Ulrike Grote

Eco‐Labeling and Stages of Development

The paper examines the effectiveness of eco-labeling in providing a market-based solution to the under-consumption of eco-friendly products in developing and developed countries. The authors show that whether labeling is an effective device in solving the problem of asymmetric information between sellers and buyers, or whether false labeling severs the link between willingness to pay and environmental conscious production choices, depends crucially on how monitoring intensities respond endogenously to economic growth, openness to trade, and technology transfers. In particular, by accounting for endogenous policy responses to economic growth, it is shown that an inverted-U relationship exists between consumer spending on eco-unfriendly products and national income. In addition, while international trade unambiguously benefits the environment in the presence of eco-labeling with perfect enforcement, trade openness may nevertheless delay the turning point of the growth and environment relationship, when the cost of enforcement falls disproportionately on developing countries, and when environmental policies are employed to reap terms-of-trade gains.

Can we improve global food security? A socio-economic and political perspective

Ensuring global food security for a growing population remains a major challenge. This is especially true against the background of increasing food prices paired with growing income levels and changing demand patterns in the developing world. At the same time, climate change and the occurrence of more frequent and extreme natural disasters increase the vulnerability of rural farm households, negatively affecting agricultural production. Given the many dimensions of food security, no simple solution can be found. Promoting productivity of farming and increasing the efficiency of the food marketing system are effective measures contributing to rural development in developing countries. Policy reforms in agriculture and beyond help to reduce distortions and change consumers’ awareness with respect to food waste and resource use inefficiencies related to human diets. What is new in this context is the increasing link of agriculture with other sectors such as the energy and the financial markets. This calls for further research as additional pressure is being put on the global food system.

Changing Institutions to Protect Regional Heritage: A Case for Geographical Indications in the Indian Agrifood Sector

Geographical Indications have evolved in recent years to protect indigenous knowledge in the agrifood sector without hampering the ethos of free trade. Supporters regard them as useful tools for protecting national property rights and offering new export opportunities, while opponents consider them as barriers to trade. This article provides theoretical justifications for them, based on insights from the New Institutional Economics, and cites Darjeeling tea and Basmati rice as Indian examples highlighting some of their dynamic institutional aspects. The new legal framework for GIs is mainly based on the international level.

On export rivalry and the greening of agriculture–the role of eco-labels

Why do some countries establish their own national eco-labeling programs and others do not? In this paper, we provide theoretical arguments and empirical evidence suggesting that the answer to this question can shed new light on three questions that have taken center-stage in the trade and environment debate: (i) does trade exacerbate the exploitation of the environment; (ii) are countries competing in export markets engaged in a race to the bottom in environmental performance; and (iii) do market-based environmental instruments benefit the rich and hurt the poor?

New Frontiers in Environmental and Social Labeling

Outline and Emerging Issues.- The Design of an Eco-Marketing and Labeling Program for Vehicles in Maine.- Performance-based Labeling.- Do Social Labeling NGOs Have Any Influence on Child Labor?.- Economic Analysis of Eco-Labeling: The Case of Labeled Organic Rice in Thailand.- Eco-labeling and Strategic Rivalry in Export Markets.- Science, Opportunity, Traceability, Persistence, and Political Will: Necessary Elements of Opening the U.S. Market to Avocados from Mexico.- The Labels in Agriculture, Their Impact on Trade and the Scope for International Policy Action.- Social Standards and Their Impact on Exports: Evidence from the Textiles and Ready-Made Garments Sector in Egypt.- Developing Country Responses to the Enhancement of Food Safety Standards.- Scope and Limitations for National Food Safety and Labeling Regimes in the WTO-Frame.

Environmental change and migration in Sub-Saharan Africa

Environmental changes are especially pronounced in Sub-Saharan Africa (SSA). Land degradation is nowadays a major concern for 32 countries in Africa, and over 300 million people in SSA face water scarcity (UNEP, 2008). To what extent are environmental factors likely to trigger migration in SSA? To shed some light on the question, this paper provides the latest figures and information. The evidence from different branches of the literature – environmental sciences, migration research as well as development economics – is analysed. A focus on the four countries: Ghana, Mozambique, Niger, and Senegal, offers more specific perspectives from different regions in SSA.

