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Technical efficiency of Swiss dairy farms locat-ed in the mountain area considering both eco-nomic and environmental resources

Author

Listed:
  • Pierrick Jan

    (Agroscope Reckenholz-Tänikon Research Station ART)

  • Markus Lips

    (Agroscope Reckenholz-Tänikon Research Station ART)

  • Michel Dumondel

    (ETH Zürich, Institute for Environmental Decisions)

Abstract

Increasing the efficiency of the use of economic and environmental resources of Swiss farms is a priority of Swiss agricultural policy as part of the objective of improving the sustainable performance of the Swiss agricultural sector. In this paper we assess the long-run technical efficiency of the use of economic and environmental resources of a sample of 480 Swiss dairy farms located in the mountain area using the non-parametric Data Envelopment Analy-sis approach. In a second step, using a linear regression, we inves-tigate the determinants of this technical efficiency. The results of the regression performed show that farm size and the strategic orientation of farm activity have a much greater effect on efficiency than the characteristics of the dairy production system or dairy herd management. An increase in farm size and an increased ori-entation towards para-agricultural activities are shown to exert a strong positive effect on technical efficiency. Conversely, part-time farming turns out to have a substantial negative impact on the effi-ciency of resource use.

Suggested Citation

  • Pierrick Jan & Markus Lips & Michel Dumondel, 2010. "Technical efficiency of Swiss dairy farms locat-ed in the mountain area considering both eco-nomic and environmental resources," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 3(1), pages 39-76.
  • Handle: RePEc:cha:ysa001:v:3:y:2010:i:1:p:39-76
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    File URL: http://archive.jsagr.org/v3/YSA2010_2_Jan_Lips_39_76.pdf
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    References listed on IDEAS

    as
    1. Daly, Herman E., 1992. "Allocation, distribution, and scale: towards an economics that is efficient, just, and sustainable," Ecological Economics, Elsevier, vol. 6(3), pages 185-193, December.
    2. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    3. Fare, Rolf, et al, 1989. "Multilateral Productivity Comparisons When Some Outputs Are Undesirable: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 90-98, February.
    4. Dyson, R. G. & Allen, R. & Camanho, A. S. & Podinovski, V. V. & Sarrico, C. S. & Shale, E. A., 2001. "Pitfalls and protocols in DEA," European Journal of Operational Research, Elsevier, vol. 132(2), pages 245-259, July.
    5. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    6. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    7. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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    Cited by:

    1. 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.

    More about this item

    Keywords

    efficiency analysis; economic resources; environmental resources; dairy farms; Switzerland;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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