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Economic Value of Greenhouse Gases and Nitrogen Surpluses: Society vs Farmers’ Valuation

David Berre (), Jean-Philippe Boussemart () and Emmanuel Tillard
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Emmanuel Tillard: UMR SELMET / CIRAD La Réunion

Authors registered in the RePEc Author Service: Hervé LELEU ()

No 2012-ECO-02, Working Papers from IESEG School of Management

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. Our results highlight the current debate about the negative or positive shadow prices of the undesirable outputs in efficiency frameworks. Furthermore, we show that farmers are able to reduce pollution significantly if society accepts to balance farmers’ opportunity cost. Finally, we observe that the initial levels of CO2 tax are in line with farmers’ valuation while the current tax evolution tends to reach the value of pollution targeted by the society

Keywords: Agriculture; Data Envelopment Analysis; Environmental Studies (search for similar items in EconPapers)
Pages: 15 pages
Date: 2012-03
New Economics Papers: this item is included in nep-agr and nep-env
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Related works:
Journal Article: Economic value of greenhouse gases and nitrogen surpluses: Society vs farmers’ valuation (2013) Downloads
Working Paper: Economic value of greenhouse gases and nitrogen surpluses: society vs farmers' valuation? (2013)
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