighted the increasing interest residents have regarding animal rearing and handling practices. This paper examines resident support for national legislation that mirrors Proposition 2, which in November 2008 passed in California. Results suggest perceptions regarding animal welfare information accuracy of livestock industry and consumer groups are particularly influential determinants of voting behavior and demand. The analysis also suggests residents may not fully appreciate price or tax implications when supporting additional animal welfare legislation. Implications for livestock industry and policy makers are provided along with suggestions for additional research.

Title: Adding Value with Fixed-time AI and High Accuracy Sires

Authors: Parcell, Joe; Patterson, Dave; Smith, Mike; Poock, Scott

Title: Managing Quantity, Quality and Timing in Cane Sugar Production: Ex Post Marketing Permits or Ex Ante Production Contracts

Authors: Patlolla, Sandhyarani

Abstract: Sugarcane produced in India is utilized to manufacture three sweetening agents: sugar, gur, and khandsari. Sugar processors must comply with a floor price for cane, but gur and khandsari producers are exempt from the floor price. Thus, any effect of the sugar processor’s choice of procurement method on the incentives facing farmers will depend on the expected cane price in these competing unregulated markets. In Andhra Pradesh (AP), India, private sugar processors use an unusual form of vertical coordination. Rather than conventional pre-planting contracts, they issue ‘permits’ to selected cane growers a few weeks before harvest. I explore the potential motivations behind this choice of sugar processors and hypothesize that the probabilistic permit system is the low-cost way of procuring high-quality cane. I develop a theoretical model of the AP cane procurement market that incorporates the floor price policy that applies only to the cane used for sugar processing, and compare processor profits under the probabilistic ex post permit system and ex ante production contracts. The model predicts that both the quality of cane procured and the profits from unit cane purchase are higher when the processor uses ex post permits. These gains come at the expense of increased cultivation costs incurred by the farmers. I test and confirm the predictions of the theoretical model using data from a household survey conducted in fall 2008.

Title: SOME DEVELOPMENT PERSPECTIVES FOR INDUSTRIAL SECTOR IN UZBEKISTAN

Authors: BURKHANOV, AKTAM

Abstract: This paper discusses theoretical aspects of development strategies for industrial companies of Uzbekistan. The author concludes that support of the applied scientific researches and innovations by the government is the key factor in moving the industrial production of Uzbekistan on higher technological level.

Title: Exports of Livestock Products from India: Performance, Competitiveness and Determinants

Authors: Kumar, Anjani

Title: The Influence of Endogenous Nutrition Knowledge on Consumers’ Willingness-To-Pay for Grass-Fed Beef

Authors: Xue, Hong; Mainville, Denise; You, Wen; Nayga, Rodolfo M. Jr

Abstract: The relationship between nutrition knowledge and consumers’ food behavior has been debated for years. This may be partially attributed to the difficulty introduce by endogeneity of nutrition knowledge in econometric modeling. Using grass-fed beef as a vehicle, this paper investigates the impacts of consumers’ nutrition knowledge on their willingness to pay by accommodating the endogeneity problem using instrumental variable approach. Our results suggest that consumers’ nutrition knowledge significantly influences their willingness to pay for grass-fed beef. Gender and education are influential factors of consumers’ nutrition knowledge level.

Title: Demand for Live Seafood in the North Central Region

Authors: Quagrainie, Kwamena; Hughes, Kevin; Xing, Ai

Title: Consumer Demand for Branded Beef Programs

Authors: McCully, Mark

Title: Factors Influencing the Price of Value-Added Calves at Superior Livestock Auctions

Authors: Zimmerman, Lance

Title: Assessing the Cost of Beef Quality Revisited

Authors: Ibarburu-Blanc, Maro A.; Lawrence, John D.; Busby, Darrell; Strohbehn, Daryl