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Impacts of environmental regulations on the efficiency of arable farms in France and Germany

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  • Piot-Lepetit, Isabelle
  • Brümmer, Bernhard
  • Kleinhanss, Werner

Abstract

This paper develops a methodology for asymmetric treatment of desirable and undesirable outputs. First, a hyperbolic output efficiency measurement is used to describe a middle term transformation of production processes where producers try to improve their competitiveness together with a reduction of the negative impact on the environment. Second, a radial efficiency measurement, called directional output distance function, is used to depict a long-term transformation of the production process. A non-parametric Data Envelopment Analysis (DEA) and a Stochastic Frontier Analysis (SFA) are used to evaluate the impact of agricultural policy changes, both in France and Germany, on the technical and environmental efficiency of arable farms, taking into account participation or not in agri-environmental programs. The results from both methods indicate only limited possibilities for environmental improvements, mainly for farms participating in agri-environmental programs.

Suggested Citation

  • Piot-Lepetit, Isabelle & Brümmer, Bernhard & Kleinhanss, Werner, 2001. "Impacts of environmental regulations on the efficiency of arable farms in France and Germany," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 50(03), pages 1-6.
    • Handle: RePEc:ags:gjagec:98867
    DOI: 10.22004/ag.econ.98867
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    References listed on IDEAS

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    1. 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.
    2. Fare, Rolf, 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.
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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(03-04), pages 1-12.
    2. Samoilenko, Sergey & Osei-Bryson, Kweku-Muata, 2010. "Determining sources of relative inefficiency in heterogeneous samples: Methodology using Cluster Analysis, DEA and Neural Networks," European Journal of Operational Research, Elsevier, vol. 206(2), pages 479-487, October.
    3. Picazo-Tadeo, Andres J. & Reig-Martinez, Ernest, 2007. "Farmers' costs of environmental regulation: Reducing the consumption of nitrogen in citrus farming," Economic Modelling, Elsevier, vol. 24(2), pages 312-328, March.

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