Exploring the Farm Level Opportunity Cost for Protecting Environment: Evidence from Turkey

Document Type : Original Research

Authors
S. Canan 1
V. Ceyhan 2
1 Department of Agricultural Economics, Faculty of Agriculture, Ondokuz Mayıs University, Samsun, 55040, Turkey.
2 Ondokuz Mayıs University, Faculty of Agriculture, Department of Agricultural Economy, Samsun, Turkey
Abstract
The study spatially explored the farm-level opportunity cost of protecting environment and examined the sufficiency level of government support for covering farm level of opportunity cost in TR83 region of Turkey. By using questionnaires, research data were collected from randomly selected 334 farms that participated in Environmentally Friendly Agricultural Land Protection Program (EFALP) and purposively selected 27 conventional farms. Farm-level opportunity cost of protecting environment was calculated via subtracting gross revenue calculated under condition of protecting environment from the gross revenue calculated under conventional ones. Gross revenue under conventional condition and under condition of protecting environment was elicited by using the MOTAD linear approximation of the quadratic programming. Sufficiency of government support for protecting environment was revealed through taking the difference between farm-level opportunity cost for protecting environment and total government support payment for environmental consideration to farm included in EFALP. Research results showed that government support paid to sample farms did not cover opportunity cost of farm for protecting environment in TR83 region. Considering spatially differentiation of farm-level opportunity cost for protecting environment when policy makers determine the quantity of government support may positively enhance the dissemination of EFALP programs and reduce the adverse effects of agricultural practices.

