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Total Factor Productivity Adjusted for a Detrimental Input

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  • Melfou, Katerina
  • Papanagiotou, Evangelos
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    Abstract

    The measurement of total factor productivity in agriculture has been recently extended in order to include some 'bad' outputs that are jointly produced along with agricultural goods. In this paper, total factor productivity is decomposed into its determining factors and nitrate pollution is treated as an environmentally detrimental input. A restricted variable cost function is specified for Greek agriculture for the period 1969-1996. A constraint is assumed on nitrate pollution and the TFP estimates, which are obtained, are then decomposed into the rate of technical change effect, the scale effect and the market disequilibrium effect.

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    File URL: http://purl.umn.edu/26439
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    Bibliographic Info

    Article provided by Greek Association of Agricultural Economists in its journal Agricultural Economics Review.

    Volume (Year): 04 (2003)
    Issue (Month): 2 (August)
    Pages:

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    Handle: RePEc:ags:aergaa:26439

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    Web page: http://www.etagro.gr/
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    Keywords: Productivity Analysis;

    References

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    1. Panos Fousekis, 1997. "Internal And External Scale Effects In Productivity Analysis: A Dynamic Dual Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 151-166.
    2. V. Kerry Smith, 1998. "Should Pollution Reductions Count as Productivity Gains for Agriculture?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 591-594.
    3. Hailu, Atakelty & Veeman, Terrence S., 2001. "Alternative methods for environmentally adjusted productivity analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 211-218, September.
    4. Barnes, Andrew P., 2002. "Publicly-funded UK agricultural R&D and 'social' total factor productivity," Agricultural Economics, Blackwell, vol. 27(1), pages 65-74, May.
    5. Stijn Reinhard & C.A. Knox Lovell & Geert Thijssen, 1999. "Econometric Estimation of Technical and Environmental Efficiency: An Application to Dutch Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 44-60.
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    Cited by:
    1. Argiles, Josep M. & Brown, Nestor Duch, 2010. "A comparison of the economic and environmental performances of conventional and organic farming: evidence from financial statements," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(1), January.

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