AgreenSkills session, year: 1st session, 2016
Receiving laboratory: TSE-R (formerly TSE-GREMAQ) Mathematical and Quantitative Economics Research Group, Toulouse
Country of origin : Germany
The Effectiveness of Environmental Public Policies in Multi-Level Food Supply Chains
The objective of this project is to assess the environmental impact of organic-friendly policies in agrifood markets. Since the environmental impact of food is mostly determined by household diet and consumption habits, taxes on organic products or subsidies on conventional products can be used to address environmental problems, and provide incentives for farmers and processors to promote sustainability. However, this is a challenging task due to the strategic behavior of the channel members, who potentially exploit their market power, which affects the effectiveness of public policies.
To evaluate the effectiveness of environmental public policies, we develop a structural model of demand and supply for the fluid milk sector allowing for strategic behavior of manufacturers, retailers, and farmers. We build on existing literature to estimate consumer demand based on retail scanner data and infer on both retailer and processor price-cost margins without observing cost data. However, the innovativeness of this approach is the integration of a strategic farm level into a three-tier supply chain model, which allows predicting changes of channel members’ behavior at all stages in response to public policies.
Having accurately modeled the complexity of the supply chain, we assess the impact of environmental public policies on prices, profits, and environmental indicators. In particular, we compare the efficiency of organic-friendly policies at the consumer-, at the processing- , and at the farm level.
Dennis is a postdoctoral researcher at the Toulouse School of Economics. In 2011, he started as a graduate student at the Düsseldorf Institute for Competition Economics (DICE), where he graduated in October 2016. In the past 6 years, he held several positions in Düsseldorf and Toulouse, beginning as graduate student, project member, teaching instructor and coordinator, mentor, and researcher. His research is devoted to the analysis of (i) determinants of consumer decisions in grocery retailing and (ii) strategic decisions of firms in vertical market structures. He gave classes in microeconomics, econometrics, competition policy, and academic writing and presenting.
Research interests: Industrial Organization, Relationships Between Manufacturers and Retailers, Applied Econometrics, Consumer Behavior, Environmental Economics.
Wettbewerbsprobleme im Lebensmitteleinzelhandel, (2014), Justus Haucap, Ulrich Heimeshoff, Gordon J. Klein, Dennis Rickert & Christian Wey in: P. Oberender (editor), Wettbewerbsprobleme im Lebensmitteleinzelhandel, Duncker & Humblot: Berlin, pp. 11 – 38.
Die Bestimmung von Nachfragemacht im Lebensmitteleinzelhandel: Theoretische Grundlagen und empirischer Nachweis, (2014), Justus Haucap, Ulrich Heimeshoff, Gordon J. Klein, Dennis Rickert & Christian Wey, Wirtschaft und Wettbewerb, 64, issue 10, pp. 946-957.