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The Environmental Performance of the U.S. Agricultural Sector

  • V. Eldon Ball
  • Rolf Färe
  • Shawna Grosskopf
  • F. Hernandez-Sancho
  • Richard F. Nehring
Part of the Studies in Productivity and Efficiency book series (SIPE, volume 2)

Abstract

This paper introduces an environmental performance index and evaluates the environmental performance of the U.S. agricultural sector. Our motivation for developing an index of environmental performance was to assess improvements in the ability of the agricultural sector to produce marketable agricultural outputs while minimizing environmental damage. Since our index is based on distance functions that are representations of technology, we are in effect measuring “environmental productivity”. And since these distance functions explicitly allow us to model joint production of good and bad outputs, and do not require information on shadow prices of “bads,” our index has fairly minimal data requirements. The distance function allows us to aggregate across multiple undesirable outputs (again without requiring information on shadow prices), allowing us to provide a stand-alone index of bad outputs as well. Our index of environmental performance is then constructed as the ratio of a quantity index of marketed agricultural outputs to the index of undesirable outputs.

Keywords

Distance Function Environmental Performance Agricultural Sector Undesirable Output Joint Production 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • V. Eldon Ball
  • Rolf Färe
  • Shawna Grosskopf
  • F. Hernandez-Sancho
  • Richard F. Nehring

There are no affiliations available

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