IDEAS home Printed from https://ideas.repec.org/p/eec/wpaper/1206.html
   My bibliography  Save this paper

A metafrontier directional distance function approach to assessing eco-efficiency

Author

Listed:
  • Mercedes Beltrán-Esteve

    (Universidad de Valencia)

  • José A. Gómez-Limón

    (Universidad de Córdoba)

  • Andrés J. Picazo-Tadeo

    (Universidad de Valencia)

  • Ernest Reig-Martínez

    (Universidad de Valencia)

Abstract

This paper uses directional distance functions to extend the non-parametric metafrontier approach to efficiency measurement proposed by OÕDonnell et al. (2008) to the assessment of technological differences in eco-efficiency between groups of producers. Furthermore, eco-efficiency is assessed at the level of specific environmental pressures management. This methodology is applied to a sample of Spanish olive producers that belong to both traditional mountain and traditional plain growing systems. We find great potential for both olive growing systems to reduce environmental pressures. In terms of pressures on natural resources, the most eco-efficient technology corresponds to the traditional plain system, while the traditional mountain system is the most eco-efficient when considering pressures on biodiversity. These results might help policymakers design strategies aimed at improving the performance of olive growing and meeting the demands of society regarding the economic and ecological functions of this farming activity.

Suggested Citation

  • Mercedes Beltrán-Esteve & José A. Gómez-Limón & Andrés J. Picazo-Tadeo & Ernest Reig-Martínez, 2012. "A metafrontier directional distance function approach to assessing eco-efficiency," Working Papers 1206, Department of Applied Economics II, Universidad de Valencia.
    • Handle: RePEc:eec:wpaper:1206
    as

