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Nonparametric Forecasting for Biochar Utilization in Poyang Lake Eco-Economic Zone in China

Author

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  • Meng-Shiuh Chang

    (School of Public Finance and Taxation, Southwestern University of Finance and Economics, Chengdu 611130, China
    These authors contributed equally to this work.)

  • Chih-Chun Kung

    (Institute of Poyang Lake Eco-economics, Jiangxi University of Finance and Economics, Nanchang 330013, China
    These authors contributed equally to this work.)

Abstract

Agriculture is the least profitable industry in China. However, even with large financial subsidies from the government, farmers’ living standards have had no significant impact so far due to the historical, geographical, climatic factors. The study examines and quantifies the net economic and environmental benefits by utilizing biochar as a soil amendment in eleven counties in the Poyang Lake Eco-Economic Zone. A nonparametric kernel regression model is employed to estimate the relation between the scaled environmental and economic factors, which are determined as regression variables. In addition, the partial linear and single index regression models are used for comparison. In terms of evaluations of mean squared errors, the kernel estimator, exceeding the other estimators, is employed to forecast benefits of using biochar under various scenarios. The results indicate that biochar utilization can potentially increase farmers’ income if rice is planted and the net economic benefits can be achieved up to ¥114,900. The net economic benefits are higher when the pyrolysis plant is built in the south of Poyang Lake Eco-Economic Zone than when it is built in the north as the southern land is relatively barren, and biochar can save more costs on irrigation and fertilizer use.

Suggested Citation

  • Meng-Shiuh Chang & Chih-Chun Kung, 2014. "Nonparametric Forecasting for Biochar Utilization in Poyang Lake Eco-Economic Zone in China," Sustainability, MDPI, vol. 6(1), pages 1-16, January.
    • Handle: RePEc:gam:jsusta:v:6:y:2014:i:1:p:267-282:d:31891
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    References listed on IDEAS

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    1. Johannes Lehmann & John Gaunt & Marco Rondon, 2006. "Bio-char Sequestration in Terrestrial Ecosystems – A Review," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 11(2), pages 395-419, March.
    2. Johannes Lehmann, 2007. "A handful of carbon," Nature, Nature, vol. 447(7141), pages 143-144, May.
    3. Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, volume 1, number 8355.
    4. Ben C. French, 1960. "Some Considerations in Estimating Assembly Cost Functions for Agricultural Processing Operations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 42(4), pages 767-778.
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    Cited by:

    1. Wenbo Chen & Gerrit J. Carsjens & Lihong Zhao & Haifeng Li, 2014. "A Spatial Optimization Model for Sustainable Land Use at Regional Level in China: A Case Study for Poyang Lake Region," Sustainability, MDPI, vol. 7(1), pages 1-21, December.
    2. Tao Wu & Yuelong Wang, 2015. "Did the Establishment of Poyang Lake Eco-Economic Zone Increase Agricultural Labor Productivity in Jiangxi Province, China?," Sustainability, MDPI, vol. 8(1), pages 1-11, December.

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