Estimation of sugar beet demand function in Khorasan Razavi; Application of the seemingly unrelated SURE regression method

Document Type : Complete scientific research article


1 Faculty of Environmental Sciences and Sustainable Agriculture, Sistan and Baluchestan University

2 Department of Agricultural Economics, Faculty of Environmental Sciences and Sustainable Agriculture, Sistan and Baluchestan University, Zahedan, Iran

3 Tabriz University


Background and objectives: Sustainable management of water resources to maintain environmental needs requires an economic approach to agriculture. Security and management of water in the agricultural sector is the most important strategy for sustainable development of the country. Considering the development process of the country and the transformation of the national economy, the agricultural sector has become the key to the security and economic life of the country. The growing demand of the population and the need to provide food and increase production make the agricultural sector one of the most important economic activities that plays a major role in managing this sector and providing the country's needs. Because of the high share of water use in the agricultural sector, the country faces a depression crisis. Because of the high share of water use in the agricultural sector, the country faces a depression crisis. At present, the country's water potential is not responsive to the growing demand for water in this sector, so resource management and water use optimization in the agricultural sector are the only countermeasures With a depression crisis. This research has been conducted to determine the production and demand function for sugar beet as one of the basic crops in Khorasan Razavi provinces (Quchan, Chenaran, and Neyshabur cities) in 2016-2017 year.
Materials and methods: In the present study, the SURE method has been utilized to determine the water demand function. In this regard, the intrinsic and Alen -Uzawa Partial Elasticities of Substilution, intrinsic and Price Elasticity of Factor Demand parameters have been evaluated in the estimation of the production function and the cost of the transfer of water by the seemingly unrelated regression method. Also, the R2 and adjusted R2 indices have been analyzed for the evaluation of fitting of the model and the Statisticst for meaningful coefficients of the variables.
Results: The results confirm the fitting of the used model for sugar beet production cost functions in the study area. The results of the coefficients in Quchan, Chenaran and Neyshabur County indicate that there is a positive relationship between water cost and labor costs, and a negative relation to the price of fertilizer, poison, seeds and production amount.
Conclusion: based on the results, water is a substitute for fertilizer and poison with partial elasticity greater than one and this point illustrates the impact of the consumption management and economic evaluation of water on improving the consumption of other fertilizer and poison inputs as well as the water in the production of sugar beet is in this area. Based on the results, it is suggested that policies such as optimal prices for inputs such as poison and fertilizer must be adopted to prevent environmental pollution.


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