Abstract

Effects of crude oil pollution on crop production were determined using stochastic translog production function. Data were collected from 17 local government areas (LGAs) out of 23 LGAs using multistage sampling technique. A total of 296 questionnaires were suitable for analysis. The results showed that the effect of crude oil pollution variables on crop farms reduced the size of farmland (-2.5842), significant at 1%, thereby reducing marginal physical product (MPP) with respect to land by 1.0186 and 1.9016 tons, respectively. They also affected negatively technology inputs, while in non-polluted farms output increased (0.3814 tons). Physical inputs, crude oil pollution variables and their interactions showed strong negative (diminishing) returns to scale in crude oil polluted farms but in non-polluted farms, showed strong positive returns to scale. The technical efficiency results indicated that less than 22% of crop farmers were 81 to 100% efficient in resource use in crude oil polluted farms while in non-polluted farms those with this high efficiency were 33%. Results obtained in this study showed that crude oil pollution on crop farms had negative and detrimental effects on crop output and technical efficiency of resource use in Rivers State, Nigeria.

Key words: Crude oil pollution, stochastic translog production function, crop farms, resource use productivity, technical efficiency, Rivers State, Nigeria.