IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v59y2013i1id10-2012-agricecon.html
   My bibliography  Save this article

The determinants of adopting organic farming practices: a case study in the Czech Republic

Author

Listed:
  • Zdenka MALÁ

    (Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

  • Michal MALÝ

    (Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

Abstract

The presented article focuses on an analysis of the phenomena appearing in the implementation of the transition from classic conventional technology in the production of agricultural food products to an ecological manner of farming. The main objective is an empirical analysis of the determinants of the implementation of ecological production technology, whereby not only is their definition focused on, but also the quantification of the level of their effect. The primary methodological tool for achieving the objective is a binary choice model, which was estimated in three variants - probit model, logit model and linear probability model. These estimations are conducted on the basis of the unbalanced panel data from 531 agricultural businesses - legal entities obtained over the time period 2004-2008. Results of the analyses indicate that the transition to and implementation of the organic production technology is negatively affected primarily by the higher age of the farmers and the high productivity of labour. On the other hand, the subsidies for the support of organic agriculture, as well as a high return on cost can be considered as the factors which positively influence the implementation of the organic technology. Given this fact, it is possible, through agricultural policy, to effectively influence the number of organically managing farmers, as well as the acreage of the organically managed land. And from the achieved outputs, the type of farm is subsequently characterised where a transition to organic farming may most likely be expected.

