No abstract

No abstract

European regulations on the sustainable use of pesticides aim to promote integrated pest management (IPM) strategy and the use of biological control agents. However, uncertainty over benefits and costs, irreversibility effects as well as flexibility in adoption of this technology needs to be considered. Economic evaluation of IPM using simple cost-benefit analysis may be inadequate. Therefore, the need to develop evaluation tools that takes the aforementioned constraints into consideration is imperative. To this end, we introduce the maximum incremental social tolerable irreversible costs (MISTICs) as a tool for such evaluation. Only when the incremental reversible benefits of the IPM strategy outweigh possible irreversible costs of such a strategy by a minimum threshold (hurdle rate) should introduction of biocontrol be considered. Our approach allows assessment of an IPM strategy from a private (farmers) point of view to be extended to a social context.We aim to evaluate the MISTICs value of biocontrol adoption for Western Corn Rootworm in maize cultivation and wireworms in potato cultivation for selected European Union member states (Germany, France, Austria, Spain and Italy) based on the option and net present value using the McDonalds-Siegel Stimulation. We also evaluate the potential irreversible costs associated with biocontrol introduction.The farm-level MISTICs per hectare for biocontrol of Western Corn Rootworm in maize cultivation in the selected countries were estimated to be less than D 150/ha while biocontrol of wireworms in potato cultivation, well above D 200/ha. These results suggest that the introduction of biocontrol for wireworms in potato cultivation, given the higher MISTICs values, is more economically viable compared to the biocontrol of Western Corn Rootworm in maize. The model can also be extended to include other factors such as regulatory hurdles.

No abstract

No abstract

On formal credit markets, access to formal credit and reasonable credit terms of smallholder farmers in rural sub-Saharan Africa is limited due to adverse selection. Financial institutions operating in rural areas often cannot distinguish between borrowers (farmers) that are creditworthy and those that are not, thus, allocate limited resource to agriculture to reduce credit risk. In the presence of limited business quality signaling by smallholder farmers, financial institutions shall demand for collateral and/or offer unfavorable contract terms. Moreover, agricultural productivity of rural sub-Saharan Africa, dominated by subsistence or small-scale farmers, is also negatively impacted by the adverse effect of climate change. A strategy that may make the farming practices of smallholder farmer's climate resilient and profitable may also improve smallholder farmer's access to formal credit. This study investigates to what extent participating in ecosystem and extension services (EES) programs signals business quality of smallholders, thus granting them credit accessibility. We collected data on 210 smallholder farmers in 2013, comprising farmers that receive payments for ecosystem services (PES) and farm management training from the International Small Group Tree Planting Program (TIST) Kenya to test the aforementioned theory empirically. We use game theory, particularly a screening and sorting model, to illustrate the prospects for farmers with EES to access formal credit and to improve their credit terms given that they receive PES and banking services training. Furthermore, the PES' long term duration (10 -30 years) generates stable cash-flow which may be perceived as collateral substitute. Results suggest that smallholder farmers in the TIST program were less likely to be credit constraint compared to non-TIST farmers. Distance to market, education, livestock and farm income are factors that determine access to credit from microfinance institutions in rural Kenya. Amongst farmers that have obtained loans, those keeping business records enjoy more favorable formal credit conditions. These farmers were observed to pay ca. 5 percent less interest rate in microfinance charges. For TIST farmers, this type of farm management practices may be attributed to the banking services and other training they receive within the program. While the availability of classical collateral (farmlands) and PES may reduce interest rate, the latter was found to be statistically insignificant. This research underlines the importance of an effective extension services in rural areas of developing countries and the need to improve gains from conservation agriculture and ensuing PES. The benefits associated with EES and PES may encompass agricultural financing.JEL Classifications: D2, D8, G2, Q1, Q2

While biodiversity and ecosystem services derived from the natural environment are the backbones of West African rural livelihood, unsustainable exploitation of natural resources, conflicts, and climate change threaten the continued provision of ecosystem services. This threat creates an urgent need to safeguard the integrity of the environment. Evaluating the effectiveness of environmental conservation projects is central towards designing and scaling-up successful conservation projects. Using secondary literature and project reports, we reviewed ongoing and completed conservation projects in the West African sub-region. Scientific work on incentives for ecosystem services in sub-Saharan Africa typically focuses on Southern and Eastern Africa, leaving Western Africa underserved. This study fills this literature gap by compiling lessons from conservation projects in West Africa to offer region-specific incentives that should inform the design of conservation projects in the region. The study shows that the way forward is a holistic, sustainable development approach that mirrors and meets strategies outlined in Sustainable Development Goals 1, 2, 5, 8, 13, and 17: No Poverty, End Hunger and Promote Sustainable Agriculture, Gender Equality, Decent Work and Economic Growth, Climate Action, and Partnerships for the Goals, respectively.

No abstract