    Download full text from publisher

    File URL: https://repecsrv.uv.es/paper/RePEc/pdf/eec_1206.pdf
    File Function: First version, 2012
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Andres Picazo-Tadeo & Ernest Reig-Martinez, 2006. "Agricultural externalities and environmental regulation: evaluating good practice in citrus production," Applied Economics, Taylor & Francis Journals, vol. 38(11), pages 1327-1334.
    2. Zhang, Bing & Bi, Jun & Fan, Ziying & Yuan, Zengwei & Ge, Junjie, 2008. "Eco-efficiency analysis of industrial system in China: A data envelopment analysis approach," Ecological Economics, Elsevier, vol. 68(1-2), pages 306-316, December.
    3. Mouron, Patrik & Scholz, Roland W. & Nemecek, Thomas & Weber, Olaf, 2006. "Life cycle management on Swiss fruit farms: Relating environmental and income indicators for apple-growing," Ecological Economics, Elsevier, vol. 58(3), pages 561-578, June.
    4. Andrés J. Picazo-Tadeo & José A. Gómez-Limón & Ernest Reig-Martínez, 2010. "Assessing farming eco-efficiency: A Data Envelopment Analysis approach," Working Papers 1004, Department of Applied Economics II, Universidad de Valencia.
    5. A. Charnes & W. W. Cooper & E. Rhodes, 1981. "Evaluating Program and Managerial Efficiency: An Application of Data Envelopment Analysis to Program Follow Through," Management Science, INFORMS, vol. 27(6), pages 668-697, June.
    6. Dios-Palomares, Rafaela & Martínez-Paz, José M., 2011. "Technical, quality and environmental efficiency of the olive oil industry," Food Policy, Elsevier, vol. 36(4), pages 526-534, August.
    7. P. Zhou & B. Ang & D. Zhou, 2010. "Weighting and Aggregation in Composite Indicator Construction: a Multiplicative Optimization Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 96(1), pages 169-181, March.
    8. Daniel Solís & Boris E. Bravo‐Ureta & Ricardo E. Quiroga, 2009. "Technical Efficiency among Peasant Farmers Participating in Natural Resource Management Programmes in Central America," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 202-219, February.
    9. José A. Gómez-Limón & Andrés J. Picazo-Tadeo & Ernest Reig-Martínez, 2011. "Eco-efficiency Assessment of Olive Farms in Andalusia," Working Papers 1105, Department of Applied Economics II, Universidad de Valencia.
    10. George Battese & D. Rao & Christopher O'Donnell, 2004. "A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies," Journal of Productivity Analysis, Springer, vol. 21(1), pages 91-103, January.
    11. Dyckhoff, H. & Allen, K., 2001. "Measuring ecological efficiency with data envelopment analysis (DEA)," European Journal of Operational Research, Elsevier, vol. 132(2), pages 312-325, July.
    12. Picazo-Tadeo, Andrés J. & Beltrán-Esteve, Mercedes & Gómez-Limón, José A., 2012. "Assessing eco-efficiency with directional distance functions," European Journal of Operational Research, Elsevier, vol. 220(3), pages 798-809.
    13. Amores, Antonio F. & Contreras, Ignacio, 2009. "New approach for the assignment of new European agricultural subsidies using scores from data envelopment analysis: Application to olive-growing farms in Andalusia (Spain)," European Journal of Operational Research, Elsevier, vol. 193(3), pages 718-729, March.
    14. Francisco J. SÁEZ‐FERNÁNDEZ & Andrés J. PICAZO‐TADEO & Carmen M. LLORCA‐RODRÍGUEZ, 2012. "Do Labour Societies Perform Differently To Cooperatives? Evidence From The Spanish Building Industry," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(1), pages 61-81, March.
    15. George E. Battese & D. S. Prasada Rao, 2002. "Technology Gap, Efficiency, and a Stochastic Metafrontier Function," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 1(2), pages 87-93, August.
    16. Joseph Sarkis & Srinivas Talluri, 2004. "Ecoefficiency Measurement Using Data Envelopment Analysis: Research And Practitioner Issues," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 91-123.
    17. Laurens Cherchye & Timo Kuosmanen & Thierry Post, 2001. "FDH Directional Distance Functions with an Application to European Commercial Banks," Journal of Productivity Analysis, Springer, vol. 15(3), pages 201-215, January.
    18. Picazo-Tadeo, Andres J. & Reig-Martinez, Ernest & Hernandez-Sancho, Francesc, 2005. "Directional distance functions and environmental regulation," Resource and Energy Economics, Elsevier, vol. 27(2), pages 131-142, June.
    19. Timo Kuosmanen & Mika Kortelainen, 2005. "Measuring Eco‐efficiency of Production with Data Envelopment Analysis," Journal of Industrial Ecology, Yale University, vol. 9(4), pages 59-72, October.
