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Technical efficiency of Swiss dairy farms locat-ed in the mountain area considering both eco-nomic and environmental resources

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Author Info

  • Pierrick Jan

    (Agroscope Reckenholz-Tänikon Research Station ART)

  • Markus Lips

    (Agroscope Reckenholz-Tänikon Research Station ART)

  • Michel Dumondel

    (ETH Zürich, Institute for Environmental Decisions)

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    Abstract

    Increasing the efficiency of the use of economic and environmental resources of Swiss farms is a priority of Swiss agricultural policy as part of the objective of improving the sustainable performance of the Swiss agricultural sector. In this paper we assess the long-run technical efficiency of the use of economic and environmental resources of a sample of 480 Swiss dairy farms located in the mountain area using the non-parametric Data Envelopment Analy-sis approach. In a second step, using a linear regression, we inves-tigate the determinants of this technical efficiency. The results of the regression performed show that farm size and the strategic orientation of farm activity have a much greater effect on efficiency than the characteristics of the dairy production system or dairy herd management. An increase in farm size and an increased ori-entation towards para-agricultural activities are shown to exert a strong positive effect on technical efficiency. Conversely, part-time farming turns out to have a substantial negative impact on the effi-ciency of resource use.

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    Bibliographic Info

    Article provided by Swiss Society for Agricultural Economics and Rural Sociology in its journal Yearbook of Socioeconomics in Agriculture.

    Volume (Year): 3 (2010)
    Issue (Month): 1 ()
    Pages: 39-76

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    Handle: RePEc:cha:ysa001:v:3:y:2010:i:1:p:39-76

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    Web page: http://www.agrarsoziologie.ch
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    Related research

    Keywords: efficiency analysis; economic resources; environmental resources; dairy farms; Switzerland;

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    1. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    2. Fare, Rolf, et al, 1989. "Multilateral Productivity Comparisons When Some Outputs Are Undesirable: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 90-98, February.
    3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    4. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    5. Dyson, R. G. & Allen, R. & Camanho, A. S. & Podinovski, V. V. & Sarrico, C. S. & Shale, E. A., 2001. "Pitfalls and protocols in DEA," European Journal of Operational Research, Elsevier, vol. 132(2), pages 245-259, July.
    6. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    7. Daly, Herman E., 1992. "Allocation, distribution, and scale: towards an economics that is efficient, just, and sustainable," Ecological Economics, Elsevier, vol. 6(3), pages 185-193, December.
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