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Productive Efficiency in Water Usage: An Analysis of Differences among Citrus Producing Farms Sizes in Tunisia

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  • Dhehibi, Boubaker

Abstract

The objective of this paper is to measure productive efficiency of irrigation water efficiency based on the concept of technical efficiency and compared among different sizes farms in Tunisia. The proposed methodology is applied to a randomly selected sample of 144 citrus growing farms and differentiated by size (small, medium and large farms). A stochastic production frontier approach, based on Battese and Coelli’s (1995) inefficiency effect model, is used to obtain farm-specific estimates of technical and irrigation water efficiency. The last step of the analysis consists on the identification of the factors influencing irrigation water efficiency differentials across citrus growing farms. Empirical results show that estimated mean technical efficiency ranges from a minimum of 12.82% to a maximum of 90.69% with an average estimate of 67.73%. This result means that 32.3% increase in production is possible with the present state of technology and unchanged input uses, if technical inefficiency is completely removed. Thus, improving technical efficiency will result to significant increases in framer’s revenue and profit. On the other hand, mean irrigation water efficiency is found to be 53%, which is much lower than technical efficiency and also exhibits greater variability ranging from 1.6% to 98.87%. Estimated mean irrigation water efficiency implies that the observed quantity of marketable citrus could have been maintained by using the observed values of other inputs while using 47.0% less of irrigation water. This means that farmer’s can achieve significant savings in water use by improving irrigation system technologies.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114441.

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Date of creation: 2011
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Handle: RePEc:ags:eaae11:114441

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Keywords: Water Efficiency; stochastic frontier production function; small; medium and large citrus farms; Tunisia; Crop Production/Industries;

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  1. Kopp, Raymond J, 1981. "The Measurement of Productive Efficiency: A Reconsideration," The Quarterly Journal of Economics, MIT Press, vol. 96(3), pages 477-503, August.
  2. Stijn Reinhard & C.A. Knox Lovell & Geert Thijssen, 1999. "Econometric Estimation of Technical and Environmental Efficiency: An Application to Dutch Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 44-60.
  3. Coelli, T. J., 1992. "A computer program for frontier production function estimation : Frontier version 2.0," Economics Letters, Elsevier, vol. 39(1), pages 29-32, May.
  4. Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
  5. G. Karagiannis & V. Tzouvelekas & A. Xepapadeas, 2003. "Measuring Irrigation Water Efficiency with a Stochastic Production Frontier," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(1), pages 57-72, September.
  6. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  7. Atkinson, Scott E & Cornwell, Christopher, 1994. "Estimation of Output and Input Technical Efficiency Using a Flexible Form and Panel Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(1), pages 245-55, February.
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