    20. Joyce Willock & Ian J. Deary & Gareth Edwards‐Jones & Gavin J. Gibson & Murray J. McGregor & Alistair Sutherland & J. Barry Dent & Oliver Morgan & Robert Grieve, 1999. "The Role of Attitudes and Objectives in Farmer Decision Making: Business and Environmentally‐Oriented Behaviour in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 286-303, May.
    21. Torben Tiedemann & Tammo Francksen & Uwe Latacz-Lohmann, 2011. "Assessing the performance of German Bundesliga football players: a non-parametric metafrontier approach," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 19(4), pages 571-587, December.
    22. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    23. Antonio Alvarez & Julio del Corral, 2010. "Identifying different technologies using a latent class model: extensive versus intensive dairy farms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 37(2), pages 231-250, June.
    24. Víctor Moreira & Boris Bravo-Ureta, 2010. "Technical efficiency and metatechnology ratios for dairy farms in three southern cone countries: a stochastic meta-frontier model," Journal of Productivity Analysis, Springer, vol. 33(1), pages 33-45, February.
    25. Seiford, Lawrence M. & Zhu, Joe, 2002. "Modeling undesirable factors in efficiency evaluation," European Journal of Operational Research, Elsevier, vol. 142(1), pages 16-20, October.
    26. Rolf Färe & Shawna Grosskopf, 2000. "Theory and Application of Directional Distance Functions," Journal of Productivity Analysis, Springer, vol. 13(2), pages 93-103, March.
    27. Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December.
    28. Kontolaimou, Alexandra & Tsekouras, Kostas, 2010. "Are cooperatives the weakest link in European banking? A non-parametric metafrontier approach," Journal of Banking & Finance, Elsevier, vol. 34(8), pages 1946-1957, August.
    29. Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
    30. Korhonen, Pekka J. & Luptacik, Mikulas, 2004. "Eco-efficiency analysis of power plants: An extension of data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 154(2), pages 437-446, April.
    31. Christopher O’Donnell & D. Rao & George Battese, 2008. "Metafrontier frameworks for the study of firm-level efficiencies and technology ratios," Empirical Economics, Springer, vol. 34(2), pages 231-255, March.
    32. Tigran Poghosyan & Subal Kumbhakar, 2010. "Heterogeneity of technological regimes and banking efficiency in former socialist economies," Journal of Productivity Analysis, Springer, vol. 33(1), pages 19-31, February.
    33. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2007. "Data Envelopment Analysis," Springer Books, Springer, edition 0, number 978-0-387-45283-8, February.
    34. Hoang, Viet-Ngu & Rao, D.S. Prasada, 2010. "Measuring and decomposing sustainable efficiency in agricultural production: A cumulative exergy balance approach," Ecological Economics, Elsevier, vol. 69(9), pages 1765-1776, July.
    35. Kristof De Witte & Rui C. Marques, 2008. "Capturing the environment, a metafrontier approach to the drinking water sector," Working Papers of Department of Economics, Leuven ces0804, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    36. Kounetas, Konstantinos & Mourtos, Ioannis & Tsekouras, Konstantinos, 2009. "Efficiency decompositions for heterogeneous technologies," European Journal of Operational Research, Elsevier, vol. 199(1), pages 209-218, November.
    37. Isabelle Piot-Lepetit & Monique Moing, 2007. "Productivity and environmental regulation: the effect of the nitrates directive in the French pig sector," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(4), pages 433-446, December.
    38. R. G. Chambers & Y. Chung & R. Färe, 1998. "Profit, Directional Distance Functions, and Nerlovian Efficiency," Journal of Optimization Theory and Applications, Springer, vol. 98(2), pages 351-364, August.
    39. Isabelle Piot-Lepetit & Monique Le Moing, 2007. "Productivity and environmental regulation : the effect of the nitrates directive in the French pig sector," Post-Print hal-02375148, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Picazo-Tadeo, Andrés J. & Beltrán-Esteve, Mercedes & Gómez-Limón, José A., 2012. "Assessing eco-efficiency with directional distance functions," European Journal of Operational Research, Elsevier, vol. 220(3), pages 798-809.
    2. Kounetas, Konstantinos & Stergiou, Eirini, 2019. "Examining eco-efficiency convergence of European Industries.The existence of technological spillovers within a metafrontier framework," MPRA Paper 94286, University Library of Munich, Germany.
