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Greenhouse Gas Emissions and Technical Efficiency in Alberta Dairy Production: What Are the Trade-Offs?

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  • Le, Stephanie
  • Jeffrey, Scott
  • An, Henry

Abstract

The impact of greenhouse gas (GHG) reduction on the efficiency of Alberta’s dairy industry is assessed through a technical efficiency analysis over the period 1996–2016, with and without emissions included as a “bad” output. Environmentally adjusted technical efficiency and technical efficiency estimates are highly correlated; thus, reducing GHG emissions may not result in decreased efficiency. Increased milk per cow, a southern Alberta location, and increased use of forage are associated with greater environmentally adjusted technical efficiency. The opportunity cost of foregone milk revenue associated with reduced emissions is Can$308.29 per metric ton of GHG. The results imply possible policy strategies to reduce emissions.

Suggested Citation

  • Le, Stephanie & Jeffrey, Scott & An, Henry, 2020. "Greenhouse Gas Emissions and Technical Efficiency in Alberta Dairy Production: What Are the Trade-Offs?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 52(2), pages 177-193, May.
    • Handle: RePEc:cup:jagaec:v:52:y:2020:i:2:p:177-193_1
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    Cited by:

    1. Jean Joseph Minviel & Timo Sipiläinen, 2021. "A dynamic stochastic frontier approach with persistent and transient inefficiency and unobserved heterogeneity," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 575-589, July.
    2. Kuhle Prudence Mnisi & Abdul Latif Alhassan, 2021. "Financial structure and cooperative efficiency: A pecking‐order evidence from sugarcane farmers in Eswatini," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 261-281, June.
    3. Scarlett Wang & Frederic Ang & Alfons Oude Lansink, 2023. "Mitigating greenhouse gas emissions on Dutch dairy farms. An efficiency analysis incorporating the circularity principle," Agricultural Economics, International Association of Agricultural Economists, vol. 54(6), pages 819-837, November.
    4. Habtamu Alem, 2023. "A parametric analysis of eco-efficiency and its determinants: Evidence from Norwegian dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(7), pages 284-290.

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