Technical efficiency and conversion to organic farming: the case of France
AbstractUsing a panel of French crop farms, we test whether farmers’ technical efficiency under conventional practices is a significant driver of conversion to organic farming. An important issue is whether subsidies to organic farming could encourage inefficient farmers to convert. We find that the probability of conversion does depend on technical efficiency preceding the conversion, but that the direction of the effect depends on farm size. This result is found to be robust to the method of calculation of efficiency scores, either parametric or non-parametric. This study also confirms that farm’s characteristics impact the probability of conversion to organic farming.
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Bibliographic InfoPaper provided by INRA UMR SMART in its series Working Papers SMART - LERECO with number 201017.
Length: 35 pages
Date of creation: 2010
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organic farming; technical efficiency; subsidies; adverse selection; France;
Other versions of this item:
- Latruffe, Laure & Nauges, Céline, 2010. "Technical efficiency and conversion to organic farming: the case of France," TSE Working Papers 10-209, Toulouse School of Economics (TSE).
- Latruffe, Laure & Nauges, CÃ©line, 2010. "Technical efficiency and conversion to organic farming: the case of France," LERNA Working Papers 10.23.329, LERNA, University of Toulouse.
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
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