IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i19p8160-d423195.html

Investments in Polish Agriculture: How Production Factors Shape Conditions for Environmental Protection?

Author

Listed:
  • Piotr Bórawski

    (Department of Agrotechnology, Agricultural Production Management and Agribusiness, Faculty of Land Management and Agriculture, University of Warmia and Mazury in Olsztyn, 10-719 Olsztyn, Poland)

  • Marta Guth

    (Faculty of Economics, Poznan University of Economics and Business, al. Niepodległości 10, 61-875 Poznań, Poland)

  • Aneta Bełdycka-Bórawska

    (Department of Agrotechnology, Agricultural Production Management and Agribusiness, Faculty of Land Management and Agriculture, University of Warmia and Mazury in Olsztyn, 10-719 Olsztyn, Poland)

  • Krzysztof Józef Jankowski

    (Department of Agrotechnology, Agricultural Production Management and Agribusiness, Faculty of Land Management and Agriculture, University of Warmia and Mazury in Olsztyn, 10-719 Olsztyn, Poland)

  • Andrzej Parzonko

    (Department of Economics and Organization of Enterprises, Faculty of Economics, Warsaw University of Life Science SGGW-Warsaw, 02-787 Warszawa, Poland)

  • James W. Dunn

    (Department of Agricultural Economics, Sociology, and Education, Faculty of Agricultural Sciences, Pennsylvania State University, University Park, PA 16802, USA)

Abstract

In recent years, social and economic goals have been preferable compared to environmental issues. However, global problems with the environment, increasing pollution, and gas heating emissions have made environmental issues a major priority. Suddenly, human beings have realized that environmental investments are needed to maintain better world conditions for future generations. This article investigates the development of agricultural investment in the context of production factors in Polish voivodeships in the years 2000–2018. Farmers have to choose between investing and developing production or being more environmentally friendly and invest on a smaller scale or transform their farms into organic production. Moreover, the investment in environmental protection in Poland was analyzed. Investment outlays on fixed assets for environmental protection and outlays on fixed assets for water management were investigated. The level of investment has changed since Poland joined the EU. With membership, Poland gained access to new markets and technology. Particular attention has been focused on production factors (land, capital, and the work force). We have conducted as a proxy regular regression analysis and after panel regression to measure the impact of the chosen factors on explained variables: investment outlays in agriculture, and investment outlays per 1 ha of agricultural land. We have used correlation analysis to examine the relations between explanatory variables and total gross investment in agriculture and total investment outlays in agriculture per 1 ha of agricultural land, outlays on fixed assets for environmental protection, and outlays on fixed assets for water management. Our analysis confirms that explanatory variables are important in shaping total investment outlays in agriculture and total investment outlays per 1 ha of agricultural land.

