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Economic value of greenhouse gases and nitrogen surpluses: Society vs farmers’ valuation

David Berre (), Jean-Philippe Boussemart (), Hervé Leleu () and Emmanuel Tillard

European Journal of Operational Research, 2013, vol. 226, issue 2, 325-331

Abstract: Livestock supply must challenge the growth of final demand in the developing countries. This challenge has to take into account its ecological effects since the dairy and livestock sectors are clearly pointed out as human activities which contribute significantly to environmental deterioration. Therefore, livestock activity models have to include desirable and undesirable outputs simultaneously. Using this perspective, we implement a Data Envelopment Analysis model to evaluate shadow prices of outputs under contradictory objectives between the society and the farmers. We show that farmers are able to reduce pollution significantly if society accepts to balance farmers’ opportunity cost. Finally, we observe that initial levels of the CO2 tax implemented in European countries are in line with farmers’ valuation while the current level of the CO2 tax tends to reach the value of pollution targeted by the society.

Keywords: Environment; Data envelopment analysis; Agriculture (search for similar items in EconPapers)
Date: 2013
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Related works:
Working Paper: Economic value of greenhouse gases and nitrogen surpluses: society vs farmers' valuation? (2013)
Working Paper: Economic Value of Greenhouse Gases and Nitrogen Surpluses: Society vs Farmers’ Valuation (2012) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:226:y:2013:i:2:p:325-331

DOI: 10.1016/j.ejor.2012.11.017

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

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