African Journal of Agricultural and Resource Economics, 2010
This paper investigates the impact of tenure security and other factors on investment in soil and... more This paper investigates the impact of tenure security and other factors on investment in soil and water conservation (SWC) in Kenya. Factor analysis, step-wise regression and reduced form model approaches are used to explain the willingness, likelihood and intensity of adoption of SWC investments. The results confirm the importance of tenure security and development domain dimensions in determining the likelihood and intensity of adoption and suggest that to ensure land tenure policy is pro-SWC/environment, it is important to consider whether household plots are owned, rented out or rented in. The impact of household assets implies a poverty environment link. Similar factors affect the decision whether or not to invest in SWC and also the level of investment. The results suggest the need for region specific SWC practices and for broad policies that provide incentives for environmental conservation and poverty reduction.
A farm household modelling approach using linear programming is presented that integrates biophys... more A farm household modelling approach using linear programming is presented that integrates biophysical and socioeconomic information for simulating micro-level responses to specific changes in the socioeconomic environment. The linear programming model includes separate modules for prices, production activities and expenditures from which the objective function is derived. Moreover, the model comprises a production structure adjustment coefficient to account for incomplete specification of the objectives of the farmer in the objective function. The model was calibrated for one specific farm type in the Atlantic Zone of Costa Rica, a peasant household growing basic grains and other food crops for household consumption and sale, and applied to calculate effects of several price instruments. The results, in terms of response multipliers, give an indication of the pace and direction of land use change at the micro-level as a result of (induced) change in the socioeconomic environment. Th...
Systems Approaches for Sustainable Agricultural Development, 1995
... Operationalisation of this conceptual framework for the identification of feasible policy opt... more ... Operationalisation of this conceptual framework for the identification of feasible policy options requires simultaneous evaluation of trade-offs derived from modelling exercises at (sub) regional level (Veeneklaas et al. 1991; WRR 1992) and at farm level (Van Rheenen et al. ...
Tradeoffs or synergies? Agricultural intensification, economic development and the environment
... Title Bioeconomic models and ecoregional development: policy instruments for sustainable inte... more ... Title Bioeconomic models and ecoregional development: policy instruments for sustainable intensification. Authors Ruben, R.; Kuyvenhoven, A.; Kruseman, G. Editors Lee, DR;Barrett, CB Book Tradeoffs or synergies? ... To learn more about our products please visit our website. ...
Systems Approaches for Sustainable Agricultural Development, 1997
Agrarian policies for sustainable land use require the selection of appropriate policy instrument... more Agrarian policies for sustainable land use require the selection of appropriate policy instruments to influence resource allocation decisions by farmers. A farm household modelling approach is applied to identify microeconomic supply response reactions to various policy measures. Production and consumption decisions are simultaneously analysed, permitting an appraisal of adjustments in land use in accordance with farm household welfare objectives. Four types of farm household are identified according to their resource endowments and objective functions to acknowledge different directions of supply response reactions. The modelling framework is based on the linkage of data sets from agrotechnical and socio-economic sources. Actual and alternative (sustainable) cropping and livestock activities are defined according to soil and weather conditions, production techniques and soil management practices, and their consequences for the nutrient and carbon balance. Farm household resource endowments and expenditures condition allocation procedures. Dynamic properties are incorporated into the model through the savings and investment module, while a time discount rate accounts for risk behaviour. Food and labour balances are identified for the appraisal of market interactions and exchange among farm types. Policy consequences of this modelling approach are illustrated for the case of Koutiala Cercle in southern Mali. The effects of modifications in market prices of food and cash crops, input prices, transaction costs, credit supply and land policy are demonstrated, and trade-offs between objectives of farm household welfare and sustainable land use are acknowledged.
