IDEAS home Printed from https://ideas.repec.org/p/ags/iaae03/25916.html
   My bibliography  Save this paper

Materials Balance Based Modelling Of Environmental Efficiency

Author

Listed:
  • Lauwers, Ludwig H.
  • Van Huylenbroeck, Guido

Abstract

A new method for analysing environmental efficiency, based on the materials balance, is proposed. With this method, an environmental allocative efficiency measure can be defined analogously to the more commonly used economic allocative efficiency. Nutrient surplus in pig fattening, a typical balance indicator, is used to illustrate the concept in a two input - one output case. The materials balance based efficiency analysis is elaborated using data envelopment analysis (DEA). Results are compared with those of more common, merely input or output oriented DEA approaches. A main conclusion is that, ignoring the balance feature of environmental issues such as nutrient surplus might be a main reason why traditional integral analyses of economic and environmental efficiency yield contradictory conclusions.

Suggested Citation

  • Lauwers, Ludwig H. & Van Huylenbroeck, Guido, 2003. "Materials Balance Based Modelling Of Environmental Efficiency," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25916, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae03:25916
    DOI: 10.22004/ag.econ.25916
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/25916/files/cp03la03.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.25916?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
    ---><---

    References listed on IDEAS

    as
    1. Isabelle Piot-Lepetit & Dominique Vermersch & Robert Weaver, 1997. "Agriculture's environmental externalities: DEA evidence for French agriculture," Applied Economics, Taylor & Francis Journals, vol. 29(3), pages 331-338.
    2. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    3. Fare, Rolf, et al, 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.
    4. Khem R. Sharma & PingSun Leung & Halina M. Zaleski, 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics, International Association of Agricultural Economists, vol. 20(1), pages 23-35, January.
    5. Stijn Reinhard & C.A. Knox Lovell & Geert Thijssen, 1999. "Econometric Estimation of Technical and Environmental Efficiency: An Application to Dutch Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 44-60.
    6. V.E. Ball & C.A K. Lovell & R.F. Nehring & A. Somwaru, 1994. "Incorporating indesirable outputs into models of production: an application to US agriculture," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 31, pages 59-74.
    7. Fare, Rolf, et al, 1993. "Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 374-380, May.
    8. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics, Blackwell, vol. 20(1), pages 23-35, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abad, Arnaud & Briec, Walter, 2019. "On the axiomatic of pollution-generating technologies: Non-parametric production analysis," European Journal of Operational Research, Elsevier, vol. 277(1), pages 377-390.
    2. Solovyeva, Irina & Nuppenau, Ernst-August, 2013. "Environmental Efficiency of Traditional Farming with Consideration of Grassland Biodiversity: Implication for the Ukrainian Carpathians," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158848, Agricultural Economics Society.
    3. Arnaud Abad & Paola Ravelojaona, 2020. "A Generalization of Environmental Productivity Analysis," Working Papers hal-02964799, HAL.
    4. Aparicio, Juan & Kapelko, Magdalena & Zofío, José L., 2020. "The measurement of environmental economic inefficiency with pollution-generating technologies," Resource and Energy Economics, Elsevier, vol. 62(C).
    5. Jeanneaux, Philippe & Latruffe, Laure, 2016. "Modelling pollution-generating technologies in performance benchmarking: Recent developments, limits and future prospects in the nonparametric frameworkAuthor-Name: Dakpo, K. Hervé," European Journal of Operational Research, Elsevier, vol. 250(2), pages 347-359.
    6. Arnaud Abad & Paola Ravelojaona, 2022. "A generalization of environmental productivity analysis," Post-Print hal-03592375, HAL.
    7. Vlontzos, George & Niavis, Spyros & Manos, Basil, 2014. "A DEA approach for estimating the agricultural energy and environmental efficiency of EU countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 91-96.
    8. A. Abad & P. Ravelojaona, 2022. "A generalization of environmental productivity analysis," Journal of Productivity Analysis, Springer, vol. 57(1), pages 61-78, February.
    9. Roshdi, Israfil & Hasannasab, Maryam & Margaritis, Dimitris & Rouse, Paul, 2018. "Generalised weak disposability and efficiency measurement in environmental technologies," European Journal of Operational Research, Elsevier, vol. 266(3), pages 1000-1012.
    10. Kagan, Adam, 2009. "Oddziaływanie Przedsiębiorstw Rolniczych Na Środowisko Naturalne. Aspekt Metodyczny I Praktyczny," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 4(145).
    11. Solovyeva, Irina & Nuppenau, Ernst-August, 2012. "Improving Measures for Targeting Agri-Environmental Payments: The Case of High Nature Value Farming," 126th Seminar, June 27-29, 2012, Capri, Italy 125648, European Association of Agricultural Economists.
    12. Aldanondo, Ana M. & Casasnovas, Valero L. & Almansa, M. Carmen, 2016. "Cost-constrained measures of environmental efficiency: a material balance approach," MPRA Paper 72490, University Library of Munich, Germany.
    13. Solovyeva, Irina & Nuppenau, Ernst-August, 2013. "Improving Measures for Targeting Agri-Environmental Payments: The Case of High Nature Value Farming," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2012(4), July.

