IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpep/v2021y2021i2id764p189-215.html
   My bibliography  Save this article

Elasticity of Substitution, Price Effect and Sustainable Fertilizer Use: A Translog and SUR Analysis in China

Author

Listed:
  • Yipu Pang
  • Jingqi Dang
  • Wei Xu

Abstract

Fertilizer has brought great pressure to sustainable ecological environment. Research on the effect of price on fertilizer use as well as the substitution relationship of fertilizer and other input factors of agricultural production is of great importance for green, efficient, and intensive agricultural production in the world. This study first constructs translog cost functions and models of elasticity, then uses the factor input and price data from 2004 to 2016 to measure the price elasticity of fertilizer demand, and the elasticity of factor substitution in China's maize and cabbage production. The results suggest that: the price elasticity of fertilizer demand is in a low elasticity range; there is a compensation relationship between fertilizer and labour and a substitution relationship between fertilizer and machinery in China's maize production, while these relationships in China's cabbage production are opposite.

Suggested Citation

  • Yipu Pang & Jingqi Dang & Wei Xu, 2021. "Elasticity of Substitution, Price Effect and Sustainable Fertilizer Use: A Translog and SUR Analysis in China," Prague Economic Papers, Prague University of Economics and Business, vol. 2021(2), pages 189-215.
    • Handle: RePEc:prg:jnlpep:v:2021:y:2021:i:2:id:764:p:189-215
    DOI: 10.18267/j.pep.764
    as

    Download full text from publisher

    File URL: http://pep.vse.cz/doi/10.18267/j.pep.764.html
    Download Restriction: free of charge
    File URL: http://pep.vse.cz/doi/10.18267/j.pep.764.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.pep.764?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paolo Bertoletti, 2005. "Elasticities of Substitution and Complementarity: A Synthesis," Journal of Productivity Analysis, Springer, vol. 24(2), pages 183-196, October.
    2. Tahirou Abdoulaye & John H. Sanders, 2005. "Stages and determinants of fertilizer use in semiarid African agriculture: the Niger experience," Agricultural Economics, International Association of Agricultural Economists, vol. 32(2), pages 167-179, March.
    Full references (including those not matched with items on IDEAS)