Nutrient and Virtual Water Flows in Traded Agricultural Commodities

Globalization and increasing population pressure on food demand and land and water resources have stimulated interest in nutrient and virtual water flows at the international level. West Asia/North Africa (WANA), Southeast Asia, and sub-Saharan Africa are net importers not only of nitrogen, phosphorus, and potassium (NPK) but also of virtual water in agricultural commodities. Nevertheless, the widely recognized declines in soil fertility and problems related to water shortage continue to increase, especially in sub-Saharan Africa. The nutrients imported are commonly concentrated in the cities, creating waste disposal problems rather than alleviating deficiencies in rural soils. And also the water shortage problems continue to contribute to intensified desertification processes, which again lead to increased urbanization and thus water shortage problems in cities. Countries with a net loss of NPK and virtual water in agricultural commodities are the major food exporting countries—the USA, Australia, and some Latin American countries. Understanding the manifold factors determining the nutrient and water flows is essential. Only then can solutions be found which ensure a sustainable use of nutrients and water resources. The chapter ends by stressing the need for factoring environmental costs into the debate on nutrient and water management, and advocates more transdisciplinary research on these important problems.

Food security in Tanzania: the challenge of rapid urbanisation

Urbanisation in Tanzania is proceeding apace. This article seeks to identify the challenge posed by rapid urbanisation for food security in Tanzania to 2030, the Sustainable Development Goals horizon. It is hypothesized that urban food security largely depends on the food supply systems and the rural food production potential. The analysis of these interlinkages is based on secondary macro data and own primary micro data. Tanzania has done well to achieve broad self-sufficiency in basic foodstuffs to date, but rapid urbanisation will pose a severe future challenge as regards food security, particularly for the disadvantaged poorer people of the towns and cities in terms of food affordability, stability and food safety. Whether Tanzania can avoid future deterioration in urban food security will depend on how responsive and resilient the urban food supply systems prove to be in the face of continuing urban growth, changing consumption patterns, weak rural–urban food supply linkages and production constraints in the smallholder farming sector.

The integration of smallholders in agricultural value chain activities and food security: evidence from rural Tanzania

The integration of smallholders into agricultural value chains is considered an important pathway for raising the welfare of farmers, including their food security. Distinct from literature that has mainly dwelt on smallholder integration in high-value and export-orientated agricultural value chains (AVCs), we focus on domestic, traditional AVCs, which are relevant to the majority of smallholders. Using primary household data from Kilosa and Chamwino districts in rural Tanzania, we examined the nature and extent of smallholder participation in traditional AVC activities and their associated welfare effects, focusing primarily on household food security. Cluster analysis was used to explore different smallholder livelihood activities and the extent of participation in traditional AVCs while propensity score matching and inverse probability weighted regression adjustment approaches were employed to analyze food security effects of various AVC activities. Results revealed that smallholders participate at varying levels in different AVC activities and their integration in traditional AVCs plays an important role in improving food security. Whereas other studies analyze only the impacts of participation in single AVC activities, we show the relevance of assessing the effects of multiple AVC activities on food security. Findings highlight the importance of promoting policies that enable effective vertical and horizontal integration of smallholder farmers into traditional AVC activities for enhanced food security and improved livelihoods.

Can coffee certification schemes increase incomes of smallholder farmers? Evidence from Jinotega, Nicaragua

This paper investigates the impact of Fairtrade and organic certification on household income of smallholder coffee farmers in the Jinotega Municipality of Nicaragua. Using a sample of 233 coffee farming households and employing endogenous switching regression model and propensity score matching method, the results found that Fairtrade and organic certification standards have different effects on the certified farmers; while Fairtrade farmers had experienced yield gains, organic farmers had the price advantage. However, the overall impact of these certification standards on the total household income is found to be statistically not significant. While some of the Fairtrade-certified cooperatives have used the social premium in creating community-level infrastructure, there is a need for more investment. The major constraint the organic-certified farmers face is lack of availability of adequate organic inputs such as manures and organic herbicides.