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A Theory of Standards-Driven Rural Development AgEcon
Swinnen, Johan F.M.; Rozelle, Scott; Xiang, Tao; Vandemoortele, Thijs.
Consumers have increasing demands for product standards. This has important implications for development. This paper develops a formal theory of the process of the introduction of high product standards in developing countries. The model endogenizes the introduction of high standards. Initial differences in income, the nature of capital constraints and transaction costs, the initial production structure and policies and institutions are shown to affect the likelihood of and the size of the high standards economy. Initial differences in some of these same factors—as well as inter-country differences in the distribution of the sizes of farmers—are also shown to determine which producers are included, and which not.
Tipo: Conference Paper or Presentation Palavras-chave: Standards; Rural Development; Vertical Differentiation; Partial Equilibrium; Agricultural and Food Policy.
Ano: 2009 URL: http://purl.umn.edu/51475
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Market Equilibrium in the Presence of Green Consumers and Responsible Firms: A Comparative Statics Analysis AgEcon
Doni, Nicola; Ricchiuti, Giorgio.
This paper analyzes how the interaction between green consumers and responsible firms affects the market equilibrium. The main result is that a higher responsibility by both producers and consumers can have different impacts on the efficiency of the firms’ abatement activity, depending on the nature of the cleaning costs. When the abatement costs are fixed, the efficiency of the clean-up effort is always increasing in their degree of responsibility. On the other hand, when the abatement costs are variable, a higher level of responsibility may reduce social welfare. Finally, the first best allocation is never reached, even in the presence of the highest credible level of responsibility of both consumers and producers.
Tipo: Working or Discussion Paper Palavras-chave: Green Consumers; Corporate Social Responsibility; Vertical Differentiation; Environmental Economics and Policy; D62; L13; L21.
Ano: 2011 URL: http://purl.umn.edu/102570
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