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Environmental Efficiency in Agricultural Sector

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The Economics of Agriculture and Natural Resources

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Abstract

Agriculture is an important and vital sector in Iran’s economy. This sector provides basic needs along with undesirable outputs such as greenhouse gases. Greenhouse gas (GHG) emissions are main causes of environmental pollution. By considering the pollution in production process, economic performance can be evaluated precisely. We can modify the efficiency model using the desirable and undesirable outputs to improve the quality of the environment, and to achieve sustainable development. In this regard, environmental efficiency of agriculture is an appropriate guide to produce crops using low inputs and environmental pollution. This study aims to estimate the agricultural environmental efficiency in Iran’s different provinces using data envelopment analysis (DEA) method. The results show that for each billion Rial of agriculture gross value added, 11.39 tons of carbon dioxide are produced. Subsequently, regarding the greenhouse gas emissions caused by proportional agricultural activity, the provinces are divided into three clusters. Mean carbon dioxide emission for each cluster is 536,663.7, 804,315.7, and 186,311.8 tons, respectively. Mean environmental efficiency for clusters is 0.294, 0.243, and 0.836, respectively. This indicates that provinces with more greenhouse gas emissions have lower environmental efficiency. In this regard, the politicians should make the less efficient clusters to reduce the use of undesirable inputs to decrease the pollutant emissions. Besides, by proper allocation of capital, the more efficient cluster can improve environmental technologies.

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Notes

  1. 1.

    Capital stock in agricultural sector is calculated using the capital–output ratio method. In this method, it is assumed that the ratio of agricultural capital to total capital for each province is equal to the ratio of agricultural gross value added to total gross value added. Hence, the provinces’ agricultural capital is equal to the product of the rate and total capital.

  2. 2.

    1. East Azerbaijan, 2. West Azerbaijan 3. Ardabil, 4. Isfahan, 5. Alborz, 6. Ilam, 7. Bushehr, 8. Tehran, 9. Chaharmahal and Bakhtiari, 10. South Khorasan, 11. Razavi Khorasan, 12. North Khorasan, 13. Khuzestan, 14. Zanjan, 15. Semnan, 16. Sistan and Baluchestan, 17. Fars, 18. Qazvin, 19. Qom, 20. Kurdistan, 21. Kerman, 22. Kermanshah, 23. Kohgiluyeh and Boyer-Ahmad, 24. Golestan, 25. Gilan, 26. Lorestan. 27. Mazandaran, 28. Markazi, 29., 30. Hamedan, 31. Yazd.

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Author information

Authors and Affiliations

  1. Department of Agricultural Economics, University of Tabriz, Tabriz, Iran

    Pariya Bagheri & Sahar Abedi

  2. Department of Accounting, Zanjan Branch, Islamic Azad University, Zanjan, Iran

    Farid Bagheri Sarajug

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  1. Pariya Bagheri
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  2. Sahar Abedi
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Correspondence to Pariya Bagheri .

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  1. Department of Agricultural Economics, University of Tabriz, Tabriz, Iran

    Masoomeh Rashidghalam

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Bagheri, P., Abedi, S., Bagheri Sarajug, F. (2020). Environmental Efficiency in Agricultural Sector. In: Rashidghalam, M. (eds) The Economics of Agriculture and Natural Resources. Perspectives on Development in the Middle East and North Africa (MENA) Region. Springer, Singapore. https://doi.org/10.1007/978-981-15-5250-2_12

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