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Pesticide use, environmental spillovers and efficiency: A DEA risk-adjusted efficiency approach applied to Dutch arable farming

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  • Skevas, Theodoros
  • Stefanou, Spiro E.
  • Oude Lansink, Alfons

Abstract

Pesticides are widely used by crop producers in developed countries to combat risk associated with pests and diseases. However, their indiscriminate use can lead to various environmental spillovers that may alter the agricultural production environment thus contributing to production risk. This study utilises a data envelopment analysis (DEA) approach to measure performance of arable farms, incorporating pesticides’ environmental spillovers and output variance as undesirable outputs in the efficiency analysis and taking explicitly into account the effect of pesticides and other inputs on production risk. The application focuses on panel data from Dutch arable farms over the period 2003–2007. A moment approach is used to compute output variance, providing empirical representations of the risk-increasing or -decreasing nature of the used inputs. Finally, shadow values of risk-adjusted inputs are computed. We find that pesticides are overused in Dutch arable farming and there is a considerable evidence of the need for decreasing pesticides’ environmental spillovers.

Suggested Citation

  • Skevas, Theodoros & Stefanou, Spiro E. & Oude Lansink, Alfons, 2014. "Pesticide use, environmental spillovers and efficiency: A DEA risk-adjusted efficiency approach applied to Dutch arable farming," European Journal of Operational Research, Elsevier, vol. 237(2), pages 658-664.
  • Handle: RePEc:eee:ejores:v:237:y:2014:i:2:p:658-664
    DOI: 10.1016/j.ejor.2014.01.046
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    2. Theodoros Skevas & Teresa Serra, 2016. "The role of pest pressure in technical and environmental inefficiency analysis of Dutch arable farms: an event-specific data envelopment approach," Journal of Productivity Analysis, Springer, vol. 46(2), pages 139-153, December.
    3. repec:pal:eurjdr:v:31:y:2019:i:4:d:10.1057_s41287-018-0190-z is not listed on IDEAS
    4. Finger, Robert & Möhring, Niklas & Dalhaus, Tobias & Böcker, Thomas, 2017. "Revisiting Pesticide Taxation Schemes," Ecological Economics, Elsevier, vol. 134(C), pages 263-266.
    5. Boussemart, Jean-Philippe & Crainich, David & Leleu, Hervé, 2015. "A decomposition of profit loss under output price uncertainty," European Journal of Operational Research, Elsevier, vol. 243(3), pages 1016-1027.
    6. Bampatsou, Christina & Halkos, George, 2019. "Economic growth, efficiency and environmental elasticity for the G7 countries," Energy Policy, Elsevier, vol. 130(C), pages 355-360.
    7. Sueyoshi, Toshiyuki & Goto, Mika, 2019. "The intermediate approach to sustainability enhancement and scale-related measures in environmental assessment," European Journal of Operational Research, Elsevier, vol. 276(2), pages 744-756.
    8. Halkos, George & Petrou, Kleoniki Natalia, 2018. "A critical review of the main methods to treat undesirable outputs in DEA," MPRA Paper 90374, University Library of Munich, Germany.
    9. Sueyoshi, Toshiyuki & Yuan, Yan, 2015. "Comparison among U.S. industrial sectors by DEA environmental assessment: Equipped with analytical capability to handle zero or negative in production factors," Energy Economics, Elsevier, vol. 52(PA), pages 69-86.
    10. Theodoros Skevas & Teresa Serra, 2017. "Derivation of netput shadow prices under different levels of pest pressure," Journal of Productivity Analysis, Springer, vol. 48(1), pages 25-34, August.
    11. Borodin, Valeria & Bourtembourg, Jean & Hnaien, Faicel & Labadie, Nacima, 2016. "Handling uncertainty in agricultural supply chain management: A state of the art," European Journal of Operational Research, Elsevier, vol. 254(2), pages 348-359.
    12. Halkos, George & Petrou, Kleoniki Natalia, 2019. "Treating undesirable outputs in DEA: A critical review," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 97-104.
    13. Böcker, Thomas & Britz, Wolfgang & Finger, Robert, 2017. "Modelling the Effects of a Glyphosate Ban on Weed Management in Maize Production," 57th Annual Conference, Weihenstephan, Germany, September 13-15, 2017 261982, German Association of Agricultural Economists (GEWISOLA).

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