This paper investigates the impact of investment in soil and water conservation strategies and te... more This paper investigates the impact of investment in soil and water conservation strategies and tenure security on household welfare using survey data from Kenya. The paper uses survey data collected from a sample of about 450 households in 2004. The paper estimates reduce form models to tests that hypothesis tested that investments in soil and water conservation affect household welfare.
... Ruerd Ruben, Arie Kuyvenhoven, Keffing Sissoko and Gideon Kruseman ... Five major adjustment ... more ... Ruerd Ruben, Arie Kuyvenhoven, Keffing Sissoko and Gideon Kruseman ... Five major adjustment strategies are distinguished (Corbett, 1988; Parry, 1990): 1. changes in land use (for arable cropping: cropping area, crop types and crop location; for livestock: fodder crops and ...
In van Beukering, P. J. H.; Papyrakis, E.; Bouma, J.; Brouwer, R. (Eds.). Nature's wealth: th... more In van Beukering, P. J. H.; Papyrakis, E.; Bouma, J.; Brouwer, R. (Eds.). Nature's wealth: the economics of ecosystem services and poverty. New York, NY, USA: Cambridge University PressEcology, Biodiversity and Conservation Serie
This paper investigates environmental and design related issues that can affect the performance o... more This paper investigates environmental and design related issues that can affect the performance of small-scale water harvesting schemes in theTigray region of northern Ethiopia. Results indicate that the impact of evaporation loss during the rainy season on net harvested water is generally small, and depends on the extent of the surface area of the ponds. However, the impact of the seepage loss on the net harvested water is very high unless there is proper lining of the bed and walls of the ponds. The irrigated area can be increased considerably if proper water saving and utilization measures and mechanisms are implemented. The current silt trap structures are ineffective in minimizing the sediment deposition in the ponds. The design, construction and maintenance of the structures need to be improved in order to reduce the sediment deposition and increase the water storage capacity of the ponds. As there is little experience with the extensive use of ponds and hand dug wells for sup...
African Journal of Agricultural and Resource Economics, 2010
This paper investigates the impact of tenure security and other factors on investment in soil and... more This paper investigates the impact of tenure security and other factors on investment in soil and water conservation (SWC) in Kenya. Factor analysis, step-wise regression and reduced form model approaches are used to explain the willingness, likelihood and intensity of adoption of SWC investments. The results confirm the importance of tenure security and development domain dimensions in determining the likelihood and intensity of adoption and suggest that to ensure land tenure policy is pro-SWC/environment, it is important to consider whether household plots are owned, rented out or rented in. The impact of household assets implies a poverty environment link. Similar factors affect the decision whether or not to invest in SWC and also the level of investment. The results suggest the need for region specific SWC practices and for broad policies that provide incentives for environmental conservation and poverty reduction.
A farm household modelling approach using linear programming is presented that integrates biophys... more A farm household modelling approach using linear programming is presented that integrates biophysical and socioeconomic information for simulating micro-level responses to specific changes in the socioeconomic environment. The linear programming model includes separate modules for prices, production activities and expenditures from which the objective function is derived. Moreover, the model comprises a production structure adjustment coefficient to account for incomplete specification of the objectives of the farmer in the objective function. The model was calibrated for one specific farm type in the Atlantic Zone of Costa Rica, a peasant household growing basic grains and other food crops for household consumption and sale, and applied to calculate effects of several price instruments. The results, in terms of response multipliers, give an indication of the pace and direction of land use change at the micro-level as a result of (induced) change in the socioeconomic environment. Th...
Systems Approaches for Sustainable Agricultural Development, 1995
... Operationalisation of this conceptual framework for the identification of feasible policy opt... more ... Operationalisation of this conceptual framework for the identification of feasible policy options requires simultaneous evaluation of trade-offs derived from modelling exercises at (sub) regional level (Veeneklaas et al. 1991; WRR 1992) and at farm level (Van Rheenen et al. ...
