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Measurement Of Agricultural Total Factor Productivity Growth Incorporating Environmental Factors: A Nutrients Balance Approach

  • Hoang, Viet-Ngu
  • Coelli, Tim J.

This paper develops a new measure of total factor productivity growth in agricultural production which incorporates environmental effects. The new measure is called the Total Factor Nutrient-Orientated Productivity (TFNP) Index, and incorporates a materials balance condition. TFNP measures changes in nutrient-orientated efficiency and can be decomposed into efficiency change (EC), technological change (TC) and nutrient-orientated technological change (NTC) components. An empirical analysis, involving country-level data from OECD countries during 1990-2003, is provided using DEA methods. Estimates of mean technical and nutrient-orientated efficiency are 0.798 and 0.526, respectively. Estimated mean TFNP growth is 1.5% per year, with nutrient-orientated technological progress contributing 0.8%.

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File URL: http://purl.umn.edu/47636
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Paper provided by Australian Agricultural and Resource Economics Society in its series 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia with number 47636.

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Date of creation: 2009
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Handle: RePEc:ags:aare09:47636
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