Quantity and Monetary Value of Agrochemical Pollution from Intensive Farming in Indonesia

Abstract

Purpose – The purpose of this paper is to measure the environmental performance of intensive farming and estimate agrochemical waste in physical and monetary terms. The intensive farming provides adverse impacts including health and environmental quality associated with the use of agrochemicals. Design/methodology/approach – This study uses a theory of environmental efficiency that measures how efficient the farm uses agrochemical inputs. The efficiency was estimated using a set of farm-level data of intensive farming that use agrochemicals. Data were compiled from a survey of randomly selected 240 farmers who operated intensive farming in three regions of Java in 2014. Findings – The results show that the performance of intensive farming was low. This condition caused agrochemical waste leading to the externality. Taking the external costs into account resulted in the improvement in efficiency of agrochemicals. The actual level of agrochemicals was about a hundred times higher than the most efficient level. Research limitations/implications – This study is beyond the exogenous external costs. There is a need for a further comprehensive study to include more exogenous external costs associated with agrochemicals to have the potential value of such costs and the most socially efficient use of agrochemicals. The long-term effects of external cost to the environment and socio-economic livelihood of the farmers and other communities are considerable. Advocating for alternatives to decrease the use of detrimental agro-inputs, in the long run, will provide sound quality of the environment. Socially, both producers and consumers get the environmental and health benefits. Practical implications – To reduce the agrochemical waste that caused environmental problems, a policy should be formulated to make farming more efficient, particularly for agrochemical use. It can be done by introducing agronomic technologies and enhancing farmers’ knowledge on environmentally friendly agriculture. Originality/value – Environmental efficiency is able to estimate the quantity of agrochemical waste. The waste is a kind of non-point source pollution whose source and quantity are very difficult to identify and measure. As there are many definitions and measurement of environmental performance, this concept of environmental efficiency can be one of the alternatives.