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Technical Efficiency among Organic and Conventional Farms in Sweden 2000-2002: A Counterfactual and Self-Selection Analysis

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  • Larsen, Karin
  • Foster, Kenneth A.

Abstract

Technical efficiency and its determinants among organic and conventional farms in Sweden are analyzed for time-period 2000-2002. In addition, we address the issues that arise when comparing performance measures among the two groups of producers (conventional and organic) due differences in their technologies and the potential presence of self-selection in the farmer's choice of using conventional or organic production methods. If the choice of production method is based on, or at least in part based on, the farms expected productivity in organic and conventional farming respectively there is self-selection present that must be considered. We apply an endogenous switching regression model suggested by Lee (1978) to compare efficiency measures between the two groups that also allows for testing for the presence of self-selection. The results suggest that organic producers have a lower average technical efficiency which is expected because they use a more restricted technology. Moreover, the results suggest that the organic farmers are on average more efficient in organic production than the average conventional would have been in organic production.

Suggested Citation

  • Larsen, Karin & Foster, Kenneth A., 2005. "Technical Efficiency among Organic and Conventional Farms in Sweden 2000-2002: A Counterfactual and Self-Selection Analysis," 2005 Annual meeting, July 24-27, Providence, RI 19219, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19219
    DOI: 10.22004/ag.econ.19219
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    Citations

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    Cited by:

    1. Djokoto, Justice G., 2015. "Technical efficiency of organic agriculture: a quantitative review," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 117(2), pages 1-11, August.
    2. Singh, S.P. & Sajwan, Priya & Sajwan, Komal, 2023. "Technical Efficiency in Organic and Conventional Wheat Farms: Evidence from a Primary Survey from Two Districts of Ganga River Basin, India," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334558, Agricultural Economics Society - AES.
    3. Charyulu Kumara D. & Biswas, Subho, 2010. "Economics and Efficiency of Organic Farming vis-à-vis Conventional Farming in India," IIMA Working Papers WP2010-04-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. Stefano Orsini & Susanne Padel & Nic Lampkin, 2018. "Labour Use on Organic Farms: A Review of Research since 2000," Organic Farming, Librello publishing house, vol. 4(1), pages 7-15.
    5. Spiegel, Alisa & Coletta, Attilio & Severini, Simone, 2022. "The distortive effect of organic payments: An example of policy failure in the case of hazelnut plantation," Land Use Policy, Elsevier, vol. 119(C).

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    Keywords

    Farm Management;

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