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The Good and the Bad: Environmental Efficiency in Northeastern U.S. Dairy Farming

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  • Njuki, Eric
  • Bravo-Ureta, Boris E.
  • Mukherjee, Deep

Abstract

This study evaluates the environmental performance of northeastern U.S. dairy operations that differ in size using a directional output-distance function that measures the joint production of milk and emissions while incorporating a four-way error approach that captures farm-size heterogeneity, transient and persistent technical efficiency, and random errors. For the emission component, a comprehensive pollution index is generated that incorporates three major sources of pollution in dairy farming: fuel, fertilizer, and livestock. Computed shadow prices and Morishima elasticities of substitution reveal that large dairy operations are environmentally inefficient compared to their smaller counterparts.

Suggested Citation

  • Njuki, Eric & Bravo-Ureta, Boris E. & Mukherjee, Deep, 2016. "The Good and the Bad: Environmental Efficiency in Northeastern U.S. Dairy Farming," Agricultural and Resource Economics Review, Cambridge University Press, vol. 45(1), pages 22-43, April.
    • Handle: RePEc:cup:agrerw:v:45:y:2016:i:01:p:22-43_00
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    Cited by:

    1. Zhong, Shen & Li, Junwei & Qu, Yi, 2022. "Green total factor productivity of dairy cow in China: Key facts from scale and regional sector," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    2. Zhong, Shen & Li, Junwei & Chen, Xi & Wen, Hongmei, 2022. "A multi-hierarchy meta-frontier approach for measuring green total factor productivity: An application of pig breeding in China," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    3. Riera, Félix Sebastián & Brümmer, Bernhard, 2022. "Environmental efficiency of wine grape production in Mendoza, Argentina," Agricultural Water Management, Elsevier, vol. 262(C).
    4. Skevas, Ioannis, 2020. "Inference in the spatial autoregressive efficiency model with an application to Dutch dairy farms," European Journal of Operational Research, Elsevier, vol. 283(1), pages 356-364.
    5. Régina D.C. Bonou-zin & Khalil Allali & Aziz Fadlaoui, 2019. "Environmental Efficiency of Organic and Conventional Cotton in Benin," Sustainability, MDPI, vol. 11(11), pages 1-17, May.
    6. Luis A. De los Santos‐Montero & Boris E. Bravo‐Ureta, 2017. "Productivity effects and natural resource management: econometric evidence from POSAF‐II in Nicaragua," Natural Resources Forum, Blackwell Publishing, vol. 41(4), pages 220-233, November.
    7. West, Steele, 2021. "The Estimation of Farm Business Inefficiency in the Presence of Debt Repayment," 2021 Conference, August 17-31, 2021, Virtual 315048, International Association of Agricultural Economists.

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