Suggested Citation

  • Piotr Bórawski & Marta Guth & Aneta Bełdycka-Bórawska & Krzysztof Józef Jankowski & Andrzej Parzonko & James W. Dunn, 2020. "Investments in Polish Agriculture: How Production Factors Shape Conditions for Environmental Protection?," Sustainability, MDPI, vol. 12(19), pages 1-26, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:8160-:d:423195
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/19/8160/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/19/8160/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Catherine L. Kling & Kathleen Segerson & Jason F. Shogren, 2010. "Environmental Economics: How Agricultural Economists Helped Advance the Field," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 487-505.
    2. Purola, Tuomo & Lehtonen, Heikki, 2020. "Evaluating profitability of soil-renovation investments under crop rotation constraints in Finland," Agricultural Systems, Elsevier, vol. 180(C).
    3. Laure Latruffe, 2005. "The Impact of Credit Market Imperfections on Farm Investment in Poland," Post-Communist Economies, Taylor & Francis Journals, vol. 17(3), pages 349-362.
    4. Borrmann, Christine, 2003. "Methodological Problems of FDI Statistics in Accession Countries and EU Countries," Report Series 26103, Hamburg Institute of International Economics.
    5. James Vercammen, 2007. "Farm bankruptcy risk as a link between direct payments and agricultural investment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 34(4), pages 479-500, December.
    6. Swinnen, Johan F. M. & Gow, Hamish R., 1999. "Agricultural credit problems and policies during the transition to a market economy in Central and Eastern Europe," Food Policy, Elsevier, vol. 24(1), pages 21-47, February.
    7. Pawlak, Jan, 2016. "Investment Outlays in Polish Agriculture," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 253704, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    8. Bórawski, Piotr & Bełdycka-Bórawska, Aneta & Szymańska, Elżbieta Jadwiga & Jankowski, Krzysztof Józef & Dunn, James W., 2019. "Price volatility of agricultural land in Poland in the context of the European Union," Land Use Policy, Elsevier, vol. 82(C), pages 486-496.
    9. Andrej Lange & Rosemarie Siebert & Tim Barkmann, 2015. "Sustainability in Land Management: An Analysis of Stakeholder Perceptions in Rural Northern Germany," Sustainability, MDPI, vol. 7(1), pages 1-22, January.
    10. Bórawski, Piotr & Bełdycka-Bórawska, Aneta & Jankowski, Krzysztof Jóżef & Dubis, Bogdan & Dunn, James W., 2020. "Development of wind energy market in the European Union," Renewable Energy, Elsevier, vol. 161(C), pages 691-700.
    11. Khatri-Chhetri, Arun & Pant, Anjali & Aggarwal, Pramod K. & Vasireddy, Vijya Vardhan & Yadav, Akhilesh, 2019. "Stakeholders prioritization of climate-smart agriculture interventions: Evaluation of a framework," Agricultural Systems, Elsevier, vol. 174(C), pages 23-31.
    12. McArthur, John W. & McCord, Gordon C., 2017. "Fertilizing growth: Agricultural inputs and their effects in economic development," Journal of Development Economics, Elsevier, vol. 127(C), pages 133-152.
    13. Johnson, D. Gale, 2002. "The declining importance of natural resources: lessons from agricultural land," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 157-171, February.
    14. Janssen, Sander & van Ittersum, Martin K., 2007. "Assessing farm innovations and responses to policies: A review of bio-economic farm models," Agricultural Systems, Elsevier, vol. 94(3), pages 622-636, June.
    15. Laure Latruffe, 2010. "Competitiveness, Productivity and Efficiency in the Agricultural and Agri-Food Sectors," OECD Food, Agriculture and Fisheries Papers 30, OECD Publishing.
    16. Bakucs, Lajos Zoltán & Ferto, Imre & Fogarasi, József, 2009. "Investment and financial constraints in Hungarian agriculture," Economics Letters, Elsevier, vol. 104(3), pages 122-124, September.
    17. Borrmann, Christine, 2003. "Methodological problems of FDI statistics in accession countries," HWWA Reports 231, Hamburg Institute of International Economics (HWWA).
    18. Dries, Liesbeth & Swinnen, Johan F. M., 2004. "Foreign Direct Investment, Vertical Integration, and Local Suppliers: Evidence from the Polish Dairy Sector," World Development, Elsevier, vol. 32(9), pages 1525-1544, September.
    19. Kjell A. Brekke, 1997. "Economic Growth and the Environment," Books, Edward Elgar Publishing, number 807, August.
    20. de Jong, Piet & Penzer, Jeremy, 2004. "The ARMA model in state space form," Statistics & Probability Letters, Elsevier, vol. 70(1), pages 119-125, October.
    21. Thornton, Philip K. & Whitbread, Anthony & Baedeker, Tobias & Cairns, Jill & Claessens, Lieven & Baethgen, Walter & Bunn, Christian & Friedmann, Michael & Giller, Ken E. & Herrero, Mario & Howden, Mar, 2018. "A framework for priority-setting in climate smart agriculture research," Agricultural Systems, Elsevier, vol. 167(C), pages 161-175.
    22. Arellano, Manuel, 2003. "Panel Data Econometrics," OUP Catalogue, Oxford University Press, number 9780199245291.
    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. Andrzej Parzonko & Tomasz Wojewodzic & Marta Czekaj & Renata Płonka & Anna Justyna Parzonko, 2025. "Remuneration for Own Labour in Family-Run Dairy Farms Versus the Salaries and Wages in Non-Agricultural Sectors of the Economy—Evaluation of the Situation in Poland in 2005–2022," Agriculture, MDPI, vol. 15(12), pages 1-15, June.
    2. Ewa Mackiewicz-Walec & Sławomir Józef Krzebietke & Stanisław Sienkiewicz, 2022. "The Influence of Crops on the Content of Polycyclic Aromatic Hydrocarbons in Soil Fertilized with Manure and Mineral Fertilizers," IJERPH, MDPI, vol. 19(20), pages 1-14, October.
    3. Ludwik Wicki & Kaspars Naglis-Liepa & Tadeusz Filipiak & Andrzej Parzonko & Aleksandra Wicka, 2022. "Is the Production of Agricultural Biogas Environmentally Friendly? Does the Structure of Consumption of First- and Second-Generation Raw Materials in Latvia and Poland Matter?," Energies, MDPI, vol. 15(15), pages 1-16, August.
    4. Cezary Klimkowski, 2025. "The Effectiveness of Subsidizing Investments in Polish Agriculture: A Propensity Score Matching Approach," Agriculture, MDPI, vol. 15(15), pages 1-21, August.
    5. Adam Wąs & Vitaliy Krupin & Paweł Kobus & Jan Witajewski-Baltvilks & Robert Jeszke & Krystian Szczepański, 2021. "Towards Climate Neutrality in Poland by 2050: Assessment of Policy Implications in the Farm Sector," Energies, MDPI, vol. 14(22), pages 1-25, November.
    6. Karolina Pawlak & Luboš Smutka & Pavel Kotyza, 2021. "Agricultural Potential of the EU Countries: How Far Are They from the USA?," Agriculture, MDPI, vol. 11(4), pages 1-21, March.
    7. Krzysztof Piotr Pawłowski & Wawrzyniec Czubak & Jagoda Zmyślona, 2021. "Regional Diversity of Technical Efficiency in Agriculture as a Results of an Overinvestment: A Case Study from Poland," Energies, MDPI, vol. 14(11), pages 1-20, June.

