Agricultural Economics - In Press

Deconstruction of China's agricultural bioeconomy policies in the context of sustainable systems transition - Based on policy texts analysisOriginal Paper

Xiuxiang Li, Yanhan Hu

The instability of food security has triggered countries' demands for sustainable transformation of agri-food systems, and the agricultural bioeconomy may be a more reliable grip. This study deconstructs the development framework of China's agricultural bioeconomy policy based on the agricultural biosystem dimension, the policy instrument dimension, and the comprehensive dimension by capturing, coding, and displaying word clouds of Chinese agricultural bioeconomy policy texts, and finds that the cross-sectoral linkage attributes of China's agricultural bioeconomy policy are clear, and the trend of sustainable transformation is obvious. Overall, the comprehensive characteristics of China's agricultural bioeconomy policy are as follows: first, the policy is deeply integrated, considering both economic development and environmental friendliness; second, the policy is safety-oriented, taking into account competitiveness and strategy; and third, the policy is innovation-driven, taking into account fundamentality and foresight. In the future, efforts should be made to enhance the competitiveness of the agricultural bioeconomy within the framework of an all-encompassing approach to food, and to help China's agricultural bioeconomy on the road to sustainable transition by improving fiscal and tax support, advocating the use of financial instruments, creating an alliance for the agricultural bioeconomy, and promoting international trade exchanges and co-operation.

Can Sustainable Practices Optimize Fertiliser Use and Economic Efficiency? A Micro Panel AnalysisOriginal Paper

Faruque As Sunny, Juping Lan, Mohammad Ariful Islam

The intensification of agricultural practices in Bangladesh has led to significant environmental challenges, including soil degradation, biodiversity loss, and ecological contamination. The widespread use of subsidised chemical fertilisers in rice cultivation has worsened these issues, threatening the sustainability of agricultural systems. In response, Bangladesh has aligned its agricultural policies with the United Nations’ Sustainable Development Goals (SDGs), emphasising sustainable farming practices. A key element of this approach is the implementation of Recommended Fertiliser Dosage Application (RDFA), aimed at optimising fertiliser use, improving farmers' livelihoods, and reducing environmental damage. This study evaluates the effectiveness of RDFA protocols developed by the Bangladesh Rice Research Institute (BRRI) for the BRRI dhan29 rice variety in addressing both environmental sustainability and economic efficiency. Using five years of panel data (2017–2021) from 2,025 households across three acidic soil regions in Dinajpur, the research assesses RDFA’s impact on fertiliser use and cost efficiency. The findings show that RDFA adoption reduces fertiliser use by 12% and enhances cost efficiency by 5–5.2%. These results highlight the potential of sustainable practices, particularly RDFA, to mitigate environmental degradation while improving economic outcomes. The study provides valuable insights for policymakers and development practitioners, offering a framework for scaling up RDFA adoption and advancing sustainable agriculture.

Non-farm employment and agricultural mechanisation adoption: a reciprocal relationship

Hang Thi Thuy Nguyen, Thi Quynh Anh Le, Pham Xuan Hung, Nguyen Thai Phan

This study investigated the reciprocal relationship between non-farm employment and mechanisation adoption of smallholders in Vietnam using the longitudinal VARHS 2008-2016 dataset. By employing the correlated random effects with the Mundlak approach to address the selection bias from the unobserved heterogeneity of panel data and the IV regressions to treat the endogeneity issue of non-farm participation and mechanisation adoption, our findings revealed that non-farm employment and mechanisation adoption have a positive interactive relationship. The mechanisation adoption in agricultural production could save farm labour and allow farmers to engage in non-farm activities. Conversely, non-farm earnings could relax financial constraints and provide opportunities for farmers to invest in mechanisation. The agricultural labour shifting to non-farm work was replaced by hiring machinery services rather than machinery investment when the service market was available and cost-effective. Our study implies practical policies and actionable plans to encourage non-farm employment and facilitate agricultural mechanisation toward sustainable agriculture and inclusive development in rural communities

CLOSED-CIRCLE BIOECONOMY: APPLIED ASPECTS OF AGRICULTURAL IMPLEMENTATIONReview

Yelizaveta Chernysh, Viktoriia Chubur, Miroslav Hájek, Hynek Roubík

In the face of global challenges, innovative methods of production and consumption are vital, and the bioeconomy signifies a transformational shift based on biological processes, minimal energy use and full integration of resources into ecosystems. This study focused on a sectoral analysis of bioeconomy opportunities with a focus on bioenergy and waste management in an agriculture sustainable approach. Bibliometric analysis was used to approach the research objectives of the roadmap design methods. A comprehensive sectoral analysis of the bioeconomy was conducted with a special emphasis on bioenergy and food security. A conditional roadmap of bioeconomy implementation clusters was presented, which is in line with global trends. Agriculture, being an integral part of the bioeconomy, faces challenges due to ecosystem degradation, water scarcity, and poverty. The global trend of biotechnology adoption in agriculture offers benefits for sustainable bio-economic development, including soil conservation, cost reduction, job creation and improved food quality. Thus, the bioeconomy has significant potential to address global challenges and achieve sustainable development, which requires innovation, regional adaptation and a commitment to harmonize economic growth with environmental conservation. Further research into the involvement of the rural areas in the development of bioeconomy is required.

