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Greenhouse Gas Emissions and Eco-Performance at Farm Level: A Parametric Approach

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  • Christian Stetter

    (Technical University of Munich)

  • Johannes Sauer

    (Technical University of Munich)

Abstract

Agriculture is an important source of greenhouse gas (GHG) emissions and thus contributes considerably to global warming. However, farms can vary substantially in terms of their climatic impact. So far, most policies aiming at reducing GHG emissions from farming have largely been based on findings at the aggregate level, without taking farm heterogeneity properly into account. This study seeks to provide a better understanding of the GHG mitigation potential at the micro-level. We develop a comprehensible analytical framework for analyzing economic-ecological performance by way of stochastic frontier analysis. We introduce the concept of emission efficiency, where we distinguish between persistent and time-varying efficiency. We further analyze farms with respect to their emission-performance dynamics. Results from our (2005–2014) empirical application from Bavaria—an important region for the EU – show considerable differences in farm-level GHG emissions across different farm types. The same applies to emission efficiencies. Overall, emission performance improved over time. The results have important climate-policy implications as they help to provide better target measures for mitigating GHG emissions from agriculture, without compromising economic performance levels.

Suggested Citation

  • Christian Stetter & Johannes Sauer, 2022. "Greenhouse Gas Emissions and Eco-Performance at Farm Level: A Parametric Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(3), pages 617-647, March.
    • Handle: RePEc:kap:enreec:v:81:y:2022:i:3:d:10.1007_s10640-021-00642-1
    DOI: 10.1007/s10640-021-00642-1
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    1. Habtamu Alem, 2023. "A parametric analysis of eco-efficiency and its determinants: Evidence from Norwegian dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(7), pages 284-290.
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    3. Scarlett Wang & Frederic Ang & Alfons Oude Lansink, 2023. "Mitigating greenhouse gas emissions on Dutch dairy farms. An efficiency analysis incorporating the circularity principle," Agricultural Economics, International Association of Agricultural Economists, vol. 54(6), pages 819-837, November.
    4. Sun, Chuanwang & Xu, Zhehong & Zheng, Hongwei, 2023. "Green transformation of the building industry and the government policy effects: Policy simulation based on the DSGE model," Energy, Elsevier, vol. 268(C).
    5. Xiance Sang & Chen Chen & Die Hu & Dil Bahadur Rahut, 2024. "Economic benefits of climate-smart agricultural practices: empirical investigations and policy implications," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 29(1), pages 1-21, January.

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