CAP subsidies and technical efficiency including environmental outputs: the case of European farms

Laure Latruffe (1) , K Hervé Dakpo (2) , Yann Desjeux (1) , Giffona Loysell Justinia Hanitravelo (1)

1 SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires
2 ECO-PUB - Economie Publique

We investigate the effect of Common Agricultural Policy (CAP) subsidies on farms’ technical efficiency when environmental outputs are accounted for. Technical efficiency is calculated with Data Envelopment Analysis (DEA) and Dakpo's (2016) by-production model. The environmental outputs considered in turn are greenhouse gas (GHG) emissions, nitrogen (N) balance, ecological focus areas (EFA). The application is to a sample of European Union's farms. Results indicate that the effect of subsidies on farms’ technical efficiency changes when environmental outputs are included in efficiency calculation.

Mots clés: technical efficiency; environmental outputs; PAC subsidies; farms; European Union

Domaines: Sciences du Vivant [q-bio]

Laure Latruffe, K Hervé Dakpo, Yann Desjeux, Giffona Loysell Justinia Hanitravelo. CAP subsidies and technical efficiency including environmental outputs: the case of European farms. 19. meeting of the OECD Network for Farm-Level Analysis, Organisation for Economic Cooperation and Development (OECD). FRA.; International Conference of Agricultural Economics (ICAE). BRA.; European Association of Agricultural Economists (EAAE). INT.; International Association of Agricultural Economists (IAAE). INT., May 2017, Paris, France. ⟨hal-01571253⟩