Document Type : Original Article
Authors
1
Professor, Department of Agricultural Economics, Ardakan University, Ardakan, Iran.
2
Ph.D. Student in Agricultural Economics, Sari University of Agricultural Sciences and Natural Resources, Sari, Iran.
3
Master of Agricultural Economics, Ardakan University, Ardakan, Iran.
10.30490/rvt.2026.367508.1693
Abstract
Introduction
The generation of agricultural waste (including plant residues, animal manure, carcasses, unused chemicals, etc.) in developing countries has become one of the primary sources of environmental pollution due to population growth and the expansion of agricultural activities. If not properly managed, these wastes pose significant risks to human health, water resources, and soil quality. In this context, economic tools such as green taxes can help protect the environment, alter polluting behaviors, and provide the government with long-term financial resources. By internalizing the external costs associated with polluting activities, environmental taxes—often referred to as "green taxes"—can reduce the use of harmful inputs and promote sustainable production. Despite numerous national and international studies on this topic, there is still a lack of empirical research based on local socioeconomic characteristics to assess farmers' willingness to pay for environmental taxes in less developed areas like Ardakan County. Thus, this study aims to examine the feasibility of implementing a green tax on agricultural waste in Ardakan County and to investigate how farmers' economic, social, and environmental traits influence their willingness to pay.
Materials and Methods
Ardakan County, the largest county in Yazd Province, served as the study area. A random sample of 272 farmers was selected from the statistical population of the county. A questionnaire was used to collect data on economic variables (annual agricultural and non-agricultural income), demographic variables (age, education, and household size), and an environmental attitude index. Two main sections of the questionnaire focused on the willingness to pay (WTP) for a green tax to manage agricultural waste properly and the willingness to pay fines in the event of pollution. Using Double-Bounded Dichotomous (DBD) option scenarios, the Contingent Valuation Method (CVM) was applied to economically assess the value of the green tax. Three different amounts were suggested for fines (1.5, 3, and 6 million Rials) and green tax payments (200,000, 400,000, and 800,000 Rials per hectare annually). The Logit model was employed to examine the effects of various factors on WTP, and maximum likelihood estimation was used to estimate the parameters. Data processing and numerical integration were performed using Shazam, Excel, and Maple software.
Results and Discussion
The study found that the 272 farmers in Ardakan were, on average, middle-aged (54 years old) and had only seven years of formal education. Approximately 75% of them were willing to pay 400,000 Rials per hectare annually for the effective management of agricultural waste. At a lower amount (200,000 Rials), this proportion increased to over 82%. The average WTP for the green tax was estimated at 598,000 Rials. The Logit model revealed that older age and larger household size decreased WTP, while education, income, and a positive environmental attitude significantly increased it. Around 59% of farmers were willing to pay 3 million Rials in fines for pollution, with the average WTP for the fine estimated at approximately 4 million Rials. These findings reflect the farmers' environmental awareness and responsibility, suggesting that green tax laws, combined with financial and educational incentives, could be an effective tool for managing agricultural waste in the region.
Conclusions
Based on the study's findings, a phased green tax system that takes economic and demographic factors into account can be a useful tool for sustainably managing agricultural waste and reducing pollution in rural areas. It is recommended that a green tax of approximately 6 million Rials per hectare be implemented annually, depending on local circumstances. For large households and low-income farmers, discounts or exemptions should be considered. Financial and educational incentives should be employed to raise environmental awareness and support for the tax laws.
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