LV EN RU DE FR

Agricultural economics and policy

Course abstract

The course provides knowledge on agricultural economics and policy, as well as on the main concepts connected with green economy and on the pressing economic, environmental and social challenges for achieving sustainable and inclusive development. The course contains two sections: agricultural economics part based on microeconomic analysis, and green economy. At the beginning of the course, the scope and significance of agricultural economics and position of agricultural firms in agricultural value chains are discussed. Further analysis of agricultural production is based on common forms of cost and production functions. Special focus is given to measurement and interpretation of efficiency in agricultural production (technical, economic, social and environmental efficiency). The agricultural economics section concludes with yield gap analysis and risk modelling and coping techniques. Section on green economy introduces both the marcoeconomic and microeconomic perspectives on green economy. Students are provided with understanding on green economy; different types of innovations, their drivers and stakeholders; developments of green technologies; the current and potential impacts of biotechnologies. The course gives participants a better understanding about the role of food and agricultural policies at global, European Union and Baltic scales so that the participants could comprehend and analyse the role of agricultural policy in the development of agri-food sector. The section on green economy will give students an understanding on the potential impacts of green innovations on the food sector and agriculture.

Learning outcomes and their assessment

Knowledge
• Demonstrate knowledge of contemporary theory and techniques of economics and business administration - Individual tasks, group work, exam
• Utilize scientific research in business administration - Individual tasks, group work, exam

Skills
• Demonstrate in-depth knowledge of agricultural value chains¬ - Individual tasks, group work, exam
• Develop ethical and socially responsible corporate culture through human resource management- group work, discussions
• Identify gap in existing knowledge, products and services and need for research - Individual tasks, group work, exam
• Effectively communicate research results - group work, discussions
• Recognise cultural diversity, its challenges and opportunities in conducting business - Individual tasks, group work
• Demonstrate understanding of the ethical consequences of their business decisions -group work, discussions
• Demonstrate understanding of global issues in context of agricultural business, concerning social, economic, political and environmental problems - group work, exam
Competences
• Ability to better understand about the role of food and agricultural policies at global, European Union and Baltic scales so that the participants could comprehend and analyse the role of agricultural policy in the development of agri-food sector - exam

Course Content(Calendar)

1. Scope and significance of agricultural economics.
2. Agricultural firm and its position in agricultural value chains.
3. Market and production constraints for agricultural production.
4. Cost and production functions and duality principle.
5. Derivation of input demand and output supply functions.
6. Economies and diseconomies of scale in agricultural production function.
7. The theory of efficiency, the criterions for efficiency (technical, economic, social and environmental efficiency).
8. Evaluation of productivity and efficiency.
9. The productivity management in firm.
10. Risk assessment and management.
11. Global economic, environmental and social problems and resources.
12. Challenges that the global food system is facing, and policies to meet them.
13. International trade policies related to agricultural and food products.
14. The main agricultural and food policy instruments applied by the most important countries of the global food system.
15. History of reforms and current policy measures of the European Union's Common Agricultural Policy.
16. Definition of green economy; main concepts and principles.
17. Suitability movement and sustainable development.
18. Stakeholders and their role in facilitating green economy.
19. Obstacles for the green economy.
20. Green biotechnologies in agriculture, green innovations and value-added production.
21. Biofuels, marine resource blue-biotechnologies and related developments.
22. Ethical issues and threats connected with biotechnologies.
23. Policies and green growth strategies.

Requirements for awarding credit points

3 Individual tasks and presentations
Group task and presentation
Exam

Description of the organization and tasks of students’ independent work

1. Individual task and presentation - market and production constraints for agricultural production
2. Individual task and presentation - evaluation of productivity and efficiency
3. Individual task and presentation - challenges that the global food system is facing
4. Group task and presentation - green economy

Criteria for Evaluating Learning Outcomes

Individual task and presentation on market and production constraints for agricultural production – 0.15 Individual task and presentation on evaluation of productivity and efficiency – 0.15 Individual task and presentation on challenges that the global food system is facing – 0.15 Group task and presentation on green economy Exam -0.4

Compulsory reading

1. Agricultural economics / H. Evan Drummond, John W. Goodwin. – 3. ed., Pearson new internat. ed. – Harlow, Essex: Pearson, 2014.
2. Agricultural Policy Monitoring and Evaluation – OECD.
3. The State of Food Security in the World – FAO.
4. Newton, A.C., Cantarello, E. (2014). An Introduction to the Green Economy: Science, Systems and Sustainability. New York: Routledge.
5. World Bank. (2012). Inclusive Green Growth: The Pathway to Sustainable Development. https://openknowledge.worldbank.org/handle/10986/6058
6. UN-DESA (2012). Guidebooks to Green Economy. https://sustainabledevelopment.un.org/topics/greeneconomy/guidebooks
7. Kemp, R., Van Lente, H. (2011). The Dual Challenge of Sustainability Transitions. Environmental Innovation and Societal Transitions, 1(1): 121-124.

Further reading

1. The world of agricultural economics : an introduction / Carin Martiin. – London ; New York : Routledge, 2013.
2. Principles of agricultural economics / Andrew Barkley and Paul W. Barkley. – London ; New York : Routledge, 2013.
3. ILO (2011). Skills for Green Jobs: A Global View - Synthesis Report Based on 21 Country Studies. http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_159585.pdf

Periodicals and other sources

1. Journal of Agricultural Economics. Online ISSN: 1477-9552
2. European Review of Agricultural Economics (ERAE). Online ISSN 1464-3618 - Print ISSN 0165-1587
3. Green Growth. Knowledge Platform. http://www.greengrowthknowledge.org/
4. UN Sustainable Development Knowledge Platform. https://sustainabledevelopment.un.org/index.php?menu=1224