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Energy Productivity And Greenhouse Gas Emission Intensity In Dutch Dairy Farms: A Hicks-Moorsteen By-Production Approach Under Nonconvexity

Author

Listed:
  • FREDERIC ANG

    (Business Economics Group, Wageningen University, P.O. Box 8130, 6700 EW Wageningen, The Netherlands)

  • KRISTIAAN KERSTENS

    (Univ. Lille, CNRS, IESEG School of Management, UMR 9221 - LEM - Lille Economie Management, F-59000 Lille, France)

Abstract

The agricultural sector is currently confronted with the challenge to reduce greenhouse gas (GHG) emissions, whilst maintaining or increasing production. Energy-saving technologies are often proposed as a partial solution, but the evidence on their ability to reduce GHG emissions remains mixed. Production economics provides methodological tools to analyse the nexus of agricultural production, energy use and GHG emissions. Convexity is predominantly maintained in agricultural production economics, despite various theoretical and empirical reasons to question it. Employing a nonconvex, free disposal hull framework, this paper evaluates energy productivity change (the ratio of aggregate output change to energy use change) and GHG emission intensity change (the ratio of GHG emission change to polluting input change) using Hicks-Moorsteen productivity formulations. We consider GHG emissions as by-products of the production process by means of multi-equation modelling. The application focuses on 1,510 Dutch dairy farms for the period of 2010-2019. The results show a positive association between energy productivity change and GHG emission intensity change, which calls into question the potential of on-farm, energy-efficiency-increasing measures to reduce GHG emission intensity.

Suggested Citation

  • Frederic Ang & Kristiaan Kerstens, 2021. "Energy Productivity And Greenhouse Gas Emission Intensity In Dutch Dairy Farms: A Hicks-Moorsteen By-Production Approach Under Nonconvexity," Working Papers 2021-EQM-07, IESEG School of Management.
    • Handle: RePEc:ies:wpaper:e202108
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    References listed on IDEAS

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    More about this item

    Keywords

    energy; greenhouse gas emissions; productivity; dairy; nonconvexity;
    All these keywords.

    JEL classification:

    • 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
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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