Source: PENNSYLVANIA STATE UNIVERSITY submitted to
AGRI-ENVIRONMENTAL PROGRAM DESIGN UNDER MULTIPLE POLICY OBJECTIVES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
TERMINATED
Funding Source
HATCH
Reporting Frequency
Annual
Accession No.
0231038
Grant No.
(N/A)
Project No.
PEN04501
Proposal No.
(N/A)
Multistate No.
(N/A)
Program Code
(N/A)
Project Start Date
Oct 1, 2012
Project End Date
Sep 30, 2016
Grant Year
(N/A)
Project Director
Abler, DA, GE.
Recipient Organization
PENNSYLVANIA STATE UNIVERSITY
208 MUELLER LABORATORY
UNIVERSITY PARK,PA 16802
Performing Department
Agri Economics, Sociology & Education
Non Technical Summary
The UN projects that by 2050 the world's population be over 9 billion, compared to less than 7 billion currently, an increase of roughly one-third. FAO projections indicate that global average demand per person for meat will increase more than 20% between 2006-08 and 2050, due primarily to economic growth in emerging market countries such as China and India. This growth in population and demand per person will place increased pressure on agriculture to supply food and raw materials, on the natural resources used by agriculture, and on environmental quality. There is likely to be increased interest in the development of agri-environmental programs that attempt to balance the desire for abundant food supplies and reasonable food prices against the desire to preserve natural resources and the environment. Current agri-environmental programs in the U.S. and several other countries are mostly voluntary programs in which farmers receive financial and technical assistance from the government to adopt certain practices. Current programs often pursue a range of objectives and significant trade-offs may be involved in attempting to achieve these. For a voluntary program to be efficient, it must enroll farmers who can improve environmental quality at least cost. This is generally not the case. Whether a farmer participates and what practices are adopted are the result of a private decision calculus based on perceived private benefits, not environmental outcomes. The result is that adoption of measures for improving environmental quality is limited to farmers and practices for which the combination of private benefits and government payments is large enough to make adoption economically beneficial. With federal and state governments facing significant fiscal pressure, research is needed on the design of agri-environmental policies that can achieve environmental objectives at the lowest possible cost. Simultaneously there is a need to adapt programs to achieve improvements for a range of environmental outcomes given the pressure to increase agricultural productivity to meet the growing demand for food, fiber and renewable energy. This project will analyze decision-making by agricultural producers to existing and alternative possible policies designed to achieve agri-environmental, and the economic efficiency and cost-effectiveness of these policies.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6056110301075%
6056120301025%
Knowledge Area
605 - Natural Resource and Environmental Economics;

Subject Of Investigation
6110 - Economy of the United States and sectors thereof; 6120 - International economy and sectors thereof;

Field Of Science
3010 - Economics;
Goals / Objectives
1. Analyze the responses of agricultural producers to alternative incentive structures designed to achieve agri-environmental policy objectives. 2. Analyze the optimal design of agri-environmental policies under multiple policy objectives that may complement or compete with each other. 3. Evaluate the performance of agri-environmental policies in place in Pennsylvania, the U.S., and selected other countries in meeting multiple policy objectives and improving social welfare.
Project Methods
1. Studies will be conducted using microeconomic and behavioral theories to develop simulation and econometric analyses of decision-making by agricultural producers to existing and alternative possible incentive structures designed to achieve agri-environmental policy objectives. Examples of incentive structures include payments for adoption of best management practices (BMPs), cross-compliance requirements, point-nonpoint water quality trading, and penalties for failure to meet environmental standards. 2. Results of the simulation and econometric analyses in objective 1 will be used in studies that assess the efficiency and cost-effectiveness of alternative agri-environmental policies. Examples of policy objectives that may complement or compete with each other include various indicators of water quality, reducing or sequestering greenhouse gas emissions, agricultural land preservation, increasing farm incomes, reducing food prices, and maintaining abundant food supplies. 3. Studies will be undertaken of agri-environmental policies in place in Pennsylvania, the U.S., and selected other countries using simulation and econometric analyses of the efficiency and cost-effectiveness of these policies when measured against the objectives of these policies and indicators of social welfare.

