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Assessing farming eco-efficiency: A Data Envelopment Analysis approach

  • Andrés J. Picazo-Tadeo

    ()

    (Universidad de Valencia. Dpto. Economía Aplicada II.)

  • José A. Gómez-Limón

    (Instituto Andaluz de Investigación y Formación Agraria y Pesquera. Dpto. Economía Agraria. Córdoba.)

  • Ernest Reig-Martínez

    (Universidad de Valencia. Dpto. Economía Aplicada II and Instituto Valenciano de Investigaciones Económicas (IVIE).)

This paper assesses farming eco-efficiency using Data Envelopment Analysis (DEA). Eco-efficiency scores at both farm and environmental pressurespecific levels are computed for a sample of Spanish farmers operating in the rainfed agricultural system of Campos County. The determinants of eco-efficiency are then studied using truncated regression and bootstrapping. We contribute to previous literature by including information on slacks in the assessment of the potential environmental-pressure reductions in a DEA framework. Our results reveal that farmers are quite eco-inefficient, with very few differences emerging among specific environmental pressures. Furthermore, farmers benefiting from agrienvironmental programs as well as those with university education are found to be more eco-efficient. Concerning the policy implications of these results, public expenditure in agricultural extension and farmer training could be of some help to promote integration between farming and the environment. Furthermore, Common Agricultural Policy agri-environmental programs are also an effective policy to improve eco-efficiency.

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Paper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1004.

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Length: 32 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:eec:wpaper:1004
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  1. Basset-Mens, Claudine & Ledgard, Stewart & Boyes, Mark, 2009. "Eco-efficiency of intensification scenarios for milk production in New Zealand," Ecological Economics, Elsevier, vol. 68(6), pages 1615-1625, April.
  2. Andrés J. Picazo-Tadeo & Ernest Reig-Martínez, 2006. "Outsourcing and efficiency: the case of Spanish citrus farming," Agricultural Economics, International Association of Agricultural Economists, vol. 35(2), pages 213-222, 09.
  3. José A. Gómez-Limón & Laura Riesgo & Manuel Arriaza, 2004. "Multi-Criteria Analysis of Input Use in Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 541-564.
  4. Bohringer, Christoph & Jochem, Patrick E.P., 2007. "Measuring the immeasurable -- A survey of sustainability indices," Ecological Economics, Elsevier, vol. 63(1), pages 1-8, June.
  5. Andres Picazo-Tadeo & Ernest Reig-Martinez, 2006. "Agricultural externalities and environmental regulation: evaluating good practice in citrus production," Applied Economics, Taylor & Francis Journals, vol. 38(11), pages 1327-1334.
  6. Gómez-Limón, José A. & Sanchez-Fernandez, Gabriela, 2010. "Empirical evaluation of agricultural sustainability using composite indicators," Ecological Economics, Elsevier, vol. 69(5), pages 1062-1075, March.
  7. Van Passel, Steven & Nevens, Frank & Mathijs, Erik & Van Huylenbroeck, Guido, 2007. "Measuring farm sustainability and explaining differences in sustainable efficiency," Ecological Economics, Elsevier, vol. 62(1), pages 149-161, April.
  8. Picazo-Tadeo, Andres J. & Reig-Martinez, Ernest, 2007. "Farmers' costs of environmental regulation: Reducing the consumption of nitrogen in citrus farming," Economic Modelling, Elsevier, vol. 24(2), pages 312-328, March.
  9. Andr�s J Picazo-Tadeo & Andr�s Garc�a-Reche, 2007. "What makes environmental performance differ between firms? Empirical evidence from the Spanish tile industry," Environment and Planning A, Pion Ltd, London, vol. 39(9), pages 2232-2247, September.
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