Computation shadow prices of environmental pollutants of beef cattle farms in Shiraz

Document Type : Research Paper

Authors

1 MSc. Student Department of Agricultural Economic , University of shiraz

2 Associated professor Department of Agricultural Economic , University of shiraz

Abstract

Production of meat and milk is important activities in agriculture of Fars province. Nitrogen and phosphorus excretion by cows can result in pollution of the environment and increased cost of production. Shadow prices of two environmental outputs of 60 beef cattle farms in Shiraz which were selected by random sampling method, are assessed using two-stage procedure; linear programming and stochastic estimation is used to estimate output distance function. Results indicated that price of pollutant was positive, meaning that the income and production efficiency will increase as a result of reducing the environmental outputs. In the term of, there is potential to reduce manure and improve consumption of nutrient materials trough proper feeding management. 

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