    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. Latruffe, Laure & Fogarasi, József & Desjeux, Yann, 2012. "Efficiency, productivity and technology comparison for farms in Central and Western Europe: The case of field crop and dairy farming in Hungary and France," Economic Systems, Elsevier, vol. 36(2), pages 264-278.
    2. Ciaian, Pavel & Fa?kowski, Jan & d’Artis, Kanc & Pokrivcak, Jan, 2011. "Productivity and Credit Constraints: Firm-Level Evidence from Propensity Score Matching," Factor Markets Working Papers 99, Centre for European Policy Studies.
    3. Fogarasi, Jozsef & Latruffe, Laure, "undated". "Farm performance and support in Central and Western Europe: a comparison of Hungary and France," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51053, Agricultural Economics Society.
    4. Pavel Ciaian & d’Artis Kancs, 2011. "The Impact Of Food Price Shock On Heterogeneous Credit Constrained Firms," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(2), pages 115-137, June.
    5. Dries, Liesbeth & Swinnen, Johan F.M., 2010. "The impact of interfirm relationships on investment: Evidence from the Polish dairy sector," Food Policy, Elsevier, vol. 35(2), pages 121-129, April.
    6. Jungnickel, Rolf & Borrmann, Christine & Keller, Dietmar, 2005. "What gravity models can tell us about the position of German FDI in Central and Eastern Europe," HWWA Discussion Papers 328, Hamburg Institute of International Economics (HWWA).
    7. Helena Shilomboleni, 2020. "Political economy challenges for climate smart agriculture in Africa," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(4), pages 1195-1206, December.
    8. Laure Latruffe & Sophia Davidova & Elodie Douarin & Matthew Gorton, 2010. "Farm Expansion in Lithuania after Accession to the EU: The Role of CAP Payments in Alleviating Potential Credit Constraints," Europe-Asia Studies, Taylor & Francis Journals, vol. 62(2), pages 351-365.
    9. Pavel Ciaian & Jan Fałkowski & d'Artis Kancs, 2012. "Access to credit, factor allocation and farm productivity," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 72(1), pages 22-47, May.
    10. Gorton, Matthew & Dumitrashko, Mikhail & White, John, 2006. "Overcoming supply chain failure in the agri-food sector: A case study from Moldova," Food Policy, Elsevier, vol. 31(1), pages 90-103, February.
    11. Borrmann, Christine & Jungnickel, Rolf & Keller, Dietmar, 2005. "What Gravity Models Can Tell Us about the Position of German FDI in Central and Eastern Europe," Discussion Paper Series 26386, Hamburg Institute of International Economics.
    12. Dries, Liesbeth & Swinnen, Johan F.M., 2005. "The Impact of Vertical Coordination on Supplier Access to Finance and Investments: Evidence from the Polish Dairy Sector," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24540, European Association of Agricultural Economists.
    13. Wawrzyniec Czubak & Krzysztof Piotr Pawłowski, 2024. "The Impact of Agricultural Investments on the Economic Efficiency of Production Factors: An Empirical Study of the Wielkopolska Voivodeship," Agriculture, MDPI, vol. 14(12), pages 1-16, December.
    14. repec:lic:licosd:35514 is not listed on IDEAS
    15. Tao Xiang & Jikun Huang & d’Artis Kancs & Scott Rozelle & Jo Swinnen, 2012. "Food Standards and Welfare: General Equilibrium Effects," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 223-244, June.
    16. József Tóth & Gábor Kemény & Kristóf Tóth, 2012. "Effects of Production and Other Factors on Hungarian Agricultural Farm’s Creditability," MIC 2012: Managing Transformation with Creativity; Proceedings of the 13th International Conference, Budapest, 22–24 November 2012 [Selected Papers],, University of Primorska, Faculty of Management Koper.
    17. Maleki, Tahereh & Koohestani, Hossein & Keshavarz, Marzieh, 2022. "Can climate-smart agriculture mitigate the Urmia Lake tragedy in its eastern basin?," Agricultural Water Management, Elsevier, vol. 260(C).
    18. World Bank, 2005. "The Dynamics of Vertical Coordination in Agrifood Chains in Eastern Europe and Central Asia : Implications for Policy and World Bank Operations," World Bank Publications - Reports 8806, The World Bank Group.
    19. Swinnen, Johan F.M. & Dries, Liesbeth, 2004. "The Impact Of Globalization On Investment And Agricultural Restructuring: Evidence From Polish Agriculture," 2004 Annual meeting, August 1-4, Denver, CO 20255, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. repec:ers:journl:v:xxiv:y:2021:i:3:p:140-152 is not listed on IDEAS
    21. Bignebat, Céline & Latruffe, Laure, 2009. "Twenty years of land reforms in Central and Eastern Europe: state of play and outlook," Working Papers 211013, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:gam:jsusta:v:12:y:2020:i:19:p:8160-:d:423195. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.