Pollution-adjusted productivity changes: extending the färe–primont index with an illustration with french suckler Cow farms

K. Hervé Dakpo (), Philippe Jeanneaux () and Laure Latruffe
Additional contact information
K. Hervé Dakpo: ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech
Philippe Jeanneaux: Territoires - Territoires - INRA - Institut National de la Recherche Agronomique - AgroParisTech - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture - UCA [2017-2020] - Université Clermont Auvergne [2017-2020]

Post-Print from HAL

Abstract: Several approaches have been proposed in the literature to compute technical efficiency indices that account for bad outputs. The literature is, however, less rich when it comes to incorporating bad outputs in productivity indices. In this context, this article extends the multiplicatively complete Färe–Primont productivity index to a generalized version that considers pollution. This novel pollution-adjusted total factor productivity (TFP) is the ratio of an aggregated measure of good outputs to an aggregated measure of bad outputs and non-polluting inputs, in such a way that the materials balance principle is not distorted. A decomposition of this new pollution-adjusted TFP is proposed using the by-production. The latter implies considering a technology that lies at the intersection of two sub-technologies: one for the production of good outputs and the other for the generation of pollution. The pollution-adjusted TFP is further decomposed into pollution-adjusted technical change and efficiency change. The latter is further broken down into technical, scale, mix, and residual efficiency change components. A crucial advantage of the Färe–Primont index is the verification of the transitivity property that allows multi-temporal and multilateral comparisons. The generalized (pollution-adjusted) Färe–Primont TFP proposed here is illustrated with a sample of French suckler cow farms surveyed over the period of 1990 to 2013. The bad outputs considered are greenhouse gas emissions, namely methane (CH4), carbon dioxide (CO2), and nitrous oxide (N2O). The results reveal a decrease in pollution-adjusted TFP by 5.57% during the period, due to technological regress of 2.23%, and to technical efficiency decrease of almost 3.34%.

Keywords: greenhouse gases; total factor productivity; pollution; France; suckler cow farms; färe–Primont index (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published in Environmental Modeling & Assessment, 2019, 24 (6), pp.625-639. ⟨10.1007/s10666-019-09656-y⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02171433

DOI: 10.1007/s10666-019-09656-y

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().