Price Elasticity of Production Factors in Beijing’s Picking Gardens

Na Du, Qianqian Shao and Ruifa Hu
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Na Du: School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China
Qianqian Shao: School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China
Ruifa Hu: School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China

Sustainability, 2019, vol. 11, issue 7, 1-16

Abstract: Picking agriculture is a form of leisure agriculture based on the concept of traditional garden. Due to their unique layout and construction style, picking gardens have different attractive elements, including sightseeing, leisure, entertainment, crop production, and crop picking. However, despite its increasing importance, there is no systematic research on price elasticity or price substitution elasticity of production factors in picking gardens. To fill this gap, we surveyed 308 farmers in five districts of Beijing and employed a translog cost function to compare the impact of operation patterns on peach and cherry production cost by estimating elasticities of substitution between and among inputs. We found that own-price elasticity of all input factors was negative, while substitution relationships existed between labor and land, labor and fertilizer, fertilizer and manure, and manure and pesticide. This indicates that Beijing’s agricultural sector is labor intensive, while fertilizer and pesticide are scarcely used.

Keywords: picking agriculture; factors of production; translog cost function; price elasticity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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