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Incorporating Environmental Impacts in the Measurement of Agricultural Productivity Growth

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Author Info
Ball, V.E.
Lovell, C.A.K.
Luu, H.
Nehring, R.
Abstract

Agricultural production is known to have environmental impacts, both adverse and beneficial, and it is desirable to incorporate at least some of these impacts in an environmentally sensitive productivity index. In this paper, we construct indicators of water contamination from the use of agricultural chemicals. These environmental indicators are merged with data on marketed outputs and purchased inputs to form a state-by-year panel of relative levels of outputs and inputs, including environmental impacts. We do not have prices for these undesirable by products, since they are not marketed. Consequently, we calculate a series of Malmquist productivity indexes, which do not require price information. Our benchmark scenario is a conventional Malmquist productivity index based on marketed outputs and purchased inputs only. Our comparison scenarios consist of environmentally sensitive Malmquist productivity indexes that include indicators of risk to human health and to aquatic life from chronic exposure to pesticides. In addition, we derive a set of virtual prices of the undesirable by-products that can be used to calculate an environmentally sensitive Fisher index of productivity change.

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Publisher Info
Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 29 (2004)
Issue (Month): 03 (December)
Pages:
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Handle: RePEc:ags:jlaare:30911

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Related research
Keywords: environmental impacts; productivity growth; Environmental Economics and Policy;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Pittman, Russell W, 1983. "Multilateral Productivity Comparisons with Undesirable Outputs," Economic Journal, Royal Economic Society, vol. 93(372), pages 883-91, December. [Downloadable!] (restricted)
  2. Reig-Martinez, Ernest & Picazo-Tadeo, Andres & Hernandez-Sancho, Francesc, 2001. "The calculation of shadow prices for industrial wastes using distance functions: An analysis for Spanish ceramic pavements firms," International Journal of Production Economics, Elsevier, vol. 69(3), pages 277-285, February. [Downloadable!] (restricted)
  3. Boyd, Gale A. & McClelland, John D., 1999. "The Impact of Environmental Constraints on Productivity Improvement in Integrated Paper Plants," Journal of Environmental Economics and Management, Elsevier, vol. 38(2), pages 121-142, September. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Mary Graham, 2006. "Sustainability: Meaning and Measurement with Application to Agriculture," Economics Series 2006_31, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
  2. Walter Briec & Kristiaan Kerstens & Nicolas Peypoch, 2009. "Exact Relations between Four De?nitions of Productivity Indices and Indicators," Working Papers 2009-ECO-07, IESEG School of Management. [Downloadable!]
  3. Mehmet Ulubasoglu & Nejat Anbarci, 2005. "Endogenous Liberalization and Within-Country Inequality: A Theoretical and Empirical Analysis," Economics Series 2005_18, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
  4. Lien, Gudbrand & Kumbhakar, Subal C. & Hardaker, J. Brian, 2008. "Determinants Of Part-Time Farming And Its Effect On Farm Productivity And Efficiency," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6701, European Association of Agricultural Economists. [Downloadable!]
  5. Mary Graham, 2008. "Developing a Social Perspective to Farm Performance Analysis," Economics Series 2008_17, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
    Other versions:
  6. Mary Graham, 2008. "Developing an Integrated Measure of Farm Performance," Economics Series 2008_18, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
  7. Cuesta, Rafael A. & Knox, C.A. & Zofío, José Luis, 2007. "Environmental Efficiency Measurement with Translog Distance Functions: A Parametric Approach," Working Papers in Economic Theory 2007/02, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History). [Downloadable!]
    Other versions:
  8. Margaret Brock & Monica Keneley, 2004. "Section 46: The High Court, Dawson and The Senate: A Review of the Recent Debate," Economics Series 2004_18, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
  9. Graham, Mary, 2008. "Biophysical Modelling and Performance Measurement," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6773, Australian Agricultural and Resource Economics Society. [Downloadable!]
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