Limitations of Neoclassical Economics for Evaluating Sustainability of Agricultural Systems: Comparing Organic and Conventional Systems

Abstract

ABSTRACT Although sustainability goals have been gradually incorporated into the agricultural education institutions, the analysis of different agricultural systems viability is still being carried out based on cost-benefits analysis. As this analysis does not incorporate ecological, social and cultural variables, it has important limitations to compare the sustainability of these agricultural systems. To show these weak points, one organic and two conventional farms from La Plata, Argentina, were compared by means of the neo-classical analysis. From an agro-ecological point of view, ecological, productive and social aspects were also analyzed by means of a set of sustainability indicators. Cost-benefits analysis showed that the organic farm had a higher profitability only when the prices of organic products reached 340% relative to conventional ones. Agroecological analysis showed that the organic system fulfilled sustainability objectives more efficiently than conventional ones, but at the same time, that these aspects are impossible to be quantified by means of cost-benefits analysis. Therefore, to advance towards sustainability achievement, a new holistic evaluation approach should be incorporated in agricultural education institutions.