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Price Elasticity of Production Factors in Beijing’s Picking Gardens

Author

Listed:
  • 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)

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.

Suggested Citation

  • Na Du & Qianqian Shao & Ruifa Hu, 2019. "Price Elasticity of Production Factors in Beijing’s Picking Gardens," Sustainability, MDPI, vol. 11(7), pages 1-16, April.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:7:p:2160-:d:221786
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    References listed on IDEAS

    as
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    Cited by:

    1. Hyo-Jin Kim & Gyeong-Sam Kim & Seung-Hoon Yoo, 2019. "Demand Function for Industrial Electricity: Evidence from South Korean Manufacturing Sector," Sustainability, MDPI, vol. 11(18), pages 1-11, September.
    2. Jiaxing Cui & Ruihao Li & Lingyu Zhang & Ying Jing, 2021. "Spatially Illustrating Leisure Agriculture: Empirical Evidence from Picking Orchards in China," Land, MDPI, vol. 10(6), pages 1-20, June.
    3. Hyo-Jin Kim & Jae-Sung Paek & Seung-Hoon Yoo, 2019. "Price Elasticity of Heat Demand in South Korean Manufacturing Sector: An Empirical Investigation," Sustainability, MDPI, vol. 11(21), pages 1-10, November.

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