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Balancing economic revenue and grazing pressure of livestock grazing on the Qinghai–Tibetan–Plateau

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  • Wei Huang
  • Bernhard Bruemmer

Abstract

Treating grazing pressure as an undesirable output of livestock grazing in a directional distance function improves understanding of how economic behaviour affects the environment. Field survey data from 193 livestock grazing households combined with remotely sensed net primary productivity (NPP) data on the Qinghai–Tibetan–Plateau was used to develop a directional output-orientation distance function. The average efficiency of livestock grazing households is 0.817 when incorporating grazing pressure as an undesirable output, which means that households can achieve 18.3% more output and decrease proportional grazing pressure holding all inputs fixed. The relative shadow price of undesirable grazing pressure to good output grazing revenue is estimated to be between 1.795 and 3.986. According to the Morishima elasticity of substitution between inputs, there is a significant complementary relationship between grassland, labour and capital.
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Suggested Citation

  • Wei Huang & Bernhard Bruemmer, 2017. "Balancing economic revenue and grazing pressure of livestock grazing on the Qinghai–Tibetan–Plateau," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(4), pages 645-662, October.
    • Handle: RePEc:bla:ajarec:v:61:y:2017:i:4:p:645-662
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    File URL: http://hdl.handle.net/10.1111/1467-8489.12225
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    Cited by:

    1. Steele C. West & Amin W. Mugera & Ross S. Kingwell, 2024. "The impact of repayment obligations arising as a by‐product of input use on partial inefficiency: Evidence from Western Australian farm businesses," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 68(3), pages 678-700, July.
    2. Yuxing Shi & Chaoqiong Li & Minjuan Zhao, 2023. "The effect, mechanism, and heterogeneity of grassland rental on herders' livestock production technical efficiency: evidence from pastoral areas in Northern China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(12), pages 14003-14031, December.
    3. Yufeng He & Tinggui Chen, 2022. "Does the 10-Year Fishing Ban Compensation Policy in the Yangtze River Basin Improve the Livelihoods of Fishing Households? Evidence from Ma’anshan City, China," Agriculture, MDPI, vol. 12(12), pages 1-16, December.
    4. West, Steele, 2021. "The Estimation of Farm Business Inefficiency in the Presence of Debt Repayment," 2021 Conference, August 17-31, 2021, Virtual 315048, International Association of Agricultural Economists.
    5. Lavruk, Vitalii & Korzhenivska, Nataliia & Tkachuk, Vitalii & Lavruk, Oksana & Heldak, Maria, . "Management of reproduction of the livestock branch as the basis of its innovation-and-investment development," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 7(3).

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