Tradeoffs or synergies? Agricultural intensification, economic development and the environment
... Title Bioeconomic models and ecoregional development: policy instruments for sustainable inte... more ... Title Bioeconomic models and ecoregional development: policy instruments for sustainable intensification. Authors Ruben, R.; Kuyvenhoven, A.; Kruseman, G. Editors Lee, DR;Barrett, CB Book Tradeoffs or synergies? ... To learn more about our products please visit our website. ...
Systems Approaches for Sustainable Agricultural Development, 1997
Agrarian policies for sustainable land use require the selection of appropriate policy instrument... more Agrarian policies for sustainable land use require the selection of appropriate policy instruments to influence resource allocation decisions by farmers. A farm household modelling approach is applied to identify microeconomic supply response reactions to various policy measures. Production and consumption decisions are simultaneously analysed, permitting an appraisal of adjustments in land use in accordance with farm household welfare objectives. Four types of farm household are identified according to their resource endowments and objective functions to acknowledge different directions of supply response reactions. The modelling framework is based on the linkage of data sets from agrotechnical and socio-economic sources. Actual and alternative (sustainable) cropping and livestock activities are defined according to soil and weather conditions, production techniques and soil management practices, and their consequences for the nutrient and carbon balance. Farm household resource endowments and expenditures condition allocation procedures. Dynamic properties are incorporated into the model through the savings and investment module, while a time discount rate accounts for risk behaviour. Food and labour balances are identified for the appraisal of market interactions and exchange among farm types. Policy consequences of this modelling approach are illustrated for the case of Koutiala Cercle in southern Mali. The effects of modifications in market prices of food and cash crops, input prices, transaction costs, credit supply and land policy are demonstrated, and trade-offs between objectives of farm household welfare and sustainable land use are acknowledged.
This paper investigates the impact of investment in soil and water conservation strategies and te... more This paper investigates the impact of investment in soil and water conservation strategies and tenure security on household welfare using survey data from Kenya. The paper uses survey data collected from a sample of about 450 households in 2004. The paper estimates reduce form models to tests that hypothesis tested that investments in soil and water conservation affect household welfare.
... Ruerd Ruben, Arie Kuyvenhoven, Keffing Sissoko and Gideon Kruseman ... Five major adjustment ... more ... Ruerd Ruben, Arie Kuyvenhoven, Keffing Sissoko and Gideon Kruseman ... Five major adjustment strategies are distinguished (Corbett, 1988; Parry, 1990): 1. changes in land use (for arable cropping: cropping area, crop types and crop location; for livestock: fodder crops and ...
In van Beukering, P. J. H.; Papyrakis, E.; Bouma, J.; Brouwer, R. (Eds.). Nature's wealth: th... more In van Beukering, P. J. H.; Papyrakis, E.; Bouma, J.; Brouwer, R. (Eds.). Nature's wealth: the economics of ecosystem services and poverty. New York, NY, USA: Cambridge University PressEcology, Biodiversity and Conservation Serie
This paper investigates environmental and design related issues that can affect the performance o... more This paper investigates environmental and design related issues that can affect the performance of small-scale water harvesting schemes in theTigray region of northern Ethiopia. Results indicate that the impact of evaporation loss during the rainy season on net harvested water is generally small, and depends on the extent of the surface area of the ponds. However, the impact of the seepage loss on the net harvested water is very high unless there is proper lining of the bed and walls of the ponds. The irrigated area can be increased considerably if proper water saving and utilization measures and mechanisms are implemented. The current silt trap structures are ineffective in minimizing the sediment deposition in the ponds. The design, construction and maintenance of the structures need to be improved in order to reduce the sediment deposition and increase the water storage capacity of the ponds. As there is little experience with the extensive use of ponds and hand dug wells for sup...
