Pierre Boulanger

The sustainable development goal #2 aims at ending hunger and malnutrition by 2030. Given the numbers of food insecure and malnourished people on the rise, the heterogeneity of nutritional statuses and needs, and the even worse context of COVID-19 pandemic, this has become an urgent challenge for food-related policies. This paper provides a comprehensive microsimulation approach to evaluate economic policies on food access, sufficiency (energy) and adequacy (protein, fat, carbohydrate) at household level. The improvement in market access conditions in Kenya is simulated as an application case of this method, using original insights from households’ surveys and biochemical and nutritional information by food item. Simulation’s results suggest that improving market access increases food purchasing power overall the country, with a pro-poor impact in rural areas. The daily energy consumption per capita and macronutrients intakes per capita increase at the national level, being the households with at least one stunted child under 5 years old, and poor households living areas outside Mombasa and Nairobi, those which benefit the most. The developed method and its Kenya's application contribute to the discussion on how to evaluate nutrition-sensitive policies, and how to cover most households suffering food insecurity and nutrition deficiencies in any given country.

Over the last twenty years, the Common Agricultural Policy of the European Union has evolved into a multifunctional policy instrument. As part of this transformation, most farmer receipts are paid independently of production, granting this class of payment production-neutral or ‘fully decoupled’ status. In prospective agricultural market studies, simulation models routinely represent these payments as decoupled, despite academic evidence to the contrary that posits a number of ‘coupling-channels’. To explore the ramifications of differing degrees of coupling on the three pillars of sustainability, a natural-resources focused simulation model is employed. Comparing with a ‘standard’ decoupled baseline to 2030, higher coupling increases global agricultural employment and reduces production intensity on European Union agricultural land and agricultural emissions. Higher coupling also diminishes the Common Agricultural Policy’s capacity as a safety-net for European Union food-security and agricultural employment, whilst there is tentative evidence of increasing emissions ‘leakage’. At the very least, if the non-distorting status of decoupled payments is mis-specified, this has direct implications for the design of greener policy initiatives under the auspices of the Green Deal that promote sustainable fairer trade. As a result, further empirical research on the production distorting effects of the European Union’s decoupled payments is needed.

Food security represents a key challenge in most Sub-Saharan African countries and in Kenya in particular where still a relevant share of the population lives below a minimum dietary energy consumption. Kenya addresses this concern with a noteworthy policy mix, aiming at giving to the agricultural sector a leading task in improving food security. This paper evaluates the impacts on food security of expanding fertilizer capacities in Kenya, combined with a set of additional policy changes targeting fertilizer use. In a top-down analysis, a specific Computable General Equilibrium (CGE) model is linked with a microsimulation approach. Scenarios present overall positive effects on key food security aggregates. The same is true for welfare. Nevertheless, the heterogeneity of households across and within regions suggests that improving input productivity through better market access and service extension are critical to reducing possible discrepancies across farmers, households and regions. The paper concludes on the need for a sound policy mix since increasing fertilizer production alone is not enough to enhance food security evenly. Among accompanying measures, intensifying extension services are essential especially for smallholders in their acquisition of better knowledge on the use of agricultural inputs.

This paper describes the structure and estimation of a Social Accounting Matrix (SAM) of Kenya for the year 2014. Among its specificities, this SAM includes a very high disaggregation of the agri‐food sector and accounts for the double role of households as producers and consumers. Accounting for these characteristics is crucial to provide robust socioeconomic analysis in the context of developing countries. Indeed, this type of database is valuable to perform ex‐ante evaluations of economic policies with various economic models and techniques. In this paper, we present an application with a linear multiplier analysis (backward linkages and value chain decomposition). The results show the capacity of the primary sector in Kenya to generate value added and employment, with this growth distributed more intensely in rural households whose main livelihood is semi‐subsistence agriculture.

In the summer of 2014 Russia imposed a ban on most agri‐food products from countries enforcing Ukraine‐related sanctions against Russia. We use a specific factors computable general equilibrium (CGE) model to simulate the short‐run impact of this retaliatory policy. The baseline is carefully designed to isolate the impacts of the ban on the European Union (EU), Russia itself and a selection of key trade partners. The modelling of the ban follows a novel approach, where it is treated as a loss of established trade preferences via reductions in consumer utility in the Armington import function. Not surprisingly, the results indicate that Russia bears the highest income loss (about €3.4 billion) while the EU recovers part of its lost trade through expansion of exports to other markets. Anex‐postcomparison between simulation results and observed trade data reveals the model predictions to be broadly accurate, thereby validating the robustness of the modelling approach.

This paper explores social accounting matrices (SAMs) using three country case studies (Egypt, Morocco and Tunisia). For each, the agri-food sector, trade negotiations with the European Union and associated challenges are first presented. The key sectors are then identified and analysed using the SimSip SAM tool (Parra and Wodon, 2009). Using sensitivity analysis, the implications of free trade for key sectors were analysed. By evaluating backward and forward linkages in the economy of each country, the most important sectors likely to take a lead role and become essential drivers of growth were identified. Due to strong backward relations and high labour intensity, some agricultural sectors have the potential to generate significant income, thus supporting economic growth.

This study suggests UK equivalent variation (EV) gains of €8.9 billion on withdrawal from the EU budget. Factoring in associated trade facilitation costs from the loss of UK access to the single market, annual UK EV losses could be as high as €14.0 billion, with the EU‐28 facing a corresponding loss of €40.4 billion. Interestingly, the extrapolated UK gain arising from withdrawal from the ‘CAP’ component of the EU budget exceeds estimated lower and upper bound trade facilitation costs exclusively on EU agrofood trade. Accordingly, the UK should realistically remain as an EU member, although continue to lobby for reductions in the CAP budget.

Over the last 25 years Croatia's transition from a war-torn region of the former Yugoslavia to a fully independent nation has left a lasting mark. In 2013 Croatia took another step toward peace and stability by becoming the 28th member of the European Union (EU). Employing a quantitative framework to examine the economic impact of Croatian accession, results show that agricultural transfer payments are a key component of the accession deal, whilst a ‘deep integration’ scenario yields significant Croatian real income gains. Finally, comparing EU market access via tariff and non-tariff shocks, in Croatian agro-food sectors the former has a greater impact on output.