Regional eco-efficiency of the agricultural sector in V4 regions, its dynamics in time and decomposition on the technological and pure technical eco-efficiency change

Abstract

Research background: Agriculture plays a vital role in producing food to ensure food security, but it is one of the biggest contributors to environmental pollution. One of the main goals of the new CAP is to set higher ambitions for environmental actions, which brings into the front the concept of agricultural eco-efficiency. The notion of eco-efficiency includes the economic and also ecological dimensions of sustainable agriculture.

Purpose of the article: The main goal of this paper is to evaluate the eco-efficiency of agricultural production and its dynamics during the years 2013, 2015, and 2017 of NUTS 2 regions within the Visegrad 4  (V4), i. e. The Czech Republic, Slovakia, Hungary, and Poland. The part of the main goal is to verify the research hypothesis that all the biggest agriculture producers are eco-efficient.

Methods: V4 regional eco-efficiency of the agricultural sector is expressed by the Malmquist productivity index and is estimated using the output-oriented Data envelopment analysis (DEA) model, under the assumption of constant return to scale (CRS). The Malmquist index is decomposed to technical eco-efficiency change (EC) and technological change (TC). Based on the eco-efficiency, technological and pure technical eco-efficiency change, V4 regions are classified into three groups: the most progressive regions, the progressive regions, and the regressive regions.

Findings & value added: CZ02: Central Bohemia, CZ04: Northwest, HU33: Dél-Alföld, HU31: Észak-Magyarország, HU32: Észak-Alföld, PL21: Malopolskie, PL41: Wielkopolskie, SK01: Bratislava region, and SK02: Western Slovakia have an eco-effective agricultural sector, the remaining V4 regions have eco-ineffective agricultural sector. The research hypothesis that all the biggest agricultural producers are eco-effective is not confirmed. During the analyzed years, 19 V4 regions improve their agricultural eco-efficiency. The main contributor to eco-efficiency improvement is technological progress, which indicates that producers implement innovations that lead to more eco-efficiency agricultural production.

Keywords

agricultural eco-efficiency, Visegrad regions, Malmquist index, technological change, pure technical eco-efficiency

