Measurement of agricultural total factor productivity growth incorporating environmental factors: A nutrients balance approach
This article proposes to use nutrient-orientated environmental efficiency (EE) measures to construct a nutrient total factor productivity index (NTFP). Since nutrient-orientated EE measures are consistent with the materials balance principle, NTFP index is superior to other existing TFP indexes. An empirical study on the environmental performance of an agricultural sector in 30 OECD countries from 1990 to 2003 yielded several important findings. First, these countries should be able to produce current outputs with at least 50% less aggregate eutrophying power, implying that they should have been able to substantially reduce the potential for eutrophication. Second, traditional TFP has grown by 1.6% per annum due to technical progress; however, there are lags in the responses of several countries to this technical progress. Third, environmental TFP has grown at a slower rate than traditional TFP growth due to reductions in nutrient-orientated allocative efficiency. Finally, changes in input combinations could have significantly improved environmental efficiency and productivity. These findings favor policy interventions and faster technological transfer to improve environmental performance.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Susanto Basu & David N. Weil, 1998.
"Appropriate Technology And Growth,"
The Quarterly Journal of Economics,
MIT Press, vol. 113(4), pages 1025-1054, November.
- Yaisawarng, Suthathip & Klein, J Douglass, 1994. "The Effects of Sulfur Dioxide Controls on Productivity Change in the U.S. Electric Power Industry," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 447-60, August.
- Tim J. Coelli & D. S. Prasada Rao, 2005.
"Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980-2000,"
International Association of Agricultural Economists, vol. 32(s1), pages 115-134, 01.
- Tim J. Coelli & D.S. Prasada Rao, 2003. "Total Factor Productivity Growth in Agriculture: A Malmquist Index Analysis of 93 Countries,1980-2000," CEPA Working Papers Series WP022003, School of Economics, University of Queensland, Australia.
- Shaik, Saleem & Perrin, Richard K., 2001. "Agricultural Productivity and Environmental Impacts: The Role of Non-parametric Analysis," 2001 Annual meeting, August 5-8, Chicago, IL 20565, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Daly, Herman E., 1992. "Is the entropy law relevant to the economics of natural resource scarcity?-- yes, of course it is!," Journal of Environmental Economics and Management, Elsevier, vol. 23(1), pages 91-95, July.
- C. Lovell & Shawna Grosskopf & Eduardo Ley & Jesús Pastor & Diego Prior & Philippe Eeckaut, 1994.
"Linear programming approaches to the measurement and analysis of productive efficiency,"
TOP: An Official Journal of the Spanish Society of Statistics and Operations Research,
Springer, vol. 2(2), pages 175-248, December.
- Lovell, C.A.K., 1993. "Linear Programming Approaches to the Measurement and Analysis of Productive Efficiency," Papers 393e, Georgia - College of Business Administration, Department of Economics.
- S Reinhard & G Thijssen, 2000. "Nitrogen efficiency of Dutch dairy farms: a shadow cost system approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(2), pages 167-186, June.
- Reinhard, Stijn & Knox Lovell, C. A. & Thijssen, Geert J., 2000. "Environmental efficiency with multiple environmentally detrimental variables; estimated with SFA and DEA," European Journal of Operational Research, Elsevier, vol. 121(2), pages 287-303, March.
- Atakelty Hailu & Terrence S. Veeman, 2001. "Non-parametric Productivity Analysis with Undesirable Outputs: An Application to the Canadian Pulp and Paper Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 605-616.
- Fare, Rolf & Grosskopf, Shawna & Tyteca, Daniel, 1996. "An activity analysis model of the environmental performance of firms--application to fossil-fuel-fired electric utilities," Ecological Economics, Elsevier, vol. 18(2), pages 161-175, August.
- Russell W. Pittman, 1981. "Issue in Pollution Control: Interplant Cost Differences and Economies of Scale," Land Economics, University of Wisconsin Press, vol. 57(1), pages 1-17.
- Dowrick, Steve & Gemmell, Norman, 1991. "Industrialisation, Catching Up and Economic Growth: A Comparative Study across the World's Capitalist Economies," Economic Journal, Royal Economic Society, vol. 101(405), pages 263-75, March.
- Hailu, Atakelty & Veeman, Terrence S., 2001.
"Alternative methods for environmentally adjusted productivity analysis,"
Agricultural Economics of Agricultural Economists,
International Association of Agricultural Economists, vol. 25(2-3), September.
- Hailu, Atakelty & Veeman, Terrence S., 2001. "Alternative methods for environmentally adjusted productivity analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 211-218, September.
- Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
- Fare, Rolf, et al, 1989. "Multilateral Productivity Comparisons When Some Outputs Are Undesirable: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 90-98, February.
- Pittman, Russell W, 1983. "Multilateral Productivity Comparisons with Undesirable Outputs," Economic Journal, Royal Economic Society, vol. 93(372), pages 883-91, December.
- Keller, Wolfgang, 2001.
"Geographic Localization of International Technology Diffusion,"
CEPR Discussion Papers
2706, C.E.P.R. Discussion Papers.
- Wolfgang Keller, 2002. "Geographic Localization of International Technology Diffusion," American Economic Review, American Economic Association, vol. 92(1), pages 120-142, March.
- Wolfgang Keller, 2000. "Geographic Localization of International Technology Diffusion," NBER Working Papers 7509, National Bureau of Economic Research, Inc.
- Jules Pretty & Craig Brett & David Gee & Rachel Hine & Chris Mason & James Morison & Matthew Rayment & Gert Van Der Bijl & Thomas Dobbs, 2001. "Policy Challenges and Priorities for Internalizing the Externalities of Modern Agriculture," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 44(2), pages 263-283.
- Summers, Robert, 1973. "International Price Comparisons Based Upon Incomplete Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 19(1), pages 1-16, March.
- Scheel, Holger, 2001. "Undesirable outputs in efficiency valuations," European Journal of Operational Research, Elsevier, vol. 132(2), pages 400-410, July.
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
- Fare, Rolf, et al, 1993. "Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 374-80, May.
- Atkinson, Anthony B & Stiglitz, Joseph E, 1969. "A New View of Technological Change," Economic Journal, Royal Economic Society, vol. 79(315), pages 573-78, September.
- Robert Ayres, 1995. "Thermodynamics and process analysis for future economic scenarios," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 6(3), pages 207-230, October.
- Seiford, Lawrence M. & Zhu, Joe, 2002. "Modeling undesirable factors in efficiency evaluation," European Journal of Operational Research, Elsevier, vol. 142(1), pages 16-20, October.
- Stijn Reinhard & C.A. Knox Lovell & Geert Thijssen, 1999. "Econometric Estimation of Technical and Environmental Efficiency: An Application to Dutch Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 44-60.
- Tim Coelli & Ludwig Lauwers & Guido Huylenbroeck, 2007. "Environmental efficiency measurement and the materials balance condition," Journal of Productivity Analysis, Springer, vol. 28(1), pages 3-12, October.
When requesting a correction, please mention this item's handle: RePEc:eee:jeeman:v:62:y:2011:i:3:p:462-474. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.