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Provision of environmental output within a multi-output distance function approach

Author

Listed:
  • Areal, Francisco J.
  • Tiffin, Richard
  • Balcombe, Kelvin G.

Abstract

This paper redefines technical efficiency by incorporating provision of environmental goods as one of the outputs of the farm. The proportion of permanent and rough grassland to total agricultural land area is used as a proxy for the provision of environmental goods. Stochastic frontier analysis was conducted using a Bayesian procedure. The methodology is applied to panel data on 215 dairy farms in England and Wales. Results show that farm efficiency rankings change when provision of environmental outputs by farms is incorporated in the efficiency analysis, which may have important political implications.

Suggested Citation

  • Areal, Francisco J. & Tiffin, Richard & Balcombe, Kelvin G., 2012. "Provision of environmental output within a multi-output distance function approach," Ecological Economics, Elsevier, vol. 78(C), pages 47-54.
  • Handle: RePEc:eee:ecolec:v:78:y:2012:i:c:p:47-54
    DOI: 10.1016/j.ecolecon.2012.03.011
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ang, Frederic & Oude Lansink, Alfons, 2014. "Dynamic profit inefficiency: a DEA application to Belgian dairy farms," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182649, European Association of Agricultural Economists.
    2. Barnes, Andrew Peter, 2012. "A method for constructing an index of sustainable intensification within the developed country context," Working Papers 131466, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    3. Tomasz Gerard Czekaj, 2013. "Measuring the Technical Efficiency of Farms Producing Environmental Output: Parametric and Semiparametric Estimation of Multi-output Stochastic Ray Production Frontiers," IFRO Working Paper 2013/21, University of Copenhagen, Department of Food and Resource Economics.
    4. Czekaj, Tomasz G., 2015. "Measuring the Technical Efficiency of Farms Producing Environmental Output: Semiparametric Estimation of Multi-output Stochastic Ray Production Frontiers," 2015 Conference, August 9-14, 2015, Milan, Italy 211555, International Association of Agricultural Economists.
    5. Ang, Frederic & Mortimer, Simon & Areal, Francisco & Tiffin, Richard, 2015. "The Impact of Dynamic Profit Maximization on Biodiversity: A Network DEA Application to UK Cereal Farms," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205857, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    6. repec:psc:journl:v:9:y:2017:i:3:p:243-273 is not listed on IDEAS
    7. Jerzy Marzec & Andrzej Pisulewski, 2015. "Analysis of the Economic Activity of Dairy Farms in Poland: Results obtained from the Short-run Cost Function," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 39, pages 167-182.
    8. repec:gam:jsusta:v:9:y:2017:i:9:p:1648-:d:112190 is not listed on IDEAS
    9. Barnes, Andrew Peter, 2012. "A method for constructing an index of sustainable intensification within the developed country context," Working Papers 131466, Scottish Agricultural College, Land Economy Research Group.

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