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Environmental efficiency: meaning and measurement and application to Australian dairy farms

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  • Graham, Mary

Abstract

Technical efficiency has been widely studied in the literature, but in its pursuit, many of the inputs used can impact on the environment. Environmental effects can be modelled as undesirable output or, as has been the case in more recent studies, as conventional inputs. This paper examines the concept of environmental efficiency and how it can be used to evaluate the performance of Australian dairy farming, using nitrogen surplus, arising from excessive applications of fertilizer, as a detrimental input. Farming promotes the image of clean and green production and if this image is to be maintained, there is a need to ensure activities are environmentally friendly
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Suggested Citation

  • Graham, Mary, 2004. "Environmental efficiency: meaning and measurement and application to Australian dairy farms," Working Papers eco_2004_02, Deakin University, Department of Economics.
  • Handle: RePEc:dkn:econwp:eco_2004_02
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    References listed on IDEAS

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    1. de Wit, C. T., 1992. "Resource use efficiency in agriculture," Agricultural Systems, Elsevier, vol. 40(1-3), pages 125-151.
    2. Geoff Edwards, 2003. "The story of deregulation in the dairy industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(1), pages 75-98, March.
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    6. B. A. Larson & H. Vroomen, 1991. "Nitrogen, Phosphorus And Land Demands At The Us Regional Level: A Primal Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 354-364, September.
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    11. Vroomen, Harry & Larson, Bruce, 1991. "A direct approach for estimating Nitrogen, Phosphorus, and land demands at the regional level," Technical Bulletins 312320, United States Department of Agriculture, Economic Research Service.
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    13. 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.
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    Cited by:

    1. Watson, Alistair S., 2005. "Productivity and the Dairy Industry," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 13.
    2. Emilio Galdeano‐Gómez & José Céspedes‐Lorente & Manuel Rodríguez‐Rodríguez, 2006. "Productivity and Environmental Performance in Marketing Cooperatives: An Analysis of the Spanish Horticultural Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 479-500, September.
    3. Ana Rodríguez-Álvarez & Ignacio Rosal & José Baños-Pino, 2007. "The cost of strikes in the Spanish mining sector: modelling an undesirable input with a distance function," Journal of Productivity Analysis, Springer, vol. 27(1), pages 73-83, February.
    4. Zainab Bibi & Dilawar Khan & Ihtisham ul Haq, 2021. "Technical and environmental efficiency of agriculture sector in South Asia: a stochastic frontier analysis approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(6), pages 9260-9279, June.

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