Economic value of greenhouse gases and nitrogen surpluses: Society vs farmers’ valuation
AbstractLivestock supply must challenge the growth of final demand in the developing countries. This challenge has to take into account its ecological effects since the dairy and livestock sectors are clearly pointed out as human activities which contribute significantly to environmental deterioration. Therefore, livestock activity models have to include desirable and undesirable outputs simultaneously. Using this perspective, we implement a Data Envelopment Analysis model to evaluate shadow prices of outputs under contradictory objectives between the society and the farmers. We show that farmers are able to reduce pollution significantly if society accepts to balance farmers’ opportunity cost. Finally, we observe that initial levels of the CO2 tax implemented in European countries are in line with farmers’ valuation while the current level of the CO2 tax tends to reach the value of pollution targeted by the society.
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Bibliographic InfoArticle provided by Elsevier in its journal European Journal of Operational Research.
Volume (Year): 226 (2013)
Issue (Month): 2 ()
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Environment; Data envelopment analysis; Agriculture;
Other versions of this item:
- David Berre & Jean-Philippe Boussemart & Emmanuel Tillard, 2012. "Economic Value of Greenhouse Gases and Nitrogen Surpluses: Society vs Farmers’ Valuation," Working Papers 2012-ECO-02, IESEG School of Management.
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