IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v121y2023ics0306919223001628.html
   My bibliography  Save this article

Does food quality certification improve eco-efficiency? Empirical evidence from Chinese vegetable production

Author

Listed:
  • Kang, Shijia
  • Frick, Fabian
  • Ait Sidhoum, Amer
  • Sauer, Johannes
  • Zheng, Shaofeng

Abstract

This study examines the impact of food quality certification on farms’ eco-efficiency in China, recognizing that the certification acts as a catalyst for encouraging more sustainable practices. The data was collected from 1855 vegetable growers in Shandong and Hebei provinces. Following a two-step approach, stochastic frontier analysis is applied to estimate eco-efficiency scores of smallholder farms, and a multinomial endogenous switching regression model is used to estimate the implication of certification schemes on eco-efficiency, while accounting for selectivity bias due to both observed and unobserved factors acting as a confounder. The empirical results suggest that hazard-free certification increases the eco-efficiency score for vegetable farms by 2.7%, followed by green certification by 4.6% and organic certification by 16.3%, respectively. Meanwhile, we find that the farmer’s certification adoption decision is significantly associated with farm size, farming experience, off-farm income, extension service, and social capital, which should be taken into account as policy recommendations to sustain and improve the positive effects of certification in regard to both economic and environmental aspects.

Suggested Citation

  • Kang, Shijia & Frick, Fabian & Ait Sidhoum, Amer & Sauer, Johannes & Zheng, Shaofeng, 2023. "Does food quality certification improve eco-efficiency? Empirical evidence from Chinese vegetable production," Food Policy, Elsevier, vol. 121(C).
    • Handle: RePEc:eee:jfpoli:v:121:y:2023:i:c:s0306919223001628
    DOI: 10.1016/j.foodpol.2023.102564
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306919223001628
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.foodpol.2023.102564?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Christos A. Damalas & Spyridon D. Koutroubas, 2018. "Current Status and Recent Developments in Biopesticide Use," Agriculture, MDPI, vol. 8(1), pages 1-6, January.
    2. Luis Orea & Alan Wall, 2017. "A Parametric Approach to Estimating Eco-Efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 901-907, September.
    3. Zhang, Man & Jin, Yanhong & Qiao, Hui & Zheng, Fengtian, 2017. "Product quality asymmetry and food safety: Investigating the “one farm household, two production systems” of fruit and vegetable farmers in China," China Economic Review, Elsevier, vol. 45(C), pages 232-243.
    4. Sanglestsawai, Santi & Rejesus, Roderick M. & Yorobe, Jose M., 2014. "Do lower yielding farmers benefit from Bt corn? Evidence from instrumental variable quantile regressions," Food Policy, Elsevier, vol. 44(C), pages 285-296.
    5. Picazo-Tadeo, Andrés J. & Beltrán-Esteve, Mercedes & Gómez-Limón, José A., 2012. "Assessing eco-efficiency with directional distance functions," European Journal of Operational Research, Elsevier, vol. 220(3), pages 798-809.
    6. Belay T. Mengistie & Arthur P. J. Mol & Peter Oosterveer, 2017. "Pesticide use practices among smallholder vegetable farmers in Ethiopian Central Rift Valley," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(1), pages 301-324, February.
    7. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    8. Salvatore Di Falco & Marcella Veronesi & Mahmud Yesuf, 2011. "Does Adaptation to Climate Change Provide Food Security? A Micro-Perspective from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 825-842.
    9. Nigel Key & William D. McBride, 2014. "Sub-therapeutic Antibiotics and the Efficiency of U.S. Hog Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(3), pages 831-850.
    10. François Bourguignon & Martin Fournier & Marc Gurgand, 2007. "Selection Bias Corrections Based On The Multinomial Logit Model: Monte Carlo Comparisons," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 174-205, February.
    11. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    12. Tran, Duc & Goto, Daisaku, 2019. "Impacts of sustainability certification on farm income: Evidence from small-scale specialty green tea farmers in Vietnam," Food Policy, Elsevier, vol. 83(C), pages 70-82.
    13. Henson, Spencer & Caswell, Julie, 1999. "Food safety regulation: an overview of contemporary issues," Food Policy, Elsevier, vol. 24(6), pages 589-603, December.
    14. Laura Siepmann & Kimberly A. Nicholas, 2018. "German Winegrowers’ Motives and Barriers to Convert to Organic Farming," Sustainability, MDPI, vol. 10(11), pages 1-17, November.
    15. Gary Solon & Steven J. Haider & Jeffrey M. Wooldridge, 2015. "What Are We Weighting For?," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 301-316.
    16. Blackman, Allen & Naranjo, Maria A., 2012. "Does eco-certification have environmental benefits? Organic coffee in Costa Rica," Ecological Economics, Elsevier, vol. 83(C), pages 58-66.
