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Greenhouse Gas Emissions and Technical Efficiency in Alberta Dairy Production: What Are the Trade-Offs?

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  • Le, Stephanie
  • Jeffrey, Scott
  • An, Henry

Abstract

The impact of greenhouse gas (GHG) reduction on the efficiency of Alberta’s dairy industry is assessed through a technical efficiency analysis over the period 1996–2016, with and without emissions included as a “bad” output. Environmentally adjusted technical efficiency and technical efficiency estimates are highly correlated; thus, reducing GHG emissions may not result in decreased efficiency. Increased milk per cow, a southern Alberta location, and increased use of forage are associated with greater environmentally adjusted technical efficiency. The opportunity cost of foregone milk revenue associated with reduced emissions is Can$308.29 per metric ton of GHG. The results imply possible policy strategies to reduce emissions.

Suggested Citation

  • Le, Stephanie & Jeffrey, Scott & An, Henry, 2020. "Greenhouse Gas Emissions and Technical Efficiency in Alberta Dairy Production: What Are the Trade-Offs?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 52(2), pages 177-193, May.
    • Handle: RePEc:cup:jagaec:v:52:y:2020:i:2:p:177-193_1
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    Cited by:

    1. Vogel, Everton & Dalheimer, Bernhard & Beber, Caetano Luiz & de Mori, Claudia & Palhares, Julio Cesar Pascale & Novo, André Luiz Monteiro, 2023. "Environmental efficiency and methane abatement costs of dairy farms from Minas Gerais, Brazil," Food Policy, Elsevier, vol. 119(C).
    2. Habtamu Alem, 2023. "A parametric analysis of eco-efficiency and its determinants: Evidence from Norwegian dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(7), pages 284-290.
    3. Jean Joseph Minviel & Timo Sipiläinen, 2021. "A dynamic stochastic frontier approach with persistent and transient inefficiency and unobserved heterogeneity," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 575-589, July.
    4. Kuhle Prudence Mnisi & Abdul Latif Alhassan, 2021. "Financial structure and cooperative efficiency: A pecking‐order evidence from sugarcane farmers in Eswatini," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 261-281, June.
    5. Scarlett Wang & Frederic Ang & Alfons Oude Lansink, 2023. "Mitigating greenhouse gas emissions on Dutch dairy farms. An efficiency analysis incorporating the circularity principle," Agricultural Economics, International Association of Agricultural Economists, vol. 54(6), pages 819-837, November.

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