IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i12p6680-d573694.html
   My bibliography  Save this article

Sustainable Feasibility of the Environmental-Friendly Policies on Agriculture and Its Related Sectors in India

Author

Listed:
  • Jahira Debbarma

    (Program in Industrial Security Governance, Inha University, 100 Inha-ro, Incheon 22212, Korea)

  • Hyoungsuk Lee

    (Business School, Shandong University, Weihai 264209, China)

  • Yongrok Choi

    (Program in Industrial Security Governance, Inha University, 100 Inha-ro, Incheon 22212, Korea)

Abstract

In terms of economic development and feeding the world’s populations, the importance of the agricultural sector is well known. However, agriculture and its related sectors are also known for contributing more than one-quarter of the world’s GHG emissions. To address this issue, we evaluate the performance of agriculture and its related firms in India from 2013 to 2019 with its environmental efficiency under the paradigm shift promoted by the National Agroforestry Policy in 2014. To evaluate the feasibility of this paradigm shift in agricultural policy, the non-radial slack-based measure (SBM) is utilized in the first stage, and Tobit regressions are used to assess the determinants of efficiency (or sources of inefficiency) measures at the second stage. The results from non-radial SBM show that Indian agricultural firms (foreign direct investment, private, and public) show huge potential with 32.2% on average to enhance their performance if they move toward the frontier of the production possibility curve. This suggests that Indian policymakers should regulate much stronger regulations for firms, especially for the use of agricultural inputs such as energy (fertilizers), with performance-oriented financial measures for sustainable agriculture. To determine the strategic variables for these firms to enhance their performance, Tobit regressions showed that fertilizers use (−3.350%) appears to have the highest negative impact on environmental efficiency. On the other hand, credit access (2.710%) has the highest positive impact on environmental efficiency, implying that policymakers should provide subsidies to firms in the form of soft loans (or credit access) for the purchase of high-quality fertilizers and to adopt energy-saving equipment/technology to minimize the use of chemical fertilizers in India.

