0000000000147270
AUTHOR
Ernest Reig-martínez
Farming Efficiency and the Survival of Valuable Agro-Ecosystems: A Case Study of Rice Farming in European Mediterranean Wetlands
Beyond the conventional role of providing food, rice farming in European Mediterranean wetlands performs a valuable non-marketable function related to the provision of environmental services. Rice and biodiversity are jointly produced, so that provision of flooded-rice-fields based environmental services depends crucially on private profitability of rice farming. Recent reforms of the Common Agricultural Policy (CAP) and increasing access of third party countries to the domestic European market are challenging the competitiveness of European rice growers. This paper combines conventional competitiveness indicators and non-parametric efficiency analysis to ascertain the economic profitabilit…
Comparing conventional and organic citrus grower efficiency in Spain
This paper compares the organic and conventional citriculture systems in Spain from the perspective of their technical efficiency. The primary objective of the research is to compare the relative efficiency of these two systems in relation to a metafrontier that envelops both technologies. In addition, the article analyses how efficient each growing system is at using its own technology, that is, when farms’ efficiency is benchmarked in relation to the best practices in their group. Contrary to conventional practice, farms’ performance is analyzed in terms of specific growing tasks: soil and plant cover management, pruning, fertilization and phytosanitary treatments. The results obtained hi…
What makes a citrus farmer go 'organic'? Empirical evidence from Spanish citrus farming
Organic farming is increasing its share of total world food output and receiving grow-ing support from policymakers concerned with agricultural sustainability issues. This paper studies the characteristics of citrus farmers in the Spanish region of Valencia that affect their probability of becoming organic farmers. A fair understanding of these characteristics may help policymakers improve the design of agricultural policies aimed at supporting organic citrus practices. As regards the methodology, a probit model is estimated with information from a sample of conventional and organic citrus farmers obtained from a survey designed for a larger research project aimed at analysing Valencian cit…
The Competiveness of the Spanish Regions
Competitiveness is a widely popular concept, which has saved in practise, to denote efficient economic behaviour. The wide dissemination of the competitiveness ranking of countries published annually by the World Economic Forum of Davos (Switzerland), or the fact that the European Union defines some of the global problems, which affect the countries of the EU in terms of the competitiveness gap, have footered the use of this expression in the media. The use of the term to denominate some of the objectives of the European Regional policy has also contributed to extending the use of the expression, as well as the work of prestigious consultants, such as Michael Porter, in influential works, s…
La matriz de análisis de políticas con datos eficientes: evaluación de la rentabilidad del cultivo del arroz
This paper combines policy analysis matrix and data envelopment analysis techniques to model the analysis of profitability from farming. Policy analysis matrices are computed for a sample of rice growers located in the wetland of the Albufera (Eastern Spain) under observed conventional and profit-efficient farming conditions. While conventional analysis points to a lack of profitability, farmers are shown to make positive profits at private and social prices when data reflecting efficiency adjustments are used in the analysis. The main conclusion is that the usefulness of the policy analysis matrix might be substantially enhanced by simulating profitability after efficiency-improving manage…
Directional distance functions and environmental regulation
Abstract In this paper we use directional technology distance functions to evaluate the impact of environmental regulations on firms’ performance. Following Fare et al. [Fare, R., Grosskopf, S., Lovell, C.A.K., Pasurka, C., 1989. Multilateral productivity comparisons when some outputs are undesirable: a nonparametric approach. The Review of Economics and Statistics 71, 90–98.], we construct an index that measures opportunity costs for individual firms arising from regulations that prevent free disposal of wastes. The methodology is applied to a sample of Spanish producers of ceramic pavements. We assume that firms maximise desirable output simultaneously reducing inputs, with no change in t…
Agricultural externalities and environmental regulation: evaluating good practice in citrus production
Economic activity takes place in a scenario characterized by an increasing number of environmental regulations aimed at bringing under control the emission of contaminating wastes. In this paper, we evaluate the impact of transforming a code of good practice in nitrogen fertilization on Spanish citrus fruit farms into an environmental regulation of compulsory fulfilment. Using data envelopment techniques, we calculate unrestricted and environmentally regulated short-run maximum profits. Both profit values are then used to compute an index of the cost of regulation. Our results suggest that the cost of shifting from a merely recommended practice to a binding rule is low. On average, the loss…
Assessing farming eco-efficiency: a Data Envelopment Analysis approach.
