IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v38y2006i11p1327-1334.html
   My bibliography  Save this article

Agricultural externalities and environmental regulation: evaluating good practice in citrus production

Author

Listed:
  • Andres Picazo-Tadeo
  • Ernest Reig-Martinez

Abstract

Economic activity takes place in a scenario characterized by an increasing number of environmental regulations aimed at bringing under control the emission of contaminating wastes. In this paper, we evaluate the impact of transforming a code of good practice in nitrogen fertilization on Spanish citrus fruit farms into an environmental regulation of compulsory fulfilment. Using data envelopment techniques, we calculate unrestricted and environmentally regulated short-run maximum profits. Both profit values are then used to compute an index of the cost of regulation. Our results suggest that the cost of shifting from a merely recommended practice to a binding rule is low. On average, the loss of profit computed is only about 4%. Furthermore, we find that farms' overall efficiency is low and that the current gap between observed and regulated fertilization practices could be overcome by improving overall management efficiency.

Suggested Citation

  • Andres Picazo-Tadeo & Ernest Reig-Martinez, 2006. "Agricultural externalities and environmental regulation: evaluating good practice in citrus production," Applied Economics, Taylor & Francis Journals, vol. 38(11), pages 1327-1334.
    • Handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1327-1334
    DOI: 10.1080/00036840500399966
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500399966
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840500399966?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hanley, Nick, 1990. "The Economics of Nitrate Pollution," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 17(2), pages 129-151.
    2. Bromley, Daniel W & Hodge, Ian, 1990. "Private Property Rights and Presumptive Policy Entitlements: Reconsidering the Premises of Rural Policy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 17(2), pages 197-214.
    3. 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.
    4. Rolf Färe & Shawna Grosskopf & Hyunok Lee, 1990. "A Nonparametric Approach to Expenditure-Constrained Profit Maximization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 574-581.
    5. Ian Hodge, 2000. "Agri‐environmental Pelationships and the Choice of Policy Mechanism," The World Economy, Wiley Blackwell, vol. 23(2), pages 257-273, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mercedes Beltrán-Esteve & José Gómez-Limón & Andrés Picazo-Tadeo & Ernest Reig-Martínez, 2014. "A metafrontier directional distance function approach to assessing eco-efficiency," Journal of Productivity Analysis, Springer, vol. 41(1), pages 69-83, February.
    2. Andrés J. Picazo-Tadeo & José A. Gómez-Limón & Ernest Reig-Martínez, 2010. "Assessing farming eco-efficiency: A Data Envelopment Analysis approach," Working Papers 1004, Department of Applied Economics II, Universidad de Valencia.
    3. Picazo-Tadeo, Andrés J. & Beltrán-Esteve, Mercedes & Gómez-Limón, José A., 2012. "Assessing eco-efficiency with directional distance functions," European Journal of Operational Research, Elsevier, vol. 220(3), pages 798-809.
    4. Vasileiou, Konstantinos Z., 2010. "Exploring the role of fertilizer application on the sustainability of Greek potato farms: A DEA application," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(1), pages 1-16, January.
    5. Lukas Folkens & Volker Wiedemer & Petra Schneider, 2020. "Monetary Valuation and Internalization of Externalities in German Agriculture Using the Example of Nitrate Pollution: A Case-Study," Sustainability, MDPI, vol. 12(16), pages 1-19, August.
    6. Christian Stetter & Johannes Sauer, 2022. "Greenhouse Gas Emissions and Eco-Performance at Farm Level: A Parametric Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(3), pages 617-647, March.
    7. Picazo-Tadeo, Andres J. & Reig-Martinez, Ernest, 2007. "Farmers' costs of environmental regulation: Reducing the consumption of nitrogen in citrus farming," Economic Modelling, Elsevier, vol. 24(2), pages 312-328, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Picazo-Tadeo, Andres J. & Reig-Martinez, Ernest, 2007. "Farmers' costs of environmental regulation: Reducing the consumption of nitrogen in citrus farming," Economic Modelling, Elsevier, vol. 24(2), pages 312-328, March.
