6533b830fe1ef96bd129730f
RESEARCH PRODUCT
Innovation for climate change adaptation and technical efficiency: an empirical analysis in the European agricultural sector
Donatella VignaniManuela CoromaldiNicolò BarbieriSabrina Aucisubject
SH3_10Economics and EconometricsSociology and Political ScienceSocio-culturaleUnobservableFrontierEconomicaStochastic frontier approach0502 economics and businessSustainable agriculture050602 political science & public administrationEconomicsAdaptation050207 economicsAdaptation Agriculture Climate-related patent Stochastic frontier approachProductivityIndustrial organizationbusiness.industrySH3_105 social sciencesAmbientaleClimate-related patentAgricultureProduction–possibility frontierSH1_90506 political scienceAgricultureInternational political economyAgriculture Adaptation Climate-related patent Stochastic frontier approachInefficiencybusinessFinancedescription
This paper analyses the effect of innovation on firms' technical efficiency. Using climate-related patent data to proxy for innovation activity in different technological fields, the paper employs a stochastic frontier approach to estimate the impact of innovative efforts on agricultural firms' technical efficiency taking account of both unobservable heterogeneity and double heteroscedasticity in the inefficiency and idiosyncratic terms. Our findings confirm that innovation has a positive impact on firms' productivity (technical efficiency). While agricultural firms located in Germany and Sweden are more efficient compared to those in southern countries, all the European countries considered are distant from the maximum production frontier. This leaves room for governments to design economically sustainable agriculture policies, incentivize firms and foster technological innovation to achieve adaptations to present and future changes in climate.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2020-04-28 | Economia Politica |