IDEAS home Printed from https://ideas.repec.org/p/ags/iaae09/51754.html
   My bibliography  Save this paper

What is my optimal technology? A metafrontier approach using Data Envelopment Analysis for the choice between conventional and organic farming

Author

Listed:
  • Breustedt, Gunnar
  • Tiedemann, Torben
  • Latacz-Lohmann, Uwe

Abstract

We analyse the relative competitiveness between organic and conventional farming under different policy scenarios using a DEA-based non-convex metafrontier model. This model allows us to identify a farm’s ex post optimal technology based on input-output observations. Results for Bavarian dairy farms indicate that more than two-thirds of the farms in both technologies – organic and conventional – have chosen their optimal farming system. The remaining farmers could increase their productivity by roughly 5% on average by switching to the other technology. Assuming away the existence of the EU milk quota, reduces the number of sample farms for which organic farming is the optimal technology by more than three fourth. This finding suggests that ceteris paribus organic dairy farms may lose competitive advantage with the abolition of the EU’s milk quota regime in 2015.

Suggested Citation

  • Breustedt, Gunnar & Tiedemann, Torben & Latacz-Lohmann, Uwe, 2009. "What is my optimal technology? A metafrontier approach using Data Envelopment Analysis for the choice between conventional and organic farming," 2009 Conference, August 16-22, 2009, Beijing, China 51754, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51754
    DOI: 10.22004/ag.econ.51754
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/51754/files/What%20is%20my%20optimal%20technology_A%20metafrontier%20approach%20using%20DEA%20for%20the%20choice%20between%20conv.%20and%20organic%20farming%20393.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.51754?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. George Battese & D. Rao & Christopher O'Donnell, 2004. "A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies," Journal of Productivity Analysis, Springer, vol. 21(1), pages 91-103, January.
    2. George E. Battese & D. S. Prasada Rao, 2002. "Technology Gap, Efficiency, and a Stochastic Metafrontier Function," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 1(2), pages 87-93, August.
    3. Christopher O’Donnell & D. Rao & George Battese, 2008. "Metafrontier frameworks for the study of firm-level efficiencies and technology ratios," Empirical Economics, Springer, vol. 34(2), pages 231-255, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wirat Krasachat & Suthathip Yaisawarng, 2021. "Directional Distance Function Technical Efficiency of Chili Production in Thailand," Sustainability, MDPI, vol. 13(2), pages 1-18, January.
    2. Yongqi Feng & Haolin Zhang & Yung-ho Chiu & Tzu-Han Chang, 2021. "Innovation efficiency and the impact of the institutional quality: a cross-country analysis using the two-stage meta-frontier dynamic network DEA model," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(4), pages 3091-3129, April.
    3. Farnaz Pourzand & Mohammad Bakhshoodeh, 2014. "Technical effici ency and agricultural sustainability–technology gap of maize producers in Fars province of Iran," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(3), pages 671-688, June.
    4. Afsharian, Mohsen & Ahn, Heinz & Harms, Sören Guntram, 2019. "Performance comparison of management groups under centralised management," European Journal of Operational Research, Elsevier, vol. 278(3), pages 845-854.
    5. Camanho, Ana S. & Stumbriene, Dovile & Barbosa, Flávia & Jakaitiene, Audrone, 2023. "The assessment of performance trends and convergence in education and training systems of European countries," European Journal of Operational Research, Elsevier, vol. 305(1), pages 356-372.
    6. Thanh Pham Thien Nguyen & Son Hong Nghiem & Eduardo Roca & Parmendra Sharma, 2016. "Efficiency, innovation and competition: evidence from Vietnam, China and India," Empirical Economics, Springer, vol. 51(3), pages 1235-1259, November.
    7. Latruffe, Laure & Fogarasi, József & Desjeux, Yann, 2012. "Efficiency, productivity and technology comparison for farms in Central and Western Europe: The case of field crop and dairy farming in Hungary and France," Economic Systems, Elsevier, vol. 36(2), pages 264-278.
    8. Bravo-Ureta, Boris E. & Higgins, Daniel & Arslan, Aslihan, 2020. "Irrigation infrastructure and farm productivity in the Philippines: A stochastic Meta-Frontier analysis," World Development, Elsevier, vol. 135(C).
    9. Mei-Ying Huang & Tsu-Tan Fu, 2013. "An examination of the cost efficiency of banks in Taiwan and China using the metafrontier cost function," Journal of Productivity Analysis, Springer, vol. 40(3), pages 387-406, December.
    10. Isabel Narbón-Perpiñá & Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, 2021. "Searching for the optimal territorial structure: the case of Spanish provincial councils," Regional Studies, Taylor & Francis Journals, vol. 55(4), pages 645-664, April.
    11. Alda, Erik, 2019. "Does Size influence Jail Efficiency?: A Metafrontier analyisis of local Jails in the United States," MPRA Paper 91803, University Library of Munich, Germany.
    12. MARCHAND, Sébastien & GUO, Huanxiu, 2014. "The environmental efficiency of non-certified organic farming in China: A case study of paddy rice production," China Economic Review, Elsevier, vol. 31(C), pages 201-216.
    13. Fang-Rong Ren & Ze Tian & Yu-Ting Shen & Yung-Ho Chiu & Tai-Yu Lin, 2019. "Energy, CO 2 , and AQI Efficiency and Improvement of the Yangtze River Economic Belt," Energies, MDPI, vol. 12(4), pages 1-17, February.
    14. Cheng, Zhonghua & Li, Lianshui & Liu, Jun & Zhang, Huiming, 2018. "Total-factor carbon emission efficiency of China's provincial industrial sector and its dynamic evolution," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 330-339.
    15. Kounetas, Konstantinos & Zervopoulos, Panagiotis D., 2019. "A cross-country evaluation of environmental performance: Is there a convergence-divergence pattern in technology gaps?," European Journal of Operational Research, Elsevier, vol. 273(3), pages 1136-1148.
    16. Pérez-López, Gemma & Prior, Diego & Zafra-Gómez, José Luis & Plata-Díaz, Ana María, 2016. "Cost efficiency in municipal solid waste service delivery. Alternative management forms in relation to local population size," European Journal of Operational Research, Elsevier, vol. 255(2), pages 583-592.
    17. Mercedes Beltrán-Esteve & José Gómez-Limón & Andrés Picazo-Tadeo & Ernest Reig-Martínez, 2014. "A metafrontier directional distance function approach to assessing eco-efficiency," Journal of Productivity Analysis, Springer, vol. 41(1), pages 69-83, February.
    18. Ze Tian & Fang-Rong Ren & Qin-Wen Xiao & Yung-Ho Chiu & Tai-Yu Lin, 2019. "Cross-Regional Comparative Study on Carbon Emission Efficiency of China’s Yangtze River Economic Belt Based on the Meta-Frontier," IJERPH, MDPI, vol. 16(4), pages 1-19, February.
    19. Walheer, Barnabé, 2018. "Aggregation of metafrontier technology gap ratios: the case of European sectors in 1995–2015," European Journal of Operational Research, Elsevier, vol. 269(3), pages 1013-1026.
    20. Paola Azar & Gabriela Sicilia, 2021. "An assessment of pupil and school performance in public primary education in Uruguay," Documentos de Trabajo (working papers) 21-22, Instituto de Economía - IECON.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae09:51754. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.