The high price of sweetness: The twin challenges of efficiency and soil erosion in Fiji's sugar industry

Mahadevan, Renuka (2008) The high price of sweetness: The twin challenges of efficiency and soil erosion in Fiji's sugar industry. Ecological Economics, 66 2-3: 468-477. doi:10.1016/j.ecolecon.2007.10.011

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Author Mahadevan, Renuka
Title The high price of sweetness: The twin challenges of efficiency and soil erosion in Fiji's sugar industry
Journal name Ecological Economics   Check publisher's open access policy
ISSN 0921-8009
Publication date 2008-06-15
Year available 2007
Sub-type Article (original research)
DOI 10.1016/j.ecolecon.2007.10.011
Volume 66
Issue 2-3
Start page 468
End page 477
Total pages 10
Editor C. J. Cleveland
Place of publication Amsterdam, Netherlands
Publisher Elsevier
Collection year 2008
Language eng
Subject C1
070101 Agricultural Land Management
070102 Agricultural Land Planning
070108 Sustainable Agricultural Development
Abstract The European Union's sugar subsidy since 1975 has kept attempts to reform Fiji's sugar industry at bay, until recently due to the expiry of the subsidy at the end of 2007. This paper looks at the high price at which Fiji's sugar has remained sweet, in particular, with regards to efficient production and soil erosion. When the extent of soil erosion was included in the production function, farms on average produced at about 69% of their potential output and this finding was robust to both parametric and nonparametric approaches. In addition, soil erosion was estimated to result in a 9% loss in cane output which translates to a loss of US$8 million in farm income and US$12 million in sugar sales to the industry. Lastly, empirical evidence supports the recommendation of an integrated package of policies related to land tenure and the adoption of soil conservation practice and management.
Keyword Land tenure
Production frontier
Soil erosion
Technical efficiency
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Available online 31 October 2007.

Document type: Journal Article
Sub-type: Article (original research)
Collections: 2008 Higher Education Research Data Collection
ERA 2012 Admin Only
 
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Created: Mon, 05 May 2008, 04:43:19 EST by Kaelene Matts on behalf of School of Economics