The Good and the Bad: Environmental Efficiency in Northeastern U.S. Dairy Farming. (29th April 2016)

• Record Type: Journal Article
• Authors: Njuki, Eric; Bravo-Ureta, Boris E.; Mukherjee, Deep
• Is Part Of: Agricultural and resource economics review. Volume 45:Number 1(2016)
• Page Start: 22
• Page End: 43
• Publication Date: 2016-04-29
• Subjects: dairy farming, -- directional output-distance function, -- emissions, -- environmental efficiency, -- shadow prices, -- undesirable output; Sustainable agriculture -- Periodicals; Sustainable agriculture -- United States -- Periodicals; Natural resources -- Periodicals; Agriculture -- Economic aspects -- Periodicals; Rural development -- Periodicals; 338.10974
• DOI: 10.1017/age.2016.1
• Languages: English
• ISSNs: 1068-2805

Abstract

Abstract : This study evaluates the environmental performance of northeastern U.S. dairy operations that differ in size using a directional output-distance function that measures the joint production of milk and emissions while incorporating a four-way error approach that captures farm-size heterogeneity, transient and persistent technical efficiency, and random errors. For the emission component, a comprehensive pollution index is generated that incorporates three major sources of pollution in dairy farming: fuel, fertilizer, and livestock. Computed shadow prices and Morishima elasticities of substitution reveal that large dairy operations are environmentally inefficient compared to their smaller counterparts.