Measuring technical and environmental efficiency in a state-contingent technology

Teresa Serra, Robert G. Chambers, Alfons Oude Lansink

Research output: Contribution to journalArticlepeer-review

Abstract

Most developed countries support farming activities through policies that are tailored to meet their specific social, economic and environmental objectives. Economic and environmental efficiency have recently become relevant targets of most of these policies, whose sound implementation can be enhanced by monitoring farm performance from a multidimensional perspective. This paper proposes farm-level technical and environmental efficiency measures that recognize the stochastic conditions in which production takes place. A state-contingent framework is used to model production uncertainty. An implementable representation of the technology is developed using data envelopment analysis. The application focuses on a sample of Catalan arable crop farms. Results suggest that technical efficiency is slightly lower in bad than in good growing conditions. Nitrogen pollution can decrease substantially more under good than bad growing conditions.

Original languageEnglish (US)
Pages (from-to)706-717
Number of pages12
JournalEuropean Journal of Operational Research
Volume236
Issue number2
DOIs
StatePublished - Jul 16 2014
Externally publishedYes

Keywords

  • Data envelopment analysis
  • State-contingent methods
  • Uncertainty modeling

ASJC Scopus subject areas

  • Computer Science(all)
  • Modeling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

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