Suggested Citation

  • Zdenka MALÁ & Michal MALÝ, 2013. "The determinants of adopting organic farming practices: a case study in the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(1), pages 19-28.
    • Handle: RePEc:caa:jnlage:v:59:y:2013:i:1:id:10-2012-agricecon
    DOI: 10.17221/10/2012-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/10/2012-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/10/2012-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/10/2012-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Eleftherios Giovanis, 2010. "Application of logit model and self‐organizing maps (SOMs) for the prediction of financial crisis periods in US economy," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 2(2), pages 98-125, June.
    2. Eleftherios Giovanis, 2010. "Application of logit model and self‐organizing maps (SOMs) for the prediction of financial crisis periods in US economy," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 2(2), pages 98-125, June.
    3. Richard Paap & Philip Hans Franses, 2000. "A dynamic multinomial probit model for brand choice with different long-run and short-run effects of marketing-mix variables," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(6), pages 717-744.
    4. Tiffin, Richard & Balcombe, Kelvin, 2011. "The determinants of technology adoption by UK farmers using Bayesian model averaging: the cases of organic production and computer usage," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(4), pages 1-20.
    5. Dimitri, Carolyn & Oberholtzer, Lydia, 2010. "Expanding Demand for Organic Foods Brings Changes in Marketing," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-1.
    6. Mark Bagnoli & Ted Bergstrom, 2006. "Log-concave probability and its applications," Studies in Economic Theory, in: Charalambos D. Aliprantis & Rosa L. Matzkin & Daniel L. McFadden & James C. Moore & Nicholas C. Yann (ed.), Rationality and Equilibrium, pages 217-241, Springer.
    7. Veall, Michael R & Zimmermann, Klaus F, 1994. "Goodness of Fit Measures in the Tobit Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(4), pages 485-499, November.
    8. Subal Kumbhakar & Efthymios Tsionas & Timo Sipiläinen, 2009. "Joint estimation of technology choice and technical efficiency: an application to organic and conventional dairy farming," Journal of Productivity Analysis, Springer, vol. 31(3), pages 151-161, June.
    9. Lin, Dongyu & Foster, Dean P. & Ungar, Lyle H., 2011. "VIF Regression: A Fast Regression Algorithm for Large Data," Journal of the American Statistical Association, American Statistical Association, vol. 106(493), pages 232-247.
    10. de Koeijer, T. J. & Renkema, J. A. & van Mensvoort, J. J. M., 1995. "Environmental-economic analysis of mixed crop-livestock farming," Agricultural Systems, Elsevier, vol. 48(4), pages 515-530.
    11. Michael R. Veall & Klaus F. Zimmermann, 1994. "PRACTITIONERS CORNER: Goodness of Fit Measures in the Tobit Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(4), pages 485-499, November.
    12. A. Hrabalová & K. Zander, 2006. "Organic beef farming in the Czech Republic: structure, development and economic performance," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 52(2), pages 89-100.
    13. Bruce E. Hansen, 2007. "Least Squares Model Averaging," Econometrica, Econometric Society, vol. 75(4), pages 1175-1189, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stefan Krajewski & Jan Žukovskis & Dariusz Gozdowski & Marek Cieśliński & Elżbieta Wójcik-Gront, 2024. "Evaluating the Path to the European Commission’s Organic Agriculture Goal: A Multivariate Analysis of Changes in EU Countries (2004–2021) and Socio-Economic Relationships," Agriculture, MDPI, vol. 14(3), pages 1-18, March.
    2. Camille Luis & Magali Aubert, 2023. "Evaluating the impact of direct sales on farms’ sustainability: a comparison of metropolitan and overseas France," Review of Agricultural, Food and Environmental Studies, Springer, vol. 104(3), pages 243-271, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Constant, Amelie & Zimmermann, Klaus F., 2005. "Immigrant Performance and Selective Immigration Policy: A European Perspective," National Institute Economic Review, National Institute of Economic and Social Research, vol. 194, pages 94-105, October.
    2. Ebersberger, Bernd & Galia, Fabrice & Laursen, Keld & Salter, Ammon, 2021. "Inbound Open Innovation and Innovation Performance: A Robustness Study," Research Policy, Elsevier, vol. 50(7).
    3. Anastasia Petrou & Irene Daskalopoulou, 2015. "Social Capital and Small Business Competitiveness: Evidence from Cross-Section Tourism Data," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 946-967, December.
    4. Jackson, William E. & Bates, Timothy & Bradford, William D., 2012. "Does venture capitalist activism improve investment performance?," Journal of Business Venturing, Elsevier, vol. 27(3), pages 342-354.
    5. Jacqueline Christensen & Pamela Kent & Tom Smith, 2016. "The decision to outsource risk management services," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 56(4), pages 985-1015, December.
    6. van Nierop, J.E.M. & Leeflang, P.S.H. & Teerling, M.L. & Huizingh, K.R.E., 2011. "The impact of the introduction and use of an informational website on offline customer buying behavior," International Journal of Research in Marketing, Elsevier, vol. 28(2), pages 155-165.
    7. Takeshima, Hiroyuki & Adhikari, Rajendra Prasad & Shivakoti, Sabnam & Kaphle, Basu Dev & Kumar, Anjani, 2017. "Heterogeneous returns to chemical fertilizer at the intensive margins: Insights from Nepal," Food Policy, Elsevier, vol. 69(C), pages 97-109.
    8. Steinberg, Philip J. & Procher, Vivien D. & Urbig, Diemo, 2017. "Too much or too little of R&D offshoring: The impact of captive offshoring and contract offshoring on innovation performance," Research Policy, Elsevier, vol. 46(10), pages 1810-1823.
    9. Thigpen, Calvin & Handy, Susan, 2018. "Driver's licensing delay: A retrospective case study of the impact of attitudes, parental and social influences, and intergenerational differences," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 24-40.
    10. Benjamin Bittschi & Astrid Pennerstorfer & Ulrike Schneider, 2015. "Paid and Unpaid Labour in Non-Profit Organizations: Does the Substitution Effect Exist?," British Journal of Industrial Relations, London School of Economics, vol. 53(4), pages 789-815, December.
    11. Haug, Peter, 2007. "Local Government Control and Efficiency of the Water Industry: An Empirical Analysis of Water Suppliers in East Germany," IWH Discussion Papers 3/2007, Halle Institute for Economic Research (IWH).
    12. Yan Dong & Moonwon Chung & Chen Zhou & Sriram Venkataraman, 2019. "Banking on “Mobile Money”: The Implications of Mobile Money Services on the Value Chain," Manufacturing & Service Operations Management, INFORMS, vol. 21(2), pages 290-307, May.
    13. Thigpen, Calvin, 2017. "The Reciprocal Relationship between Children and Young Adults' Travel Behavior and Their Travel Attitudes, Skills, and Norms," Institute of Transportation Studies, Working Paper Series qt383679dd, Institute of Transportation Studies, UC Davis.
    14. Ovaskainen, Ville & Hujala, Teppo & Hänninen, Harri & Mikkola, Jarmo, 2017. "Cost sharing for timber stand improvements: Inducement or crowding out of private investment?," Forest Policy and Economics, Elsevier, vol. 74(C), pages 40-48.
    15. Juan Pablo Atal & José Ignacio Cuesta & Felipe González & Cristóbal Otero, 2024. "The Economics of the Public Option: Evidence from Local Pharmaceutical Markets," American Economic Review, American Economic Association, vol. 114(3), pages 615-644, March.
    16. Péter Eso & Balázs Szentes, 2004. "The Price of Advice," Discussion Papers 1416, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    17. Arve, Malin & Zwart, Gijsbert, 2023. "Optimal procurement and investment in new technologies under uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 147(C).
    18. Steven N. Durlauf & Andros Kourtellos & Chih Ming Tan, 2012. "Is God in the details? A reexamination of the role of religion in economic growth," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 27(7), pages 1059-1075, November.
    19. Moraga-González, José L. & Sándor, Zsolt & Wildenbeest, Matthijs R., 2014. "Prices, Product Differentiation, And Heterogeneous Search Costs," IESE Research Papers D/1097, IESE Business School.
    20. Kitagawa, Toru & Muris, Chris, 2016. "Model averaging in semiparametric estimation of treatment effects," Journal of Econometrics, Elsevier, vol. 193(1), pages 271-289.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:59:y:2013:i:1:id:10-2012-agricecon. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.