This study contributes to the quest for sustainable agricultural intensification through the deve... more This study contributes to the quest for sustainable agricultural intensification through the development of a quantitative bio-economic modelling framework that allows assessment of new technology and policy measures in terms of household welfare and sustainability indicators. The main aim of the study is the development of a farm household model to aid policy dialogues. The study consists of three parts. The first part is a general introduction into the context of the research, a justification of the approach and a general description of issues underlying the modelling framework. The second part explains the methodological details of the modelling framework. The third part contains some applications of the approach to specific questions related to agricultural intensification in the Cercle de Koutiala in southern Mali. The bio-economic model developed in this study combines elements from different existing methodologies into a flexible framework that is able to capture the peculiarities of household agriculture in West Africa. The methodology is sufficiently general to be applied in other settings as well, and contains a number of innovations, viz. a direct utility function, a robust goal weighting procedure and the use of metamodelling to analyse mathematical programming outcomes.
Part 1 Soil degradation is regarded as a serious problem threatening the livelihoods of present and future generations in West Africa. To bring soil degradation to a halt, a combination of appropriate technology and an enabling policy environment is needed (Chapter 1). To assess new technology and policy measures, information from biophysical and socio-economic disciplines are combined into a quantitative framework. Over the past decade a number of quantitative studies have been conducted that aim at combining biophysical and socio-economic information in such a way that the results are relevant for both social and biophysical sciences. These approaches are termed bio-economic modelling. A review of the methodologies (Chapter 2) reveals that none of them are able to tackle simultaneously the analysis of the causes and effects of soil degradation in combination with household decision making to assess the effects of policy change. The studies do however provide valuable building blocks for the present methodology. A framework to characterise the bio-economic models according to the spatial and temporal scales assists in finding appropriate methods for different research questions. Two critical issues emerge from the review. The first concerns the choice of objective function in economic models. The second refers to the interface between economic behaviour and biophysical processes. This critical interface between biophysical processes and economic behaviour is wrought with difficulties due to differences in scientific paradigms (Chapter 3). Biophysical sciences use the concept of efficiency in the analysis of technology options. The concept differs from the way economists use it. As a result there is a disparity between the way biophysical scientists and economists view production and damage functions. Whereas economists tend to use well-behaved continuous Cobb-Douglas production functions, biophysical scientists describe production activities in terms of the outcomes of biophysical processes, which more often than not yield nasty functions. This is due to the synergistic effects of inputs and the interrelations between causes and effects of soil degradation. The implications for bio-economic modelling are that Leontief production functions best describe the biophysical processes. Biophysical modelling frameworks exist that generate point data for this type of production function. One such framework, the technical coefficient generator (TCG) is used for generating the biophysical information needed in the household model.
Part 2 The household model is based on the standard theoretical model of a farm household (Chapter 4). The theoretical model although developed for econometric estimation is difficult to implement in such a way, due to the existence of failures and imperfections in commodity and input markets, the occurrence of risk, data limitations and the complexities in the production functions. As a result a complex non-separable household model is needed, which in turn cannot be estimated econometrically. Instead of estimating a full econometric model the present methodology proposes an alternative through the use of mathematical programming models that have been parameterised with partial econometric studies and expert knowledge. The basic structure of this bio-economic model consists of six separate modules. The production activities module describes the biophysical processes and their interrelationships using information generated by the TCG. Different technological options are defined in terms of input-output combinations for both current agricultural practices and alternative technologies. The price module includes information on factor and commodity markets. Price bands are used to describe market imperfections and results from the household models in terms of aggregate supply are used to calculate new market-clearing prices. A separate module describes different household types in terms of their resource endowments, real time preference and savings capacity. The savings capacity is linked to a savings and investment module that describes consumption smoothing and investment behaviour. Investment in soil conservation measures is one way of halting ongoing soil degradation. The expenditure module warrants separate mention (Chapter 6). The use of non-separable farm household models implies that consumption and production decisions are considered simultaneously. As a result the commonly used profit maximisation objective function cannot be used. Instead a utility function is used that describes household preferences for consumables. The direct utility function is estimated econometrically from a cross-sectional budget survey that is considered the revealed preference generated by an underlying utility function. The study develops a procedure to derive such a utility function. Because direct measurement of utility is impossible careful procedures are needed to test if the derived function is statistically robust. Next to consumption households also consider soil degradation in their decision making. The consequence is that multiple objectives have to be considered and a procedure is needed to combine those objectives (Chapter 5). The study presents a methodology for estimating the weights of different household objectives by comparing simulation model results with empirical evidence. To obtain statistically robust results maximum entropy econometrics is used.
