Abstract
In this paper, we propose a framework to derive agricultural netput shadow prices that assign values to netputs in terms of their contribution to technical and environmental efficiency. Our modeling approach is based on the dual representation of an event-specific data envelopment model and is applied to a panel dataset of Dutch arable farms. Results show that netput shadow prices vary significantly across pest pressure events, suggesting the relevance to consider the event-specific nature of the production technology when computing them. By revealing the relative importance of pesticides in terms of their contribution to environmental efficiency, this study provides a potential framework for constructing penalties aiming to internalize some portion of the social cost of pesticide use.
Original language | English (US) |
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Pages (from-to) | 25-34 |
Number of pages | 10 |
Journal | Journal of Productivity Analysis |
Volume | 48 |
Issue number | 1 |
DOIs | |
State | Published - Aug 1 2017 |
Keywords
- Data envelopment analysis
- Dual approach
- Event-specific model
- Pest pressure
- Production risk
- Shadow prices
ASJC Scopus subject areas
- Business and International Management
- Social Sciences (miscellaneous)
- Economics and Econometrics