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Investments in Polish Agriculture: How Production Factors Shape Conditions for Environmental Protection?

Piotr Bórawski (), Marta Guth (), Aneta Bełdycka-Bórawska (), Krzysztof Józef Jankowski (), Andrzej Parzonko () and James W. Dunn ()
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Piotr Bórawski: Department of Agrotechnology, Agricultural Production Management and Agribusiness, Faculty of Land Management and Agriculture, University of Warmia and Mazury in Olsztyn, 10-719 Olsztyn, Poland
Marta Guth: Faculty of Economics, Poznan University of Economics and Business, al. Niepodległości 10, 61-875 Poznań, Poland
Aneta Bełdycka-Bórawska: Department of Agrotechnology, Agricultural Production Management and Agribusiness, Faculty of Land Management and Agriculture, University of Warmia and Mazury in Olsztyn, 10-719 Olsztyn, Poland
Krzysztof Józef Jankowski: Department of Agrotechnology, Agricultural Production Management and Agribusiness, Faculty of Land Management and Agriculture, University of Warmia and Mazury in Olsztyn, 10-719 Olsztyn, Poland
Andrzej Parzonko: Department of Economics and Organization of Enterprises, Faculty of Economics, Warsaw University of Life Science SGGW-Warsaw, 02-787 Warszawa, Poland
James W. Dunn: Department of Agricultural Economics, Sociology, and Education, Faculty of Agricultural Sciences, Pennsylvania State University, University Park, PA 16802, USA

Sustainability, 2020, vol. 12, issue 19, 1-26

Abstract: In recent years, social and economic goals have been preferable compared to environmental issues. However, global problems with the environment, increasing pollution, and gas heating emissions have made environmental issues a major priority. Suddenly, human beings have realized that environmental investments are needed to maintain better world conditions for future generations. This article investigates the development of agricultural investment in the context of production factors in Polish voivodeships in the years 2000–2018. Farmers have to choose between investing and developing production or being more environmentally friendly and invest on a smaller scale or transform their farms into organic production. Moreover, the investment in environmental protection in Poland was analyzed. Investment outlays on fixed assets for environmental protection and outlays on fixed assets for water management were investigated. The level of investment has changed since Poland joined the EU. With membership, Poland gained access to new markets and technology. Particular attention has been focused on production factors (land, capital, and the work force). We have conducted as a proxy regular regression analysis and after panel regression to measure the impact of the chosen factors on explained variables: investment outlays in agriculture, and investment outlays per 1 ha of agricultural land. We have used correlation analysis to examine the relations between explanatory variables and total gross investment in agriculture and total investment outlays in agriculture per 1 ha of agricultural land, outlays on fixed assets for environmental protection, and outlays on fixed assets for water management. Our analysis confirms that explanatory variables are important in shaping total investment outlays in agriculture and total investment outlays per 1 ha of agricultural land.

Keywords: investment; agriculture; factor endowments; stationarity; prognosis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
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