Econometric Estimation of Technical and Environmental Efficiency: An Application to Dutch Dairy Farms
Year: 1999
Type: article
Abstract: In this article we estimate the technical and environmental efficiency of a panel of Dutch dairy farms. Nitrogen surplus, arising from the application of excessive amounts of manure and chemical fertilizer, is treated as an environmentally detrimental input. A stochastic translog production frontier is specified to estimate the output‐oriented technical efficiency. Environmental efficiency is estimated as the input‐oriented technical efficiency of a single input, the nitrogen surplus of each farm. The mean output‐oriented technical efficiency is rather high, 0.894, but the mean input‐oriented environmental efficiency is only 0.441. Intensive dairy farms are both technically and environmentally more efficient than extensive farms.
DOI: 10.2307/1244449
Institutions: University of Georgia, Wageningen University & Research
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2089522527
