Michael Wetzstein

The Post 2008 Food Before Fuel Crisis: Theory, Literature, and Policies

As early as 1983, research began to appear indicating the potential for biofuel production to emerge as a disruptive force in US and world food sectors (Barnard, 1983). Of particular concern in early and present research is that increased use of agricultural outputs for energy, as opposed to foodstuffs, could ultimately lead to a net welfare loss where the benefits of biofuels are outweighed by the negative consequences linked to reduced food availability. This dilemma emerges due to the direct competition between biofuel and food production for the same renewable and nonrenewable resources critical for their sustainability (Rajagopal and Zilberman, 2007 and von Urff, 2007). In 2007-2008, global food prices experienced a significant upward spike resulting in political and economic instability, conflict, and hardships in both the developed and developing world. Figure 1 illustrates the United Nations FAO monthly food price index and the cereals price index since 2000. As indicated in the figure, in 2006 food prices started to rise with the most rapid increases occurring in 2007 through the middle of 2008 when an equally rapid price decline occurred. Relative to the general food price index, the increase in cereal prices was more pronounced.

Social-Optimal Household Food Waste: Taxes and Government Incentives

In 2010, 21% of the total food available for consumption in the United States was wasted at the household level. In response to this waste, a number of counties and U.S. localities have instituted policies (disposal taxes) directed toward reducing this waste. However, currently there is no federal food‐waste disposal tax. The aim of this paper is to establish a theoretical foundation for household food waste, and based on this theory, to determine the social‐optimal food‐waste (disposal) tax, along with a government incentive. The theory unravels the interrelation between social food insecurity and external environmental costs, which is not generally considered by households when they waste food. A social‐optimal disposal tax and government incentive involve Pigovian mechanisms and governmental expenditures. For a zero level of food waste, the social‐optimal disposable tax and government incentive approach infinity.

Household allocation of microfinance credit in Kyrgyzstan

Abstract The limited endowment of resources that usually characterised low-income households imposes a binding trade-off between current and future consumption. In many transition countries, microfinance represents the primary source of credit other than informal moneylenders for low-income households which is the situation in the Kyrgyz Republic. Thus, this study analyses the determinants of household microfinance credit allocation in Kyrgyzstan from 2006 to 2010. We model the household’s behaviour through a multivariate approach to allow for multiple choices at the same time. Results indicate that mobile phone and livestock ownership were identified as two key factors which increase the probability of borrowers using microfinance credit for productive purposes. Furthermore, borrowers in the rural Naryn region, one of the poorest areas in Kyrgyzstan, have a higher probability of allocating their loans toward food purchases and the smallest probability of allocating credit toward starting a business or other productive purposes.