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Using ecological indices to measure economic and environmental performance of irrigated agriculture

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  • Azad, Md A.S.
  • Ancev, Tihomir

Abstract

Growing public concern about the health of rivers and wetlands, and the ecosystems they support, puts pressure on large water users-such as the irrigation industry-to find ways to use less water. At the same time, the growing competitiveness of the economic environment places demands on the industry to maintain its productivity and profitability. This study develops a method, based on the concept of an environmental performance index (EPI), to measure the economic and environmental performance of irrigated agricultural enterprises. In defining environmental pressure exerted by the irrigation industry the method incorporates certain characteristics of ecological assets affected by water withdrawal for irrigation. As an empirical application, the method was applied to a case study of seventeen natural resource management (NRM) regions within the Murray-Darling Basin (MDB), Australia. Data Envelopment Analysis was used to compute the component distance functions in order to construct an EPI for each considered irrigated enterprise in each NRM region. The results of the analysis show that environmental efficiencies of irrigated enterprises vary considerably across NRM regions. These findings support the case for policy targeting by type of irrigation enterprise and by location of enterprises.

Suggested Citation

  • Azad, Md A.S. & Ancev, Tihomir, 2010. "Using ecological indices to measure economic and environmental performance of irrigated agriculture," Ecological Economics, Elsevier, vol. 69(8), pages 1731-1739, June.
  • Handle: RePEc:eee:ecolec:v:69:y:2010:i:8:p:1731-1739
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ancev, Tiho & Azad, Samad Md., 2015. "Environmentally Adjusted Productivity and Efficiency Measurement: A New Direction for the Luenberger Productivity Indicator," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 204912, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    2. Meagan Krupa & Branka Valcic, 2011. "Sustainable fisheries: how externalities impact urban fishery management," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 1(3), pages 159-168, September.
    3. M. A. Samad Azad & Tihomir Ancev, 2016. "Economics of Salinity Effects from Irrigated Cotton: An Efficiency Analysis," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 1-24, March.
    4. Vlontzos, George & Niavis, Spyros & Manos, Basil, 2014. "A DEA approach for estimating the agricultural energy and environmental efficiency of EU countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 91-96.
    5. repec:eee:ejores:v:264:y:2018:i:1:p:1-16 is not listed on IDEAS
    6. Hansen, Zeynep K. & Lowe, Scott E. & Xu, Wenchao, 2014. "Long-term impacts of major water storage facilities on agriculture and the natural environment: Evidence from Idaho (U.S.)," Ecological Economics, Elsevier, vol. 100(C), pages 106-118.
    7. Dai, Feng & Li, Pengpeng & Liang, Ling, 2016. "Long-term economic growth under environmental pressure: An optimal path," The Quarterly Review of Economics and Finance, Elsevier, vol. 59(C), pages 15-24.
    8. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    9. H. K. Millington & J. E. Lovell & C. A. K. Lovell, 2013. "Using Fieldwork, GIS and DEA to Guide Management of Urban Stream Health," CEPA Working Papers Series WP072013, School of Economics, University of Queensland, Australia.
    10. Millington, H.K. & Lovell, J.E. & Lovell, C.A.K., 2015. "A framework for guiding the management of urban stream health," Ecological Economics, Elsevier, vol. 109(C), pages 222-233.

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