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Materials Balance Based Modelling Of Environmental Efficiency


  • Lauwers, Ludwig H.
  • Van Huylenbroeck, Guido


A new method for analysing environmental efficiency, based on the materials balance, is proposed. With this method, an environmental allocative efficiency measure can be defined analogously to the more commonly used economic allocative efficiency. Nutrient surplus in pig fattening, a typical balance indicator, is used to illustrate the concept in a two input one output case. The materials balance based efficiency analysis is elaborated using data envelopment analysis (DEA). Results are compared with those of more common, merely input or output oriented DEA approaches. A main conclusion is that, ignoring the balance feature of environmental issues such as nutrient surplus might be a main reason why traditional integral analyses of economic and environmental efficiency yield contradictory conclusions.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:iaae03:25916

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    References listed on IDEAS

    1. 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.
    2. 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.
    3. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(03), December.
    4. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 20(1), January.
    5. 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.
    6. 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 374-380, May.
    7. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics, Blackwell, vol. 20(1), pages 23-35, January.
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    Cited by:

    1. Vlontzos, George & Niavis, Spyros & Manos, Basil, 2014. "A DEA approach for estimating the agricultural energy and environmental efficiency of EU countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 91-96.
    2. Solovyeva, Irina & Nuppenau, Ernst-August, 2013. "Environmental Efficiency of Traditional Farming with Consideration of Grassland Biodiversity: Implication for the Ukrainian Carpathians," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158848, Agricultural Economics Society.
    3. Jeanneaux, Philippe & Latruffe, Laure, 2016. "Modelling pollution-generating technologies in performance benchmarking: Recent developments, limits and future prospects in the nonparametric frameworkAuthor-Name: Dakpo, K. Hervé," European Journal of Operational Research, Elsevier, vol. 250(2), pages 347-359.
    4. repec:eee:ejores:v:266:y:2018:i:3:p:1000-1012 is not listed on IDEAS
    5. Kagan, Adam, 0. "Oddziaływanie Przedsiębiorstw Rolniczych Na Środowisko Naturalne. Aspekt Metodyczny I Praktyczny," Village and Agriculture (WieÅ› i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, issue 3.

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