Research

Abstract: The ISO 14001 voluntary standard is a blueprint for improving an organization’s environmental record and one of many tools available to address our planet’s ecological challenges. Since its introduction in 1996, adoption of the standard has surged globally, despite its significant costs. We examine the economic benefits to firms of being ISO 14001-certified by exploring whether certification results in a more efficient production process, using a panel of South Korean manufacturing firms and a stochastic frontier model with endogeneity. We find evidence that ISO 14001 certification significantly improves technical efficiency among high-polluting industries, increasing output by an average of 2.7%. This research enriches the empirical literature on voluntary environmental programs by showing that the standard improves technical efficiency among manufacturing firms. This may account for the popularity of the standard in South Korea, a global leader in manufacturing and exports, where its effects on efficiency have not been empirically examined.

Abstract: A balanced diet with sufficient vegetable intake is vital for health, yet many in the US fall short of recommended levels. While the literature has extensively examined the effects of sales promotions, there is a lack of research that addresses consumer heterogeneity in response to such promotions. Our research fills this void by using a machine learning approach that is well-suited to uncover heterogeneous treatment effects among consumers. We find that in-store price reductions boost vegetable consumption broadly. Young households with children, particularly low to middle income, benefit most, while older households without children are the least responsive to promotions.

Abstract: We examine how smallholder farmers' experiences with stress-tolerant maize seeds, area-yield index insurance, and production loans influence their willingness to pay (WTP) for these risk management tools in rural Nigeria. Climate change poses considerable risks to agricultural production in Sub-Saharan Africa; to address these challenges, there is increasing interest in integrating stress-tolerant seeds, index insurance, and production loans as comprehensive risk management solutions. Utilizing a discrete choice experiment embedded within a three-year randomized controlled trial across four states, we estimate preferences for agricultural and financial technologies and bundles of these among farmers with varying levels of exposure. Our findings reveal that farmers perceive stress-tolerant traits and financial technologies as complements with late maturity. Farmers generally exhibit a stronger preference for production loans over area-yield index insurance and view shorter-maturity seeds as substitutes for financial risk management tools. Specifically, farmers without prior experience show the highest WTP for the full bundle; those experienced only with stress-tolerant seeds prefer combining these seeds with credit options; and those experienced with all technologies favor stress-tolerant seeds with shorter maturation periods. These insights suggest that tailoring risk management strategies to farmers' experiences can enhance adoption rates.

Abstract:  This study evaluates the impact of a newly proposed bundle—comprising stress-tolerant maize seeds, area-yield index insurance, and in-kind production loans—on the productivity and resilience of farmers in Nigeria. Maize is a staple in both the national diet and agricultural production, with smallholder farmers responsible for the majority of its cultivation. Relying primarily on rainfall, these farmers face significant threats as climate change intensifies, characterized by prolonged, frequent, and severe extreme weather events. This situation necessitates robust risk management strategies, including agronomic innovations like stress-tolerant seeds and financial tools such as index insurance. Stress-tolerant seeds offer protection against various stressors, including drought, floods, pests, and weeds, while index insurance provides income stability by allowing farmers to spread risk across different agricultural years. Access to formal loans further enables farmers to make informed investment decisions in stress-tolerant seeds, index insurance, fertilizers, and agrochemicals. Through a comprehensive, multi-year randomized controlled trial in Nigeria, we investigate the potential of this complementary bundle of genetic and financial technologies to enhance the resilience and productivity of smallholder farmers. Our findings indicate that the bundle significantly increases maize productivity, especially under moderate drought conditions. Productivity gains are attributed to higher adoption rates of stress-tolerant seeds at both the extensive and intensive margins and increased use of advanced agricultural inputs such as fertilizers and herbicides. The probability of resilience increased by 41 percentage points for farmers with access to the complete package (Treatment Group 2), while those in Treatment Group 1, who only utilized stress-tolerant seeds, experienced a 9 percentage point increase. These results suggest that the bundled approach is highly effective in promoting productivity and resilience among smallholder farmers.

Abstract: While corn productivity has been extensively studied, the quality aspect—specifically moisture content at harvest—remains understudied. High moisture levels necessitate costly post-harvest drying at 4.8 cents per bushel per percentage point removed and have environmental implications due to energy-intensive processes. This study investigates the determinants of corn moisture at harvest and quantifies the economic gains from moisture reduction attributed to seed traits. Utilizing data from the FIRST seed tests and PRISM historical weather data, we employ a causal forest machine learning approach to estimate the heterogeneous treatment effects of seed traits and environmental factors on moisture content. Our findings reveal that specific seed traits and environmental conditions significantly influence moisture levels, providing insights to enhance farm profitability and reduce energy consumption. By addressing this understudied aspect of corn quality, the research offers valuable information for farmers and stakeholders on optimal seed selection and harvest timing, contributing to both economic and environmental benefits.

Abstract: This research assesses the impact of integrating agricultural and financial technologies on the adoption of advanced agricultural technologies by smallholder farmers in Sub-Saharan Africa. These farmers typically exhibit low adoption rates of productivity-enhancing technologies such as stress-tolerant seeds, fertilizers, and herbicides. To address this issue, a randomized control trial was conducted in rural Nigeria. The study evaluated the effects of a bundled intervention comprising stress-tolerant seeds, area yield index insurance, and production loans aimed at overcoming barriers to technology adoption. Preliminary results indicate that the treatment group, which had access to the bundle, significantly increased their adoption of advanced agricultural technologies compared to the control group. The availability of the bundled package led to increased use of stress-tolerant seeds, fertilizers, and herbicides, impacting both the extensive and intensive margins of adoption.

Abstract: Climate change mitigation necessitates not only governmental policies but also consumer-driven initiatives like Green Consumerism, where consumers prefer products produced in environmentally friendly ways. This study investigates whether social influence and infrastructure have a more significant impact on environmentally friendly consumption than individual characteristics. Utilizing the Nielsen Consumer Panel Dataset from 2004 to 2019, encompassing 40,000 to 60,000 U.S. households annually, we analyze actual grocery purchases of individuals who have relocated across states. Employing an event study methodology, we examine changes in expenditures on food products packaged in plastic and organic foods as proxies for environmentally friendly spending. Our findings reveal that movers adjust their spending on plastic-packaged food toward the average level of their destination state, filling 30% of the gap immediately after moving and 50% within two years. However, no significant convergence is observed for organic food expenditures in the short or long run. The difference between plastic and organic spending suggests that state legislation and well-established infrastructure for plastic alternatives have a more substantial effect on consumer behavior than individual traits. Subgroup analyses indicate that higher-income and higher-educated households, female-headed households, and those with younger generations are more responsive to social norms and infrastructural changes. These results underscore the importance of infrastructural and regulatory efforts in promoting green consumption and highlight their positive spillover effects. As climate change intensifies, understanding the drivers of environmentally friendly consumption is crucial. This research contributes to the literature by demonstrating that policy and legislation targeting consumers can significantly impact environmental protection, complementing individual actions with effective systemic changes.