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Sustainable Productivity Change in the U.S. Dairy Sector

Author

Listed:
  • E. Njuki

    (Research Agricultural Economist, Economic Research Service, U.S. Department of Agriculture)

  • C.J. O’Donnell

    (School of Economics and Centre for Efficiency and Productivity Analysis (CEPA) at The University of Queensland, Australia)

Abstract

Sustainable production refers to the creation of goods and services in ways that minimize the production of bad outputs and the use of natural capital. We explain how to measure productivity change in a way that reflects well on firms that adopt sustainable production practices. We illustrate the properties of our so-called sustainable productivity index using simulated data. We then compute sustainable productivity index numbers for a sample of U.S. dairy producers. Finally, we estimate the extent to which changes in productivity have been driven by technical progress, environmental change and various types of efficiency change.

Suggested Citation

  • E. Njuki & C.J. O’Donnell, 2025. "Sustainable Productivity Change in the U.S. Dairy Sector," CEPA Working Papers Series WP012025, School of Economics, University of Queensland, Australia.
    • Handle: RePEc:qld:uqcepa:195
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    File URL: https://economics.uq.edu.au/files/53313/WP012025.pdf
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    More about this item

    Keywords

    U.S. dairy sector; sustainable productivity index; total factor productivity index; good outputs; bad outputs; stochastic frontier model; productivity change; GHG emissions;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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