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Environmental Performance and Shadow Value of Polluting on Swiss Dairy Farms

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  • Mamardashvili, Phatima
  • Emvalomatis, Grigorios
  • Jan, Pierrick

Abstract

Better understanding the trade-offs/synergies between desirable and environmentally harmful (undesirable) farm outputs is relevant for future targeting and tailoring of agri-environmental policy measures. We use a hyperbolic distance function to represent the production technology employed by Swiss dairy farms in mountainous regions, thus allowing for simultaneous expansion of desirable outputs (milk and non-milk) and contraction of undesirable output (nitrogen surplus). We calculate the farm-specific shadow price of the undesirable output. The obtained shadow prices (mean value with respect to milk output was equal to 28 Swiss francs per kg of nitrogen) provide quantitative information on farmers’ costs of reducing nitrogen pollution.

Suggested Citation

  • Mamardashvili, Phatima & Emvalomatis, Grigorios & Jan, Pierrick, 2016. "Environmental Performance and Shadow Value of Polluting on Swiss Dairy Farms," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.
  • Handle: RePEc:ags:jlaare:235154
    DOI: 10.22004/ag.econ.235154
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jean Joseph Minviel & Timo Sipiläinen, 2018. "Dynamic stochastic analysis of the farm subsidy-efficiency link: evidence from France," Journal of Productivity Analysis, Springer, vol. 50(1), pages 41-54, October.
    2. Le, Stephanie & Jeffrey, Scott R. & An, Henry, 2017. "Greenhouse gas emissions and productive efficiency in Alberta dairy production: What are the trade-offs?," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258487, Agricultural and Applied Economics Association.
    3. Mack, Gabriele & Huber, Robert, 2017. "On-farm compliance costs and N surplus reduction of mixed dairy farms under grassland-based feeding systems," Agricultural Systems, Elsevier, vol. 154(C), pages 34-44.
    4. Jean Joseph Minviel & Kristof De Witte, 2016. "The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach," Working Papers SMART - LERECO 16-10, INRAE UMR SMART-LERECO.
    5. Abayateye, F. & Skolrud, T. & Galinato, G., 2018. "Environmental Regulation Stringency and U.S. Agriculture," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277138, International Association of Agricultural Economists.
    6. Adewale Henry Adenuga & John Davis & George Hutchinson & Trevor Donnellan & Myles Patton, 2019. "Environmental Efficiency and Pollution Costs of Nitrogen Surplus in Dairy Farms: A Parametric Hyperbolic Technology Distance Function Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1273-1298, November.
    7. Minviel, Jean Joseph & De Witte, Kristof, 2016. "The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach," Working Papers 250207, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    8. Minviel, Jean Joseph & De Witte, Kristof, 2017. "The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach," European Journal of Operational Research, Elsevier, vol. 259(3), pages 1112-1120.
    9. Skevas, Ioannis & Zhu, Xueqin & Shestalova, Victoria & Emvalomatis, Grigorios, 2018. "The Impact of Agri-Environmental Policies and Production Intensification on the Environmental Performance of Dutch Dairy Farms," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(3), September.
    10. Stefano Orsini & Susanne Padel & Nic Lampkin, 2018. "Labour Use on Organic Farms: A Review of Research since 2000," Organic Farming, Librello publishing house, vol. 4(1), pages 7-15.
    11. Adenuga, A. & Davis, J. & Hutchinson, G. & Donnellan, T. & Patton, M., 2018. "Valuing Agricultural Externalities: Nitrogen Surplus in the Dairy Sector on the Island of Ireland," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277434, International Association of Agricultural Economists.

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