Allocative Efficiency and Greenhouse Gas Emissions Associated with the Use of Nitrogen from Synthetic Fertilizers in Rice Production in Barangay Tubuan, Pila, Laguna, 2021-2022

Date

8-2022

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Antonio Jesus A. Quilloy

Committee Member

Antonio Jesus A. Quilloy, Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

The study assessed the allocative efficiency levels of rice farmers in Barangay Tubuan, Pila, Laguna and the changes in greenhouse gas (GHG) emissions if nitrogen from synthetic fertilizer is used at a cost-minimizing level. Based on a sample of 72 lowland rice farmers during the dry season (December 2021 – January 2022) in Barangay Tubuan, the study found that the mean allocative efficiency of the sample farmers was 85.49 percent. The mean allocative efficiency was calculated based on the observed and optimal levels of nitrogen (N) fertilizer use. The optimal level of fertilizer use was also determined using the elasticity estimate from the production function, total output, nitrogen fertilizer prices, and selling price of palay.

The study also revealed that area planted, fertilizer, and labor had a significant and positive effect on rice production in Barangay Tubuan. Moreover, using Tobit regression analysis, the factors influencing allocative efficiency were farmer’s number of years spent in school (significant at 10%) and farm size (significant at 1%).

It was also estimated that the average GHG emissions from the actual use of N synthetic fertilizer inputs in the study area were 155.07 kg CO2-eq ha-1. This means that if farmers decide to produce at the optimal level of N fertilizer use equivalent to 1,065.49 kg/ha, average GHG emissions are expected to increase by about 755.80 kg CO2-eqha-1. This is because farmers are underutilizing their N inputs with reference to the calculated optimal quantity. The study also recognized that the calculation of the optimal quantity was based solely on the financial price and not on the economic price. This means that the external costs, particularly the negative externalities associated with fertilizer use, were not accounted for in the price of the N fertilizer. Hence, the study noted that moving towards the optimal level of N use could (1) raise farmer’s yields and, consequently, increase their profits, and (2) raise the GHG levels generated by rice production.

The study recommends the conduct of farm management and nutrient management training programs; promotion of nitrogen nutrient use efficiency in the farms; use of biological means to address inadequate nitrogen application in rice production; and creation of relevant policies on the judicious use of synthetic fertilizers. Furthermore, this study recommends that future research be conducted on the estimation of the full economic cost of the use of nitrogen fertilizer in rice production.

Language

English

LC Subject

Greenhouse Gas Emissions, Nitrogen, Fertilizer, Rice Production

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2022 A14 S43

Document Type

Thesis

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