{"title":"The Role of Technical Efficiency Gains on Greenhouse Gas Emissions: An Analysis of Brazilian Sugarcane Production","authors":"Pedro Soares, Humberto Francisco Silva Spolador","doi":"10.1002/agr.22018","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>This article aimed to investigate the contribution of technical efficiency gains to reducing the emission of greenhouse gases in Brazilian sugarcane production and to estimate the monetary compensation that producers should receive to reduce pollution. Using an output distance function and its duality with the revenue function, we estimated the technical efficiency of sugarcane production in Brazilian municipalities and the shadow price of reducing carbon dioxide (CO<sub>2</sub>) emissions from the production of this crop. The main result was an overall technical efficiency average of 81%, which indicates that if producers adopt better management practices, the sugarcane production could be expanded by 19% with a contraction by the same magnitude in CO<sub>2</sub> emissions. We also estimated a mean shadow price of R$9.18 per ton of carbon dioxide, with the highest estimated values in the states of Mato Grosso do Sul, Paraná, Mato Grosso, and Bahia. However, in the state of São Paulo, the most representative national producer, the estimated shadow price is R$6.34 per ton of carbon dioxide. In this sense, public policies, especially through public financing and public technical assistance, could potentially mitigate the producers' losses in the short run since pollution decline usually requires more mechanization.</p>\n </div>","PeriodicalId":55544,"journal":{"name":"Agribusiness","volume":"41 4","pages":"956-968"},"PeriodicalIF":2.4000,"publicationDate":"2025-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Agribusiness","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/agr.22018","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"AGRICULTURAL ECONOMICS & POLICY","Score":null,"Total":0}
引用次数: 0
Abstract
This article aimed to investigate the contribution of technical efficiency gains to reducing the emission of greenhouse gases in Brazilian sugarcane production and to estimate the monetary compensation that producers should receive to reduce pollution. Using an output distance function and its duality with the revenue function, we estimated the technical efficiency of sugarcane production in Brazilian municipalities and the shadow price of reducing carbon dioxide (CO2) emissions from the production of this crop. The main result was an overall technical efficiency average of 81%, which indicates that if producers adopt better management practices, the sugarcane production could be expanded by 19% with a contraction by the same magnitude in CO2 emissions. We also estimated a mean shadow price of R$9.18 per ton of carbon dioxide, with the highest estimated values in the states of Mato Grosso do Sul, Paraná, Mato Grosso, and Bahia. However, in the state of São Paulo, the most representative national producer, the estimated shadow price is R$6.34 per ton of carbon dioxide. In this sense, public policies, especially through public financing and public technical assistance, could potentially mitigate the producers' losses in the short run since pollution decline usually requires more mechanization.
期刊介绍:
Agribusiness: An International Journal publishes research that improves our understanding of how food systems work, how they are evolving, and how public and/or private actions affect the performance of the global agro-industrial complex. The journal focuses on the application of economic analysis to the organization and performance of firms and markets in industrial food systems. Subject matter areas include supply and demand analysis, industrial organization analysis, price and trade analysis, marketing, finance, and public policy analysis. International, cross-country comparative, and within-country studies are welcome. To facilitate research the journal’s Forum section, on an intermittent basis, offers commentary and reports on business policy issues.