Description
Instructions:
Write your responses to each question below. We encourage you to type your responses. You may work on
this assignment in a group but you should write your responses in your own words. After you complete the
problem set, you should save it as a PDF. It is your responsibility to ensure that we can read your responses
on the PDF if you are digitizing hand-written responses. You will then upload your PDF to Gradescope
following the Gradescope link on bCourses. You must follow the instructions to indicate which parts of your
submission document correspond to specific questions. Failure to do so will result in lost points.
1 Bioeconomy
Respond to each question in a two to three sentences:
1. (5 pts) What are the old and new bioeconomies? For each, give an example of a product we didn’t
mention in lecture.
2. (5 pts) Why was the old bioeconomy important? Why is the new one important?
3. (5 pts) Pesticides and the bioeconomy are intertwined in industrial agriculture. In your opinion, what
is an important connection between them?
2 Innovation
1. (5 pts) What is the theory of induced innovation? Describe it in a couple of sentences. Remember:
the concept is broader than just agriculture!
2. (10 pts) Given this theory, what types of agricultural innovation should a country like India invest in?
Give an example and justify why. What about California? Keep in mind (1) the size of their farm
labor pool and (2) the amount of capital/funding available to an average farmer.
3. (10 pts) After a technology is developed, it goes through a process of marketing, adoption, and diffusion.
Consider a hypothetical country that has (1) an impoverished rural sector, (2) low population density
and (3) poor public infrastructure. Describe two barriers in innovation they may face even after an
agricultural technology is developed.
1
3 Technology Adoption
For your final project, you may want to use academic papers as a source of information. We’ll provide a
gentle introduction to gleaning information from academic papers by asking you to read an excerpt of an
article on technology adoption in agriculture. Bandiera and Rasul (2006) investigate how farmers’ decisions
to adopt a new crop relate to the adoption choices of their social network. Specifically, the authors estimate a
farmer’s propensity to adopt sunflower seeds as a function of the number of adopters among their family and
friends. Please read the Introduction (pages 1-4 ONLY) of their paper and answer the following questions.
A PDF of the paper is provided in the Homework folder on bcourses.
1. (10 pts) Prior to the analysis, the authors argue that the sign of the relationship between propensity
to adopt and number of adopters in a farmer’s social network is not obvious. Why might we expect a
positive relationship? Why might we except a negative relationship?
2. (8 pts) What is the shape of the relationship the authors estimate? Explain what this means.
3. (6 pts) Besides number of adopters within a farmers social network, what other determinants of adop-
tion do the authors find? Are these what you would expect, based on what we’ve learned in class?
4. (6 pts) Besides learning, name one other possible explanation for why adoption choices might be
correlated within social networks?
4 Marketing a Region
(30 pts) Earlier in class, we spoke about how specific regions might have their own supply chains to consider.
A region could produce a physical product (like wine in Napa), but it can also produce environmental services
and recreation (like hiking and skiing around Lake Tahoe), target public goods at a specific type of resident
(like hospitals and bus networks for elderly individuals), or offer high quality education or skill development.
With this in mind, think about the region or town you’re from. In a few paragraphs, address the following:
• What does it produce? Think about one major product or service.
• How did production start?
• What factors make your region more capable at producing it than other regions?
• How does your region/town market that product?
• Are there risks involved to the consumers?
•How are those risks mitigated – what tools are used?
Unformatted Attachment Preview
EEP141 Problem Set 2
2024 Spring: Due Mar 1st 5PM
Instructions:
Write your responses to each question below. We encourage you to type your responses. You may work on
this assignment in a group but you should write your responses in your own words. After you complete the
problem set, you should save it as a PDF. It is your responsibility to ensure that we can read your responses
on the PDF if you are digitizing hand-written responses. You will then upload your PDF to Gradescope
following the Gradescope link on bCourses. You must follow the instructions to indicate which parts of your
submission document correspond to specific questions. Failure to do so will result in lost points.
1
Bioeconomy
Respond to each question in a two to three sentences:
1. (5 pts) What are the old and new bioeconomies? For each, give an example of a product we didn’t
mention in lecture.
2. (5 pts) Why was the old bioeconomy important? Why is the new one important?
3. (5 pts) Pesticides and the bioeconomy are intertwined in industrial agriculture. In your opinion, what
is an important connection between them?
2
Innovation
1. (5 pts) What is the theory of induced innovation? Describe it in a couple of sentences. Remember:
the concept is broader than just agriculture!
2. (10 pts) Given this theory, what types of agricultural innovation should a country like India invest in?
Give an example and justify why. What about California? Keep in mind (1) the size of their farm
labor pool and (2) the amount of capital/funding available to an average farmer.
3. (10 pts) After a technology is developed, it goes through a process of marketing, adoption, and diffusion.
Consider a hypothetical country that has (1) an impoverished rural sector, (2) low population density
and (3) poor public infrastructure. Describe two barriers in innovation they may face even after an
agricultural technology is developed.
1
3
Technology Adoption
For your final project, you may want to use academic papers as a source of information. We’ll provide a
gentle introduction to gleaning information from academic papers by asking you to read an excerpt of an
article on technology adoption in agriculture. Bandiera and Rasul (2006) investigate how farmers’ decisions
to adopt a new crop relate to the adoption choices of their social network. Specifically, the authors estimate a
farmer’s propensity to adopt sunflower seeds as a function of the number of adopters among their family and
friends. Please read the Introduction (pages 1-4 ONLY) of their paper and answer the following questions.
A PDF of the paper is provided in the Homework folder on bcourses.
1. (10 pts) Prior to the analysis, the authors argue that the sign of the relationship between propensity
to adopt and number of adopters in a farmer’s social network is not obvious. Why might we expect a
positive relationship? Why might we except a negative relationship?
2. (8 pts) What is the shape of the relationship the authors estimate? Explain what this means.
3. (6 pts) Besides number of adopters within a farmers social network, what other determinants of adoption do the authors find? Are these what you would expect, based on what we’ve learned in class?
4. (6 pts) Besides learning, name one other possible explanation for why adoption choices might be
correlated within social networks?
4
Marketing a Region
(30 pts) Earlier in class, we spoke about how specific regions might have their own supply chains to consider.
A region could produce a physical product (like wine in Napa), but it can also produce environmental services
and recreation (like hiking and skiing around Lake Tahoe), target public goods at a specific type of resident
(like hospitals and bus networks for elderly individuals), or offer high quality education or skill development.
With this in mind, think about the region or town you’re from. In a few paragraphs, address the following:
• What does it produce? Think about one major product or service.
• How did production start?
• What factors make your region more capable at producing it than other regions?
• How does your region/town market that product?
• Are there risks involved to the consumers?
• How are those risks mitigated – what tools are used?
2
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