Precision Cotton Agriculture and Strategic Commercial Policies: An Analysis in Terms of Duopoly by Quality
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Abstract
We study a Hotelling’s duopoly in world cotton market to examine the effects of Precision Agriculture’s (PA) adoption in term of strategic international trade between the United-States and Central and West Africa (CWA). We prove that US producers should be well advised to adopt PA to offer “environmental quality” cotton whereas CWA producers have a natural comparative advantage that allows them to offer a “product quality” cotton. We also argue that if the USA subsidizes PA in order to protect environment, this measure can be considered as a strategic international policy. We determine a critical subsidy level, which ousts CWA producers from the cotton market. At this subsidy level, US policy can be thought of unfair even if this policy enables them to improve the environment.
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References
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Barret, S. (1992), « Strategic Environnemental Policy and International Trade », CSERGE working paper GEC 92-19, Norwich.
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Bouët, A. (2001), « Tariffs, voluntary export restraints and research and development », European Economic Review, 45 (2), pp. 323-336, Février.
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Bouët, A. (1998), Le protectionnisme : analyse économique, Vuibert, Paris.
Bouët, A. (1992), Représailles et Commerce International Stratégique, Economica, Paris.
Bradow, J. M., Johnson, R.M., Bauer, P. J. and Sadler, E. J., (1999a.), « Modulation of economically importantcotton fiber properties by field spatial variability », Proocedings, Beltwide Cotton Conferences, Orlando, USA.
Bradow, J. M., Johnson, R.M., Bauer, P. J. and Sadler, E. J., (1999b.) « Site-specific management of cotton fiber quality », Precision Agriculture ’99, Stafford Edition, pp. 677-686.
Bronson, K.F. Keeling, J.W. Booker, J.D. Chua, T.T. Wheeler, T.A. Boman R.K. et Lascano, R.J. (2003), «Influence of phosphorus fertilizer, landscape position and soil series on cotton lint yield», Agron, 95, pp. 949-957.
Bureau, D. et Mougeot, M., (2004), « Politique environnementale en économie ouverte », Revue d’économie politique, Vol. 115 (4), pp. 441-450
Fontagné, L. et Mimouni, M., (2001), « L’environnement, nouvel obstacle au commerce de produits agricoles et alimentaires », Economie Internationale, Vol. 83 (3), pp. 63-87.
Gergely, N., (2005), « Le coton : quels enjeux pour l’Afrique ? », Les dossiers de FARM, Fondation pour l’Agriculture et la Ruralité dans le Monde, 20pp..
Johnson, R. M., Downer, R., Bradow, J. M., Bauer, P. J. and Sadler, E. J ?, 2002, « Variability in cotton fiber yield, fiber quality and soil properties in a south eastern coastal plain », Agronomy Journal, vol.94, pp. 1305-1316.
Kahn, S.S., (1982), « Organizing farmer groups in Mahaweli Ganga », Agricultural Administration, pp. 303-308.
Kulkarni, R.M. Rejesus, R.M. Segarra, E. Velandia, M. et Bronson, K. (2005), « Economics of Variable Rate Phosphorus Application : The Case of Cotton in the Texas High Plains », The Proceedings of the 2005 Beltwide Cotton Conference, New Orleans, Janvier.
Lambert, D. et Lowenberg-Deboer, J. (2000), « Precision Agiculture Profitability Review, Site-Specific Management Center », School of Agriculture, Purudue University.
Lowenberg-Deboer, J. (2004), “Precision agriculture creates global opportunities”, Farm Chemicals International.
Malaga, J. Pan, S. et Kulkarni, R. (2008), « Precision Agriculture Adoption Policy: Evaluation of Potentiel Impacts on World Cotton Markets », acte de colloque.
Miroudot, S. et Shepherd, B. (2004), « Cotton Subsidies: What Impact do they really have and what is genuinely at Stake of Africa? », Communication, GEM.
Oberthür, T. Autrey, L.J.C. Ramasamy S. et Ng Kee Kwong K.N. (2006), « Agriculture de précision, de nouvelles possibiltés pour les pays de l’ACP », ICT Update, n°30, Janvier.
Pan, S., Fadiga, M., Mohanty, S., Welch, M., «Cotton in a free World », Economic Inquiry, n°45 (1): pp188-197.
Parmentier, S (2006), « Le dumping de coton-fibre: quelle réponse y apporter? Le Sud contre le Nord, ou l’émergence d’un modèle agricole viable au quatre coins du globe? », Biotechnologie, Agronomie, Société et Environnement, vol. 10, (4), pp. 299-308.
