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Agriculture's environmental externalities: DEA evidence for French agriculture

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  • Isabelle Piot-Lepetit
  • Dominique Vermersch
  • Robert Weaver

Abstract

The existence of persistent technical inefficiency offers the opportunity for a 'free lunch' not typically implied by the neoclassical theory of the firm. When external effects are related to the use of particular inputs, reduction of persistent technically inefficient levels of input use represents a means of reducing external impacts. An important example is found in agriculture where substantial environmental impacts are generated by particular inputs. Within this context, this paper considers the usefulness of data envelopment analysis (DEA) for estimation of potential input reductions and assessment of potential reductions of environmental impacts of agricultural inputs. An application for French cereal production provides estimates that indicate that substantial potential exists for reduction of input use and environmental impacts.

Suggested Citation

  • Isabelle Piot-Lepetit & Dominique Vermersch & Robert Weaver, 1997. "Agriculture's environmental externalities: DEA evidence for French agriculture," Applied Economics, Taylor & Francis Journals, vol. 29(3), pages 331-338.
  • Handle: RePEc:taf:applec:v:29:y:1997:i:3:p:331-338
    DOI: 10.1080/000368497327100
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    1. Karira, Wanderi J. & Mburu, John I. & Guthiga, Paul M., 2013. "Empirical Analysis of the Environmental Benefits of Compliance with GLOBALGAP Standards Among Smallholder Farmers in Eastern and Central Kenya: An Environmental Valuation Approach," 2013 AAAE Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161484, African Association of Agricultural Economists (AAAE).
    2. Weaver, Robert D. & Kim, Taeho, 1999. "Targeting Environmental Protection In Agriculture: Ipm And Bmps As Environmental Performance Indicators," 1999 Annual meeting, August 8-11, Nashville, TN 21576, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Fraser, I. & Cordina, D., 1999. "An application of data envelopment analysis to irrigated dairy farms in Northern Victoria, Australia," Agricultural Systems, Elsevier, vol. 59(3), pages 267-282, March.
    4. Reig-Martinez, Ernest & Picazo-Tadeo, Andres J., 2004. "Analysing farming systems with Data Envelopment Analysis: citrus farming in Spain," Agricultural Systems, Elsevier, vol. 82(1), pages 17-30, October.
    5. Nodjitigje DJIMASRA, 2010. "Mesure de l'efficacité technique des pays africains producteurs du coton : une application de la méthode Data Envelopment Analysis (DEA)," LEO Working Papers / DR LEO 1207, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    6. Watkins, K. Bradley & Henry, Christopher G. & Mazzanti, Ralph & Schmidt, Lance & Hardke, Jarrod T., 2014. "Non-Radial Technical Efficiency of Water and Nitrogen Usage in Arkansas Rice Production," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162593, Southern Agricultural Economics Association.
    7. Lilienfeld, Amy & Asmild, Mette, 2007. "Estimation of excess water use in irrigated agriculture: A Data Envelopment Analysis approach," Agricultural Water Management, Elsevier, vol. 94(1-3), pages 73-82, December.
    8. Charles, Vincent & Kumar, Mukesh & Irene Kavitha, S., 2012. "Measuring the efficiency of assembled printed circuit boards with undesirable outputs using data envelopment analysis," International Journal of Production Economics, Elsevier, vol. 136(1), pages 194-206.
    9. repec:ags:joaaec:163230 is not listed on IDEAS
    10. Farnaz Pourzand & Mohammad Bakhshoodeh, 2014. "Technical effici ency and agricultural sustainability–technology gap of maize producers in Fars province of Iran," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(3), pages 671-688, June.
    11. Fousekis, Panos & Spathis, Pavlos & Tsimboukas, Konstantinos, 2001. "Assessing the Efficiency of Sheep Farming in Mountainous Areas of Greece. A Non Parametric Approach," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 2(2), August.
    12. Henderson, Benjamin B. & Kingwell, Ross S., 2005. "Rainfall and Farm Efficiency Measurement for Broadacre Agriculture in South-Western Australia," Australasian Agribusiness Review, University of Melbourne, Melbourne School of Land and Environment, vol. 13.
    13. Boussemart, Jean-Philippe & Leleu, Hervé & Ojo, Oluwaseun, 2011. "Could society's willingness to reduce pesticide use be aligned with farmers' economic self-interest?," Ecological Economics, Elsevier, vol. 70(10), pages 1797-1804, August.
    14. Isabelle Piot-Lepetit & Dominique Vermersch, 1998. "Pricing Organic Nitrogen Under The Weak Disposability Assumption: An Application to the French Pig Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(1), pages 85-99.
    15. Joseph Sarkis & Srinivas Talluri, 2013. "Using data envelopment analysis for ecoefficiency evaluation," Chapters,in: Handbook of Sustainable Development Planning, chapter 7, pages 141-158 Edward Elgar Publishing.
    16. Dervaux, Benoît & Kerstens, Kristiaan & Vanden Eeckaut, Philippe, 1998. "Radial and nonradial static efficiency decompositions: a focus on congestion measurement," Transportation Research Part B: Methodological, Elsevier, vol. 32(5), pages 299-312, June.
    17. Salazar-Ordóñez, Melania & Pérez-Hernández, Pedro P. & Martín-Lozano, José M., 2013. "Sugar beet for bioethanol production: An approach based on environmental agricultural outputs," Energy Policy, Elsevier, vol. 55(C), pages 662-668.
    18. Timo Kuosmanen & Mika Kortelainen, 2004. "Data Envelopment Analysis in Environmental Valuation: Environmental Performance, Eco-efficiency and Cost-Benefit Analysis," Others 0409004, EconWPA.
    19. Chuku, Chuku, 2015. "Incorporating Environmental Externalities in Total Factor Productivity Analysis: The Case of Soil Erosion in Nigerian Agriculture," MPRA Paper 68165, University Library of Munich, Germany.
    20. U Pascual, 2001. "Soil Degradation and Technical Efficiency in Shifting Cultivation: The Case of Yucatán (Mexico)," The School of Economics Discussion Paper Series 0116, Economics, The University of Manchester.
    21. Lauwers, Ludwig H. & Van Huylenbroeck, Guido, 2003. "Materials Balance Based Modelling Of Environmental Efficiency," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25916, International Association of Agricultural Economists.
    22. Munksgaard, Jesper & Christoffersen, Line Block & Keiding, Hans & Pedersen, Ole Gravgard & Jensen, Trine S., 2007. "An environmental performance index for products reflecting damage costs," Ecological Economics, Elsevier, vol. 64(1), pages 119-130, October.
    23. Picazo-Tadeo, Andres J. & Reig-Martinez, Ernest, 2007. "Farmers' costs of environmental regulation: Reducing the consumption of nitrogen in citrus farming," Economic Modelling, Elsevier, vol. 24(2), pages 312-328, March.

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