Energy efficiency measurement in agriculture with imprecise energy content information
AbstractEnergy efficiency measurement is crucial when planning energy reduction policies. However, decision makers understandably are reluctant to act in the absence of solid data and results supporting a policy position. The main objective of this paper is to propose an alternative method to measure farm energy efficiency. This method is based on the Data Envelopment Analysis (DEA) approach in a cost framework introduced by Farrell (1957) and developed by Färe et al. (1985). We decompose energy efficiency measurement into two components, namely technical and allocative efficiencies. Here, input prices are replaced by their energy content. The energy efficiency model is used to explore the optimal input-mix that produces the current outputs at minimum energy-consumption. We show that this decomposition can help policy makers considerably to design accurate energy policies. The presence of uncertainty on data, and more particularly on energy content of inputs, leads us to recommend exploiting the methodologies proposed for calculating the bounds of efficiency measurement in order to produce more robust results. We expect to alert policy-makers in the fact that efficiency is not a fixed value and should be considered with caution. A 2007 database of French farms specialized in crops is used for empirical illustration.
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Bibliographic InfoPaper provided by INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux in its series INRA UMR CESAER Working Papers with number 2012/6.
Date of creation: 06 Sep 2012
Date of revision:
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Data Envelopment Analysis; energy efficiency; uncertainty;
Other versions of this item:
- Blancard, Stéphane & Martin, Elsa, 2014. "Energy efficiency measurement in agriculture with imprecise energy content information," Energy Policy, Elsevier, vol. 66(C), pages 198-208.
- Blancard, Stephane & Martin, Elsa, 2012. "Energy efficiency measurement in agriculture with imprecise energy content information," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 130583, International Association of Agricultural Economists.
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-09-22 (Agricultural Economics)
- NEP-ALL-2012-09-22 (All new papers)
- NEP-EFF-2012-09-22 (Efficiency & Productivity)
- NEP-ENE-2012-09-22 (Energy Economics)
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