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Measuring sustainability efficiency at farm level: a data envelopment analysis approach
[Economic and environmental efficiency of district heating plants]

Author

Listed:
  • Amer Ait Sidhoum
  • Teresa Serra
  • Laure Latruffe

Abstract

Sound implementation of sustainability practices requires appropriate tools to measure farms’ successes in achieving policy goals. This paper models farms’ stochastic production technology as the interaction of three main types of sub-technologies that govern, respectively, the production of agricultural commodities, environmental (nitrogen and pesticide) pollution and social outputs of agricultural activities. The model is empirically implemented through a Data Envelopment Analysis (DEA) model accounting for production risk through a state-contingent approach. The application for Catalan arable crop farms shows that, on average, farms display high technical and social performance and relatively poor environmental performance.

Suggested Citation

  • Amer Ait Sidhoum & Teresa Serra & Laure Latruffe, 2020. "Measuring sustainability efficiency at farm level: a data envelopment analysis approach [Economic and environmental efficiency of district heating plants]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(1), pages 200-225.
    • Handle: RePEc:oup:erevae:v:47:y:2020:i:1:p:200-225.
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    File URL: http://hdl.handle.net/10.1093/erae/jbz015
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    Cited by:

    1. De Almeida Furtado, Murilo & Meuwissen, Miranda P.M. & Ang, Frederic, 2024. "Land reallocation to increase production and reduce nitrogen surplus: impacts on crop diversity in England and Wales," 2024 Annual Meeting, July 28-30, New Orleans, LA 343878, Agricultural and Applied Economics Association.
    2. Sotirios Varelas & Georgios Tsoupros, 2024. "Key Performance Indicators and Data Envelopment Analysis in Greek Tourism: A Strategic Planning Tool for Destinations and DMMOs," Sustainability, MDPI, vol. 16(8), pages 1-12, April.
    3. Zhu, Liyun & Schneider, Kevin & Oude Lansink, Alfons, 2023. "Economic, environmental, and social inefficiency assessment of Dutch dairy farms based on the dynamic by-production model," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1134-1145.
    4. Aparicio, Juan & Kapelko, Magdalena & Ortiz, Lidia, 2023. "Enhancing the measurement of firm inefficiency accounting for corporate social responsibility: A dynamic data envelopment analysis fuzzy approach," European Journal of Operational Research, Elsevier, vol. 306(2), pages 986-997.
    5. Andreas Eder, 2022. "Environmental efficiency measurement when producers control pollutants under heterogeneous conditions: a generalization of the materials balance approach," Journal of Productivity Analysis, Springer, vol. 57(2), pages 157-176, April.
    6. Justas Streimikis & Z. Y. Shen & Tomas Balezentis, 2024. "Does the energy-related greenhouse gas emission abatement cost depend on the optimization direction: shadow pricing based on the weak disposability technology in the European Union agriculture," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 32(3), pages 593-619, September.
    7. Amer Ait Sidhoum & K Hervé Dakpo & Laure Latruffe, 2022. "Trade-offs between economic, environmental and social sustainability on farms using a latent class frontier efficiency model: Evidence for Spanish crop farms," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-17, January.
    8. repec:zbw:inwedp:752021 is not listed on IDEAS
    9. Amer Ait Sidhoum, 2023. "Measuring farm productivity under production uncertainty," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(4), pages 672-687, October.
    10. Weltin, Meike & Hüttel, Silke, 2019. "Farm eco-efficiency: Can sustainable intensification make the difference?," FORLand Working Papers 10 (2019), Humboldt University Berlin, DFG Research Unit 2569 FORLand "Agricultural Land Markets – Efficiency and Regulation".
    11. Michał Borychowski & Sebastian Stępień & Jan Polcyn & Aleksandra Tošović-Stevanović & Dragan Ćalović & Goran Lalić & Milena Žuža, 2020. "Socio-Economic Determinants of Small Family Farms’ Resilience in Selected Central and Eastern European Countries," Sustainability, MDPI, vol. 12(24), pages 1-30, December.
    12. Bouali Guesmi & Ahmed Yangui & Ibtissem Taghouti & José Maria Gil, 2022. "Trade-Off between Land Use Pattern and Technical Efficiency Performance: Evidence from Arable Crop Farming in Tunisia," Land, MDPI, vol. 12(1), pages 1-13, December.
    13. Amer Ait Sidhoum, 2023. "Assessing the contribution of farmers’ working conditions to productive efficiency in the presence of uncertainty, a nonparametric approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8601-8622, August.
    14. Guofeng Wang & Ziyu Qian & Xiangzheng Deng, 2020. "Analysis of Environmental Policy and the Performance of Sustainable Agricultural Development in China," Sustainability, MDPI, vol. 12(24), pages 1-16, December.
    15. Andreas Eder, 2021. "Environmental efficiency measurement when producers control pollutants under heterogeneous conditions: a generalization of the materials balance approach," Working Papers 752021, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    16. Lulu Yang & Xu Xiao & Ke Gu, 2021. "Agricultural Waste Recycling Optimization of Family Farms Based on Environmental Management Accounting in Rural China," Sustainability, MDPI, vol. 13(10), pages 1-16, May.
    17. Theodoros Skevas & Ioannis Skevas & Victor E. Cabrera, 2021. "Examining the Relationship between Social Inefficiency and Financial Performance. Evidence from Wisconsin Dairy Farms," Sustainability, MDPI, vol. 13(7), pages 1-14, March.
    18. Stefan Wimmer & Christian Stetter & Jonas Schmitt & Robert Finger, 2024. "Farm‐level responses to weather trends: A structural model," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(3), pages 1241-1273, May.
    19. Amer Ait Sidhoum & Philipp Mennig & Johannes Sauer, 2023. "Do agri-environment measures help improve environmental and economic efficiency? Evidence from Bavarian dairy farmers," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(3), pages 918-953.
    20. Tensi, Annika Francesca & Ang, Frederic & van der Fels-Klerx, H.J., 2024. "Microbial applications and agricultural sustainability: A simulation analysis of Dutch potato farms," Agricultural Systems, Elsevier, vol. 214(C).
    21. Skevas, Theodoros & Martinez-Palomares, Jorge C., 2023. "Technology heterogeneity and sustainability efficiency: Empirical evidence from Peruvian coffee production," European Journal of Operational Research, Elsevier, vol. 310(3), pages 1192-1200.
    22. Magdalena Kapelko & Alfons Oude Lansink, 2022. "Measuring firms' dynamic inefficiency accounting for corporate social responsibility in the U.S. food and beverage manufacturing industry," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 1702-1721, December.

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