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Comparing Sustainable Value Approach, Data Envelopment Analysis and indicator approaches - An application on German dairy farms

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  • Ehrmann, Markus

Abstract

Objective of this paper is to compare different measurement concepts for sustainability at farm level in Germany: a) Sustainable Value Approach (SV), b) Data Envelopment Analysis (DEA) and c) indicator approaches close to KUL (Criteria for an Ecologically Compatible Land Management). The mathematical programming model FARMIS is extended wrt the underlying subject and applied for quantitative analysis. Indicators based on physical inputs are calculated based on monetary data of national FADN data. The methods are applied to a sample of about 4000 representative dairy farms. Results of SV are given in both absolute values and return-to-cost ratios which take farm size into account. Considering relationships between methods we found out that correlation between DEA and SV results are higher than 0.75. The indicator methods show correlations with the other approaches of more than 0.5 for economic indicators but a rather low correlation for ecological indicators. Further we identified characteristics of farms with high efficiency and sustainable performance. In order to show differences of used methods results are given by regions, size classes and orientation of production. Results indicate that bigger farms generate higher Sustainable Value. Farms in less favourable areas show a lower performance with regard to Sustainable Value and efficiency than farms located in other areas.

Suggested Citation

  • Ehrmann, Markus, 2008. "Comparing Sustainable Value Approach, Data Envelopment Analysis and indicator approaches - An application on German dairy farms," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44140, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:44140
    DOI: 10.22004/ag.econ.44140
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    References listed on IDEAS

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    1. Frank Figge & Tobias Hahn, 2005. "The Cost of Sustainability Capital and the Creation of Sustainable Value by Companies," Journal of Industrial Ecology, Yale University, vol. 9(4), pages 47-58, October.
    2. Figge, Frank & Hahn, Tobias, 2004. "Sustainable Value Added--measuring corporate contributions to sustainability beyond eco-efficiency," Ecological Economics, Elsevier, vol. 48(2), pages 173-187, February.
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    Cited by:

    1. Eva Richterová & Martin Richter & Zlata Sojková, 2021. "Regional eco-efficiency of the agricultural sector in V4 regions, its dynamics in time and decomposition on the technological and pure technical eco-efficiency change," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 16(3), pages 553-576, September.
    2. Burja Camelia & Burja Vasile, 2016. "The Economic Farm Size And Sustainable Value Disparities Between Romania And The Eu States," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 50-57, February.
    3. Floriańczyk, Zbigniew & Buks, Joanna & Kunikowski, Robert, 2012. "From the research on socially-sustainable agriculture (18)," Multiannual Program Reports 179847, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    4. Dejan Miljenoviæ, 2018. "Testing sustainable value added as an integrative measure of business sustainability," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(1), pages 103-128.
    5. Floriańczyk, Zbigniew & Kwasek, Mariola & Wrzaszcz, Wioletta & Zegar, Jozef St., 2012. "From the research on socially-sustainable agriculture [14]," Multiannual Program Reports 164839, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).

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    Environmental Economics and Policy; Livestock Production/Industries;

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