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An economic evaluation of Iranian public agricultural R&D policy: The case of sugarbeet

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  • Hosseini, S.S.
  • Hassanpour, E.
  • Sadeghian, S.Y.

Abstract

Despite its long tradition in the economic literature, there is no acceptable economic evaluation of Iranian public agricultural R&D policy mainly because of the lack of reliable estimates of supply shift parameter. Sugarbeet is chosen as a case for the estimation of the parameter using the method developed here and then the efficiency of the public investment in sugarbeet research is evaluated using the ordinary cost-benefit analysis. Research station records for 1982-2004 are used to estimate annual changes in beet attributes of root yield and sugar content and the estimates are used to make an evaluation of Iranian beet research investment. The results showed that the investment led to an average of 7.18% annual increase in beet sugar supply during the period (composing of +7.74% change in root yield index and -0.5% change in sugar content index) giving an internal rate of return of 32% (or an NPV/ha of $69) to this investment. It is concluded that although the investment has been profitable in comparison to other public investment projects, the efficiency of the policy is not comparable to that common in the literature and a revision in the policy is proposed.

Suggested Citation

  • Hosseini, S.S. & Hassanpour, E. & Sadeghian, S.Y., 2009. "An economic evaluation of Iranian public agricultural R&D policy: The case of sugarbeet," Research Policy, Elsevier, vol. 38(9), pages 1446-1452, November.
    • Handle: RePEc:eee:respol:v:38:y:2009:i:9:p:1446-1452
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    References listed on IDEAS

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    1. Alston, Julian M. & Wyatt, T. J. & Pardey, Philip G. & Marra, Michele C. & Chan-Kang, Connie, 2000. "A meta-analysis of rates of return to agricultural R & D: ex pede Herculem?," Research reports 113, International Food Policy Research Institute (IFPRI).
    2. Eric Tollens, 2004. "Biodiversity versus transgenic sugar beet: the one euro question," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(1), pages 1-18, March.
    3. Alston, Julian M. & Marra, Michele C. & Pardey, Philip G. & Wyatt, T.J., 2000. "Research returns redux: a meta-analysis of the returns to agricultural R&D," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(2), pages 1-31.
    4. Joe Wallis & Brian Dollery, 1999. "Market Failure, Government Failure, Leadership and Public Policy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37296-2.
    5. Colin Thirtle, 1999. "Productivity and the Returns to Levy‐Funded R&D for Sugar Production in the Eastern Counties of England," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 450-467, September.
    6. Koen Dillen & Matty Demont & Eric Tollens, 2008. "European Sugar Policy Reform and Agricultural Innovation," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 533-553, December.
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    Cited by:

    1. Hosseini, Seyed Safdar & Shahnavazi, Ali, 2013. "An Economic Evaluation of Iranian Horticultural Research and Extension Policy: The Case Study of Almond Late Flowering Cultivars," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 3(3), pages 1-9, September.

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