    2. Wasilewski, Adam & Sikor, Thomas, 2003. "Institutional Options for the Protection of Open Space: Evidence from Poland," Discussion Papers 18887, CEESA: Central and Eastern European Sustainable Agriculture International Research Project.
    3. Edwards, Geoff & Fraser, Iain, 2001. "Reconsidering agri-environmental policy permitted by the Uruguay round agreement," Ecological Economics, Elsevier, vol. 37(2), pages 313-326, May.
    4. Kenneth Løvold Rødseth, 2017. "Environmental regulations and allocative efficiency: application to coal-to-gas substitution in the U.S. electricity sector," Journal of Productivity Analysis, Springer, vol. 47(2), pages 129-142, April.
    5. Ferjani, Ali, 2011. "Environmental Regulation and Productivity: A Data Envelopment Analysis for Swiss Dairy Farms," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(1).
    6. Gramzow, Andreas, 2009. "Rural development as provision of local public goods: Theory and evidence from Poland," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 51, number 92313.
    7. Eli Feinerman & Meira Falkovitz, 1997. "Optimal Scheduling of Nitrogen Fertilization and Irrigation," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 11(2), pages 101-117, April.
    8. Kristiaan Kerstens & Jafar Sadeghi & Ignace Van de Woestyne, 2020. "Plant capacity notions in a non-parametric framework: a brief review and new graph or non-oriented plant capacities," Annals of Operations Research, Springer, vol. 288(2), pages 837-860, May.
    9. Mika Kortelainen & Timo Kuosmanen, 2007. "Eco-efficiency analysis of consumer durables using absolute shadow prices," Journal of Productivity Analysis, Springer, vol. 28(1), pages 57-69, October.
    10. Zanella, Andreia & Camanho, Ana S. & Dias, Teresa G., 2015. "Undesirable outputs and weighting schemes in composite indicators based on data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 245(2), pages 517-530.
    11. Arik Levinson, 2009. "Technology, International Trade, and Pollution from US Manufacturing," American Economic Review, American Economic Association, vol. 99(5), pages 2177-2192, December.
    12. Valadkhani, Abbas & Roshdi, Israfil & Smyth, Russell, 2016. "A multiplicative environmental DEA approach to measure efficiency changes in the world's major polluters," Energy Economics, Elsevier, vol. 54(C), pages 363-375.
    13. Neff, David L. & Garcia, Philip & Hornbaker, Robert H., 1991. "Efficiency Measures Using The Ray-Homothetic Function: A Multiperiod Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(2), pages 1-9, December.
    14. D’Inverno, Giovanna & Carosi, Laura & Romano, Giulia & Guerrini, Andrea, 2018. "Water pollution in wastewater treatment plants: An efficiency analysis with undesirable output," European Journal of Operational Research, Elsevier, vol. 269(1), pages 24-34.
    15. Atkinson, Scott E. & Tsionas, Mike G., 2021. "Generalized estimation of productivity with multiple bad outputs: The importance of materials balance constraints," European Journal of Operational Research, Elsevier, vol. 292(3), pages 1165-1186.
    16. Ellen Banzhaf & Sally Anderson & Gwendoline Grandin & Richard Hardiman & Anne Jensen & Laurence Jones & Julius Knopp & Gregor Levin & Duncan Russel & Wanben Wu & Jun Yang & Marianne Zandersen, 2022. "Urban-Rural Dependencies and Opportunities to Design Nature-Based Solutions for Resilience in Europe and China," Land, MDPI, vol. 11(4), pages 1-25, March.
    17. J.Ph. Boussemart & K. Kerstens & S. Blancard & W. Briec, 2007. "Technology Adoption in French Agriculture and the role of Financial Constraints," Post-Print hal-00287974, HAL.
    18. Soledad Moya & Jordi Perramon & Anselm Constans, 2005. "IFRS Adoption in Europe: The Case of Germany," Working Papers 0501, Departament Empresa, Universitat Autònoma de Barcelona, revised Feb 2005.
    19. Petrick, Martin, 2004. "Governing Structural Change And Externalities In Agriculture: Toward A Normative Institutional Economics Of Rural Development," IAMO Discussion Papers 14878, Institute of Agricultural Development in Transition Economies (IAMO).
    20. Rezek, Jon P. & Perrin, Richard K., 2001. "Adjustments Of Agricultural Productivity For Nitrogen Effluent In The Great Plains," 2001 Annual meeting, August 5-8, Chicago, IL 20524, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:38:y:2006:i:11:p:1327-1334. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.