This paper assesses farming eco-efficiency using Data Envelopment Analysis (DEA) techniques. Eco-efficiency scores at both farm and environmental pressure-specific levels are computed for a sample of Spanish farmers operating in the rain-fed agricultural system of Campos County. The determinants of eco-efficiency are then studied using truncated regression and bootstrapping techniques. We contribute to previous literature in this field of research by including information on slacks in the assessment of the potential environmental pressure reductions in a DEA framework. Our results reveal that farmers are quite eco-inefficient, with very few differences emerging among specific environmental …
Outsourcing and efficiency: the case of Spanish citrus farming
Outsourcing in agriculture has traditionally been seen as a managerial strategy of smaller farms to achieve higher levels of efficiency. In this article, we provide empirical evidence supporting the existence of a positive relationship between outsourcing and efficiency in Spanish citrus farming. Outsourcing is measured by the proportion of outsourced labor and capital in farms' total use of these production factors, i.e., the higher the proportion of outsourced inputs, the higher the degree of outsourcing. Making use of data envelopment analysis techniques, we compute input-specific reductions required to achieve technical efficiency at the farm level. Our results show that attainment of t…
Ranking farms with a composite indicator of sustainability
The assessment of sustainability at farm level has been growing in popularity over the last few years. This article contributes to this line of research by building up composite indicators for different facets—social, economic, environmental, and global—of farm sustainability using a methodological approach that combines data envelopment analysis (DEA) and multicriteria decision making (MCDM) methods, and assigns common weights to each individual sustainability indicator. This approach is applied to a database of 163 farms located in the Campos County, a region belonging to the dry lands of the Spanish Northern Plateau, using 12 individual indicators of sustainability. Our findings show tha…
Eco-efficiency assessment of olive farms in Andalusia
Abstract Olive farming represents an important source of income and employment in the rural areas of Andalusia (Spain), which is the most important olive oil-producing region in the world. Unfortunately, it also exerts significant environmental pressures with regard to soil erosion, use of polluting inputs, excessive water consumption and biodiversity reduction. This paper uses Data Envelopment Analysis (DEA) techniques and pressure distance functions to contribute a farm-level assessment of the eco-efficiency of a sample of 292 Andalusian olive farmers. We distinguish between managerial eco-efficiency and program eco-efficiency, the latter being associated to the different natural conditio…
The calculation of shadow prices for industrial wastes using distance functions: An analysis for Spanish ceramic pavements firms
Abstract This paper deals with the calculation of shadow prices for two industrial wastes generated on their production processes by 18 firms belonging to the Spanish ceramic pavements industry. These prices are then used to calculate an extended productivity index which takes into consideration wastes going with the production of marketable goods. We follow the methodological approach first proposed by Fare et al. (The Review of Economics and Statistics 75 (1993)). A negative correlation is found between absolute shadow prices and wastes production intensity, reflecting a greater marginal cost of eliminating wastes for those firms using less contaminant production processes. Differences be…
Analysing farming systems with Data Envelopment Analysis: citrus farming in Spain
Abstract Farming systems in the Mediterranean agricultural areas of Spain are frequently characterised by the small size of the production units and a widespread strategy of externalisation of many growing tasks which could be seen as a way of allowing farms to remain competitive. In this paper, we suggest Data Envelopment Analysis as an appropriate analytical tool to explore the possibilities of short-term viability of individual farms, after eliminating current inefficient practices. From a sample of Spanish citrus farms, we identify the efficient production units that determine the technological or best practice frontier, and we compare their characteristics with those of the average far…
Farmers' costs of environmental regulation: Reducing the consumption of nitrogen in citrus farming
Abstract Environmental externalities in agriculture, and the choice of suitable instruments to integrate environmental concerns into agricultural policies, are a matter of interest for the Common Agricultural Policy. In this paper, we use Data Envelopment Analysis techniques to assess the impact on farms' performance of two environmentally-friendly regulations aimed at abating consumption of inorganic nitrogen in Spanish citrus farming: levies on purchased nitrogen and nitrogen use permits for farms. By comparing farms' short-run maximum profits under both unregulated and regulated scenarios a regulation cost index is computed. Our results show that nitrogen overuse is mostly a matter of ma…
Assessing eco-efficiency: A metafrontier directional distance function approach using life cycle analysis
Sustainability analysis requires a joint assessment of environmental, social and economic aspects of production processes. Here we propose the use of Life Cycle Analysis (LCA), a metafrontier (MF) directional distance function (DDF) approach, and Data Envelopment Analysis (DEA), to assess technological and managerial differences in eco-efficiency between production systems. We use LCA to compute six environmental and health impacts associated with the production processes of nearly 200 Spanish citrus farms belonging to organic and conventional farming systems. DEA is then employed to obtain joint economic-environmental farm's scores that we refer to as eco-efficiency. DDF allows us to deter…