The value of Pulses' goods and services in agronomic systems of Iran

Document Type : Original Articles

Authors

• Mohammad Ghorbani ¹
• Abdolreza Bagheri ^{2, 3}

¹ Department of Agricultural Economics, Faculty of Agriculture, Ferdowsi University of Mashhad, Mashhad, Iran

² Department of Plant Biotechnology, Faculty of Agriculture, Ferdowsi University of Mashhad, Mashhad, Iran

³ Department of Legumes, Research Center for Plant Sciences, Ferdowsi University of Mashhad, Mashhad, Iran

10.22067/ijpr.v9i1.51804

Abstract

Introduction
Pulses have an important role in supply of households' protein needs and income resource of farmers in farm level. Also, it has abundant positive services and functions as economic, social, agronomic and environment-ecological and negative externality such as greenhouse gases emissions. This paper tried to estimate the value of Pulses' goods and services (PGS) in agronomic systems in 2014 using benefit transfer methods, data of several local research and selected pulses' data of Iran.
 
Materials & Methods
Broadly defined, value can be defined as a framework for identifying positive or negative qualities in events, objects, or situations. The total economics value (TEV) of any resource is a sum of two types of values: Use values and Non-use values. In this study, only use values are considered. Economic valuation assumes that these resources somehow impact on the utility or well-being of individuals. A number of methods have been developed to elicit these changes in the utility (or well-being) of individuals. Generally, these are classified into two major groups-Market-based approaches, and Non-market based approaches. One of the conditions of market-based valuation is that the commodity is traded in a working market.
Market Based Valuation: Under market-based valuation, a link between the Pulses' service (goods generated) and society’s preference is developed. If the good is commercial, it is bought and sold through the marketplace. Its level reflects social preference (or value). If market price for a certain Pulses' service in the marketplace exists, the price is directly used to evaluate the value of PGS.
Non-Market Valuation Methods: Non-market goods do not have a market price. Majority of PGS are non-market goods, and require a different type of valuation methods. Main methods of non-market valuation are the contingent valuation method, the travel cost method, hedonic pricing, and choice experiments. These methods require data collection, which is both time consuming and resource-rich. If such methods cannot be implemented, the next best alternative is to use the method of benefit transfer.
Benefit Transfer Method: When there is no market price for Pulses' goods and service and a primary non-market valuation study is not an option due to time and cost constraints, method of value transfer (VT) or benefit transfer (BT) is considered a key option to estimate the value of such a service.
Value (benefit) transfer is the process by which a value or demand function of a characteristic or a set of environmental characteristics obtained from each valuation method in a location (original location) is used to evaluate environmental goods or services in another location (location transfer). The VT method is widely applied in the economic valuation of non-market environmental goods and services. There is no unanimity in the economic literature for the use of the VT method. Some economists do not consider BT as a methodology, but simply consider as transfer of estimates from one location to other location. Desvousges et al, (1998) believed that transfer studies involve all advanced skills required to the main research. It is recommended that caution must be exercised to ensure the validity of the method. Three principles are suggested: (a) Population of both regions should be similar; (b) Goods or services in both locations should have about the same characteristics; and (c) Initial estimated values should not be old because preferences change over time.
 
 
Results & Discussion
This study showed that that value of PGS in acreage unit and macro-level in Iran are 60882.22 thousand rail per hectare and 48704071.12 million rial. Total share of the economic and social goods and services of Pulses is 60.84 percent. Also, the total share of agronomic and environment-ecological services of pulses is 39.16 percent. The value of water saving of rainfed selected Pulses have been computed equal to 797570.02 million rial. Furthermore, total environment cost of N2O and CO2 gases emission of selected Pulses has been estimated equal to 8722.04 million rial.
 
Conclusion
This study showed that Pulses' have high value in agronomic systems of Iran specialy on water saving in rainfed lands. Furthermore, it has several goods and services that has market and non market value. Regard to results, considering of externality of Pulses in agronomic systems of Iran in national policy making especially in research budget allocation has been suggested.

Keywords

• Economic
• Environment
• Greenhouse gas
• Pulses
• Valuation

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