Long-term changes in the economic and environmental efficiency of EU agricultureOriginal Paper

Dirk Beyer, Jana Hinke

Increasing economic and environmental efficiency is a key objective of all European economic sectors, and of agriculture in particular. In this study, economic and environmental efficiency are considered in parallel and compared regarding their long-term development. From an economic perspective, the classic production factors of labor, capital, and land are compared with production output. The environmental perspective of the study focuses on greenhouse gases and acidifying gases, with the investigation based on data from EUROSTAT from 2009 to 2020. Due to limitations in completeness of the data, 22 EU countries were included in the study. The results show high economic efficiency scores for Greece, Spain, the Netherlands, and Poland as well as substantial improvements for Ireland and Finland. Low economic efficiency scores can be found in Latvia and Austria, where significant catching-up processes can be observed. With respect to ecological efficiency, Greece, Spain and Italy are found to be dominant, as are Finland, Sweden and Slovakia. Ireland, Luxembourg and Poland have lower ecological efficiency scores, but only Ireland is showing signs of convergence. This study attempts to minimize the influence of volatility and dispersion, presenting valid long-term trends as starting points for benchmarking efforts and for policy decisions.

Impact of formal and informal environmental regulations on agricultural carbon emissions: empirical evidence from ChinaOriginal Paper

Yumiao Zhang, Qi Yin, Yufan Wu, Kun Ma

Agricultural carbon emissions (ACE) is a critical contributor to global greenhouse gas emissions, which have already become a common challenge for global carbon reduction. As a major agricultural producer and largest carbon emitter, China has made great efforts to reduce ACE. Using the panel data of 30 provinces in China from 2011 to 2022, this study explores the heterogeneous impacts of formal environmental regulations (FER) and informal environmental regulations (IER) on ACE. The results reveal that both FER and IER have significant effect on reducing ACE, with FER showing a more pronounced effect. The mechanism analysis indicates that agricultural technological innovation and planting structure adjustment play important mediating roles in this impact mechanism. The effect of FER is more remarkable in major grain producing areas than in non-major grain producing areas, while the effect of IER is completely opposite. Compared with coastal regions, both FER and IER have significant inhibitory effect on ACE in inland regions. Additionally, the marketization level may reinforce the inhibitory effect of both FER and IER on ACE. Based on the empirical results, this study suggests to strengthen the synergistic effect of FER and IER, promote agricultural technology innovation, and formulate targeted policies according to regional differences.

REVEALING KEY LINKS BETWEEN COMPONENTS IN THE CIRCULAR ECONOMYOriginal Paper

CARMEN EUGENIA NASTASE, GABRIELA PRELIPCEAN, CARMEN EMILIA CHASOVSCHI, MARIANA LUPAN, RUXANDRA BEJINARU

The circular economy (CE) has proven to be an effective solution for sustainable development in the last two decades, especially in the context of multiple crises. Businesses are looking for a development model that balances economic progress, social security, and resource conservation, while also facing resource shortages and strict recycling regulations. This research highlights the essential role of green logistics (GL) and green human capital (GHC) in sustainable production (SP), which is necessary for the successful implementation of CE. The study, based on data collected from 117 companies in the Romanian food industry, uses partial structural equation modeling to explore the causal relationships between these variables. The results show that both green logistics and green human capital are important factors for circular economy, and sustainable production significantly mediates the relationships between green human capital, and circular economy, but not significantly for green logistics. Thus, it is concluded that sustainable production has a determining positive effect on circular economy. Although the research is limited by the geographical and sectoral context, it contributes theoretically and practically by analyzing the relationships between these concepts and the relevant managerial implications.

Modelling the circular bioeconomy in the palm oil industry: Emerging approaches to address cattle feed shortages in IndonesiaOriginal Paper

Atien Priyanti, Priyono Priyono, I Gusti Ayu Putu Mahendri, Dwi Yulistiani, Hotmatua Daulay, Yuhendra Yuhendra, Nasir Rofiq, Astu Unadi, Uning Budiharti, Adji Parikesit, Arsyadi Ali, Edi Erwan, Muladno Muladno

Indonesia is presently ranked as the first crude palm oil producer in the world. However, the palm oil industry faces significant challenges, including extensive criticism related to environmental degradation and social impacts. The circular bioeconomy concept emphasizes sustainable production and consumption through the repurposing, recycling, and regeneration of resources to address these challenges. Integrating palm and cattle farming represents a promising approach to enhancing resource efficiency and sustainability in agricultural systems. This study employs a system dynamics analysis to model the circular bioeconomy in the palm oil industry, with a specific focus on addressing cattle feed shortages. The results demonstrate that utilising oil palm biomass can yield a total of 21,204.52 tonnes of feed and generate a yearly revenue of USD 317,020.14. Key findings indicate that integrating palm by-products into cattle feed not only addresses feed shortages but also reduces waste and enhances overall farm productivity. The implications of this study suggest that adopting circular bioeconomy practices in the palm oil industry can promote more resilient and sustainable agricultural practices.