Analyzing Economical and Environmental Dimensions of Energy Balance in Sugar Beet Production in Iran

Optimal use of energy inputs and increasing productivity of energy lead to less production costs, less greenhouse gas emission also, less negative effects of agricultural inputs on the environment. This study aims to examine the energy balance of sugar beet production in Iran and compares the economic and environmental dimensions of expanding sugar beet production. For this purpose, production function of sugar beet was estimated using Panel data of five provinces of Hamedan, Kermanshah, Khorasan Razavi, Fars and West Azerbaijan for 2000-2015 period. Results showed that the highest energy inputs are chemical fertilizer, machinery and labor, respectively. Also, with a net energy gain of about 643 GJ, 23.53 energy ratio and 1.4 MJ/Kg energy productivity, an increase in sugar beet production is desirable in viewpoint of energy balance. The estimated Cobb- Douglas production function showed that only machinery and farmyard manure were used in the economic range. The MPPs of two inputs of machinery and farmyard manure were higher than other inputs. Also, an increase in sugar beet yield using these two inputs causes less CO2 emission. The significant coefficient of Dummy variable showed that the yield of sugar beet in Fars and Khorasan provinces is significantly lower than other provinces. The sum of the significant coefficients of the energy inputs indicated a decreasing returns to scale. Based on the results of this study, expanding mechanized cultivation and optimal use of monogram seeds, also, reducing subsidies and realizing the price of chemical fertilizers to reduce the use of this input are suggested.