Trade-offs between economic, environmental and social sustainability on farms using a latent class frontier efficiency model: Evidence for Spanish crop farms

Compromis entre la durabilité économique, environnementale et sociale des exploitations agricoles à l'aide d'un modèle d'efficacité de frontière de classe latente: Données sur les exploitations agricoles espagnoles

Amer Ait Sidhoum, H Dakpo () and Laure Latruffe
Additional contact information
Amer Ait Sidhoum: TUM - Technische Universität Munchen - Technical University Munich - Université Technique de Munich
H Dakpo: UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, D-MTEC - Department of Management, Technology, and Economics [ETH Zürich] - ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]

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Abstract: This article studies trade-offs of farms in terms of economic sustainability (proxied here by technical efficiency), environmental sustainability (proxied here by farmers' commitment towards the environment) and social sustainability (proxied here by farmers' contribution to on farm well-being and communities' well-being). We use the latent class stochastic frontier model and create classes based on three separating variables, representing farms' environmental sustainability and social sustainability. The application to a sample of Spanish crop farms shows that more environmentally sustainable farms are likely to have lower levels of technical efficiency. However, improvements in social concerns, both towards own farm and the larger community, may lead to improved technical efficiency levels. In general, our study provides evidence of trade-offs for farms between economic sustainability and environmental sustainability, but also between environmental sustainability and social sustainability.

Date: 2022-01-10
New Economics Papers: this item is included in nep-agr, nep-eff and nep-env
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-04139708v1
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Citations: View citations in EconPapers (4)

Published in PLoS ONE, 2022, 17 (1), pp.e0261190. ⟨10.1371/journal.pone.0261190⟩

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Journal Article: Trade-offs between economic, environmental and social sustainability on farms using a latent class frontier efficiency model: Evidence for Spanish crop farms (2022)
Working Paper: Trade-offs between economic, environmental and social sustainability on farms using a latent class frontier efficiency model: Evidence for Spanish crop farms (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04139708

DOI: 10.1371/journal.pone.0261190

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