IDEAS home Printed from
   My bibliography  Save this paper

Economic Value of Greenhouse Gases and Nitrogen Surpluses: Society vs Farmers’ Valuation


  • David Berre

    () (IESEG School of Management (LEM-CNRS) and University Lille 1, CIRAD/UMR SELMET)

  • Jean-Philippe Boussemart

    () (IESEG School of Management (LEM-CNRS) and University Lille 3
    CNRS-LEM (UMR 8179) and IESEG School of Management)

  • Emmanuel Tillard

    (UMR SELMET / CIRAD La Réunion)


Livestock supply must challenge the growth of final demand in the developing countries. This challenge has to take into account its ecological effects since the dairy and livestock sectors are clearly pointed out as human activities which contribute significantly to environmental deterioration. Therefore, livestock activity models have to include desirable and undesirable outputs simultaneously. Using this perspective, we implement a Data Envelopment Analysis model to evaluate shadow prices of outputs under contradictory objectives between the society and the farmers. Our results highlight the current debate about the negative or positive shadow prices of the undesirable outputs in efficiency frameworks. Furthermore, we show that farmers are able to reduce pollution significantly if society accepts to balance farmers’ opportunity cost. Finally, we observe that the initial levels of CO2 tax are in line with farmers’ valuation while the current tax evolution tends to reach the value of pollution targeted by the society

Suggested Citation

  • David Berre & Jean-Philippe Boussemart & Emmanuel Tillard, 2012. "Economic Value of Greenhouse Gases and Nitrogen Surpluses: Society vs Farmers’ Valuation," Working Papers 2012-ECO-02, IESEG School of Management.
  • Handle: RePEc:ies:wpaper:e201202

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    1. Rolf Färe & Shawna Grosskopf, 2007. "A Comment on Weak Disposability in Nonparametric Production Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(2), pages 535-538.
    2. Andrés J. Picazo-Tadeo & José A. Gómez-Limón & Ernest Reig-Martínez, 2010. "Assessing farming eco-efficiency: A Data Envelopment Analysis approach," Working Papers 1004, Department of Applied Economics II, Universidad de Valencia.
    3. Boussemart, Jean-Philippe & Leleu, Hervé & Ojo, Oluwaseun, 2011. "Could society's willingness to reduce pesticide use be aligned with farmers' economic self-interest?," Ecological Economics, Elsevier, vol. 70(10), pages 1797-1804, August.
    4. Speck, Stefan, 1999. "Energy and carbon taxes and their distributional implications," Energy Policy, Elsevier, vol. 27(11), pages 659-667, October.
    5. Minh Ha-Duong, 2009. "What is the Price of Carbon? Five definitions," Post-Print halshs-00451715, HAL.
    6. Li, Sung-Ko, 1995. "Relations between convexity and homogeneity in multioutput technologies," Journal of Mathematical Economics, Elsevier, vol. 24(4), pages 311-318.
    7. Atakelty Hailu & Terrence S. Veeman, 2001. "Non-parametric Productivity Analysis with Undesirable Outputs: An Application to the Canadian Pulp and Paper Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 605-616.
    8. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    9. Timo Kuosmanen, 2005. "Weak Disposability in Nonparametric Production Analysis with Undesirable Outputs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 1077-1082.
    10. Rolf Färe & Shawna Grosskopf, 2003. "Nonparametric Productivity Analysis with Undesirable Outputs: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 1070-1074.
    11. Timo Kuosmanen & Victor Podinovski, 2008. "Weak Disposability in Nonparametric Production Analysis: Reply to Färe and Grosskopf," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(2), pages 539-545.
    12. 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.
    13. Kuosmanen, Timo & Kazemi Matin, Reza, 2011. "Duality of weakly disposable technology," Omega, Elsevier, vol. 39(5), pages 504-512, October.
    14. Pittman, Russell W, 1983. "Multilateral Productivity Comparisons with Undesirable Outputs," Economic Journal, Royal Economic Society, vol. 93(372), pages 883-891, December.
    15. Scheel, Holger, 2001. "Undesirable outputs in efficiency valuations," European Journal of Operational Research, Elsevier, vol. 132(2), pages 400-410, July.
    16. Gupta, Manish, 2005. "Estimation of marginal abatement costs for undesirable outputs in India's power generation sector: An output distance function approach," Working Papers 05/27, National Institute of Public Finance and Policy.
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    2. repec:eee:proeco:v:189:y:2017:i:c:p:30-39 is not listed on IDEAS
    3. Laure Latruffe & K Hervé Dakpo & Yann Desjeux & Giffona Justinia Hanitravelo, 2017. "Effect of subsidies on technical efficiency excluding or including environmental outputs: An illustration with a sample of farms in the European Union," Working Papers SMART - LERECO 17-11, INRA UMR SMART-LERECO.
    4. 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.
    5. Boussemart, Jean-Philippe & Leleu, Hervé & Shen, Zhiyang, 2017. "Worldwide carbon shadow prices during 1990–2011," Energy Policy, Elsevier, vol. 109(C), pages 288-296.
    6. Shen, Zhiyang & Boussemart, Jean-Philippe & Leleu, Hervé, 2017. "Aggregate green productivity growth in OECD’s countries," International Journal of Production Economics, Elsevier, vol. 189(C), pages 30-39.
    7. Molinos-Senante, María & Hanley, Nick & Sala-Garrido, Ramón, 2015. "Measuring the CO2 shadow price for wastewater treatment: A directional distance function approach," Applied Energy, Elsevier, vol. 144(C), pages 241-249.
    8. K Hervé Dakpo & Philippe Jeanneaux & Laure Latruffe, 2014. "Inclusion of undesirable outputs in production technology modeling:The case of greenhouse gas emissions in French meat sheep farming," Working Papers SMART - LERECO 14-08, INRA UMR SMART-LERECO.

    More about this item


    Agriculture; Data Envelopment Analysis; Environmental Studies;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:ies:wpaper:e201202. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monika Marin). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.