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Effect Of Subsidies On Technical Efficiency Excluding Or Including Environmental Outputs: An Illustration With A Sample Of Farms In The European Union

Author

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  • Latruffe, Laure
  • Dakpo, K.Hervé
  • Desjeux, Yann
  • Justinia Hanitravelo, Giffona

Abstract

With a sample of farms in the European Union (EU) and Farm Accountancy Data Network (FADN) data completed by additionally collected data, we illustrate how the effect of farm subsidies on technical efficiency changes when environmental outputs are incorporated in the calculation of technical efficiency. Results indicate that the effect of the Common Agricultural Policy (CAP) operational subsidies on farm technical efficiency changes when environmental outputs (namely greenhouse gas emissions, nitrogen balance and ecological focus areas) are taken into account in the efficiency calculation: some effects change significance, and more importantly, some effects change sign.

Suggested Citation

  • Latruffe, Laure & Dakpo, K.Hervé & Desjeux, Yann & Justinia Hanitravelo, Giffona, "undated". "Effect Of Subsidies On Technical Efficiency Excluding Or Including Environmental Outputs: An Illustration With A Sample Of Farms In The European Union," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260902, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae17:260902
    DOI: 10.22004/ag.econ.260902
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    Keywords

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    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling

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