Suggested Citation

  • Jahira Debbarma & Hyoungsuk Lee & Yongrok Choi, 2021. "Sustainable Feasibility of the Environmental-Friendly Policies on Agriculture and Its Related Sectors in India," Sustainability, MDPI, vol. 13(12), pages 1-14, June.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:12:p:6680-:d:573694
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/12/6680/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/12/6680/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yongrok Choi & Hyoungsuk Lee & Jahira Debbarma, 2020. "Are Global Companies Better in Environmental Efficiency in India? Based on Metafrontier Malmquist CO 2 Performance," Sustainability, MDPI, vol. 12(20), pages 1-19, October.
    2. Nidhi Aggarwal & Sudha Narayanan, 2017. "Impact of India's Demonetization on Domestic Agricultural Markets," Working Papers id:12294, eSocialSciences.
    3. Guoping Mei & Jingyi Gan & Ning Zhang, 2015. "Metafrontier Environmental Efficiency for China’s Regions: A Slack-Based Efficiency Measure," Sustainability, MDPI, vol. 7(4), pages 1-18, April.
    4. Hu, Yuan, 2012. "Energy conservation assessment of fixed-asset investment projects: An attempt to improve energy efficiency in China," Energy Policy, Elsevier, vol. 43(C), pages 327-334.
    5. Yongrok Choi & Fan Yang & Hyoungsuk Lee, 2020. "On the Unbalanced Atmospheric Environmental Performance of Major Cities in China," Sustainability, MDPI, vol. 12(13), pages 1-14, July.
    6. Khem R. Sharma & PingSun Leung & Halina M. Zaleski, 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics, International Association of Agricultural Economists, vol. 20(1), pages 23-35, January.
    7. Kuang, Bing & Lu, Xinhai & Zhou, Min & Chen, Danling, 2020. "Provincial cultivated land use efficiency in China: Empirical analysis based on the SBM-DEA model with carbon emissions considered," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    8. Heyuan You & Xiaoling Zhang, 2016. "Ecoefficiency of Intensive Agricultural Production and Its Influencing Factors in China: An Application of DEA-Tobit Analysis," Discrete Dynamics in Nature and Society, Hindawi, vol. 2016, pages 1-14, March.
    9. Ray, Subhash C. & Ghose, Arpita, 2014. "Production efficiency in Indian agriculture: An assessment of the post green revolution years," Omega, Elsevier, vol. 44(C), pages 58-69.
    10. Galanopoulos, Konstantinos & Aggelopoulos, Stamatis & Kamenidou, Irene & Mattas, Konstadinos, 2006. "Assessing the effects of managerial and production practices on the efficiency of commercial pig farming," Agricultural Systems, Elsevier, vol. 88(2-3), pages 125-141, June.
    11. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics, Blackwell, vol. 20(1), pages 23-35, January.
    12. George Vlontzos & Spyros Niavis & Panos Pardalos, 2017. "Testing for Environmental Kuznets Curve in the EU Agricultural Sector through an Eco-(in)Efficiency Index," Energies, MDPI, vol. 10(12), pages 1-15, December.
    13. Aziz Kutlar & Ali Kabasakal & Murat Sarikaya, 2013. "Determination of the efficiency of the world railway companies by method of DEA and comparison of their efficiency by Tobit analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(6), pages 3575-3602, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leonidas Sotirios Kyrgiakos & Georgios Kleftodimos & George Vlontzos & Panos M. Pardalos, 2023. "A systematic literature review of data envelopment analysis implementation in agriculture under the prism of sustainability," Operational Research, Springer, vol. 23(1), pages 1-38, March.
    2. Yongrok Choi & Hyoungsuk Lee & Hojin Jeong & Jahira Debbarma, 2023. "Urbanization Paradox of Environmental Policies in Korean Local Governments," Land, MDPI, vol. 12(2), pages 1-15, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vukelić, Nataša & Novković, Nebojša, 2013. "Economic Efficiency Of Broiler Farms In Vojvodina Region," 50th Anniversary Seminar, Agriculture and Rural Development -Challenges of Transition and Integration Processes, September 27, 2013 161813, University of Belgrade, Department of Agricultural Economics, Faculty of Agriculture.
    2. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min & Lin, Bruce J.Y., 2013. "A survey of DEA applications," Omega, Elsevier, vol. 41(5), pages 893-902.
    3. Hansson, Helena, 2007. "Strategy factors as drivers and restraints on dairy farm performance: Evidence from Sweden," Agricultural Systems, Elsevier, vol. 94(3), pages 726-737, June.
    4. Agata Malak-Rawlikowska & Monika Gębska & Robert Hoste & Christine Leeb & Claudio Montanari & Michael Wallace & Kees de Roest, 2021. "Developing a Methodology for Aggregated Assessment of the Economic Sustainability of Pig Farms," Energies, MDPI, vol. 14(6), pages 1-25, March.
    5. Nastis, Stefanos A. & Papanagiotou, Evangelos & Zamanidis, Savvas, 2012. "Productive Efficiency of Subsidized Organic Alfalfa Farms," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(2), pages 1-9, August.
    6. Po-Chi Chen, 2012. "Measurement of technical efficiency in farrow-to-finish swine production using multi-activity network data envelopment analysis: evidence from Taiwan," Journal of Productivity Analysis, Springer, vol. 38(3), pages 319-331, December.
    7. Lampe, Hannes W. & Hilgers, Dennis, 2015. "Trajectories of efficiency measurement: A bibliometric analysis of DEA and SFA," European Journal of Operational Research, Elsevier, vol. 240(1), pages 1-21.
    8. Nguyen, Khac Minh & Giang, Thanh Long, 2009. "Efficiency Estimates for the Agricultural Production in Vietnam: A Comparison of Parametric and Non-parametric Approaches," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 10(2), pages 1-17.
    9. Scheierling, Susanne M. & Treguer, David O. & Booker, James F. & Decker, Elisabeth, 2014. "How to assess agricultural water productivity ? looking for water in the agricultural productivity and efficiency literature," Policy Research Working Paper Series 6982, The World Bank.
    10. Kinkingninhoun-Medagbe, Florent M. & Diagne, Aliou & Agboh-Noameshie, Afiavi R. & Adegbola, Patrice Ygue, 2008. "Gendered Impact of Irrigated Rice Schemes’ Governance on Farmers’ Income, Productivity and Technical Efficiency in Benin," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52156, African Association of Agricultural Economists (AAAE).
    11. Rahman, Sanzidur, 2003. "Profit efficiency among Bangladeshi rice farmers," Food Policy, Elsevier, vol. 28(5-6), pages 487-503.
    12. Bouali Guesmi & Teresa Serra & Allen Featherstone, 2015. "Technical efficiency of Kansas arable crop farms: a local maximum likelihood approach," Agricultural Economics, International Association of Agricultural Economists, vol. 46(6), pages 703-713, November.
    13. František STŘELEČEK & Radek ZDENĚK & Jana LOSOSOVÁ, 2011. "Influence of production change on return to scale," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(4), pages 159-168.
    14. J. Van Meensel & A. Kanora & L. Lauwers & J. Jourquin & L. Goossens & G. Van Huylenbroeck, 2010. "From research to farm: ex ante evaluation of strategic deworming in pig finishing," Veterinární medicína, Czech Academy of Agricultural Sciences, vol. 55(10), pages 483-493.
    15. Nehring, Richard F. & Christensen, Lee A. & O'Donoghue, Erik J. & Sandretto, Carmen L., 2003. "Manure and Commercial Fertilizer Nutrients Relative to Cropland and Pasture Requirements: Is the Pollution Risk Growing on Corn/Livestock Farms?," 2003 Annual meeting, July 27-30, Montreal, Canada 21980, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Nehring, Richard & Erickson, Kenneth & Michael, Harris & Hallahan, Charlie & Katchova, Ani, 2016. "Heartland, Southern Seaboard, and Prairie Gateway: A Farm-Level Analysis," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235666, Agricultural and Applied Economics Association.
    17. Yongrok Choi & Hyoungsuk Lee & Hojin Jeong & Jahira Debbarma, 2023. "Urbanization Paradox of Environmental Policies in Korean Local Governments," Land, MDPI, vol. 12(2), pages 1-15, February.
    18. Rudra Bahadur SHRESTHA & Wen-Chi HUANG & Shriniwas GAUTAM & Thomas Gordon JOHNSON, 2016. "Efficiency of small scale vegetable farms: policy implications for the rural poverty reduction in Nepal," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(4), pages 181-195.
    19. Leonidas Sotirios Kyrgiakos & Georgios Kleftodimos & George Vlontzos & Panos M. Pardalos, 2023. "A systematic literature review of data envelopment analysis implementation in agriculture under the prism of sustainability," Operational Research, Springer, vol. 23(1), pages 1-38, March.
    20. Zenaida M Sumalde & Donald B. Villanueva & Valerien O Pede & Yolanda T Garcia & U-Primo E Rodriguez, 2017. "Assessment of Neighborhood and Spillover Effects on Technical Efficiency of Irrigated Rice Farmers," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 14(2), pages 103-125, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:12:p:6680-:d:573694. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.