MONETARY VALUATION OF THE CLIMATE IMPACT OF FEED CROP PRODUCTION AND ITS AGROECONOMIC APPLICATION: THE CASE OF HUNGARIAN SOYBEAN PRODUCTION

TIKÁSZ ILDIKÓ EDIT – MOLNÁR ZSUZSA

Keywords: Key words: GHG-emission, benchmarking, climate externalities, internalizing, FADN JEL Codes: Q12, Q51, Q54

Teljes cikk
DOI: https://doi.org/10.53079/GAZDALKODAS.70.3.t.pp_224-243
The market prices of agricultural products currently do not reflect the climate externalities generated during their production. Although several methodologies exist for the monetary valuation of these externalities, their practical application remains limited. This study examines one such valuation approach using Hungarian soybean production as a case study. The database established within the FOODCoST project contains a total of 682 crop production technology observations derived from the 2022–2024 data of 72 farms. Greenhouse gas (GHG) emissions per unit of output were determined using a calculation model based on the RED II EU directive, while their monetary value was determined using the environmental prices published by CE Delft.
The average GHG emission of the soybean production technologies examined was 454.8 kg CO2eq per tonne of dry matter, corresponding to a climate externality of EUR 89.5 per tonne – the amount by which accounting for the climate impact would, on average, modify the economic value of one tonne of soybeans. In the agroeconomic application, however, it was not this absolute value but the monetary effect of the deviation between the technologies and the Hungarian reference value that was incorporated into the producer price: farms with lower emissions received a price premium, while those with higher emissions received a price deduction. The method was tested on eight panel farms with detailed data collection, where the price adjustment modified product-level income through changes in revenue by between HUF –68.2 and +39.7 thousand per hectare. Based on the product-level income of soybean production, we examined the panel farms' position both relative to one another and relative to the national average of the Hungarian Farm Accountancy Data Network (FADN) operated by AKI. The results showed that the internalization of climate externalities modified product-level incomes but did not substantially alter the ranking of the farms.
The developed benchmarking method is capable of incorporating climate impact into farm comparisons alongside conventional agroeconomic indicators. Provided that an appropriate emission calculation model and farm-level data are available, the method can also be adapted to other arable crops.