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Economic value of greenhouse gases and nitrogen surpluses: Society vs farmers’ valuation

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  • Berre, David
  • Boussemart, Jean-Philippe
  • Leleu, Hervé
  • Tillard, Emmanuel

Abstract

Livestock supply must challenge the growth of final demand in the developing countries. This challenge has to take into account its ecological effects since the dairy and livestock sectors are clearly pointed out as human activities which contribute significantly to environmental deterioration. Therefore, livestock activity models have to include desirable and undesirable outputs simultaneously. Using this perspective, we implement a Data Envelopment Analysis model to evaluate shadow prices of outputs under contradictory objectives between the society and the farmers. We show that farmers are able to reduce pollution significantly if society accepts to balance farmers’ opportunity cost. Finally, we observe that initial levels of the CO2 tax implemented in European countries are in line with farmers’ valuation while the current level of the CO2 tax tends to reach the value of pollution targeted by the society.

Suggested Citation

  • Berre, David & Boussemart, Jean-Philippe & Leleu, Hervé & Tillard, Emmanuel, 2013. "Economic value of greenhouse gases and nitrogen surpluses: Society vs farmers’ valuation," European Journal of Operational Research, Elsevier, vol. 226(2), pages 325-331.
  • Handle: RePEc:eee:ejores:v:226:y:2013:i:2:p:325-331
    DOI: 10.1016/j.ejor.2012.11.017
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    Cited by:

    1. 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.
    2. repec:eee:proeco:v:189:y:2017:i:c:p:30-39 is not listed on IDEAS
    3. Laure Latruffe & K Hervé Dakpo & Yann Desjeux & Giffona Justinia Hanitravelo, 2017. "Effect of subsidies on technical efficiency excluding or including environmental outputs: An illustration with a sample of farms in the European Union," Working Papers SMART - LERECO 17-11, INRA UMR SMART-LERECO.
    4. Jeanneaux, Philippe & Latruffe, Laure, 2016. "Modelling pollution-generating technologies in performance benchmarking: Recent developments, limits and future prospects in the nonparametric frameworkAuthor-Name: Dakpo, K. Hervé," European Journal of Operational Research, Elsevier, vol. 250(2), pages 347-359.
    5. Boussemart, Jean-Philippe & Leleu, Hervé & Shen, Zhiyang, 2017. "Worldwide carbon shadow prices during 1990–2011," Energy Policy, Elsevier, vol. 109(C), pages 288-296.
    6. Shen, Zhiyang & Boussemart, Jean-Philippe & Leleu, Hervé, 2017. "Aggregate green productivity growth in OECD’s countries," International Journal of Production Economics, Elsevier, vol. 189(C), pages 30-39.
    7. Molinos-Senante, María & Hanley, Nick & Sala-Garrido, Ramón, 2015. "Measuring the CO2 shadow price for wastewater treatment: A directional distance function approach," Applied Energy, Elsevier, vol. 144(C), pages 241-249.
    8. K Hervé Dakpo & Philippe Jeanneaux & Laure Latruffe, 2014. "Inclusion of undesirable outputs in production technology modeling:The case of greenhouse gas emissions in French meat sheep farming," Working Papers SMART - LERECO 14-08, INRA UMR SMART-LERECO.

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