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Environmental efficiency: Meaning and measurement and application to Australian dairy farms

  • Graham, Mary
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    Technical efficiency has been widely studied in the literature, but in its pursuit, many of the inputs used can impact on the environment. Environmental effects can be modelled as undesirable output or, as has been the case in more recent studies, as conventional inputs. This paper examines the concept of environmental efficiency and how it can be used to evaluate the performance of Australian dairy farming, using nitrogen surplus, arising from excessive applications of fertilizer, as a detrimental input. Farming promotes the image of clean and green production and if this image is to be maintained, there is a need to ensure activities are environmentally friendly

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    File URL: http://purl.umn.edu/58450
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    Paper provided by Australian Agricultural and Resource Economics Society in its series 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia with number 58450.

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    Date of creation: Feb 2004
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    Handle: RePEc:ags:aare04:58450
    Contact details of provider: Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
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    1. Callens, Isabelle & Tyteca, Daniel, 1999. "Towards indicators of sustainable development for firms: A productive efficiency perspective," Ecological Economics, Elsevier, vol. 28(1), pages 41-53, January.
    2. Alfons Weersink & Calum G. Turvey & Abdulahi Godah, 1990. "Decomposition Measures of Technical Efficiency for Ontario Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(3), pages 439-456, November.
    3. 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.
    4. 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.
    5. 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.
    6. Doucouliagos, Hristos & Hone, Phillip, 2000. "Deregulation and Subequilibrium in the Australian Dairy Processing Industry," The Economic Record, The Economic Society of Australia, vol. 76(233), pages 152-62, June.
    7. B. A. Larson & H. Vroomen, 1991. "Nitrogen, Phosphorus And Land Demands At The Us Regional Level: A Primal Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 354-364.
    8. Breembroek, J. A. & Koole, B. & Poppe, K. J. & Wossink, G. A. A., 1996. "Environmental farm accounting: The case of the dutch nutrients accounting system," Agricultural Systems, Elsevier, vol. 51(1), pages 29-40.
    9. Stijn Reinhard & C. A. Knox Lovell & Geert Thijssen, 2002. "Analysis of Environmental Efficiency Variation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1054-1065.
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