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Exploring cost dominance in crop farming systems between high and low pesticide use

Author

Listed:
  • Jean-Philippe Boussemart

    () (UFR MIME - UFR de Mathématiques, Informatique, Management, Economie - Université de Lille, Sciences Humaines et Sociales, IESEG - School of Management, LEM - Lille économie management - LEM - UMR 9221 - Université de Lille - UCL - Université catholique de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Herve Leleu

    () (Economy - UCL - Université catholique de Lille, LEM - Lille économie management - LEM - UMR 9221 - Université de Lille - UCL - Université catholique de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Oluwaseun Ojo

    (LEM - Lille économie management - LEM - UMR 9221 - Université de Lille - UCL - Université catholique de Lille - CNRS - Centre National de la Recherche Scientifique)

Abstract

The purpose of this paper is to assess cost dominance in direct inputs between arable crop-based systems using low or high pesticide levels per hectare. Our investigation departs from a traditional efficiency analysis and aims at comparing two minimal direct cost functions excluding pesticide expenses. This means that we evaluate the gap between two efficient frontiers instead of focusing on individual farm inefficiency scores. Our only objective is to compare two optimal cost benchmarks for systems respectively defined with high or low pesticide levels per hectare by varying their scale and output mix. A robust approach frontier is introduced to control the influence of potential outliers and unobserved heterogeneity. Based on 707 French crop farms observed in 2008, our simulations show that agricultural practices using less pesticide per hectare are unambiguously more cost-competitive in terms of direct inputs while inducing no other substitution costs. This cost dominance is a robust phenomenon regardless of the size and scope of crop activities, which supports more ecofriendly practices.

Suggested Citation

  • Jean-Philippe Boussemart & Herve Leleu & Oluwaseun Ojo, 2015. "Exploring cost dominance in crop farming systems between high and low pesticide use," Post-Print hal-01533552, HAL.
  • Handle: RePEc:hal:journl:hal-01533552
    DOI: 10.1007/s11123-015-0443-1
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01533552
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    More about this item

    Keywords

    Pesticide use (PU); Arable crops farming systems; Activity analysis model (AAM); Non parametric robust cost function (NPRCF); Hamming distance (HD);

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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