Progress 10/01/12 to 09/30/16

Outputs
Target Audience:Target audiences included the offices, researchers and administrators at USDA, the US Environmental Protection Agency, and the Pennsylvania Department of Environmental Protection with responsibility for improving water quality in the Chesapeake Bay region. Target audiences also included international organizations (World Bank, World Trade Organization, International Center for Trade and Sustainable Development, International Food Policy Research Institute) that carry out work directed at improving agricultural impacts on the environment, including reducing greenhouse gas emissions and decreasing excess nutrients from crop and livestock production. Graduate and undergraduate students at Penn State University received classroom instruction on project results in courses taught by David Abler, David Blandford and Spiro Stefanou. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?Presentations on research results were made at professional meetings organized by the Agricultural & Applied Economics Association, Agricultural Economics Society, International Agricultural Trade Research Consortium, the International Center for Trade and Sustainable Development, International Association of Agricultural Economists, Chinese Economists Society, the European Commission, the International Center for Trade and Sustainable Development, University College Dublin, China Agricultural University, the International Food Policy Research Institute, and Northeastern Agricultural and Resource Economics Association. Presentations on research results were also made at the USDA (Office of the Chief Economist, Washington, DC), Pennsylvania Department of Environmental Protection, and Penn State University. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Work focused on the relationship between climate change, domestic agricultural and trade policies, and environmental policies. Research was conducted on policies to promote reductions in greenhouse gas (GHG) emissions from agriculture and their implications for the level and composition of agricultural output and inputs, focusing primarily on empirical analysis for Norway. A model was developed to determine the amount of payments that should be offered to Norwegian farmers to remove peatland from production. Emissions from drained wetlands are a major source of emissions from agriculture in Norway and many other countries around the world. Additional work was conducted on policy options for reducing agricultural emissions in Norway, while at the same time achieving the country's food security objectives. Results help to clarify potential trades-off between policy objectives such as agricultural land preservation, food security, and the support of farm incomes. Work was undertaken on the relationship between domestic policies for agriculture, climate change and food security, and international trade policies and trade disciplines implemented through the World Trade Organization. A primary focus of work was also on the design and cost of agri-environmental policies to improve water quality. As part of this work, research was published on cost-effective ways for achieving improvements in water quality in the Chesapeake Bay and China. This work identified more effective ways of improving water quality at a significantly lower cost than existing public policies. Research was also published on the challenges to point-nonpoint nutrient credit trading created by time lags between agricultural activities and the flow of pollutants into the Chesapeake Bay.

Publications

  • Type: Book Chapters Status: Published Year Published: 2016 Citation: Berkeley Hill and David Blandford (2016). Farm adjustment and sustainability: the role of extension. In Piotr B�rawski, Ireneusz Zuchowski and Elzbieta J. Szymanska. Management of Sustainable Development at Local and Regional Scales. High Economic Social School Publishing House. Ostroleka, Poland.
  • Type: Journal Articles Status: Published Year Published: 2016 Citation: Shortle, J., D. Abler, Z. Kaufman, and K. Zipp (2016). Implications of Lags in Pollution Delivery for Efficient Agricultural Waste Load Allocations and the Design of Water Quality Trading Programs. Agricultural and Resource Economics Review 45:367-393.
  • Type: Journal Articles Status: Published Year Published: 2016 Citation: Yu, X., and D. Abler (2016). Matching Food with Mouths: A Statistical Explanation to the Abnormal Decline of Per Capita Food Consumption in Rural China. Food Policy 63:36-43.


Progress 10/01/14 to 09/30/15

Outputs
Target Audience:Target audiences included the offices, researchers and administrators at USDA, the US Environmental Protection Agency, and the Pennsylvania Department of Environmental Protection with responsibility for improving water quality in the Chesapeake Bay region. Target audiences also included international organizations (World Bank, World Trade Organization) that carry out work directed at improving agricultural impacts on the environment, including reducing greenhouse gas emissions and decreasing excess nutrients from crop and livestock production. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest?Presentations on research results were made at professional meetings organized by the Agricultural & Applied Economics Association (in San Francisco), Agricultural Economics Society (Warwick, UK), International Agricultural Trade Research Consortium (San Diego) the International Center for Trade and Sustainable Development (Geneva, Switzerland), International Association of Agricultural Economists (Milan, Italy), Chinese Economists Society (Chongqing, China), and Northeastern Agricultural and Resource Economics Association (Providence, RI). Presentations on research results were also made at the Pennsylvania Department of Environmental Protection (Harrisburg, PA) and Penn State University. What do you plan to do during the next reporting period to accomplish the goals?Analytical and empirical work will continue on the design and cost of agri-environmental policies to facilitate nutrient credit trading in the Chesapeake Bay region between point and nonpoint sources of water pollution. Work will be continued on the potential impacts of climate change on agriculture in Pennsylvania, and adaptation strategies for Pennsylvania farmers and agribusinesses. Work will also continue with colleagues at the University of Bergen in Norway on methodologies for assessing the impact of climate change policies, and on methodologies for determining the potential uptake of climate change mitigation measures and adoption of adaptation strategies by farmers who participate in agri-environmental programs. Work will also continue on cost-effective ways of reducing excess nutrients in Chinese agriculture.

