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Measurement Of Agricultural Total Factor Productivity Growth Incorporating Environmental Factors: A Nutrients Balance Approach

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Author Info
Hoang, Viet-Ngu
Coelli, Tim

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Abstract

This paper develops a new measure of total factor productivity growth in agricultural production which incorporates environmental effects. The new measure is called the Total Factor Nutrient-Orientated Productivity (TFNP) Index, and incorporates a materials balance condition. TFNP measures changes in nutrient-orientated efficiency and can be decomposed into efficiency change (EC), technological change (TC) and nutrient-orientated technological change (NTC) components. An empirical analysis, involving country-level data from OECD countries during 1990-2003, is provided using DEA methods. Estimates of mean technical and nutrient-orientated efficiency are 0.798 and 0.526, respectively. Estimated mean TFNP growth is 1.5% per year, with nutrient-orientated technological progress contributing 0.8%.

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Paper provided by Australian Agricultural and Resource Economics Society in its series 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia with number 47636.

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Date of creation: 2009
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Handle: RePEc:ags:aare09:47636

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Keywords: Total factor productivity; environment; nutrient balance; DEA;

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  1. Fare, Rolf & Grosskopf, Shawna & Tyteca, Daniel, 1996. "An activity analysis model of the environmental performance of firms--application to fossil-fuel-fired electric utilities," Ecological Economics, Elsevier, vol. 18(2), pages 161-175, August. [Downloadable!] (restricted)
  2. Reinhard, Stijn & Knox Lovell, C. A. & Thijssen, Geert J., 2000. "Environmental efficiency with multiple environmentally detrimental variables; estimated with SFA and DEA," European Journal of Operational Research, Elsevier, vol. 121(2), pages 287-303, March. [Downloadable!] (restricted)
  3. Pittman, Russell W, 1983. "Multilateral Productivity Comparisons with Undesirable Outputs," Economic Journal, Royal Economic Society, vol. 93(372), pages 883-91, December. [Downloadable!] (restricted)
  4. Summers, Robert, 1973. "International Price Comparisons Based Upon Incomplete Data," Review of Income and Wealth, Blackwell Publishing, vol. 19(1), pages 1-16, March.
  5. Tim Coelli & Ludwig Lauwers & Guido Huylenbroeck, 2007. "Environmental efficiency measurement and the materials balance condition," Journal of Productivity Analysis, Springer, vol. 28(1), pages 3-12, October. [Downloadable!] (restricted)
  6. C. Lovell & Shawna Grosskopf & Eduardo Ley & Jesús Pastor & Diego Prior & Philippe Eeckaut, 1994. "Linear programming approaches to the measurement and analysis of productive efficiency," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer, vol. 2(2), pages 175-248, December. [Downloadable!] (restricted)
  7. Daly, Herman E., 1992. "Is the entropy law relevant to the economics of natural resource scarcity?-- yes, of course it is!," Journal of Environmental Economics and Management, Elsevier, vol. 23(1), pages 91-95, July. [Downloadable!] (restricted)
  8. Tim J. Coelli & D. S. Prasada Rao, 2005. "Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980-2000," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 115-134, 01. [Downloadable!] (restricted)
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  9. Scheel, Holger, 2001. "Undesirable outputs in efficiency valuations," European Journal of Operational Research, Elsevier, vol. 132(2), pages 400-410, July. [Downloadable!] (restricted)
  10. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March. [Downloadable!] (restricted)
  11. Shaik, Saleem & Perrin, Richard K., 2001. "Agricultural Productivity and Environmental Impacts: The Role of Non-parametric Analysis," 2001 Annual meeting, August 5-8, Chicago, IL 20565, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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  1. Viet-Ngu Hoang & Mohammad Alauddin, 2009. "A new framework of measuring national nutrients balance for international and global comparison," Discussion Papers Series 389, School of Economics, University of Queensland, Australia. [Downloadable!]
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