    3. Kounetas, Konstantinos & Stergiou, Eirini, 2020. "European industrial eco-efficiency under different pollutants' scenarios and heterogeneity structures. Is there a definite direction?," MPRA Paper 98583, University Library of Munich, Germany.
    4. Picazo-Tadeo, Andrés J. & Castillo-Giménez, Juana & Beltrán-Esteve, Mercedes, 2014. "An intertemporal approach to measuring environmental performance with directional distance functions: Greenhouse gas emissions in the European Union," Ecological Economics, Elsevier, vol. 100(C), pages 173-182.
    5. Beltrán-Esteve, Mercedes & Picazo-Tadeo, Andrés J., 2017. "Assessing environmental performance in the European Union: Eco-innovation versus catching-up," Energy Policy, Elsevier, vol. 104(C), pages 240-252.
    6. Andrés J. Picazo-Tadeo & Juana Castillo & Mercedes Beltrán-Esteve, 2013. "A dynamic approach to measuring ecological-economic performance with directional distance functions: greenhouse gas emissions in the European Union," Working Papers 1304, Department of Applied Economics II, Universidad de Valencia.
    7. Kerstens, Kristiaan & O’Donnell, Christopher & Van de Woestyne, Ignace, 2019. "Metatechnology frontier and convexity: A restatement," European Journal of Operational Research, Elsevier, vol. 275(2), pages 780-792.
    8. Trinks, Arjan & Mulder, Machiel & Scholtens, Bert, 2020. "An Efficiency Perspective on Carbon Emissions and Financial Performance," Ecological Economics, Elsevier, vol. 175(C).
    9. Chiu, Yung-Ho & Lee, Jen-Hui & Lu, Ching-Cheng & Shyu, Ming-Kuang & Luo, Zhengying, 2012. "The technology gap and efficiency measure in WEC countries: Application of the hybrid meta frontier model," Energy Policy, Elsevier, vol. 51(C), pages 349-357.
    10. Dakpo, Hervé K & Jeanneaux, Philippe & Latruffe, Laure, 2014. "Inclusion of undesirable outputs in production technology modeling: The case of greenhouse gas emissions in French meat sheep farming," Working Papers 207806, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    11. Yu, Yantuan & Huang, Jianhuan & Zhang, Ning, 2019. "Modeling the eco-efficiency of Chinese prefecture-level cities with regional heterogeneities: A comparative perspective," Ecological Modelling, Elsevier, vol. 402(C), pages 1-17.
    12. Tianqun Xu & Ping Gao & Qian Yu & Debin Fang, 2017. "An Improved Eco-Efficiency Analysis Framework Based on Slacks-Based Measure Method," Sustainability, MDPI, vol. 9(6), pages 1-21, June.
    13. Alfredsson, Eva & Månsson, Jonas & Vikström, Peter, 2016. "Internalising external environmental effects in efficiency analysis," Economic Analysis and Policy, Elsevier, vol. 51(C), pages 22-31.
    14. Kounetas, Konstantinos & Zervopoulos, Panagiotis D., 2019. "A cross-country evaluation of environmental performance: Is there a convergence-divergence pattern in technology gaps?," European Journal of Operational Research, Elsevier, vol. 273(3), pages 1136-1148.
    15. Joanna Domagała, 2021. "Economic and Environmental Aspects of Agriculture in the EU Countries," Energies, MDPI, vol. 14(22), pages 1-23, November.
    16. Beltrán-Esteve, Mercedes & Picazo-Tadeo, Andrés J., 2015. "Assessing environmental performance trends in the transport industry: Eco-innovation or catching-up?," Energy Economics, Elsevier, vol. 51(C), pages 570-580.
    17. Kounetas, Konstantinos, 2015. "Heterogeneous technologies, strategic groups and environmental efficiency technology gaps for European countries," Energy Policy, Elsevier, vol. 83(C), pages 277-287.
    18. Stergiou, Eirini & Kounetas, Konstantinos, 2022. "Heterogeneity, spillovers and eco-efficiency of European industries under different pollutants’ scenarios. Is there a definite direction?," Ecological Economics, Elsevier, vol. 195(C).
    19. Afsharian, Mohsen & Ahn, Heinz & Harms, Sören Guntram, 2019. "Performance comparison of management groups under centralised management," European Journal of Operational Research, Elsevier, vol. 278(3), pages 845-854.
    20. Walheer, Barnabé, 2018. "Aggregation of metafrontier technology gap ratios: the case of European sectors in 1995–2015," European Journal of Operational Research, Elsevier, vol. 269(3), pages 1013-1026.

    More about this item

    Keywords

    Economic-ecological efficiency; metafrontier; directional distance functions; Data Envelopment Analysis; agro environmental policy; Spain;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eec:wpaper:1206. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vicente Esteve (email available below). General contact details of provider: https://edirc.repec.org/data/dsvales.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.