Working at Bonn and Playing at Lisbon

Late August and early September are always good times to travel. This year, I am in Europe, where I participated in the European Agricultural Economics conference in Bonn and then travelled for two days to discover Lisbon.

The Conference in Bonn

The good news that I learned this summer is that agricultural economics is alive and well. There was large participation in American and European Agricultural Economics meetings, despite the challenges of the Trump era. Many young faces from all over the world attended. The earlier sense of doom and gloom about ag econ seems to have faded— and interest in the discipline is strong again. In fact, the European ag econ meeting drew more participants than the environmental one ( I enjoy both meetings and tried to participate as much as possible).

Bonn, the birthplace of Beethoven, is a lovely city—full of greenery, museums, and restaurants. The university campus, right at the heart of the city, has expanded, and the city also hosts multiple UN buildings, including a UN campus.The conference itself took place in the modern part of campus. My hotel was very elegant but located about 4 km away. I developed a nice routine: 2.5 km by train (very convenient) and 1.5 km on foot. I try to walk 3–5 km every day (ideally with Leorah and the dogs), and here I found a way to maintain this vital activity.

The diversity of topics covered by agricultural and resource economics departments is key to their success. Building on the traditional focus on production, agricultural markets, and policies, the field has expanded to include the economics of food, the environment, development, supply chain management, and new methodological approaches. The discipline now addresses issues relevant to both developing and developed countries.

A few patterns stood out. First, there is a strong emphasis on analysis using big data—assessing the impacts of policies and technologies, identifying factors that affect adoption, measuring willingness to pay for amenities or to take risks, and evaluating climate change policies. This work provides valuable insights into the current state of agriculture and natural resources, as well as the factors influencing them. However, much of the analysis lacks a strong theoretical foundation. There is an underemphasis on developing theory and building capacity to design future activities. I also noticed relatively little dynamic analysis to capture evolution over time, and less attention to political economy than I had expected.

Another pattern is the focus on consumer preferences rather than producer realities. Improving the quality of food is essential, but we must better understand the underlying drivers. Is the problem simply that food companies are greedy, or are they selling what people are willing to buy? I recall when my three children were young, we would stop for breakfast on the way to school. Two of them happily ate omelets, while the third refused anything but Skittles. The shopkeeper nicknamed them “Biggy, Smally, and Junky.” Ironically, “Junky” later changed his ways, and today he is the skinniest of the three—and a true gourmet. There may not be deep lessons in this story, but it highlights the importance of understanding why people at different ages and circumstances make different food choices, and the challenges facing food companies producing healthy and tasty food. Addressing these issues may require a multidisciplinary approach, including in-depth interviews with food company executives about how they make decisions, leading to more effective policy design.

One particularly interesting proposal, raised by Matty Demont, suggested working with chefs to study the transformation of ingredients into food—the “production function of food.” This could potentially generate new data and frameworks for quantification, but first we need to deepen our understanding of the subject matter itself. Environmental issues are now at the heart of agricultural economics conferences. Because agricultural economists often work closely with agronomists and engineers, the focus tends to be less on calculating the optimal social cost of carbon—as is common among environmental economists—and more on questions such as: why don’t we see carbon taxes, and what are the actual impacts of regulations?

Participating in the conference tried to answer both questions. Policymaking around environmental issues often follows a familiar sequence. First, problems are ignored (think of the MAGA crowd). Then, after research identifies technological fixes and establishes upper bounds on polluting activity, regulation emerges. Only later, once the cost of adaptation declines, does pollution taxation tend to appear. This trajectory characterized both air and water pollution policy and may well repeat with climate change. Thus, one of the main challenges of agricultural economists is to assess the impact of regulation, and suggest avenues to improve them, including identifying carbon taxes. Research presented at the conference suggested that many proposed regulations for agricultural climate change mitigation have limited impact, are excessively costly, and remain hampered by the difficulty of monitoring emissions and assigning liability for greenhouse gases at their source. Despite of the imperfect results, policies seem to improve over time and we are obtaining better data. I believe that the likelihood of increased use of incentives to control agricultural pollution is growing. 

Another interesting finding is the contrast between scientific and public perspectives. Scientists broadly regard both climate change and biodiversity loss as existential threats, but the public is much more concerned about climate change—and even then, stated concern often far exceeds willingness to pay for environmental action. Personally, I find reassurance in the growing set of technologies that can reduce emissions, enable sequestration, and store carbon. The public will support actions when we have better tools to control climate change and other environmental challenges at lower costs. 

Finally, the conference featured multiple sessions on the emerging bioeconomy and the economics of supply chains, which I will address elsewhere.

Portugal

I like to take a few days off after a conference to “smell the roses”— visiting attractive places I’ve never been to. Time is precious, and I try to make the most of it. This time, I came to Lisbon to see firsthand why it is gaining a reputation as both a travel destination and a city with an enviable quality of life. I was struck by its stunning architecture, relative affordability, excellent weather, and delicious food. A special highlight was the warm hospitality I received from the parents and sister of my colleague, Sofia Villas-Boas.

Lisbon is built on seven hills overlooking the Tagus River, which flows into the Atlantic Ocean. Downtown, on the flatter lands near the river, one finds large and impressive squares adorned with palaces and statues of national heroes—reminders of Portugal’s glorious 16th-century era, when it commanded a vast empire and dominated trade with India. The hills, by contrast, are characterized by narrow streets, countless staircases, and steep climbs that challenge both drivers and pedestrians. Yet the reward is beautiful parks, remarkable castles, and breathtaking vistas. Climbing these hills was both demanding and exhilarating.

Lisbon shares features with other iconic hilly cities. Like San Francisco, it has a magnificent suspension bridge, nearly identical in length and structure to the Golden Gate. It also boasts numerous cable cars, the main mode of transportation up its seven hills. And like Rio de Janeiro, Lisbon is crowned by a massive statue of Christ that dominates the skyline. Yet it is distinct in important ways—safer than Rio, and without the visible homelessness that plagues San Francisco.

Portugal offers great value for tourists. A thirty-minute Uber ride cost me only $20, and food is both delicious and affordable. I especially enjoyed the pastries—most notably the pastel de nata, a custard tart with a flaky puff pastry shell filled with rich custard flavored with sugar, cinnamon, and lemon peel. I also savored codfish cakes, fresh salads, and an abundance of fruits and vegetables—particularly the superb figs and grapes.

To get a fuller sense of the city, I took a bus tour. Beyond the sweeping views, one of the highlights was listening to fado music, including songs by Amália Rodrigues, whose voice I had loved in my youth.