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Ranking farms with a composite indicator of sustainability

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Author Info

  • Ernest Reig-Martínez

    ()
    (Universidad de Valencia. Dpto. Economía Aplicada II)

  • José A. Gómez-Limón

    (Instituto Andaluz de Investigación y Formación Agraria y Pesquera. Dpto. Economía Agraria. Córdoba.)

  • Andrés J. Picazo-Tadeo

    (Universidad de Valencia. Dpto. Economía Aplicada II and Instituto Valenciano de Investigaciones Económicas (IVIE).)

Abstract

The assessment of sustainability at farm level has been growing in popularity over the last years. This paper contributes to this line of research by building up composite indicators for different facets –social, economic, environmental and global– of farm sustainability using a methodological approach that combines Data Envelopment Analysis and Multi Criteria Decision Methods. This approach is applied to a database of 163 farms located in the Spanish Northern Plateau. Our findings show that both economic and environmental sustainability indicators are positively correlated, but that this is not the case for the social indicator. We also check the influence of a set of variables on farm sustainability using bootstrapping techniques, and showing that increasing farm size, membership on agricultural cooperatives and farmers’ medium and upper agricultural-specific technical education all exert a significant positive influence on sustainability. These results provide clues for policy-makers that intend to design sustainability-increasing structural agricultural policies.

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Bibliographic Info

Paper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1005.

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Length: 46 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:eec:wpaper:1005

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Keywords: Sustainability index; Agriculture; Data Envelopment Analysis; Multi-Criteria Decision Making; Spain;

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References

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  1. Diaz-Balteiro, Luis & Romero, Carlos, 2004. "In search of a natural systems sustainability index," Ecological Economics, Elsevier, vol. 49(3), pages 401-405, July.
  2. Van Passel, Steven & Nevens, Frank & Mathijs, Erik & Van Huylenbroeck, Guido, 2007. "Measuring farm sustainability and explaining differences in sustainable efficiency," Ecological Economics, Elsevier, vol. 62(1), pages 149-161, April.
  3. Latacz-Lohmann, Uwe & Hodge, Ian D., 2003. "European agri-environmental policy for the 21st century," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(1), March.
  4. Gómez-Limón, José A. & Sanchez-Fernandez, Gabriela, 2010. "Empirical evaluation of agricultural sustainability using composite indicators," Ecological Economics, Elsevier, vol. 69(5), pages 1062-1075, March.
  5. Andr�s J Picazo-Tadeo & Andr�s Garc�a-Reche, 2007. "What makes environmental performance differ between firms? Empirical evidence from the Spanish tile industry," Environment and Planning A, Pion Ltd, London, vol. 39(9), pages 2232-2247, September.
  6. Bohringer, Christoph & Jochem, Patrick E.P., 2007. "Measuring the immeasurable -- A survey of sustainability indices," Ecological Economics, Elsevier, vol. 63(1), pages 1-8, June.
  7. André, Francisco J. & Herrero, Inés & Riesgo, Laura, 2010. "A modified DEA model to estimate the importance of objectives with an application to agricultural economics," Omega, Elsevier, vol. 38(5), pages 371-382, October.
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Cited by:
  1. Ryan, Mary & Buckley, Cathal & Dillon, Emma Jane & Donnellan, Trevor & Hanrahan, Kevin & Hennessy, Thia & Moran, Brian, 2014. "The development of farm-level sustainability indicators for Ireland using the Teagasc National Farm Survey," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 170501, Agricultural Economics Society.
  2. Jorge Guardiola & Andrés Picazo-Tadeo, 2014. "Building Weighted-Domain Composite Indices of Life Satisfaction with Data Envelopment Analysis," Social Indicators Research, Springer, vol. 117(1), pages 257-274, May.
  3. Jorge Guardiola & Andrés J. Picazo-Tadeo, 2013. "Weighting life domains with Data Envelopment Analysis," Working Papers 1311, Department of Applied Economics II, Universidad de Valencia.
  4. Dong, Fengxia & Jensen, Helen H., 2011. "Measuring Food Safety Control in U.S. Hog Farms Using a Composite Indicator," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103863, Agricultural and Applied Economics Association.
  5. Cem Iskender Aydin & Gokhan Ozertan & Begum Ozkaynak, 2011. "Should Turkey Adopt GM Crops? A Social Multi-Criteria Evaluation for the Case of Cotton Farming in Turkey," Working Papers 2011/07, Bogazici University, Department of Economics.
  6. Gerdessen, Johanna C. & Pascucci, Stefano, 2013. "Data Envelopment Analysis of sustainability indicators of European agricultural systems at regional level," Agricultural Systems, Elsevier, vol. 118(C), pages 78-90.
  7. Ernest Reig-Martínez, 2013. "Social and Economic Wellbeing in Europe and the Mediterranean Basin: Building an Enlarged Human Development Indicator," Social Indicators Research, Springer, vol. 111(2), pages 527-547, April.
  8. Ernest Reig, 2012. "Building an Enlarged Human Development Indicator: Europe and the Southern Mediterranean Basin," Working Papers 1203, Department of Applied Economics II, Universidad de Valencia.
  9. Cristina Bernini & Andrea Guizzardi & Giovanni Angelini, 2013. "DEA-Like Model and Common Weights Approach for the Construction of a Subjective Community Well-Being Indicator," Social Indicators Research, Springer, vol. 114(2), pages 405-424, November.
  10. Picazo-Tadeo, Andrés J. & Beltrán-Esteve, Mercedes & Gómez-Limón, José A., 2012. "Assessing eco-efficiency with directional distance functions," European Journal of Operational Research, Elsevier, vol. 220(3), pages 798-809.

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