Keywords

Subjects

Akça, H., Sayılı, M. and Kurunç, A. 2005. Trade-Off between Multifunctional Agriculture, Externality and Environment. Journal of Applied Sciences Research, 3:1, 298-301.
Anonymus, 2018. Tarım ve Orman Bakanlığı Bilgi Merkezi (Republic of Turkey Ministry Of Agriculture And Forestry) Https://Www.Tarimorman.Gov.Tr (Accessed: 12.09.2018).
Brink, L. and Mccarl, B. 1978. Trade-Off between Expected Return and Risk among Corn Belt Farmers. American Journal of Agricultural Economics Review. 25:68-75.
Eryılmaz, G. 2017. Samsun İli Bafra İlçesinde Çevresel Sürüdürebilir Tarımsal Üretimi Sağlayan Optimum Işletme Organizasyonunun Belirlenmesi (Determining Optimal Farm Organization Which Provides Environmental Sustainable Agricultural Production in Bafra District Of Samsun, Turkey). Doctoral Thesis, Ondokuz Mayıs University, Science Institute, Samsun.
Falconer, K. and Hodge, I. 2001. Pesticide Taxation and Multi-Objective Policy-Making: Farm Modelling to Evaluate Profit/Environment Trade-Offs. Ecological Economics, 36:1, 263-279.
Groot, J.C.J., Rossing, W.A.H., Jellema, A., Stobbelaar, D.J., Renting, H. and Ittersum, M.K.V. 2007. Exploring Multi-Scale Trade-Offs Between Nature Conservation, Agricultural Profits and Landscape Quality - A Methodology to Support Discussions on Land-Use Perspective. Agriculture, Ecosystems and Environment, 120:1, 58-69. Doi:10.1016/J.Agee.2006.03.037.
Günden, C. and Miran, B. 2008. Yeni Çevresel Paradigma Ölçeğiyle Çiftçilerin Çevre Tutumunun Belirlenmesi: Izmir Ili Torbalı Ilçesi Örneği (An Application of the New Environmental Paradigm to Determining Environmental Attitudes of Farmers: The Case of Izmir, Torbali). Ekoloji, 69, 41-50. Doi:10.5053/Ekoloji.2008.696.
Haniotis, T. 2011. Future Directions of EU Agricultural Policies: The CAP Towards 2020. ABARES Outlook 2011 Conference, 1- 2 March, Canberra: Australian Bureau of Agricultural and Resource Economics and Sciences.
Hardaker J.B., Troncoso, J.L. 1979. The Formulation of MOTAD Programming Models for Farm Planning Using Subjectively Elicited Activity Net Revenue Distributions. European Review of Agricultural Economics. 6 (1): 47-60.
Hazell, P.B.R. 1971. A Linear Alternative to Quadratic and Semi Variance Programming For Farm Planning Under Uncertainty. American Journal of Agricultural Economics, 53:1, 53-62.
Hediger, W. and Lehmann, B. 2003. Multifunctional Agriculture and the Preservation of Environmental Benefits. International Conference of Agricultural Economists (IAAE). Proceedings of the 25th International Conference of Agricultural Economists, 16-22 August, 1127-1135, Durban, South Africa.
Hutton, C.W., Nicholls, R.J., Lazar, A.N., Chapman, A., Schaafsma, M. and Salehin, M. 2018. Potential Trade-Offs Between the Sustainable Developments Goals in Coastal Bangladesh. Sustainability. 10(4): 1108.
Igari, A.T., Tambosi, L.R. and Pivello, V.R. 2009. Agribusiness Opportunity Costs and Environmental Legal Protection: Investigating Trade-Off on Hotspot Preservation in the State of Sao Paulo, Brazil. Environmental Management. 44:2, 346-355 DOI: 10.1007/S00267-009-9322-8.
Jehangir, W.A., Ashfaq, M. and Salik, K.M. 2002. Trade-Offs between Gross Farm Income, Groundwater and Salinity at Irrigation Sub-Divisional Level. Report of International Water Management Instıtute, H031201, IWMI Books.
Kanter, D.R., Musumba, M., Wood, A.L.R., Palm, C., Antle, J., Balvanera, P., Dale, V.D., Havlik, P., Kline, K.L., Scholes, R.J. and Thornton, P. 2016. Evaluating Agricultural Trade-Offs in the Age of Sustainable Development. Agricultural Systems. 163: 73-88.
Karaer, F. and Gürlük, S. 2003. Gelişmekte Olan Ülkelerde Tarım-Çevre-Ekonomi Etkileşimi. Doğuş Üniversitesi Dergisi. 4:2, 197-206.
Kasal, J. 1976. Trade-Offs Between Farm Income and Selected Environmental Indicators: Case Study of Soil Loss, Fertilizer and Land Use Constraints. Natural Resource Economic Division, Economic Research Service United States Department of Agriculture, 1550, Washington.
Lambert D.K., McCarl, B.A. 1985. Risk Modelling Using Direct Solution of Nonlinear Approximations of the Utility Function. American Journal of Agricultural Economics. 67(4): 846-852.
Machado, F.H., Mattedi, A.P., Dupas, F.A., Silva, L.F. and Vergara, F.E. 2014. Estimating the Opportunity Costs of Environmental Conservation in the Feijão River Watershed (São Carlos-SP, Brazil). Braz. J. Biol.   76(1):28-35.
McCarl B., Onal, H. 1989. Aggregation of Heterogeneous Firms in Mathematical Programming Models, European Review of Agricultural Economics. 16(4): 499-513.
Mccarthy, G. 2014. On Board with EPA’s Proposal. Renewable Energy Focus. 15(3):38-39.
Meyfroidt, P. 2017. Trade-Offs between Environment and Livelihoods: Bridging the Global Land Use and Food Security Discussions. Global Food Securit. 16:9-16.
Mimouni, M., Zekri, S. and Flichman, G. 2000. Modelling the Trade-Offs between Farm Income and the Reduction of Erosion and Nitrate Pollution, Annals of Operations Research, 94:1-4, 91-103. DOI: 10.1023/a: 1018941805656.
Rendon, O.R., Dallimer, M. And Paavola, J. 2016. Flow and Rent-Based Opportunity Costs of Water Ecosystem Service Provision in a Complex Farming System. Ecology and Society. 21(4):36.
Şahin, A., Atış, E. and Miran, B. 2008. Daha Etkin Tarım-Çevre Politikaları Için Homojen Alanların Belirlenmesi (Identifying Homogeneous Locations for More Efficient Agricultural and Environmental Policies: The Case of Ege Region). Ekoloji, 67, 15-23. DOI: 10.5053/Ekoloji.2008.673
Serres, A., Murtin, F. and Nicoletti, G. 2010. A Framework for Assessing Green Growth Policies. OECD Economics Department Working Papers No: 774.
Stevens, C. 2011. Agriculture and Green Growth. OECD.
Stoorvogel, J.J., Antle, J.M., Crissman, C.C. and Bowen, W. 2004. The Trade-Off Analysis Model: Integrated Bio-Physical And Economic Modelling of Agricultural Production Systems. Agricultural Systems, 88:1, 43-66. Doi:10.1016/J.Agsy.2003.06.002
Sun, H., Bless, K.E., Sun, C. and Kporsu, A.K. 2019. Institutional Quality, Green Innovation and Energy Efficiency. Energy Policy 135,111002.
Wang, Y. and Shen, N. 2016. Environmental Regulation and Environmental Productivity: The Case of China. Renewable and Sustainable Energy Reviews. 62: 758-766.
Türkmen, İ. 2007. Sürdürülebilir Tarım Için Yöneylem Araştırması Modelleri. Çukurova Üniversitesi, (Operations Research Models for Sustainable Agriculture). Çukurova Üniversitesi, Fen Bilimleri Enstitüsü, Yüksek Lisans Tezi (Çukurova University, Science Institute, Master Thesis), Adana.
Yıldırım, Ç., Ceyhan, V., Atış, E.., Türkten, H., Hasdemir, M., Salalı, H.M., Akyüz, Y. and Güngör, F. 2018. The Effects of Participating Environmentally Friendly Agricultural Land Protection Program on the Farm Level Production Efficiency in Samsun Province of Turkey. Custos E Agronegócio on Line, 14:1, ISSN: 1808-2882.
Journal of Agricultural Science and Technology
Volume 23, Issue 2
March and April 2021
Pages 253-263