Get a clear agricultural economics definition covering its relationship to food and consumer, farm management and environment, and resources.
What is Agricultural Economics?
This branch of economics is also referred to as agronomics or agribusiness. It is important for the economic development of any country. There are subdivisions into various sectors as follows:
Environment and Natural Resources
This sector deals with three main areas. These are estimation the value of non-market profits from environmental amenities and resources, controlling environment through designing of incentives and the inter-relationship between environmental consequences and economic activities.
Agricultural Economics – Food and Consumer
This field deals with the study of how quality factor and information of a product can affect consumer behavior. This is so even when the products form part the nation’s international trade. It also emphasizes the effects of both income and prices of various commodities. They have also understood how consumer respond to change in income and prices of food. They also now know what decision one can make on the food to buy or prepare for the family.
Production and Management of Farm
This enables the economist to understand what the farmers in developed countries base their arguments on when making decision. They also learn the basics that enable them to produce sufficient food for the growing population by working on natural factors like climatic changes and scarcity in water supply.
The Definition of Environmental Economics
Check out the definition of economics to do with the environment and its uses and importance to politics and the economy.
This type of economics economics involves the studying of the natural resources that are provided by the nature. These are allocated at margin and divided into different and increasingly smaller units. It is the sub field of economics that deals with the environmental issues. This involves undertaking theoretical as well as empirical studies of economics effects on the local or national policies. It is an application of different principles of economics for studying the development and management of resources.
It also includes study of the resources that are provided by the nature that cannot be divided. The study depends on the resources as it serves as the inputs to this economic system. This system directly affect environmental resources as it helps in determining the empirical as well as theoretical effects on environment. Also it affects the environmental policies on the economy.
This branch of economics helps to determine the economic impact of climate change and the environmental policies on the economy. Hence it helps in analyzing the merits and effects of the proposed or existing policies along with helping in designing appropriate environmental policies. It also helps people to deal with the scare resources in order to deal with every kind of environmental problems efficiently. It therefore helps with economic growth and development.
Economics helps to determine the benefits and costs of environmental measures, as it also helps in finding out whether these factors balance well or not. It also helps in making the best environmental policy and goals with the use of market based instruments. This helps to reach economic and environmental objectives within a fixed time frame.