Although farmer market participation raises income, it often also reduces on-farm varietal diversity. However, for under-utilized crops like minor millets, market participation may actually encourage growers to increase on-farm diversity through better access to new varieties exchanged at local markets and higher returns from varieties already grown. We test this hypothesis in two different agro-ecological niches, the Plains and the Hills in southern India. Empirical results based on propensity score matching indicate that, in the less fertile dryland plains, market participation improved on-farm varietal diversity of minor millets and increased net revenues – albeit with insignificant welfare effects on farm households. On the other hand, in the fertile hill ecosystems, market development had no effect on varietal diversity. Insights from such a comparison could help design suitable policy interventions for on-farm conservation of under-utilized crops in their own agro-ecosystems through active stakeholder participation.

We investigate the interaction between a developed country that imports a carbon-intensive product, such as electricity, and a transitioning economy that exports the product. Production of the good generates a transboundary externality related to climate change; if this externality is priced improperly, the application of a feed-in tariff or border tax adjustment can provide an indirect policy instrument. We analyze the application of such a measure in a stark model where the importing country cares about climate-related damages while the exporting country does not; this can be viewed as reflecting a scenario where the (developed) importing country is more concerned about climate change than is the (transitioning) exporting economy. Because climate change will occur over a long time frame, the problem is dynamic. In this modeling context, we describe the manner in which the (second-best) tariff-cum-border tax adjustment relates to the carbon stock.

Eco-entrepreneurs in developing countries are often subject to market or institutional constraints such as missing markets. Conservation interventions which relax constraints may be both cost effective and poverty reducing. A simulation using data from an intervention in Madagascar to relax the technological constraints of forest honey production investigates this possibility. Cost-effectively achieving dual environment-development goals is shown to depend on the severity of constraints, relative prices, along with the nature and efficiency in use of technology. Success is more likely for technologies exhibiting close to constant returns to scale or high-input complementarity. Forest honey does not meet these requirements. Ultimately, where market or institutional constraints are present, knowledge of the recipient technology is required for more informed, efficient and perhaps more politically acceptable conservation policy.

We present the ecological functions of cormorants and estimate the economic value of these functions to artisanal fishermen, as a valuation exercise for Neotropic Cormorants at Los Olivitos Estuary, Lake Maracaibo, Venezuela. Ecological functions were based on estimating the abundance, distribution and diet of cormorants; economic values were attached to a selection of goods, services and attributes. Based on available information, we selected four ecological–economic functions of cormorants: harvesting for food; contributors to fish diversity; indicators of fish schools; and contributors to fish biomass, due to guano production. Cormorants consumed nine commercial fish species. Mean consumption was 225 g/ind/day. All ecological–economic functions were positive except for the role as contributors to fish biomass. Total value of the cormorant population to fishermen was $5,429,703/year. Unlike many studies, our results show that Neotropic Cormorants have a negligible impact on artisanal fisheries. We emphasize the importance of these results for management policies.

The authors examine whether high personal discount rates help explain why and which households in developing countries under-invest in seemingly low-cost options to avert environmental health threats, including bednets, clean cooking fuels, individual household latrines, water treatment and handwashing. First, the authors elicit personal discount rates by combining a simple randomized experiment with detailed surveys of over 10,000 rural households in Maharashtra, India. Personal discount rates are lower for women, for better-off households, and for households who can access formal credit. Secondly, they show that the discount rate is negatively related to a suite of behaviors that mitigate environmental health threats, from very low-cost steps like washing hands to more significant investments like household latrines, even after controlling for socio-economic status, access to credit, public infrastructure and services, and relevant beliefs.

This paper studies the effect of carbon leakage on the environmental Kuznets curve (EKC) using satellite nighttime light data. It shows that nighttime lighting is an important variable for estimating carbon dioxide emissions that is superior to other existing indicators and covers all countries in the world, finding evidence of an inverted-U shaped relationship between light and, thus, greenhouse gas emissions and income, with a turning point at approximately US$50,000. However, the relationship is primarily driven by changes in the structure of international trade, implying strong carbon leakage effects. Consequently, environmental regulations that become operative in only one part of the world may fail without global coordination.

This paper evaluates the short-term health effects of in utero drought shock using repeated cross-section household data on Malawi. The main finding reveals that the effects of in utero harvest variability caused by rainfall shocks on child growth indices are driven by the deleterious effects of negative rainfall deviations, namely droughts. Negative rainfall deviation during the agricultural season prior to the gestational period of a child leads to a 21.8 per cent average local level reduction in age-standardized height scores, with the counterpart positive rainfall deviation having no apparent effect. The paper also uses harvest and consumption patterns to establish an important link between early-life malnutrition and growth serving as a precursor for the fetal period programming hypothesis in the literature. The direct impact of embryonic period shocks on growth provides supportive evidence on potential interaction between nutritional and environmental pathways.

