Assessing farming eco-efficiency: A Data Envelopment Analysis approach

This paper assesses farming eco-efficiency using Data Envelopment Analysis (DEA). Eco-efficiency scores at both farm and environmental pressurespecific levels are computed for a sample of Spanish farmers operating in the rainfed agricultural system of Campos County. The determinants of eco-efficiency are then studied using truncated regression and bootstrapping. We contribute to previous literature by including information on slacks in the assessment of the potential environmental-pressure reductions in a DEA framework. Our results reveal that farmers are quite eco-inefficient, with very few differences emerging among specific environmental pressures. Furthermore, farmers benefiting from agrienvironmental programs as well as those with university education are found to be more eco-efficient. Concerning the policy implications of these results, public expenditure in agricultural extension and farmer training could be of some help to promote integration between farming and the environment. Furthermore, Common Agricultural Policy agri-environmental programs are also an effective policy to improve eco-efficiency.