    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. Alene, Arega D. & Manyong, Victor M. & Gockowski, James, 2006. "The production efficiency of intercropping annual and perennial crops in southern Ethiopia: A comparison of distance functions and production frontiers," Agricultural Systems, Elsevier, vol. 91(1-2), pages 51-70, November.
    2. Reinhard, Stijn & Knox Lovell, C. A. & Thijssen, Geert J., 2000. "Environmental efficiency with multiple environmentally detrimental variables; estimated with SFA and DEA," European Journal of Operational Research, Elsevier, vol. 121(2), pages 287-303, March.
    3. Hoang, Viet-Ngu & Coelli, Tim, 2011. "Measurement of agricultural total factor productivity growth incorporating environmental factors: A nutrients balance approach," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 462-474.
    4. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    5. Tim Coelli & Ludwig Lauwers & Guido Huylenbroeck, 2007. "Environmental efficiency measurement and the materials balance condition," Journal of Productivity Analysis, Springer, vol. 28(1), pages 3-12, October.
    6. Murty, Sushama & Robert Russell, R. & Levkoff, Steven B., 2012. "On modeling pollution-generating technologies," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 117-135.
    7. Harald Dyckhoff & Rainer Souren, 2023. "Are important phenomena of joint production still being neglected by economic theory? A review of recent literature," Journal of Business Economics, Springer, vol. 93(6), pages 1015-1053, August.
    8. Soledad Moya & Jordi Perramon & Anselm Constans, 2005. "IFRS Adoption in Europe: The Case of Germany," Working Papers 0501, Departament Empresa, Universitat Autònoma de Barcelona, revised Feb 2005.
    9. Leightner, Jonathan E. & Inoue, Tomoo, 2008. "Capturing climate's effect on pollution abatement with an improved solution to the omitted variables problem," European Journal of Operational Research, Elsevier, vol. 191(2), pages 540-557, December.
    10. Magambo, Isaiah & Dikgang, Johane & Gelo, Dambala & Tregenna, Fiona, 2021. "Environmental and Technical Efficiency in Large Gold Mines in Developing Countries," MPRA Paper 108068, University Library of Munich, Germany.
    11. Bouali Guesmi & Teresa Serra & Allen Featherstone, 2015. "Technical efficiency of Kansas arable crop farms: a local maximum likelihood approach," Agricultural Economics, International Association of Agricultural Economists, vol. 46(6), pages 703-713, November.
    12. Galdeano-Gomez, Emilio & Cespedes-Lorente, Jose & Rodriguez-Rodriguez, Manuel, 2006. "Productivity and Environmental Performance in Marketing Cooperatives: Incentive Schemes on the Horticultural Sector," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25738, International Association of Agricultural Economists.
    13. Van Ha, Nguyen & Kant, Shashi & Maclaren, Virginia, 2008. "Shadow prices of environmental outputs and production efficiency of household-level paper recycling units in Vietnam," Ecological Economics, Elsevier, vol. 65(1), pages 98-110, March.
    14. Kao, Chiang & Hwang, Shiuh-Nan, 2023. "Separating the effect of undesirable outputs generation from the inefficiency of desirable outputs production in efficiency measurement," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1097-1102.
    15. Graham, Mary, 2009. "Developing a social perspective to farm performance analysis," Ecological Economics, Elsevier, vol. 68(8-9), pages 2390-2398, June.
    16. Hailu, Atakelty & Veeman, Terrence S., 2001. "Alternative methods for environmentally adjusted productivity analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 211-218, September.
    17. Graham, Mary, 2004. "Environmental efficiency: Meaning and measurement and application to Australian dairy farms," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58450, Australian Agricultural and Resource Economics Society.
    18. Hailu, Atakelty & Hailu, Atakelty, 2003. "Pollution abatement and productivity performance of regional Canadian pulp and paper industries," Journal of Forest Economics, Elsevier, vol. 9(1), pages 5-25.
    19. Basanta R. Dhungana & Peter L. Nuthall & Gilbert V. Nartea, 2004. "Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 347-369, June.
    20. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min & Lin, Bruce J.Y., 2013. "A survey of DEA applications," Omega, Elsevier, vol. 41(5), pages 893-902.

    More about this item

    Keywords

    Environmental Economics and Policy;

    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:ags:iaae03:25916. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    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.