Multiple output production with undesirable outputs: an application to nitrogen surplus in agriculture

C. Fernandez, G.M. Koop, M. Steel

Research output: Contribution to journalArticle

60 Citations (Scopus)
44 Downloads (Pure)

Abstract

Many production processes yield both good outputs and undesirable ones (e.g., pollutants). In this article we develop a generalization of a stochastic frontier model that is appropriate for such technologies. We discuss efficiency analysis and, in particular, define technical and environmental efficiency in the context of our model. We develop methods for carrying out Bayesian inference and apply them to a panel data set of Dutch dairy farms, where excess nitrogen production constitutes an important environmental problem.
Original languageEnglish
Pages (from-to)432-442
Number of pages10
JournalJournal of the American Statistical Association
Volume97
DOIs
Publication statusPublished - 2002

Keywords

  • environment
  • stochastic frontier
  • agriculture
  • statistics
  • dairy farms
  • efficiency
  • Monte Carlo Markov chains

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