Identifying and assessing intensive and extensive technologies in European dairy farming


Date

2023-09

Publication Type

Journal Article

ETH Bibliography

yes

Citations

Altmetric

Data

Abstract

In order to tackle climate change and biodiversity loss, the European Union (EU) promotes extensive farming. However, identifying such farms across countries and assessing their performance for policy purposes remains challenging. This paper combines a latent class stochastic frontier model (LCSFM) with a novel nested metafrontier approach. The resulting model enables the identification of intensive and extensive farms across countries, estimation of farm efficiency and identification of different technology gaps. Based on Farm Accountancy Data Network data of French, Irish and Austrian dairy farms,we find poorer environmental but better economic performance of intensive farms, compared to extensive farms. The largest productivity differences stem from technology gaps and not from inefficiency. The approach enables a more nuanced analysis of sources of inefficiency to assist policy design for future green payments in the EU.

Publication status

published

Editor

Book title

Volume

50 (4)

Pages / Article No.

1482 - 1519

Publisher

Oxford University Press

Event

Edition / version

Methods

Software

Geographic location

Date collected

Date created

Subject

efficiency; dairy farms; latent class stochastic frontier; nested metafrontiers; European Union

Organisational unit

09564 - Finger, Robert / Finger, Robert check_circle

Notes

Funding

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