Author:
Njuki Eric,Bravo-Ureta Boris E.,Mukherjee Deep
Abstract
This study evaluates the environmental performance of northeastern U.S. dairy operations that differ in size using a directional output-distance function that measures the joint production of milk and emissions while incorporating a four-way error approach that captures farm-size heterogeneity, transient and persistent technical efficiency, and random errors. For the emission component, a comprehensive pollution index is generated that incorporates three major sources of pollution in dairy farming: fuel, fertilizer, and livestock. Computed shadow prices and Morishima elasticities of substitution reveal that large dairy operations are environmentally inefficient compared to their smaller counterparts.
Publisher
Cambridge University Press (CUP)
Subject
Economics and Econometrics,Agronomy and Crop Science
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