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Total Factor Productivity: A Framework for Measuring Agri-food Supply Chain Performance Towards Sustainability

Author

Listed:
  • Daniel Gaitán-Cremaschi
  • Miranda P.M. Meuwissen
  • Alfons G.J.M. Oude Lansink

Abstract

Sustainable agricultural commodities should be favored in international trade negotiations to meet the growing demand for food in a context of environmental conservation, population growth, and globalization. There is a need for a metric that allows for the differentiation of traded agricultural commodities according to how sustainably they were produced. In this context, this paper develops two single metrics, based on a Total Factor Productivity indexing approach, for benchmarking products in terms of their sustainability performance. Both metrics are adjusted to internalize the social and environmental externalities of food production, and to account for the sustainability effects of stages along agri-food supply chains. Key aspects such as data availability, the selection of variables, and the selection of sustainability standards and targets are discussed.

Suggested Citation

  • Daniel Gaitán-Cremaschi & Miranda P.M. Meuwissen & Alfons G.J.M. Oude Lansink, 2017. "Total Factor Productivity: A Framework for Measuring Agri-food Supply Chain Performance Towards Sustainability," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(2), pages 259-285.
    • Handle: RePEc:oup:apecpp:v:39:y:2017:i:2:p:259-285.
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    File URL: http://hdl.handle.net/10.1093/aepp/ppw008
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    Cited by:

    1. Weijiao Ye & Ziqiang Li, 2023. "The Impact of Food Production Comparative Advantage on Green Total Factor Productivity: The Moderating Role of Environmental Regulation," Agriculture, MDPI, vol. 13(11), pages 1-23, October.

    More about this item

    Keywords

    Total Factor Productivity; sustainability performance; agri-food supply chain; externalities;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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