Impacts
What was accomplished under these goals? Work focused on the relationship between climate change, domestic agricultural and trade policies, and environmental policies. Research was conducted on policies to promote reductions in greenhouse gas (GHG) emissions from agriculture and their implications for the level and composition of agricultural output and inputs, focusing primarily on empirical analysis for Norway. Results help to clarify potential trades-off between policy objectives such as agricultural land preservation, food security, and the support of farm incomes. Work was undertaken on the relationship between domestic policies for agriculture, climate change and food security, and international trade policies and trade disciplines implemented through the World Trade Organization. A paper was prepared on production methods in animal agriculture and policies for farm animal welfare. A primary focus of work during this period was also on the design and cost of agri-environmental policies to improve water quality. As part of this work, research was published on cost-effective ways for achieving improvements in water quality in the Chesapeake Bay and China. This work identified more effective ways of improving water quality at a significantly lower cost than existing public policies. Collaborators in the research at institutions other than Penn State included faculty from the University of Bergen, Norway; Katharine Hassapoyannes, an economic consultant; David Harvey, professor emeritus at the University of Newcastle, UK; Xiaohua Yu, professor at the University of Gottingen, Germany; and Danhong Chen, postdoc, Duke University.

Publications

  • Type: Book Chapters Status: Published Year Published: 2014 Citation: Blandford, D. 2014. International Trade Disciplines and Policy Measures to Address Climate Change Mitigation and Adaptation in Agriculture. In R. Mel�ndez-Ortiz, C. Bellman and J. Hepburn (eds.). Tackling Agriculture in the Post-Bali Context: A Collection of Short Essays. International Centre for Trade and Sustainable Development, Geneva, pp. 55-60.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Blandford, D., I. Gaasland and E. V�rdal. 2015. Trade Liberalization versus Climate Change Policy for Reducing Greenhouse Gas Emissions in Agriculture: Some Insights from Norway. Applied Economic Perspectives and Policy 37(3):418-436, doi:10.1093/aepp/ppu038.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Blandford, D., and D. Harvey. 2014. Economics of Animal Welfare Standards: Transatlantic Perspectives. EuroChoices 13(3):35-40.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Blandford, D., I. Gaasland and E. V�rdal. 2015. Greenhouse Gas Abatement in Agriculture - Is there a Conflict with Food Security? EuroChoices 14(1):35-41.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Blandford, D. 2015. The WTO Agreement on Agriculture and World Food Security. Penn State Journal of Law & International Affairs 3(2):156-167. http://elibrary.law.psu.edu/jlia/vol3/iss2/
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Blandford, D., and K. Hassapoyannes. 2015. A New Global Climate Agreement: Implications for Agriculture? EuroChoices 14(2):4-9.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Blandford, D., I. Gaasland and E. V�rdal. 2015. Greenhouse Gas Abatement in Norwegian Agriculture: Costs or Benefits? EuroChoices 14(2):34-40.
  • Type: Other Status: Published Year Published: 2015 Citation: Shortle, J., D. Abler, S. Blumsack, K. Fang, A. Kemanian, P. Knight, M. McDill, R. Najjar, R. Ready, A. Ross, M. Rydzik, C. Shen, S. Wang and D. Wardrop. 2015. Pennsylvania Climate Impacts Assessment Update. Report to Pennsylvania Department of Environmental Protection, Harrisburg, PA.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Chen, D., D. Abler, D. Zhou, X. Yu and W. Thompson. 2015. A Meta-Analysis of Food Demand Elasticities for China. Applied Economic Perspectives and Policy. doi: 10.1093/aepp/ppv006.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Kaufman, Z., D. Abler, J. Shortle, J. Harper, J. Hamlett and P. Feather. 2014. Agricultural Costs of the Chesapeake Bay Total Maximum Daily Load. Environmental Science & Technology 48: 14131-14138.
  • Type: Other Status: Published Year Published: 2014 Citation: Shortle, J., D. Abler and Z. Kaufman 2014. Implications of Lags in Pollution Delivery for Efficient Agricultural Waste Load Allocations and the Design of Water Quality Trading Programs. Report to US Department of Agriculture, Washington, DC.


