Altuğ Özden

Cost management strategy for enegy use in agriculture: EU Sample

Efficiency analysis is useful for all kinds of production. Outputs and inputs can be optimized by this analysis. In this way costs are also minimized. Many inputs are used in agriculture production and only purpose is to produce more. In agricultural production there are desirable and undesirable outputs. The amount of emissions comes from fossil fuels is an undesirable output. We must maximize the desirable outputs and minimize the undesirable outputs. Also, we need to minimize the inputs to minimize the costs. In this study, Data Envelopment Analysis and partial efficiency analysis was applied to determine the cost management. Two outputs and four inputs were detemined for the measurement of the cost efficiency. According to analysis, it is determined that, the EU countries must protect the capital stock optimization and decrease the energy usage about 29.81%, land usage about 64.80% and employment in agriculture about 35.62%.