    17. Cragg, John G. & Donald, Stephen G., 1993. "Testing Identifiability and Specification in Instrumental Variable Models," Econometric Theory, Cambridge University Press, vol. 9(2), pages 222-240, April.
    18. Timo Kuosmanen & Mika Kortelainen, 2005. "Measuring Eco‐efficiency of Production with Data Envelopment Analysis," Journal of Industrial Ecology, Yale University, vol. 9(4), pages 59-72, October.
    19. Gashaw Tadesse ABATE & Gian Nicola FRANCESCONI & Kindie GETNET, 2014. "Impact Of Agricultural Cooperatives On Smallholders’ Technical Efficiency: Empirical Evidence From Ethiopia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(2), pages 257-286, June.
    20. Jeffrey M. Wooldridge, 2015. "Control Function Methods in Applied Econometrics," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 420-445.
    21. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    22. Christian Grovermann & Sylvain Quiédeville & Adrian Muller & Florian Leiber & Matthias Stolze & Simon Moakes, 2021. "Does organic certification make economic sense for dairy farmers in Europe?–A latent class counterfactual analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 52(6), pages 1001-1012, November.
    23. Wu, De-Min, 1973. "Alternative Tests of Independence Between Stochastic Regressors and Disturbances," Econometrica, Econometric Society, vol. 41(4), pages 733-750, July.
    24. Béné, Christophe & Oosterveer, Peter & Lamotte, Lea & Brouwer, Inge D. & de Haan, Stef & Prager, Steve D. & Talsma, Elise F. & Khoury, Colin K., 2019. "When food systems meet sustainability – Current narratives and implications for actions," World Development, Elsevier, vol. 113(C), pages 116-130.
    25. Jiuliang Xu & Zhihua Zhang & Xian Zhang & Muhammad Ishfaq & Jiahui Zhong & Wei Li & Fusuo Zhang & Xuexian Li, 2020. "Green Food Development in China: Experiences and Challenges," Agriculture, MDPI, vol. 10(12), pages 1-15, December.
    26. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-362, March.
    27. Hailemariam Teklewold & Menale Kassie & Bekele Shiferaw, 2013. "Adoption of Multiple Sustainable Agricultural Practices in Rural Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 597-623, September.
    28. Liao, Pei-An & Chang, Hung-Hao & Chang, Chun-Yen, 2011. "Why is the food traceability system unsuccessful in Taiwan? Empirical evidence from a national survey of fruit and vegetable farmers," Food Policy, Elsevier, vol. 36(5), pages 686-693.
    29. Alfons Oude Lansink & Alan Wall, 2014. "Frontier models for evaluating environmental efficiency: an overview," Economics and Business Letters, Oviedo University Press, vol. 3(1), pages 43-50.
    30. Barham, Bradford L. & Callenes, Mercedez & Gitter, Seth & Lewis, Jessa & Weber, Jeremy, 2011. "Fair Trade/Organic Coffee, Rural Livelihoods, and the "Agrarian Question": Southern Mexican Coffee Families in Transition," World Development, Elsevier, vol. 39(1), pages 134-145, January.
    31. Hübler, Michael & Hartje, Rebecca, 2016. "Are smartphones smart for economic development?," Economics Letters, Elsevier, vol. 141(C), pages 130-133.
    32. Uematsu, Hiroki & Mishra, Ashok K., 2012. "Organic farmers or conventional farmers: Where's the money?," Ecological Economics, Elsevier, vol. 78(C), pages 55-62.
    33. Chang, Hung-Hao & Lee, Brian & Hsieh, Yi-Ting, 2021. "Participation in afforestation programs and the distribution of forest farm income," Forest Policy and Economics, Elsevier, vol. 129(C).
    34. Wood, Richard & Lenzen, Manfred & Dey, Christopher & Lundie, Sven, 2006. "A comparative study of some environmental impacts of conventional and organic farming in Australia," Agricultural Systems, Elsevier, vol. 89(2-3), pages 324-348, September.
    35. Xiaojing Li & Xianli Xia & Jiazhen Ren, 2022. "Can the Participation in Quality Certification of Agricultural Products Drive the Green Production Transition?," IJERPH, MDPI, vol. 19(17), pages 1-16, September.
    36. Trienekens, Jacques & Zuurbier, Peter, 2008. "Quality and safety standards in the food industry, developments and challenges," International Journal of Production Economics, Elsevier, vol. 113(1), pages 107-122, May.
    37. Veldstra, Michael D. & Alexander, Corinne E. & Marshall, Maria I., 2014. "To certify or not to certify? Separating the organic production and certification decisions," Food Policy, Elsevier, vol. 49(P2), pages 429-436.
    38. David W. Carter & J. Walter Milon, 2005. "Price Knowledge in Household Demand for Utility Services," Land Economics, University of Wisconsin Press, vol. 81(2).
    39. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    40. George E. Battese, 1997. "A Note On The Estimation Of Cobb‐Douglas Production Functions When Some Explanatory Variables Have Zero Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 250-252, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Parvathi, Priyanka & Waibel, Hermann, 2015. "Is Organic Agriculture and Fair Trade Certification a way out of Crisis? Evidence from Black Pepper Farmers in India," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 209209, German Association of Agricultural Economists (GEWISOLA).
