Effect of subsidies on technical efficiency excluding or including environmental outputs: An illustration with a sample of farms in the European Union

Laure Latruffe, K Hervé Dakpo, Yann Desjeux and Giffona Justinia Hanitravelo

No 17-11, Working Papers SMART from INRAE UMR SMART

Abstract: With a sample of farms in the European Union (EU) and Farm Accountancy Data Network (FADN) data completed by additional data, we illustrate how the effect of farm subsidies on technical efficiency changes when environmental (good or bad) outputs are incorporated in the calculation of technical efficiency. Results indicate that the effect of the Common Agricultural Policy (CAP) operational subsidies on farm technical efficiency changes when environmental outputs (in this study: greenhouse gas emissions, nitrogen balance and ecological focus areas) are taken into account in the efficiency calculation: some effects change significance, and more importantly, some effects change sign.

Keywords: technical efficiency; subsidies; Common Agricultural Policy; environmental outputs; farms; European Union (search for similar items in EconPapers)
JEL-codes: C6 Q12 Q18 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2017
New Economics Papers: this item is included in nep-agr, nep-eff and nep-env
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https://ageconsearch.umn.edu/record/266259/files/wp17-11.pdf (application/pdf)

Related works:
Working Paper: Effect of subsidies on technical efficiency excluding or including environmental outputs: An illustration with a sample of farms in the European Union (2018)
Working Paper: Effect Of Subsidies On Technical Efficiency Excluding Or Including Environmental Outputs: An Illustration With A Sample Of Farms In The European Union (2017)
Working Paper: Effect of subsidies on technical efficiency excluding or including environmental outputs: An illustration with a sample of farms in the European Union (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:rae:wpaper:201711

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