New approach for the assignment of new European agricultural subsidies using scores from data envelopment analysis: Application to olive-growing farms in Andalusia (Spain)

Antonio Amores and Ignacio Contreras

European Journal of Operational Research, 2009, vol. 193, issue 3, 718-729

Abstract: More than 60% of olive-growing farms in Andalusia (Spain) would have negative returns without European agricultural subsidies. Agenda 2000 criteria imply that agricultural subsidies currently play the role of enhancing the production quality and the environmental and social values of agriculture. Although the necessity of the modulation of subsidies is stated, the EU regulations do not state which objective criteria should be used or how they should be measured, despite the fact that regulations demand objectivity in this measurement. This paper proposes an allocation system for subsidies which takes the Agenda 2000 criteria into account through their assignment according to Farm Efficiency which is calculated by decomposing overall DEA Scores, by means of internalizing the positive and negative externalities of agricultural activity. The paper analyzes the Type Efficiency of the Andalusian olive-growing sector by using the proposed indexes over a sample of 3000 real farms, taken from the administrative subsidy database.

Keywords: Data; envelopment; analysis; OR; in; government; Olive-growing; European; Union; Common; Agricultural; Policy; Subsidy; assignment (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377-2217(07)01034-X
Full text for ScienceDirect subscribers only

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:eee:ejores:v:193:y:2009:i:3:p:718-729

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().