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

Pang, Yipu; Dang, Jingqi; Xu, Wei

doi:10.18267/j.pep.764

Cited by 4 publications

(3 citation statements)

References 38 publications

(36 reference statements)

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“…The estimates of the return to scale are extremely low and negative in some crop enterprises implying that fertilizers as factors of production do not contribute significantly to the growth of output of crop enterprises in the country. Similar results have been reported by the following authors using cross-sectional data; Akpan et al (2010); Akpan et al (2012d); Yipu et al (2020);and Dania et al (2021).…”

Section: Effect Of Fertilizer On the Selected Crop In Nigeriasupporting

confidence: 91%

“…Developing a sound policy package to address this issue of fertilizer intensification calls for an assessment of the trend in fertilizer use and its relationship with crop outputs in Nigeria. Though at the farm level and employing cross-sectional data many authors have established a mixed relationship between fertilizer use and outputs of crop enterprises (Akpan et al, 2010;Akpan et al, 2012d, Yipu et al, 2020Dania et al, 2021). However, currently, there is no empirical literature that addressed this issue using macro or time-series information in Nigeria.…”

Section: Introductionmentioning

confidence: 99%

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The Trend in Fertilizer Consumption and Its Impact on Crop Outputs in Nigeria

Akpan¹,

Ekwere²,

Nkanta³

2022

JASD

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The study analyzed the consumption trend of fertilizers (nitrogen, phosphorus, potassium and total/composite fertilizers) and examined its relationships with selected crop outputs from 1962 to 2019 in Nigeria. Time-series data were used and were sourced from the World Bank and Food and Agriculture Organization. The descriptive statistics, correlation analysis and Cobb Douglas production function were applied to analyze the data collected. The results revealed that fertilizer consumption over time exhibited a high level of volatility in Nigeria. The average consumption rate of 7.17 kg/ha for composite fertilizer was far below the minimum rate of 50kg/ha declared in Abuja in 2006 by African countries. Furthermore, the study established significant correlations between fertilizers and selected harvested land yields and crop outputs in the country. This implies that fertilizers can significantly regulate the outputs of crop enterprises in the country. The empirical results revealed that fertilizers were irrationally utilized in the majority of selected crop enterprises as their elasticities were either negative or greater than unity. Moreover, the decreasing return to scale was confirmed for each crop enterprise denoting decreasing contribution of fertilizer inputs to crop outputs growth in Nigeria. Based on the findings, it is recommended that the Nigeria government should work towards achieving the Abuja declaration on fertilizer use.

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Section: Effect Of Fertilizer On the Selected Crop In Nigeriasupporting

confidence: 91%

Section: Introductionmentioning

confidence: 99%

The Trend in Fertilizer Consumption and Its Impact on Crop Outputs in Nigeria

Akpan¹,

Ekwere²,

Nkanta³

2022

JASD

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“…That apparently is what happened to Russian fertiliser exports in 2022. Empirical studies have shown that the amount of fertiliser that crop producers want to buy is fairly unresponsive (inelastic) to change in its price (see Pang et al ., 2021 for a study involving China), because fertiliser is a crucial input used in production. Citing a study that uses data from Russian Railways, Interfax (8–14 March 2023) reports that in 2022 the volume of Russian fertiliser exports fell by 23 per cent.…”

Section: Russia Benefits From Restricting Fertiliser Exportsmentioning

confidence: 99%

Why is Russia Restricting its Fertiliser and Crop Exports?

Liefert

2023

EuroChoices

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SummaryBoth Russia and Ukraine are major agricultural exporters, especially of grain and sunflowerseed products, and Russia is the world's leading supplier of fertiliser. Russia's invasion of Ukraine has disrupted world markets for these commodities, driving up prices and threatening world food security. Russia argues that a major cause of this trade disturbance is the economic sanctions that Western countries have imposed against it, despite the efforts of the West to exempt Russian agricultural trade from the sanctions. However, throughout its war with Ukraine, Russia has maintained heavy restrictions (involving quotas and taxes) on its exports of fertiliser, grain and sunflowerseed commodities. The trade controls bring major economic benefits to the Russian economy and government, especially in the current war environment. The gains include: keeping more output within the country, which lowers prices for consumers; earning the government additional revenue; and improving the country's terms of trade in the exported products. However, given that Russia so strongly asserts that Western sanctions are hurting the less rich countries of the world by disrupting world agricultural markets and pushing up prices, the export restrictions make Russia vulnerable to criticism of inconsistency (if not hypocrisy), when its own export controls have the same effects.

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