Perrin, S. et Lagandre, D., (2005), « Le coton africain face à la concurrence du marché mondial », Rapport thématique Jumbo, n°6, AFD, Paris, 33p.
Ping, J. L., Green, C.J., Bronson, K.F., Zartman, R.E. and Dobermann, A., (2004a.), « Identification of relationship between cotton yield, quality, and soil properties », Agronomy Journal, Vol.96, pp. 1588-1597.
Rauscher, M. (1994), « On Ecological Dumping », Oxford Economics Papers, n°46, pp.822-840.
Sanders, J. H., Shapiro, B. I. and Ramaswanny, S., (1996), « The economics of agricultural technology in semiarid Sub-Saharan Africa », Baltimore: MD: The Johns Hopkins University Press.
Schumacher, L.G. Ess, D. Strickland, R.M. et King, B. (2000), « Agricultural Systems Management in the New Millennium», American Society of Agricultural Engineers Paper; n°007014.
Tokarick, S, (2003), « Measuring the Impact of Distortions in Agricultural Trade in Partial and General Equilibrium », IMF, Working Paper, Octobre 2003.
Ulph, A. (1996), « Environemental Policy and International Trade when Governments and Producers Act strategically », Journal of Environmental Economics and Management, n°30, pp.265-281.
Whipker, L.D. and Akridge, J.T., (2006), «Precision Agricultural Services Dealership Survey Results », Staff Paper, Departement of Agricultural Economics, Purdue University.
Whitley, K.M, Davenport, J.R and Manley, S.R (2000), « Difference in Nitrate Leaching under Variable and Conventional Nitrogen Fertilizer Management in Irrigated Potato Sytems », 5th International Conference on Precision Agriculture, Juillet 2000, Bloomington, Minnesota.
Yu, M., Segarra, E., Li, H., Lascano, R. J., Chilcutt, C., Wilson, L. T., Bronson, F. and Searcy, S., (2000), “ The Economics of Precision Agricultural Practices in Cotton Production”, Beltwide Cotton Conferences Proceedings, National Cotton Counicil, Memphis.
Yu, M. Segarra, E. et Nesmith, D. (1999), « Spatial Utilization of Phosphorus : Implication for Precision Agriculture Practices », Proceedings of Beltwide Cotton Conferences, pp. 299-302.
Barret, S. (1992), « Strategic Environnemental Policy and International Trade », CSERGE working paper GEC 92-19, Norwich.
Barret, S. (1992), « Strategic Environnemental Policy and International Trade », Journal of Public Economy, 54, pp.325-338.
Bouët, A. (2001), « Tariffs, voluntary export restraints and research and development », European Economic Review, 45 (2), pp. 323-336, Février.
Bouët, A. (1999), « OMC et accords de prix: quelques enseignements d’un modèle oligopolistique avec recherche et développement », Globalisation et politiques économiques: les marges de manoeuvre, Bouët A. et Le Cacheux J., Economica, Paris.
Bouët, A. (1998), Le protectionnisme : analyse économique, Vuibert, Paris.
Bouët, A. (1992), Représailles et Commerce International Stratégique, Economica, Paris.
Bradow, J. M., Johnson, R.M., Bauer, P. J. and Sadler, E. J., (1999a.), « Modulation of economically importantcotton fiber properties by field spatial variability », Proocedings, Beltwide Cotton Conferences, Orlando, USA.
Bradow, J. M., Johnson, R.M., Bauer, P. J. and Sadler, E. J., (1999b.) « Site-specific management of cotton fiber quality », Precision Agriculture ’99, Stafford Edition, pp. 677-686.
Bronson, K.F. Keeling, J.W. Booker, J.D. Chua, T.T. Wheeler, T.A. Boman R.K. et Lascano, R.J. (2003), «Influence of phosphorus fertilizer, landscape position and soil series on cotton lint yield», Agron, 95, pp. 949-957.
Bureau, D. et Mougeot, M., (2004), « Politique environnementale en économie ouverte », Revue d’économie politique, Vol. 115 (4), pp. 441-450
Fontagné, L. et Mimouni, M., (2001), « L’environnement, nouvel obstacle au commerce de produits agricoles et alimentaires », Economie Internationale, Vol. 83 (3), pp. 63-87.