Part 3 Application of the modelling framework to the case study area of Cercle de Koutiala in southern Mali is done for specific research questions. The first question concerns the validity of the model itself (Chapter 7). The model generates a base run that is consistent with empirical evidence. Applying sensitivity analysis to key parameters, analysing the near-optimal solution space and by applying the model to a separate data-set tests the robustness of those results. The model turns out to be robust for the most important variables while insight is gained into those areas for which the model does not give adequate answers. The model is also used to analyse new technology (Chapter 8). New technologies were chosen on biophysical grounds. Using partial budget analysis a first indication of the possibilities of the new technology is obtained. The approach is too partial to capture farm household goals and aspirations nor the resource constraints they face. Bio-economic model results indicate that most of the alternative technologies that seemed promising from a biophysical point of view do not fit well into the production systems of farm households in Cercle de Koutiala. A metamodelling approach is used to analyse the outcomes of the farm household model for a large number of variations in key exogenous parameters, thus obtaining fluid response surfaces. The model is also used to assess the possibilities of using policy instruments to create an enabling environment to induce farm households to adopt more sustainable technologies (Chapter 9). Two key instruments that figure in the forefront of policy debates in West Africa are analysed, viz. fertiliser price subsidies and infra-structural development resulting in lower transaction costs. Model results analysed in a metamodelling framework indicate that although the direction of the change in both income and soil organic matter balance is as would be expected, viz. simultaneous improvement of household-welfare and agro-ecological sustainability indicators, the magnitude of the improvements is limited. The policy measures in combination with the available new technologies are effective but not efficient.
Uploads
Papers by Gideon Kruseman
The bio-economic model developed in this study combines elements from different existing methodologies into a flexible framework that is able to capture the peculiarities of household agriculture in West Africa. The methodology is sufficiently general to be applied in other settings as well, and contains a number of innovations, viz. a direct utility function, a robust goal weighting procedure and the use of metamodelling to analyse mathematical programming outcomes.
Part 1
Soil degradation is regarded as a serious problem threatening the livelihoods of present and future generations in West Africa. To bring soil degradation to a halt, a combination of appropriate technology and an enabling policy environment is needed (Chapter 1). To assess new technology and policy measures, information from biophysical and socio-economic disciplines are combined into a quantitative framework.
Over the past decade a number of quantitative studies have been conducted that aim at combining biophysical and socio-economic information in such a way that the results are relevant for both social and biophysical sciences. These approaches are termed bio-economic modelling. A review of the methodologies (Chapter 2) reveals that none of them are able to tackle simultaneously the analysis of the causes and effects of soil degradation in combination with household decision making to assess the effects of policy change. The studies do however provide valuable building blocks for the present methodology.
A framework to characterise the bio-economic models according to the spatial and temporal scales assists in finding appropriate methods for different research questions. Two critical issues emerge from the review. The first concerns the choice of objective function in economic models. The second refers to the interface between economic behaviour and biophysical processes.
This critical interface between biophysical processes and economic behaviour is wrought with difficulties due to differences in scientific paradigms (Chapter 3). Biophysical sciences use the concept of efficiency in the analysis of technology options. The concept differs from the way economists use it. As a result there is a disparity between the way biophysical scientists and economists view production and damage functions. Whereas economists tend to use well-behaved continuous Cobb-Douglas production functions, biophysical scientists describe production activities in terms of the outcomes of biophysical processes, which more often than not yield nasty functions. This is due to the synergistic effects of inputs and the interrelations between causes and effects of soil degradation.