Progress 10/01/13 to 09/30/14

Outputs
Target Audience: Target audiences included the offices, researchers and administrators at USDA and the US Environmental Protection Agency with responsibility for improving water quality in the Chesapeake Bay region. Target audiences also included international organizations (International Center for Trade and Sustainable Development, International Food Policy Research Institute) that carry out work directed at improving agriculture’s impacts on the environment, including reducing greenhouse gas emissions and decreasing excess nutrients from crop and livestock production. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Presentations on research results were made at professional meetings organized by theAgricultural & AppliedEconomics Association (in Minneapolis), Agricultural Economics Society (Paris, France), the European Commission (Brussels, Belgium), the International Center for Trade and Sustainable Development (Bonn, Germany), University College (Dublin, Ireland), China Agricultural University and the International Food Policy Research Institute (Xi’an, China), and the Chinese Economists Society (Guangzhou, China). Presentations on research results were also made in seminars at USDA (Office of the Chief Economist, Washington, DC) and Penn State University. What do you plan to do during the next reporting period to accomplish the goals? Analytical and empirical work will continue on the design and cost of agri-environmental policies to facilitate nutrient credit trading in the Chesapeake Bay region between point and nonpoint sources of water pollution. This work is being funded by a cooperative agreement with the USDA Office of the Chief Economist. Work will be initiated on the potential impacts of climate change on agriculture in Pennsylvania, and adaptation strategies for Pennsylvania farmers and agribusinesses. This work is being funded by the Pennsylvania Department of Environmental Protection. Work will also continue with colleagues at the University of Bergen in Norway on methodologies for assessing the impact of climate change policies, and on methodologies for determining the potential uptake of climate change mitigation measures and adoption of adaptation strategies by farmers who participate in agri-environmental programs.

Impacts
What was accomplished under these goals? A primary focus of work during this period was on the relationship between climate change and agri-environmental policies. Research was conducted on policies to promote reductions in greenhouse gas (GHG) emissions from agriculture and their implications for the level and composition of agricultural output and inputs. Results help to clarify potential trades-off between policy objectives such as agricultural land preservation, food security, and the support of farm incomes. Work was also undertaken on the relationship between domestic policies for agriculture that are oriented towards climate change objectives and international trade disciplines implemented through the World Trade Organization. A primary focus of work during this period was also on the design and cost of agri-environmental policies to improve water quality, with a focus on the Chesapeake Bay and on China. As part of this work, research was completed on the challenges to point-nonpoint nutrient credit trading created by time lags between agricultural activities and the flow of pollutants into the Chesapeake Bay.

Publications

  • Type: Book Chapters Status: Published Year Published: 2013 Citation: D. Blandford. Climate Change Mitigation and Adaptation. In Strengthening the Multilateral Trading System: Agriculture and Food Security Group Proposals and Analysis. International Center for Trade and Sustainable Development, Geneva, Switzerland, 2013, pp. 69-77.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: D. Blandford, I. Gaasland and E. V�rdal. Extensification versus Intensification in Reducing Greenhouse Gas Emissions in Agriculture: Insights from Norway. Eurochoices 12(3) (2013): 4-9.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Chen, D., Abler, D., Gao, X., and Gao, Q. 2013. Innovation in Chinese Agribusinesses: Internal Resources and External Networks. Journal of Agricultural Science and Technology B, 3:635647
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Yu, X., and D. Abler. 2014. Where Have All the Pigs Gone? Inconsistencies in Pork Statistics in China. China Economic Review, 30:469-484.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Chen, D., and D. Abler. 2014. Demand Growth for Animal Products in the BRIIC Countries. Agribusiness: An International Journal, 30:85-97.
  • Type: Journal Articles Status: Awaiting Publication Year Published: 2014 Citation: Abler, D. 2014. Economic Evaluation of Agricultural Pollution Control Options for China. Accepted for publication in Journal of Integrative Agriculture.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: D. Blandford, I. Gaasland and E. V�rdal. The Trade-off between Food Production and Greenhouse Gas Mitigation in Norwegian Agriculture. Agriculture, Ecosystems & Environment 184 (February, 2014): 59-66.
  • Type: Book Chapters Status: Published Year Published: 2014 Citation: D. Blandford, J.B. Braden and J.S. Shortle. Economics of Natural Resources and Environment in Agriculture. In N. Van Alfen (ed.) The Encyclopedia of Agriculture and Food Systems. Vol.3, San Diego: Elsevier, 2014. pp. 18-34.


