The role of pest pressure in technical and environmental inefficiency analysis of Dutch arable farms: an event-specific data envelopment approach

Theodoros Skevas, Teresa Serra

Research output: Contribution to journalArticle

Abstract

This article provides estimates of farm technical and environmental inefficiency that recognize the effect of pest pressure on farmers’ production environment. This effect is modeled through the use of an event-specific production technology, which is empirically implemented using Data Envelopment Analysis (DEA). A regional biodiversity variable and two variables reflecting impacts of pesticides on farmland biodiversity are used to partition the data into high and low pest infestation events. The DEA representation is applied to data from Dutch arable farms. Results show that the degree of inefficiency overstatement from a model that ignores the event-specific nature of the production technology increases with pest infestation. Mean environmental inefficiency of the sample farms is low, implying that these farms are, on average, minimizing their impacts on farmland biodiversity. Environmental inefficiency provides an indicator of farm-level environmental sustainability that could help towards a more effective distribution of farm-support payments and make agriculture more environmentally sound.

Original languageEnglish (US)
Pages (from-to)139-153
Number of pages15
JournalJournal of Productivity Analysis
Volume46
Issue number2-3
DOIs
StatePublished - Dec 1 2016

Keywords

  • Data envelopment analysis
  • Efficiency
  • Event-specific model
  • Pest pressure
  • Production uncertainty

ASJC Scopus subject areas

  • Business and International Management
  • Social Sciences (miscellaneous)
  • Economics and Econometrics

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