Gergely, N., (2005), « Le coton : quels enjeux pour l’Afrique ? », Les dossiers de FARM, Fondation pour l’Agriculture et la Ruralité dans le Monde, 20pp..
Johnson, R. M., Downer, R., Bradow, J. M., Bauer, P. J. and Sadler, E. J ?, 2002, « Variability in cotton fiber yield, fiber quality and soil properties in a south eastern coastal plain », Agronomy Journal, vol.94, pp. 1305-1316.
Kahn, S.S., (1982), « Organizing farmer groups in Mahaweli Ganga », Agricultural Administration, pp. 303-308.
Kulkarni, R.M. Rejesus, R.M. Segarra, E. Velandia, M. et Bronson, K. (2005), « Economics of Variable Rate Phosphorus Application : The Case of Cotton in the Texas High Plains », The Proceedings of the 2005 Beltwide Cotton Conference, New Orleans, Janvier.
Lambert, D. et Lowenberg-Deboer, J. (2000), « Precision Agiculture Profitability Review, Site-Specific Management Center », School of Agriculture, Purudue University.
Lowenberg-Deboer, J. (2004), “Precision agriculture creates global opportunities”, Farm Chemicals International.
Malaga, J. Pan, S. et Kulkarni, R. (2008), « Precision Agriculture Adoption Policy: Evaluation of Potentiel Impacts on World Cotton Markets », acte de colloque.
Miroudot, S. et Shepherd, B. (2004), « Cotton Subsidies: What Impact do they really have and what is genuinely at Stake of Africa? », Communication, GEM.
Oberthür, T. Autrey, L.J.C. Ramasamy S. et Ng Kee Kwong K.N. (2006), « Agriculture de précision, de nouvelles possibiltés pour les pays de l’ACP », ICT Update, n°30, Janvier.
Pan, S., Fadiga, M., Mohanty, S., Welch, M., «Cotton in a free World », Economic Inquiry, n°45 (1): pp188-197.
Parmentier, S (2006), « Le dumping de coton-fibre: quelle réponse y apporter? Le Sud contre le Nord, ou l’émergence d’un modèle agricole viable au quatre coins du globe? », Biotechnologie, Agronomie, Société et Environnement, vol. 10, (4), pp. 299-308.
Perrin, S. et Lagandre, D., (2005), « Le coton africain face à la concurrence du marché mondial », Rapport thématique Jumbo, n°6, AFD, Paris, 33p.
Ping, J. L., Green, C.J., Bronson, K.F., Zartman, R.E. and Dobermann, A., (2004a.), « Identification of relationship between cotton yield, quality, and soil properties », Agronomy Journal, Vol.96, pp. 1588-1597.
Rauscher, M. (1994), « On Ecological Dumping », Oxford Economics Papers, n°46, pp.822-840.
Sanders, J. H., Shapiro, B. I. and Ramaswanny, S., (1996), « The economics of agricultural technology in semiarid Sub-Saharan Africa », Baltimore: MD: The Johns Hopkins University Press.
Schumacher, L.G. Ess, D. Strickland, R.M. et King, B. (2000), « Agricultural Systems Management in the New Millennium», American Society of Agricultural Engineers Paper; n°007014.
Tokarick, S, (2003), « Measuring the Impact of Distortions in Agricultural Trade in Partial and General Equilibrium », IMF, Working Paper, Octobre 2003.
Ulph, A. (1996), « Environemental Policy and International Trade when Governments and Producers Act strategically », Journal of Environmental Economics and Management, n°30, pp.265-281.
Whipker, L.D. and Akridge, J.T., (2006), «Precision Agricultural Services Dealership Survey Results », Staff Paper, Departement of Agricultural Economics, Purdue University.
Whitley, K.M, Davenport, J.R and Manley, S.R (2000), « Difference in Nitrate Leaching under Variable and Conventional Nitrogen Fertilizer Management in Irrigated Potato Sytems », 5th International Conference on Precision Agriculture, Juillet 2000, Bloomington, Minnesota.
Yu, M., Segarra, E., Li, H., Lascano, R. J., Chilcutt, C., Wilson, L. T., Bronson, F. and Searcy, S., (2000), “ The Economics of Precision Agricultural Practices in Cotton Production”, Beltwide Cotton Conferences Proceedings, National Cotton Counicil, Memphis.
Yu, M. Segarra, E. et Nesmith, D. (1999), « Spatial Utilization of Phosphorus : Implication for Precision Agriculture Practices », Proceedings of Beltwide Cotton Conferences, pp. 299-302.