The implications for bio-economic modelling are that Leontief production functions best describe the biophysical processes. Biophysical modelling frameworks exist that generate point data for this type of production function. One such framework, the technical coefficient generator (TCG) is used for generating the biophysical information needed in the household model.
Part 2
The household model is based on the standard theoretical model of a farm household (Chapter 4). The theoretical model although developed for econometric estimation is difficult to implement in such a way, due to the existence of failures and imperfections in commodity and input markets, the occurrence of risk, data limitations and the complexities in the production functions. As a result a complex non-separable household model is needed, which in turn cannot be estimated econometrically.
Instead of estimating a full econometric model the present methodology proposes an alternative through the use of mathematical programming models that have been parameterised with partial econometric studies and expert knowledge. The basic structure of this bio-economic model consists of six separate modules.
The production activities module describes the biophysical processes and their interrelationships using information generated by the TCG. Different technological options are defined in terms of input-output combinations for both current agricultural practices and alternative technologies.
The price module includes information on factor and commodity markets. Price bands are used to describe market imperfections and results from the household models in terms of aggregate supply are used to calculate new market-clearing prices.
A separate module describes different household types in terms of their resource endowments, real time preference and savings capacity. The savings capacity is linked to a savings and investment module that describes consumption smoothing and investment behaviour. Investment in soil conservation measures is one way of halting ongoing soil degradation.
The expenditure module warrants separate mention (Chapter 6). The use of non-separable farm household models implies that consumption and production decisions are considered simultaneously. As a result the commonly used profit maximisation objective function cannot be used. Instead a utility function is used that describes household preferences for consumables. The direct utility function is estimated econometrically from a cross-sectional budget survey that is considered the revealed preference generated by an underlying utility function.
The study develops a procedure to derive such a utility function. Because direct measurement of utility is impossible careful procedures are needed to test if the derived function is statistically robust.
Next to consumption households also consider soil degradation in their decision making. The consequence is that multiple objectives have to be considered and a procedure is needed to combine those objectives (Chapter 5). The study presents a methodology for estimating the weights of different household objectives by comparing simulation model results with empirical evidence. To obtain statistically robust results maximum entropy econometrics is used.
Part 3
Application of the modelling framework to the case study area of Cercle de Koutiala in southern Mali is done for specific research questions. The first question concerns the validity of the model itself (Chapter 7). The model generates a base run that is consistent with empirical evidence. Applying sensitivity analysis to key parameters, analysing the near-optimal solution space and by applying the model to a separate data-set tests the robustness of those results. The model turns out to be robust for the most important variables while insight is gained into those areas for which the model does not give adequate answers.
The model is also used to analyse new technology (Chapter 8). New technologies were chosen on biophysical grounds. Using partial budget analysis a first indication of the possibilities of the new technology is obtained. The approach is too partial to capture farm household goals and aspirations nor the resource constraints they face. Bio-economic model results indicate that most of the alternative technologies that seemed promising from a biophysical point of view do not fit well into the production systems of farm households in Cercle de Koutiala. A metamodelling approach is used to analyse the outcomes of the farm household model for a large number of variations in key exogenous parameters, thus obtaining fluid response surfaces.
The model is also used to assess the possibilities of using policy instruments to create an enabling environment to induce farm households to adopt more sustainable technologies (Chapter 9). Two key instruments that figure in the forefront of policy debates in West Africa are analysed, viz. fertiliser price subsidies and infra-structural development resulting in lower transaction costs. Model results analysed in a metamodelling framework indicate that although the direction of the change in both income and soil organic matter balance is as would be expected, viz. simultaneous improvement of household-welfare and agro-ecological sustainability indicators, the magnitude of the improvements is limited. The policy measures in combination with the available new technologies are effective but not efficient.