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Measurement Of Agricultural Total Factor Productivity Growth Incorporating Environmental Factors- A Nutrients Balance Approach

This paper develops a new measure of total factor productivity growth in agricultural production which incorporates environmental effects. The new measure is called the Total Factor Nutrient-Orientated Productivity (TFNP) Index, and incorporates a materials balance condition. TFNP measures changes in nutrient-orientated efficiency and can be decomposed into efficiency change (EC), technological change (TC) and nutrient-orientated technological change (NTC) components. An empirical analysis, involving country-level data from OECD countries during 1990-2003, is provided using DEA methods. Estimates of mean technical and nutrient-orientated efficiency are 0.798 and 0.526, respectively. Estimated mean TFNP growth is 1.5% per year, with nutrient-orientated technological progress contributing 0.8%.

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File URL: http://www.uq.edu.au/economics/cepa/docs/WP/WP032009.pdf
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Paper provided by School of Economics, University of Queensland, Australia in its series CEPA Working Papers Series with number WP032009.

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Date of creation: 2009
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Handle: RePEc:qld:uqcepa:38
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Web page: http://www.uq.edu.au/economics/
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