Multiple-Output Production With Undesirable Outputs: An Application to Nitrogen Surplus in Agriculture

Many production processes yield both good outputs and undesirable ones (e.g., pollutants). In this article we develop a generalization of a stochastic frontier model that is appropriate for such technologies. We discuss efficiency analysis and, in particular, define technical and environmental effic...

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Bibliographic Details
Published in:Journal of the American Statistical Association 2002-06, Vol.97 (458), p.432-442
Main Authors: Fernández, Carmen, Koop, Gary, Steel, Mark F. J
Format: Article
Language:English
Subjects:
Agricultural pollution
Agricultural production
Agriculture
Applications and Case Studies
Dairy farm
Dairy farming
Dairy industry
Economic models
Efficiency
Efficiency metrics
Environment
Environmental policy
Farming
Intensive production
Longitudinal data
Mathematical models
Netherlands
Nitrogen
Nitrogen fertilizers
Production
Statistical analysis
Statistical methods
Statistics
Stochastic frontier
Stochastic models
Surplus
Sustainable agriculture
Citations: Items that this one cites
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Summary:Many production processes yield both good outputs and undesirable ones (e.g., pollutants). In this article we develop a generalization of a stochastic frontier model that is appropriate for such technologies. We discuss efficiency analysis and, in particular, define technical and environmental efficiency in the context of our model. We develop methods for carrying out Bayesian inference and apply them to a panel data set of Dutch dairy farms, where excess nitrogen production constitutes an important environmental problem.
ISSN:0162-1459
1537-274X
DOI:10.1198/016214502760046989