Impact of Energy Subsidies Elimination on Technology Gap Ratio in Cucumber Production

Esfanjari Kenari, Reza; Karami, Zohre; Ahmadzade, Seyadeh Sedighe

Document Type : Original Article

Authors

¹ Assistant Professor, Agricultural Economics, Faculty of Agricultural Sciences, University of Guilan

² MSc, Agricultural Economics, Shiraz University, Shiraz, Iran

³ Ph.D. Student of Agricultural Economics, Sari Agricultural Sciences and Natural Resources University

Abstract

This paper presents an analysis of technical efficiency and technology gap ratio (TGR) in greenhouse cucumber in Fars Province, Iran. Cucumber production was chosen for this study for the reason that greenhouse productions in this province
mainly have focused on this product. The data used in this study was obtained from a random sample of 127 greenhouses in Fars Province for 2010 to 2011. Metafrontier production function model for firms was used within the parametric framework of stochastic frontier analysis (SFA). The frontier models are applied in the analysis of cross-sectional data by assuming a translog functional form. Results indicate that eliminating energy input subsidies has led to significant decrease in greenhouse cucumber production efficiency so that the mean technical efficiency declined from 98% to 67 % during 2010-2011. Furthermore, subsidies elimination has also led to decrease of the mean technology gap ratio in greenhouses from 0.92 to 0.87, in other words, it has caused more distance from efficient production frontier.

Graphical Abstract

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Main Subjects

References

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International Journal of Agricultural Management and Development

Impact of Energy Subsidies Elimination on Technology Gap Ratio in Cucumber Production

References

References

Battese, G.E., Rao, D.S.P., & O’Donnell, C. (2004). A metafrontier production function for estimation of technical efficiencies and technology gaps for firms operating under different technologies. Journal of Business Economics, 21 (1), 91-103.

Volume 7, Issue 2 - Serial Number 2
Spring 2017
Pages 237-244

Impact of Energy Subsidies Elimination on Technology Gap Ratio in Cucumber Production

References

References

Battese, G.E., Rao, D.S.P., & O’Donnell, C. (2004). A metafrontier production function for estimation of technical efficiencies and technology gaps for firms operating under different technologies. Journal of Business Economics, 21 (1), 91-103.

Volume 7, Issue 2 - Serial Number 2Spring 2017Pages 237-244

Volume 7, Issue 2 - Serial Number 2
Spring 2017
Pages 237-244