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Environmental and technical efficiency of French suckler sheep farms under pollution‐generating technologies: A multi‐equation stochastic frontier approach using info‐metrics

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  • Jean‐Joseph Minviel
  • Marc Benoit
  • Laure Latruffe

Abstract

Reducing the negative environmental impact of production activities without (substantial) loss of production is a crucial challenge for the agricultural sector. Investigating farms' environmental and technical efficiency (TE) levels and drivers can contribute to addressing this issue. In this regard, based on recent theoretical developments on the appropriate handling of undesirable outputs in the modeling of production technologies, this paper introduces a multi‐equation stochastic frontier framework for technical and environmental efficiency (EE) analysis. This framework is applied to a sample of French suckler sheep farms. The results indicate that, on average, farms in the sample can increase their desirable output by 20% without using more inputs while reducing their greenhouse gas emissions by 24%. Findings also show that relatively high (low) levels of TE are associated with relatively low (high) levels of EE and that the likelihood for a farm to be both technically and environmentally efficient is relatively low. Only 32% of the farms in the sample have a high level of TE and EE. Drivers such as decoupled direct payments are positively associated with EE and negatively associated with TE, while no significant effect is found for green direct payments. La réduction des impacts environnementaux négatifs des activités de production sans perte (substantielle) de production est un défi crucial pour le secteur agricole. L'étude des niveaux et des facteurs d'efficience environnementale et technique des exploitations agricoles peut contribuer à résoudre ce problème. À cet égard, sur la base de développements théoriques récents concernant le traitement approprié des outputs indésirables dans la modélisation des technologies de production, cet article introduit une approche de frontière stochastique multi‐équations pour l'analyse de l'efficience technique et environnementale. Ce cadre est appliqué à un échantillon d'exploitations françaises d'élevage d'ovins allaitants. Les résultats indiquent qu'en moyenne, les exploitations de l'échantillon peuvent augmenter leur production de viande de 20% sans utiliser davantage d'intrants, tout en réduisant leurs émissions de gaz à effet de serre de 24%. Les résultats montrent également que des niveaux relativement élevés (faibles) d'efficience technique sont associés à des niveaux relativement faibles (élevés) d'efficience environnementale et que la probabilité qu'une exploitation soit à la fois efficiente sur le plan technique et environnemental est relativement faible. Seulement 32% des exploitations de l'échantillon ont un niveau élevé d'efficience technique et environnementale. Des facteurs tels que les paiements directs découplés sont positivement associés à l'efficience environnementale et négativement associés à l'efficience technique, tandis qu'aucun effet significatif n'est constaté pour les paiements directs verts.

Suggested Citation

  • Jean‐Joseph Minviel & Marc Benoit & Laure Latruffe, 2025. "Environmental and technical efficiency of French suckler sheep farms under pollution‐generating technologies: A multi‐equation stochastic frontier approach using info‐metrics," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 73(2), pages 155-180, June.
  • Handle: RePEc:bla:canjag:v:73:y:2025:i:2:p:155-180
    DOI: 10.1111/cjag.12384
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    6. Gralka, Sabine, 2018. "Stochastic frontier analysis in higher education: A systematic review," CEPIE Working Papers 05/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    7. Tateishi, Henrique Ryosuke & Bragagnolo, Cassiano & de Faria, Rosane Nunes, 2020. "Economic and environmental efficiencies of greenhouse gases’ emissions under institutional influence," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    8. Amer Ait Sidhoum, 2023. "Assessing the contribution of farmers’ working conditions to productive efficiency in the presence of uncertainty, a nonparametric approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8601-8622, August.
    9. Lien, Gudbrand & Kumbhakar, Subal C. & Alem, Habtamu, 2018. "Endogeneity, heterogeneity, and determinants of inefficiency in Norwegian crop-producing farms," International Journal of Production Economics, Elsevier, vol. 201(C), pages 53-61.
    10. Alfons Oude Lansink & Alan Wall, 2014. "Frontier models for evaluating environmental efficiency: an overview," Economics and Business Letters, Oviedo University Press, vol. 3(1), pages 43-50.
    11. 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.
    12. Subal C. Kumbhakar & Christopher F. Parmeter & Valentin Zelenyuk, 2022. "Stochastic Frontier Analysis: Foundations and Advances I," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 8, pages 331-370, Springer.
    13. Orea, Luis, 2019. "The Econometric Measurement of Firms’ Efficiency," Efficiency Series Papers 2019/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    14. Magambo, Isaiah Hubert & Dikgang, Johane & Gelo, Dambala & Tregenna, Fiona, 2021. "Dynamic Technical and Environmental Efficiency Performance of Large Gold Mines in Developing Countries," EconStor Preprints 235859, ZBW - Leibniz Information Centre for Economics.
    15. Huang, Wei & Bruemmer, Bernhard & Huntsinger, Lynn, 2016. "Incorporating measures of grassland productivity into efficiency estimates for livestock grazing on the Qinghai-Tibetan Plateau in China," Ecological Economics, Elsevier, vol. 122(C), pages 1-11.
    16. Vogel, Everton & Dalheimer, Bernhard & Beber, Caetano Luiz & de Mori, Claudia & Palhares, Julio Cesar Pascale & Novo, André Luiz Monteiro, 2023. "Environmental efficiency and methane abatement costs of dairy farms from Minas Gerais, Brazil," Food Policy, Elsevier, vol. 119(C).
    17. Andreas Eder, 2022. "Environmental efficiency measurement when producers control pollutants under heterogeneous conditions: a generalization of the materials balance approach," Journal of Productivity Analysis, Springer, vol. 57(2), pages 157-176, April.
    18. Andreas Eder, 2021. "Environmental efficiency measurement when producers control pollutants under heterogeneous conditions: a generalization of the materials balance approach," Working Papers 752021, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    19. repec:zbw:inwedp:752021 is not listed on IDEAS
    20. Raushan Bokusheva & Lukáš Čechura & Subal C. Kumbhakar, 2023. "Estimating persistent and transient technical efficiency and their determinants in the presence of heterogeneity and endogeneity," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 450-472, June.
    21. Emir Malikov & Subal C. Kumbhakar & Efthymios G. Tsionas, 2015. "Bayesian Approach to Disentangling Technical and Environmental Productivity," Econometrics, MDPI, vol. 3(2), pages 1-23, June.

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