    2. Lin, Bin & Wang, Xiaoxi & Jin, Songqing & Yang, Wanjiang & Li, Houjian, 2022. "Impacts of cooperative membership on rice productivity: Evidence from China," World Development, Elsevier, vol. 150(C).
    3. Yun Yang & Leyi Chen & Qingqing Huang, 2015. "The Measurement of the Utilisation Efficiency of External Debt Funds and Its Influencing Factors," Australian Economic Papers, Wiley Blackwell, vol. 54(3), pages 185-205, September.
    4. Wollni, Meike & Brümmer, Bernhard, 2012. "Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection," Food Policy, Elsevier, vol. 37(1), pages 67-76.
    5. Teklewold, Hailemariam & Kassie, Menale & Shiferaw, Bekele & Köhlin, Gunnar, 2013. "Cropping system diversification, conservation tillage and modern seed adoption in Ethiopia: Impacts on household income, agrochemical use and demand for labor," Ecological Economics, Elsevier, vol. 93(C), pages 85-93.
    6. Morales Sarriera, Javier & Serebrisky, Tomás & Araya, Gonzalo & Briceño-Garmendia, Cecilia & Schwartz, Jordan, 2013. "Benchmarking Container Port Technical Efficiency in Latin America and the Caribbean," IDB Publications (Working Papers) 4702, Inter-American Development Bank.
    7. Julio Peña & Julio Aguirre & René Cerca D'amico, 2004. "Pesca demersal en Chile: eficiencia técnica y escalas de operación," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 19(1), pages 119-160, June.
    8. Liu, Xiao-Yan & Pollitt, Michael G. & Xie, Bai-Chen & Liu, Li-Qiu, 2019. "Does environmental heterogeneity affect the productive efficiency of grid utilities in China?," Energy Economics, Elsevier, vol. 83(C), pages 333-344.
    9. Orkhan Guliyev & Aijun Liu & Gershom Endelani Mwalupaso & Jarkko Niemi, 2019. "The Determinants of Technical Efficiency of Hazelnut Production in Azerbaijan: An Analysis of the Role of NGOs," Sustainability, MDPI, vol. 11(16), pages 1-19, August.
    10. Belotti, Federico & Ilardi, Giuseppe, 2018. "Consistent inference in fixed-effects stochastic frontier models," Journal of Econometrics, Elsevier, vol. 202(2), pages 161-177.
    11. Ndlovu, Patrick V. & Mazvimavi, Kizito & An, Henry & Murendo, Conrad, 2014. "Productivity and efficiency analysis of maize under conservation agriculture in Zimbabwe," Agricultural Systems, Elsevier, vol. 124(C), pages 21-31.
    12. Yanyuan Zhang & Xintong Wu, 2023. "Risk Management Effects of Insurance Purchase and Organization Participation: Which Is More Effective?," Agriculture, MDPI, vol. 13(10), pages 1-16, September.
    13. Ömer Tuğsal Doruk & Bahadır Ergün, 2023. "Friend or foe? The link between agency cost and financialization in Turkey," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1689-1705, April.
    14. Michael D. Rosko, 2001. "Cost efficiency of US hospitals: a stochastic frontier approach," Health Economics, John Wiley & Sons, Ltd., vol. 10(6), pages 539-551, September.
    15. Pede, Valerien O. & McKinley, Justin & Singbo, Alphonse & Kajisa, Kei, 2015. "Spatial Dependency of Technical Efficiency in Rice Farming: The Case of Bohol, Philippines," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205456, Agricultural and Applied Economics Association.
    16. Khor, Ling Yee & Zeller, Manfred, 2012. "Doubts on input quality: The effect of inaccurate fertilizer content on the estimation of production functions and technical efficiency," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126212, International Association of Agricultural Economists.
    17. Stefan Meyer, 2015. "Payment schemes and cost efficiency: evidence from Swiss public hospitals," International Journal of Health Economics and Management, Springer, vol. 15(1), pages 73-97, March.
    18. Valerien O. Pede & Francisco J. Areal & Alphonse Singbo & Justin McKinley & Kei Kajisa, 2018. "Spatial dependency and technical efficiency: an application of a Bayesian stochastic frontier model to irrigated and rainfed rice farmers in Bohol, Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 49(3), pages 301-312, May.
    19. Wen-Jhan Jane & Wei-Hsin Kong & Yi-Hsiue Wang, 2010. "Individual efficiency and club performance: a panel analysis of professional baseball," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 363-372.
    20. Christophe Nordman & Julia Vaillant, 2013. "Inputs, Gender Roles or Sharing Norms? Assessing the Gender Performance Gap Among Informal Entrepreneurs in Madagascar," Working Papers DT/2013/15, DIAL (Développement, Institutions et Mondialisation).

    More about this item

    Keywords

    Eco-efficiency; Food quality certification; Stochastic frontier analysis; Multinominal endogenous switching regression model; Vegetable farms;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

    Statistics

    Access and download statistics

    Corrections

    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:eee:jfpoli:v:121:y:2023:i:c:s0306919223001628. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/foodpol .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.