In this study we model the preferences and willingness to pay (WTP) of downstream farmers in one of the largest irrigation schemes worldwide in Sudan for improved irrigation water supply through transboundary collaboration with farmers upstream in Ethiopia. In a choice experiment, Sudanese farmers are asked to pay an increase in existing irrigation fees to secure future irrigation water availability by either enhancing the removal of sediments in their local irrigation channels or compensating farmers in the Ethiopian highlands for taking soil conservation measures to prevent land degradation and soil erosion. Although Sudanese farmers downstream do not feel very connected to farmers upstream in Ethiopia, we find a high degree of trust in international cooperation and a positive WTP for improved irrigation water supply and water use efficiency through transboundary collaboration.

Recently a number of multi-country insurance schemes have been introduced to deal with short-term fiscal liquidity gaps after natural disasters. However, little is known about the actual underlying risk to the fiscal sector just after such events. In this paper, we estimate the risk of fiscal shortages due to tropical storms in the Caribbean. To this end, first we use a panel VAR and estimate that while government expenditure does not respond to damages due to tropical storms, there is a significant contemporaneous effect on fiscal revenue. The results also reveal that different components of expenditure and revenue respond differently to hurricane shocks. Then, employing a parametric bulk extreme value model on estimated losses due to historical events, we show that the fiscal shortage due to storms can potentially be sizeable depending on the rarity of the event, but varies considerably across islands. However, any risk assessment is fraught with considerable uncertainty, particularly for rare but potentially very damaging tropical storm strikes.

Electronic waste generated from the consumption of durable goods in developed countries is often exported to underdeveloped countries for reuse, recycling and disposal with unfortunate environmental consequences. The lack of efficient disposal policies within developing nations coupled with global free trade agreements make it difficult for consumers to internalize these costs. This paper develops a two-country model, one economically developed and the other underdeveloped, to solve for optimal tax policies necessary to achieve the efficient allocation of economic resources in an economy with a durable good available for global reuse without policy measures in the underdeveloped country. A tax in the developed country on purchases of the new durable good combined with a waste tax set below the domestic external cost of disposal is sufficient for global efficiency. The implication of allowing free global trade in electronic waste is also examined, where optimal policy resembles a global deposit-refund system.

The influence of price, in view of macro-economic policy change and a set of other factors, on herd off-take rates from ranches in Kenya over a period of 17 years was assessed. An AR(1) equation, based on Nerlove's classical dynamic supply model, was derived and fitted to panel data using the Cochrane–Orcutt procedure. Pooling of data was done to circumvent data insufficiency, thereby improving the statistical power of the analysis. Results indicate that price change has had a significant effect on ranch herd off-take, and climatic factors also account for long-run off-take levels.

Interest payments based on income flows are a common feature of informal loans. Such so-called ’interlinked loans’ can be seen as insurance against very low disposable incomes, as interest payments are lowest when income turns out to be low. This paper examines whether interlinked loans indeed contain an insurance premium and how those premia are determined. A simple theoretical model predicts that interest rates of interlinked loans increase with income volatility when insurance premia exist. Based on data from a small-scale fishery in India, calculations show that, on average, lenders receive 25 per cent of the income, which corresponds to an average interest rate of 49 per cent p.a. A panel data analysis confirms theoretical predictions that interlinked loans contain an insurance component paid by the borrowers.

Using remotely sensed land-cover data in 1994 and 2014, and cross-sectional survey data in 2014, this study examines the association between land use and cover change and agricultural productivity in northern Ghana. We document a significant expansion of crop land and settlements (productive use) at the expense of natural vegetation cover. Land areas converted from natural cover to productive use have higher maize yield (0.17 tons per hectare) and harvest value (1,021 Ghanaian Cedi) compared with those converted from bare soil to productive cover. Moreover, areas that were covered by shrubs or savannah in 1994 were more productive in 2014 relative to bare soils in 1994. Although our data do not allow us to establish causality, the evidence suggests the importance of past land-cover conditions in affecting current agricultural performance, especially in resource-stricken settings where conservation and restoration practices are not as common.

