Pesticide use, environmental spillovers and efficiency: A nonparametric risk-adjusted efficiency approach applied to Dutch arable farming

T. Skevas, S.E. Stefanou, A.G.J.M. Oude Lansink

Research output: Contribution to journalArticleAcademicpeer-review

48 Citations (Scopus)

Abstract

Pesticides are widely used by crop producers in developed countries to combat risk associated with pests and diseases. However, their indiscriminate use can lead to various environmental spillovers that may alter the agricultural production environment thus contributing to production risk. This study utilises a data envelopment analysis (DEA) approach to measure performance of arable farms, incorporating pesticides’ environmental spillovers and output variance as undesirable outputs in the efficiency analysis and taking explicitly into account the effect of pesticides and other inputs on production risk. The application focuses on panel data from Dutch arable farms over the period 2003–2007. A moment approach is used to compute output variance, providing empirical representations of the risk-increasing or -decreasing nature of the used inputs. Finally, shadow values of risk-adjusted inputs are computed. We find that pesticides are overused in Dutch arable farming and there is a considerable evidence of the need for decreasing pesticides’ environmental spillovers.
Original languageEnglish
Pages (from-to)658-664
JournalEuropean Journal of Operational Research
Volume237
Issue number2
DOIs
Publication statusPublished - 2014

Keywords

  • nonparametric production analysis
  • mean-variance approach
  • undesirable outputs
  • damage control
  • production uncertainty
  • technical efficiency
  • weak disposability
  • genetic diversity
  • joint estimation
  • duality models

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