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Voluntary Agreements and the Environmental Efficiency of Participating Farms

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  • Ordóñez, Andrea
  • Roosen, Jutta

Abstract

Voluntary environmental agreements have been popular with government agencies in several countries. However, many questions remain about their efficiency as a regulatory tool. Recent analyses suggest that they are more effective than classical regulatory or economic approaches when dealing with nonpoint pollution and when innovation processes at the source are necessary to define effective regulation. This paper applies an activitybased framework to assess the contribution of voluntary agreements to the environmental performance of farms participating voluntarily in a whole farm plan in the Southern part of Belgium. Using a cross-section of 52 farms, our results show that farms entering into environmental agreements are environmentally more efficient than non-participating farms when non-desirable outputs and the conservation of landscape features is accounted for in the analysis.

Suggested Citation

  • Ordóñez, Andrea & Roosen, Jutta, 2003. "Voluntary Agreements and the Environmental Efficiency of Participating Farms," FE Working Papers 0305, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
  • Handle: RePEc:zbw:caufew:0305
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    References listed on IDEAS

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    1. Ervin, David E. & Smith, Katherine R., 1996. "What it takes to "Get to Yes" for Whole Farm Planning Policy," Policy Studies Program Reports, Henry A. Wallace Institute for Alternative Agriculture, number 134114.
    2. Fare, Rolf & Grosskopf, Shawna & Tyteca, Daniel, 1996. "An activity analysis model of the environmental performance of firms--application to fossil-fuel-fired electric utilities," Ecological Economics, Elsevier, vol. 18(2), pages 161-175, August.
    3. 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.
    4. Segerson, Kathleen & Miceli, Thomas J., 1998. "Voluntary Environmental Agreements: Good or Bad News for Environmental Protection?," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 109-130, September.
    5. Salop, Steven C & Scheffman, David T, 1983. "Raising Rivals' Costs," American Economic Review, American Economic Association, vol. 73(2), pages 267-271, May.
    6. Isabelle Piot-Lepetit & Monique Le Moing, 2000. "Agriculture et environnement : une évaluation de la performance technique et environnementale d'exploitations laitières," Économie et Prévision, Programme National Persée, vol. 143(2), pages 201-211.
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    Cited by:

    1. Francksen, Tammo & Latacz-Lohmann, Uwe, 2008. "Evaluierung von Agrarumweltprogrammen auf Grundlage der Umwelteffizienz landwirtschaftlicher Betriebe," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 57(3/4).

    More about this item

    Keywords

    Agri-environmental indicators; Data envelopment analysis; Environmental efficiency; Voluntary agreements; Whole farm plan;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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