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Agri-environmental subsidies and French suckler cow farms’ technical efficiency accounting for GHGs

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  • K Hervé Dakpo
  • Laure Latruffe

Abstract

In this article we assess the impact of agri-environmental subsidies on farms’ technical efficiency, when the latter is measured with and without accounting for greenhouse gases (GHGs). The application is to a sample of beef cattle farms located in grassland areas in France during the 1993-2013 period. In a first stage we calculate robust technical efficiency accounting for both good output (meat) and bad output (GHGs). In a second stage we regress the different technical efficiency scores on a set of explanatory variables including agri-environmental subsidies as an amount received by the farmer related per livestock unit. The results indicate that these subsidies had a positive impact on farms’ technical efficiency among the farmers that have adopted agri-environmental measures. This is the first work on the effect of subsidies on technical efficiency including environmental outputs, and it does not confirm the negative effect generally found in existing studies based on classic technical efficiency.

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  • K Hervé Dakpo & Laure Latruffe, 2016. "Agri-environmental subsidies and French suckler cow farms’ technical efficiency accounting for GHGs," Working Papers SMART 16-07, INRAE UMR SMART.
    • Handle: RePEc:rae:wpaper:201607
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    1. Latruffe, Laure & Dakpo, K Hervé & Desjeux, Yann & Justinia Hanitravelo, Giffona, 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 266259, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).

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    More about this item

    Keywords

    by-production; GHG emissions; agri-environmental subsidies; livestock;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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