Assessment of economic effects of GHG emission reduction on the example of field crop farms

Jan Pawlak

No 276380, Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej from Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI)

Abstract: The paper presents economic effects of using GHG emission reduction technologies on model farms. Replacement of traditional tillage with aggregate for direct tillage and seeding (as contractor services) caused increase in annual operation cost of tillage on the model farm by 308.5%. Total annual operation costs of farm machinery on model farm (including costs of contractor services) increased by 25.2% in spite of a decrease in Diesel oil consumption by 26.8%. CO2 emissions per value unit of production decreased by 22.6%. Replacement of traditional crop production technology with energy-efficient one causes reduction of CO2 emission per value unit of obtained production by 22.6%. Change of technology, advisable from the ecological point of view, is not realistic because of the increase in the machinery operation costs and decrease in the production value on model farm. This barrier could be overcome with the use of relevant financial support, which however has adequate consequences for the state budget.

Keywords: Agricultural and Food Policy; Environmental Economics and Policy; Farm Management (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iafepa:276380

DOI: 10.22004/ag.econ.276380

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