    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. Yipu Pang & Jingqi Dang & Wei Xu, . "Elasticity of Substitution, Price Effect and Sustainable Fertilizer Use: A TRANSLOG and SUR Analysis in China," Prague Economic Papers, Prague University of Economics and Business, vol. 0.
    2. Stefan Baumgärtner & Moritz A. Drupp & Martin F. Quaas, 2017. "Subsistence, Substitutability and Sustainability in Consumption," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(1), pages 47-66, May.
    3. Mignouna, D.B. & Abdoulaye, T. & Alene, A. & Akinola, A.A. & Manyong, V.M., 2015. "Drivers of Market Participation Decisions among Small-scale Farmers in Yam Growing Areas of Nigeria and Ghana," 2015 Conference, August 9-14, 2015, Milan, Italy 230219, International Association of Agricultural Economists.
    4. Yihan Chen & Wen Xiang & Minjuan Zhao, 2024. "Impacts of Capital Endowment on Farmers’ Choices in Fertilizer-Reduction and Efficiency-Increasing Technologies (Preferences, Influences, and Mechanisms): A Case Study of Apple Farmers in the Province," Agriculture, MDPI, vol. 14(1), pages 1-25, January.
    5. Paolo Bertoletti & Giorgio Rampa, 2013. "On inferior inputs and marginal returns," Journal of Economics, Springer, vol. 109(3), pages 303-313, July.
    6. Stefan Baumgaertner & Moritz A. Drupp & Martin F. Quaas, 2013. "Subsistence and substitutability in consumer preferences," Working Paper Series in Economics 290, University of Lüneburg, Institute of Economics.
    7. Yanan Huang & Xu Li & Guangsheng Zhang, 2021. "The Impact of Technology Perception and Government Support on E-Commerce Sales Behavior of Farmer Cooperatives: Evidence From Liaoning Province, China," SAGE Open, , vol. 11(2), pages 21582440211, June.
    8. Bougouna Sogoba & Bouba Traoré & Abdelmounaime Safia & Oumar Baba Samaké & Gilbert Dembélé & Sory Diallo & Roger Kaboré & Goze Bertin Benié & Robert B. Zougmoré & Kalifa Goïta, 2020. "On-Farm Evaluation on Yield and Economic Performance of Cereal-Cowpea Intercropping to Support the Smallholder Farming System in the Soudano-Sahelian Zone of Mali," Agriculture, MDPI, vol. 10(6), pages 1-15, June.
    9. Rivaldo A. B. Kpadonou & Bruno Barbier & Tom Owiyo & Fatima Denton & Franck Rutabingwa, 2019. "Manure and adoption of modern seeds in cereal‐based systems in West African drylands: linkages and (non)complementarities," Natural Resources Forum, Blackwell Publishing, vol. 43(1), pages 41-55, February.
    10. Charles Blackorby & Daniel Primont & R. Russell, 2007. "The Morishima gross elasticity of substitution," Journal of Productivity Analysis, Springer, vol. 28(3), pages 203-208, December.
    11. Tristan Le Cotty & Elodie Maître d'Hôtel & Moctar Ndiaye & Sophie Thoyer, 2016. "Output price risk and fertilizer use decisions in Burkina Faso," Post-Print hal-01419764, HAL.
    12. Melesse, Kumilachew Alamerie & Ahmed, Musa Hasen, 2015. "A Comparative Stochastic Frontier Analysis Of Irrigated And Rain-Fed Potato Farms In Eastern Ethiopia," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 38(4).
    13. Hua Lu & Hualin Xie & Qianru Chen & Jinfa Jiang, 2018. "Impact of Agricultural Labor Transfer and Structural Adjustment on Chemical Application: Comparison of Past Developments in the Ecological Civilization Pilot Zones of China and Their Future Implicatio," Sustainability, MDPI, vol. 10(6), pages 1-14, June.
    14. Tahirou Abdoulaye & Tesfamicheal Wossen & Bola Awotide, 2018. "Impacts of improved maize varieties in Nigeria: ex-post assessment of productivity and welfare outcomes," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(2), pages 369-379, April.
    15. Bumb, Balu L. & Johnson, Michael E. & Fuentes, Porfirio A., 2011. "Policy options for improving regional fertilizer markets in West Africa:," IFPRI discussion papers 1084, International Food Policy Research Institute (IFPRI).
    16. Tristan Le Cotty & Elodie Maître d'Hôtel & Moctar Ndiaye & Sophie S. Thoyer, 2021. "Input use and output price risks: the case of maize in Burkina Faso [Utilisation d'intrants et risques de prix : le cas du maïs au Burkina Faso]," Working Papers hal-03252026, HAL.
    17. Chitra Pandey & Hema Diwan, 2021. "Assessing fertilizer use behaviour for environmental management and sustainability: a quantitative study in agriculturally intensive regions of Uttar Pradesh, India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 5822-5845, April.
    18. Johannes Bröcker & Till Requate, 2022. "Substitution and size effect for factor demand revisited," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 10(2), pages 251-265, October.
    19. Abdoulaye, Tahirou & Sanders, John H., 2006. "New technologies, marketing strategies and public policy for traditional food crops: Millet in Niger," Agricultural Systems, Elsevier, vol. 90(1-3), pages 272-292, October.
    20. Bas Jacobs & A. Lans Bovenberg, 2011. "Optimal Taxation of Human Capital and the Earnings Function," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(6), pages 957-971, December.

    More about this item

    Keywords

    Elasticity of substitution; price effect; sustainable fertilizer use; translog; SUR;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Statistics

    Access and download statistics

    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:prg:jnlpep:v:2021:y:2021:i:2:id:764:p:189-215. 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: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    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.