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Cost and environmental efficiency of rice farms in South Korea

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  • Cost and environmental efficiency of rice farms in South Korea
  • Nguyen, Trung Thanh; Hoang, Viet-Ngu; Seo, Bumsuk
  • John Wiley & Sons, Inc


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Title Cost and environmental efficiency of rice farms in South Korea
Similar Titles
Material Type Articles
Author(English)

Nguyen, Trung Thanh; Hoang, Viet-Ngu; Seo, Bumsuk

Publisher

[New Jersey, U.S.]:John Wiley & Sons, Inc

Date 2012
Journal Title; Vol./Issue Agricultural Economics:vol. 43
Pages 39
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Industry and Technology < Agriculture
Industry and Technology < Science/Technology
Holding John Wiley & Sons, Inc

Abstract

We aim to examine cost and nutrient use efficiency of farms and determine the cost to move farms to nutrient efficient operation using the Data Envelopment Analysis (DEA) approach with a dataset of 96 rice farms in Gangwon province of South Korea from 2003-2007. Our findings show that improvements in technical efficiency would result in both lower production costs and better environmental performance. It is, however, not costless for farms to move from their current operation to the environmentally efficient operation. On average, this movement would increase production costs by 119% but benefit the water system through an approximately 69% reduction in eutrofying power (EP). It is estimated that the average cost of each EP kg of aggregate nutrient reduction is approximately one thousand two hundred won. For technically efficient farms, there is a trade-off between cost and environmental efficiency. (The rest omitted)