Progress 10/01/12 to 09/30/13

Outputs
Target Audience: Work focused on the design of agri-environmental policies to conserve natural resources and to address issues associated with climate change. Three meetings were attended in Geneva, Switzerland sponsored by the International Center for Trade and Sustainable Development dealing with agri-environmental environmental policies and food security in developed and developing countries. A background paper was prepared on agri-environmental policies and WTO agreements. This work is contributing to a policy options paper for agriculture to be distributed at the upcoming meeting of trade ministers at the 9th WTO Ministerial Conference in Bali, Indonesia in December 2013. Work also focused on the design and cost of agri-environmental policies to facilitate water quality trading in the Chesapeake Bay region between point and nonpoint sources of water pollution. This work was carried out as part of a cooperative agreement with the USDA Office of the Chief Economist. This work is contributing to a presentation and discussion at the October 2013 Chesapeake Bay Water Quality Trading CIG Network meeting. This Network is composed of representatives from government agencies in each of the Chesapeake Bay states and several non-profit groups that have received Conservation Innovation Grants to promote water quality trading in the Bay. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? There will be a presentation and discussion on the water quality trading findings at the October 2013 Chesapeake Bay Water Quality Trading CIG Network meeting. Three meetings were attended in Geneva, Switzerland sponsored by the International Center for Trade and Sustainable Development dealing with agri-environmental environmental policies and food security in developed and developing countries. A background paper was prepared on agri-environmental policies and WTO agreements. This work is contributing to a policy options paper for agriculture to be distributed at the upcoming meeting of trade ministers at the 9th WTO Ministerial Conference in Bali, Indonesia in December 2013. Presentations were also made at conferences and workshops in the US, France, Norway, China, and the UK. These included a workshop at the Organization for Economic Cooperation and Development in Paris, France on the role of the private sector in achieving environmentally-friendly growth in the agri-food sector. What do you plan to do during the next reporting period to accomplish the goals? Analytical and empirical work will continue on the design and cost of agri-environmental policies to facilitate water quality trading in the Chesapeake Bay region between point and nonpoint sources of water pollution. This work, which will be funded by a cooperative agreement with the USDA Office of the Chief Economist, will focus on challenges to point-nonpoint trading created by time lags between agricultural activities and the flow of pollutants into the Chesapeake Bay. Analytical and empirical work will also continue on the design of agri-environmental policies to address issues associated with climate change. A proposal has been submitted to the NIFA/NSF Water Sustainability and Climate (WSC) program focusing on the Delaware River Basin. Work in this area will also continue with colleagues in Norway on methodologies for assessing the impact of climate change policies, and on methodologies for determining the potential uptake of climate change mitigation measures and adoption of adaptation strategies by farmers who participate in agri-environmental programs.

Impacts
What was accomplished under these goals? Analytical and empirical work was completed on the design of agri-environmental policies to conserve natural resources and to address issues associated with climate change. Analytical and empirical work was also completed on the design and cost of agri-environmental policies to facilitate water quality trading in the Chesapeake Bay region between point and nonpoint sources of water pollution.

Publications

  • Type: Book Chapters Status: Published Year Published: 2012 Citation: D. Blandford. Climate change policies for agriculture and WTO agreements. In J.A. McMahon and M.G. Desta (eds.) Research Handbook on the WTO Agriculture Agreement, Edward Elgar, Cheltenham, UK, 2012. pp. 223-249.
  • Type: Other Status: Published Year Published: 2013 Citation: D. Blandford. Green growth in the agro-food chain; what role for the private sector? OECD, Paris, 2013. 39 pp. Available at http://www.oecd.org/tad/sustainable-agriculture/Session%201%20BLANDFORD_FORM.pdf.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: D. Blandford and K. Hassapoyannes. Implications of CAP reform for Greek agriculture  abstract. Agriculture Abstracts 6th Annual International Conference Agriculture15-18 July 2013, Athens, Greece G. T. Papanikos (ed.), Athens Institute for Education and Research, Athens, Greece, p. 25. Available at: http://www.atiner.gr/abstracts/2013ABST-AGR.pdf.
  • Type: Journal Articles Status: Accepted Year Published: 2013 Citation: D. Chen, D. Abler, X. Gao and Q. Gao. Innovation in Chinese agribusinesses: Internal resources and external networks. Accepted and forthcoming in Journal of Agricultural Science and Technology.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: D.A. Fleming and D.G. Abler. 2013. Does agricultural trade affect productivity? Evidence from Chilean farms. Food Policy 41:11-17.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: X. Yu and D. Abler. 2013. Inconsistencies in pork statistics in China. Paper presented at OECD-FAO World Agricultural Outlook Conference, Beijing, China, June 7, 2013.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: D. Abler. 2013. A meta analysis of food demand elasticities in China. Paper presented at OECD-FAO World Agricultural Outlook Conference, Beijing, China, June 8, 2013.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: X. Yu and D. Abler. 2013. Matching food with mouths: Missing food in rural China. Paper presented at Chinese Economists Society annual meeting, Chengdu, June 9, 2013.