When decisions to intervene in different schistosomiasis severity states are taken in isolation, inefficiencies are unavoidable due to failure to take account of the synergy between community and facility level options. To date no studies have been conducted of the sequential nature of decision-making processes in schistosomiasis. The main aim of this study is to develop a methodology that could be used to compute the costs and health benefits of alternative strategies for ameliorating the burden of illness from schistosomiasis, with a view to determine that strategy which would produce the greatest excess of benefits over cost. In other words, the goal is to develop a conceptual framework that could be used to map out the most efficient path of options for intervention across a spectrum of schistosomiasis states - asymptomatic, mild, moderate, severe, and very severe.

A cost-utility decision analysis (CUDA) model was developed and applied to the population living within the schistosomiasis endemic region of Kenya covered by the Mwea Irrigation Scheme. Both primary and secondary level options were included in the analysis.

The main findings are as follows. Strategies involving treatment at the community level were generally superior to non-treatment community strategies. The selective population praziquantel chemotherapy (SPCPS) was found to be the optimal strategy. Mollusciciding strategies are the most cost-effective among the non-treatment strategies. The results of the sensitivity analyses were, however, mixed. The inconclusive nature of the results indicates that firm policy conclusions cannot be made on the basis of current epidemiological information, and more research is urgently required to establish both the validity and reliability of the health-related quality of life (HRQoL), and the Delphi technique (DT) measurements used in the study.

We conducted a choice experiment (CE) to estimate willingness to accept (WTA) values for a planned conditional cash transfer (CCT) programme designed to increase toilet use in South Africa. The payment is made conditional on using a toilet and bringing urine to a central collection point. In a split-sample approach, a segment of respondents were given time to think (TTT) (24 hours) about their responses, while the remaining respondents had to answer immediately. We found significant differences in the choice behaviour between the subsamples. To validate the stated preferences with actual behaviour, a CCT programme was implemented afterwards. The stated WTA estimates were far below those revealed by actual behaviour for both subsamples. Contrary to our expectations, the TTT group had underestimated their actual WTA values by an even larger margin. The preferences for various attributes were nevertheless useful in informing the design of the real intervention.

This paper shows that strengthening land rights via a land certification program may reduce the negative economic impact of climatic anomalies in the highlands of Ethiopia. The results support the hypothesis that certification enhances the likelihood of adapting some of the land-related investments, thus supporting adaptation enhancing mechanisms and the resilience of the farming sector. Institutional factors may play a key role in supporting farmers’ adaptive capacity to climatic challenges.

In a mixed farming system in which farmyard manure (FYM) is considered an important multipurpose renewable resource that can be used to enhance soil organic matter, provide additional income and supply household energy, soil fertility depletion could take place within the perspective of the household allocation pattern of FYM. This paper estimates a system of FYM allocation regressions to examine the role of returns to FYM and farmers' impatience on the propensity to allocate FYM to different uses. We parameterize the model using data from a sample of 493 households in Ethiopia. Results indicate a heightened incentive for diverting FYM from farming to marketing for burning outside the household when returns to selling FYM and the farmer's discount rate are high. These reveal the need for policies that will help to reduce farmers' impatience and encourage the substitution of alternative energy sources to increase the use of FYM as a sustainable land management practice.

A dynamic economic model for a biodiversity prospecting contract, between a host country and a pharmaceutical company, is developed and used to explain the structure of existing contracts. The host country's stocks of biodiversity and genetic information are crucial inputs to the production of high-quality samples. Even with compete property rights contracts will be second best; it is not possible to perfectly monitor host-country inputs to the drug discovery process. Contracts vary due to the different degrees of observability of host-country inputs, and incomplete or ineffective property rights.

This paper analyses the impact of citizens' actions for protecting the environment in the context of the institutional features of developing countries. The enforcement of environmental regulation is likely to be weak in developing countries, and thus their citizens are being compelled to sue the polluters or take direct actions that are costly to the polluter. The theoretical and empirical analysis, based on 25 cases of citizens' action from the Kerala State of India, show that their impact is influenced by the institutional deficiencies of the country. Such deficiencies include the delay in resolving conflicts through court interventions and the lower cost of taking actions of civil disobedience due to poor law and order enforcement. The analysis leads to the conclusion that citizens' actions may not be very effective in controlling pollution from existing factories, and may be effective in blocking the establishment of new factories. Both these outcomes, i.e., the continued pollution in existing factories, and zero-pollution (or non-establishment) of new factories/projects, cause social losses, in the former case for the citizens and in the latter for the polluter.

We analyse the effects of technological change in agriculture on forest clearing by households in developing countries. The possible effects are found to be many and diverse, depending on the type of change and the institutional context. We conclude that agricultural intensification is certainly not the panacea that some believe it to be.