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VALENCIAN INSTITUTE OF ECONOMIC RESEARCH

Research article: A metafrontier directional distance function approach to assessing eco-efficiency

Journal of Productivity AnalysisAuthor: Mercedes Beltrán-Esteve, José A. Gómez-Limón, Andrés J. Picazo-Tadeo and Ernest Reig-Martínez

Title: A metafrontier directional distance function approach to assessing eco-efficiency

Source: Journal of Productivity Analysis

Abstract: This paper uses directional distance functions to extend the non-parametric metafrontier approach to efficiency measurement proposed by O’Donnell et al. (Empir Econ 34:231–255, 2008) to the assessment of technological differences in eco-efficiency between groups of producers. Furthermore, eco-efficiency is assessed at the level of specific environmental pressure management. This methodology is applied to a sample of Spanish olive producers that belong to both traditional mountain and traditional plain growing systems. We find great potential for both olive growing systems to reduce environmental pressures. In terms of pressures on natural resources, the most eco-efficient technology is the traditional plain system, while the traditional mountain system is the most eco-efficient when considering pressures on biodiversity. These results might help policymakers design strategies to improve the performance of olive growing and meet the demands of society regarding the economic and ecological functions of this farming activity.

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Recommended citation:

Beltrán, M., J.A. Gómez-Limón, A.J. Picazo and E. Reig (2014): "A metafrontier directional distance function approach to assessing eco-efficiency", Journal of Productivity Analysis, 41(1), February, pp. 69-83.

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