A stochastic analysis of the impact of input parameters on profit of Australian pasture-based dairy farms under variable carbon price scenarios

Özkan, Şeyda; Farquharson, Robert; Hill, J.; Malcolm, Bill

doi:10.1016/j.envsci.2014.12.012

Cited by 7 publications

(2 citation statements)

References 22 publications

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“…Despite the obvious importance of financial information in deciding whether to use alternative irrigation options (Adusumilli et al, 2016), there is less information about their profitability prospects under risk conditions. Moreover, in examining alternative farming practices, risk analysis utilizing SERF has been frequently used in recent years (Özkan et al, 2015;Liu et al, 2017;Adusumilli et al, 2020;Fan et al, 2020). The SERF technique ranks the preference of decision-makers (DMs) according to the value of the CE of each alternative.…”

Section: Literature Reviewmentioning

confidence: 99%

Farmers' Decision to Adoption of Modern Irrigation Systems Under Risk Condition: Application of Stochastic Efficiency With Respect to a Function Approach

Jahangirpour

Zibaei

2022

Front. Water

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To effectively tackle the issue of increasing irrigation water scarcity, farmers need to convert to modern irrigation systems with lower water use while achieving higher yields and profitability. Unlike the government support to cover a proportion of irrigation modernizing costs by public subsidies in Iran, the adoption rate is low. This is due to farmers' uncertainty about the trade-off between benefits from yield improvement and the added production costs. The historical gross margin of barley, wheat, forage corn, and tomato under surface, drip, permanent sprinkler, and semi-permanent sprinkler irrigation systems was generated using simulation and survey-based data for yield and published data for costs and prices over a 5-year period (2009–2015). The stochastic dominance (SD) and stochastic efficiency with respect to a function (SERF) approaches were used to evaluate the risk efficiency of various irrigation systems for main crops in the Bakhtegan Basin. Estimating certainty equivalent (CE), we ranked irrigation alternatives at different absolute risk-aversion coefficient (ra) levels. The findings show that drip irrigation systems for forage corn and tomato have higher CE values at all levels of absolute risk-aversion coefficient; however, the preferred system for barley and wheat varies with ra. Moreover, estimated risk premiums revealed that risk-neutral farmers would pay to move from surface systems to more efficient systems, whereas risk-averse farmers need to be paid to have the tendency to change their irrigation system. The important policy implication of these results is that risk premiums can consider justifying subsidy allocation in a manner that induces farmers to more risk-efficient irrigation systems.

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Section: Literature Reviewmentioning

confidence: 99%

Farmers' Decision to Adoption of Modern Irrigation Systems Under Risk Condition: Application of Stochastic Efficiency With Respect to a Function Approach

Jahangirpour

Zibaei

2022

Front. Water

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“…For some districts (cities), carbon tax is better suited for the development of ESER to a certain degree. In the practice process, carbon tax is bound to have an effect on economy, employment and social welfare [34][35][36]; thus we need to know how much the economic areas are influenced by carbon tax, and how to cope with these conundrums. Only through spotting problems and solving them in the carbon tax pilot projects, can we avoid the failures of Australia and European (On July 2012, carbon tax implemented officially in Australia, the levy amount of carbon tax was 24 $A/co 2 .…”

Section: Introductionmentioning

confidence: 99%

Investigating carbon tax pilot in YRD urban agglomerations—Analysis of a novel ESER system with carbon tax constraints and its application

Fang

et al. 2017

Applied Energy

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Predicting the abatement costs of RCP climate projections under 2 °C warming limits in the Africa and Middle East Region (2010–2100)

Faiyetole,

Adesina,

Oyebisi

2023

Environ Dev Sustain

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A stochastic analysis of the impact of input parameters on profit of Australian pasture-based dairy farms under variable carbon price scenarios

Cited by 7 publications

References 22 publications

Farmers' Decision to Adoption of Modern Irrigation Systems Under Risk Condition: Application of Stochastic Efficiency With Respect to a Function Approach

Farmers' Decision to Adoption of Modern Irrigation Systems Under Risk Condition: Application of Stochastic Efficiency With Respect to a Function Approach

Investigating carbon tax pilot in YRD urban agglomerations—Analysis of a novel ESER system with carbon tax constraints and its application

Predicting the abatement costs of RCP climate projections under 2 °C warming limits in the Africa and Middle East Region (2010–2100)

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