Village and Development

Village and Development

Economic Analysis of Energy Use in Onion Production in the Villages of the Tabriz Plain

Document Type : Original Article

Authors
1 Corresponding Author and PhD. Student, Department of Agricultural Economics, Faculty of Agriculture, University of Tabriz, Tabriz, Iran
2 Professor of Agricultural Economics, University of Tabriz, Tabriz, Iran
Abstract
Abstract
Introduction
In the current world, energy is not merely an input, it is one important and strategic factor in the productivity and sustainability of rural and agricultural systems which its optimal management can transform production structure. The relation between energy inputs and outputs of agriculture has not only affected the quantity and quality of production but also plays an important role in sustainability of resources and adaptation of agricultural systems with environmental challenges and climate change. Therefore, the main objective of this research is   the economic study of input energy use in onion production in the villages of the Tabriz plain.
Materials and Methods
In this study, production function is used to investigate the relationship between energy consumption, input and final product in onion production process. In order to compare the input and output values with energy units (mj ha-1), the equivalence coefficients of energy were used.  For this purpose, Translog, generalized quadratic and generalized Leontief production functions have been used. Additionally, production elasticity was used to study of the reaction of output to changes in input consumption. Required data collected through face-to-face interviews and questionnaires from 140 farmers in rural areas of Tabriz plain. For estimation of production functions was used Stata 17 software.
Results and Discussion
After model’s estimation and evaluation of J-B test, significant coefficients and R2 criteria, the generalized quadratic production function was selected as the preferred model to analyze the effect of input energy on energy of onion. Estimation of production function showed that energy inputs of seed, labor, manure and fertilizer have significant effect on energy output energy. Based on the results, the estimated production elasticities of seed and animal manure were 0.81 and 0.2, respectively, while the elasticity of labor inputs (1.02) and chemical fertilizer (1.16) indicates the use of the permitted limit (first stage).
Conclusions
The production estimation and calculation of production elasticity as an applied criterion to evaluate the use of factors confirms that farmers use labor and chemical inputs in the non-economic region (first stage). According to the farmers, with the increase in the price of fertilizer they could not demand and use this input and therefore the quantity of application in the first region was stopped. Although the use of fertilizers increases the production of onion, it is recommended that farmers to minimize the detrimental effects of chemical fertilizers by observing the principles and practices of sustainable agriculture and low reliance on such factors and applying integrated fertilizers.  Also, according to the estimated elasticities for seed and animal manure, it was concluded that the farmers use these inputs as economically means in the second stage, although some of these inputs are not rational and economical. Determination of optimum value of inputs can help increase profitability of onion production while reducing negative effects of harmful factors on natural resources. This is done by adopting sustainable agricultural practices and utilizing environmentally modern technologies in order to balance the efficiency improvement and decrease the destruction of the environment.
Keywords

Subjects


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