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

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  • Hoang, Viet-Ngu
  • Coelli, Tim J.

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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Bibliographic Info

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; Productivity Analysis; Environmental Economics and Policy;

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Citations

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Cited by:
  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.
  2. Hoang, Viet-Ngu & Rao, D.S. Prasada, 2010. "Measuring and decomposing sustainable efficiency in agricultural production: A cumulative exergy balance approach," Ecological Economics, Elsevier, vol. 69(9), pages 1765-1776, July.
  3. Viet-Ngu Hoang, 2011. "Analysis of Productive Performance of Crop and Animal Production Systems: An Integrated Analytical Framework," School of Economics and Finance Discussion Papers and Working Papers Series 268, School of Economics and Finance, Queensland University of Technology.
  4. Zuniga Gonzalez, Carlos Alberto, 2012. "Total factor productivity and Bio Economy effects," MPRA Paper 49355, University Library of Munich, Germany, revised 13 Nov 2012.
  5. Du, Kerui & Lu, Huang & Yu, Kun, 2014. "Sources of the potential CO2 emission reduction in China: A nonparametric metafrontier approach," Applied Energy, Elsevier, vol. 115(C), pages 491-501.
  6. Viet-Ngu Hoang & Mohammad Alauddin, 2012. "Input-Orientated Data Envelopment Analysis Framework for Measuring and Decomposing Economic, Environmental and Ecological Efficiency: An Application to OECD Agriculture," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 51(3), pages 431-452, March.
  7. Viet-Ngu Hoang & Mohammad Alauddin, 2009. "Assessing eco-environmental performance of agricultural production in OECD countries: combination of soil surface, soil system and farm gate methods of nutrient auditing," Discussion Papers Series 399, School of Economics, University of Queensland, Australia.
  8. Kuosmanen, Natalia & Kuosmanen, Timo, 2013. "Modeling Cumulative Effects of Nutrient Surpluses in Agriculture: A Dynamic Approach to Material Balance Accounting," Ecological Economics, Elsevier, vol. 90(C), pages 159-167.
  9. Yang, Fuxia & Yang, Mian & Nie, Hualin, 2013. "Productivity trends of Chinese regions: A perspective from energy saving and environmental regulations," Applied Energy, Elsevier, vol. 110(C), pages 82-89.

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