Agricultural Economics

Agricultural Economics

Estimation of Environmental Costs of Pollutants Emission of Dairy Farms for Bonab County by Using Output Distance Function Approach

Document Type : Research Paper

Authors
baballah hayati 1
Elham Amirrasouli 2
Ghader Dashti 3
Jabraeil Vahedi 4
1 Professor Department of Agricultural Economics ,faculty of Agriculture,University of Tabriz ,Iran
2 MSc graduate /university of Tabriz
3 Professor/university of Tabriz
4 PhD student/ university of Tabriz
10.22034/iaes.2024.2012354.2020
Abstract
Introduction: The purpose of this study to estimation of environmental costs of pollutants emission of dairy farms for Bonab county.
Material and methods: In this study, the output distance function is used to estimate the shadow price of pollutant emissions. The advantage of using the distance function instead of the production function is that it easily models the production of several products and several inputs when the price information of the inputs and outputs is not available. To estimate the distance function, a suitable functional form must be used, and for this purpose, the translog functional form was used with one desirable product (milk) and two undesirable products (nitrogen and phosphorus).
Results and discussion: The results showed that the average shadow prices per kilogram of nitrogen and phosphorus in dairy farms were -18552.11 and -13802.39 Rls, respectively. Negative shadow prices mean that a reduction in undesirable outputs has the opportunity cost of reducing desirable output or increasing inputs. Eventually, the results of nitrogen and phosphorous excretion pollutants from dairy cows in the county of Bonab indicate that Nitrogen 40.8 million Rls per year and phosphorous 4.4 million Rls per year were damaged to the environment. also, The elasticities results indicated that the produced milk was Complement with nitrogen and phosphorus pollutants, as well as a concentrate input with forage and labor inputs was substitutability and with energy input was Complement, also, there was a substitutability relationship Between forage input with energy and with labor was complementarity, labor input with energy was substitutability. as a result, the environmental cost of dairy cattle pollutants was estimated at 45.3 million Rls, which means that for the production of one tone of milk equivalent 426200 Rls will be damaged to the environment of the region. So it is possible to reduce the emission of environmental pollutants by performing a series of measures.
Keywords
Pollutants
Output Distance Function
Shadow Price
Dairy Cattle
Environmental Cost

Subjects

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