References

1. Bianchi, M., del Valle, I., & Tapia, C. (2020). Measuring eco-efficiency in European regions: evidence from a territorial perspective. Journal of Cleaner Production, 276. 123246. doi: 10.1016/j.jclepro.2020.123246. DOI: https://doi.org/10.1016/j.jclepro.2020.123246
   View in Google Scholar
2. Caiado, R. G. G., Dias, R. F., Mattos, L. V., Quelhas, O. L. G., & Filho, W. L. (2017). Towards sustainable development through the perspective of eco-efficiency ? a systematic literature review. Journal of Cleaner Production, 165, 890?904. doi: 10.1016/j.jclepro.2017.07.166. DOI: https://doi.org/10.1016/j.jclepro.2017.07.166
   View in Google Scholar
3. Camarero, M., Picazo-Tadeo, A. J., Castillo, J., & Tamarit, C. (2013). Eco-efficiency and Convergence in OECD Countries. Environmental and Resource Economics, 55(1), 1?20. doi: 10.1007/s10640-012-9616-9. DOI: https://doi.org/10.1007/s10640-012-9616-9
   View in Google Scholar
4. Carboni, O. A., & Russu, P. (2017). Measuring and forecasting regional environmental and economic efficiency in Italy. Applied Economics, 50(5), 335?353, doi: 10.1080/00036846.2017.1313954. DOI: https://doi.org/10.1080/00036846.2017.1313954
   View in Google Scholar
5. Caves, D., Christensen, L., & Diewert, E. (1982). The economic theory of index numbers and the measurement of input, output, and productivity. Econometrica, 50(6), 1393?1414, doi: 10.2307/1913388. DOI: https://doi.org/10.2307/1913388
   View in Google Scholar
6. Charnes, A., Cooper, W.W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), 429?444. doi: 10.1016/0377-2217(78)90138-8. DOI: https://doi.org/10.1016/0377-2217(78)90138-8
   View in Google Scholar
7. Coluccia, B., Valente, D., Fusco, G., De Leo, F., & Porrini, D. (2020). Assessing agricultural eco-efficiency in Italian Regions. Ecological Indicators, 116, doi: 10.1016/j.ecolind.2020.106483. DOI: https://doi.org/10.1016/j.ecolind.2020.106483
   View in Google Scholar
8. DeSimone, L. D., & Popoff, F. (2000). Eco-efficiency: the business link to sustainable development. Massachusetts: The MIT Press. DOI: https://doi.org/10.1108/ijshe.2000.1.3.305.5
   View in Google Scholar
9. Dyckhoff, H., & Allen, K. (2001). Measuring ecological efficiency with data envelopment analysis. European Journal of Operational Research, 132(2), 312?325. doi: 10.1016/S0377-2217(00)00154-5. DOI: https://doi.org/10.1016/S0377-2217(00)00154-5
   View in Google Scholar
10. Ehrmann, M. (2008). Comparing sustainable value approach, Data Envelopment Analysis and indicator approaches - an application on German dairy farms. [Conference presentation]. 2008 International Congress, August, 2008, Ghent, Belgium 44140. European Association of Agricultural Economists. doi: 10.22004/ag.econ.44140.
    View in Google Scholar
11. European Commission (2017). Modernising & simplifying the CAP: climate & environmental challenges facing agriculture and rural areas. Retrieved from https://ec.europa.eu/info/sites/info/files/food-farming-fisheries/key_policies/do cuments/env_background_final_en.pdf (17. 12. 2020).
    View in Google Scholar
12. Fandel, P., & Bartova, L. (2018). Eco-efficiency using directional distance functions with undesirable outputs. In Quantitative methods in economics. Bratislava: Letra Edu.
    View in Google Scholar
13. Färe, R., Grosskopf, S., Lindgren, B., & Roos, P. (1994). Productivity growth, technical progress and efficiency changes in industrialized country. American Economic Review, 84(1), 66?83.
    View in Google Scholar
14. Food and Agriculture Organization of the United Nations (FAO) (2001). Agriculture and the environment: changing pressures, solutions and trade-offs. Retrieved from http://www.fao.org/3/y4252e/y4252e12.pdf (17. 12. 2020).
    View in Google Scholar
15. Hua, Z., Bian, Y., & Liang, L. (2007). Eco-efficiency analysis of paper mills along the Huai river: an extended DEA approach. Omega, 35(5), 578?587. doi: 10.1016/j.omega.200511.001. DOI: https://doi.org/10.1016/j.omega.2005.11.001
    View in Google Scholar
16. Huppes G, & Ishikawa M. (2005). A framework for quantified eco-efficiency analysis. Journal of Industrial Ecology, 9(4), 25?41. doi: 10.1162/108819805775 247882. DOI: https://doi.org/10.1162/108819805775247882
    View in Google Scholar
17. Hur, T., Kim, I., & Yamatoto, R. (2004). Measurement of green productivity and its improvements. Journal of Cleaner Production, 12(7), 673?683. doi: 10.101 6/j.jclepro.2003.08.004. DOI: https://doi.org/10.1016/j.jclepro.2003.08.004
    View in Google Scholar
18. Keating, B. A., Carberry, P. S., Bindraham, P. S., Asseng, S., Meinke, H., & Dixon, J. (2010). Eco-efficient agriculture: concepts, challenges, and opportunities. Crop Science, 50, 109?119. doi: 10.2135/cropsci2009.10.0594. DOI: https://doi.org/10.2135/cropsci2009.10.0594
    View in Google Scholar
19. Kortelainen, M. (2008). Dynamic environmental performance analysis: a Malmquist index approach. Ecological Economics, 64(4), 701?715. doi: 10.1 016/j.ecolecon.2007.08.001. DOI: https://doi.org/10.1016/j.ecolecon.2007.08.001
    View in Google Scholar
20. Lauransa, Y., Rankovic, A., Billo, R., Pirard, R. & Mermet, L. (2013). Use of ecosystem services economic valuation for decision making: questioning a literature blindspot. Journal of Environmental Management, 119, 208?219. doi: 10.1 016/j.jenvman.2013.01.008. DOI: https://doi.org/10.1016/j.jenvman.2013.01.008
    View in Google Scholar
21. Li, Z., Hu, M., & Jin, T. (2021). Spatio-temporal evolution and improvement potential of agricultural eco-efficiency in Jiangsu Province. Preprints. doi: 10.20944/preprints202104.0431.v1. DOI: https://doi.org/10.20944/preprints202104.0431.v1
    View in Google Scholar
22. Liu, Y., Zou L., & Wang, Y. (2020). Spacial-temporal characteristics and influencing factors of agricultural eco-efficiency in recent 40 years. Land Use Policy, 97, 104794. doi: 10.1016/j.landusepol.2020.104794. DOI: https://doi.org/10.1016/j.landusepol.2020.104794
    View in Google Scholar
23. Mavi, N. K., & Mavi, R. K. (2019). Energy and environmental efficiency of OECD countries in the context of the circular economy: common weight analysis for Malmquisyt productivity index. Journal of Environmental Management, 247, 651?661. doi: 10.1016/j.jenvman.2019.06.069. DOI: https://doi.org/10.1016/j.jenvman.2019.06.069
    View in Google Scholar
24. Mickwitz, P., Melanen, M., Rosenstrom, U., & Seppälä, J. (2006). Regional eco-efficiency indicators ? a participatory approach. Journal of Cleaner Production, 14(18), 1603?1611. doi: 10.1016/j.jclepro.2005.05.025. DOI: https://doi.org/10.1016/j.jclepro.2005.05.025
    View in Google Scholar
25. Moutinho, V., Robaina, M., & Macedo, P. (2018). Economic-environmental efficiency of European agriculture ? a generalized maximum entropy approach. Agricultural Economics ? Czech, 64, 423?435. doi: 10.17221/45/2017-AGRIC ECON. DOI: https://doi.org/10.17221/45/2017-AGRICECON
    View in Google Scholar
26. OECD (1998). Eco-efficiency. Retrieved from http://www.oecd-ilibrary.org/docser ver/9789264040304-en.pdf?expires=1610456534&id=id&accname=guest&che cksum=4EAAB98051BF6FC5C1187040ACD321F7 (14. 12. 2020).
    View in Google Scholar
27. Pang, J., Xingpeng, Ch., Zhang, Z., & Li, H. (2016). Measuring eco-efficiency of agriculture in China. Sustainability, 8(4), 398. doi: 10.3390/su8040398. DOI: https://doi.org/10.3390/su8040398
    View in Google Scholar
28. Pishgar-Komleh, S., Čechura, L., & Kuzmenko, E. (2021). Investigating the dynamic eco-efficiency in agriculture sector of the European Union countries. Environ Sci and Pollut Res, 28(35), 48942?48954 (2021), doi: 10.1007/s11356-021-13948-w. DOI: https://doi.org/10.1007/s11356-021-13948-w
    View in Google Scholar
29. Ren, W., Zhang, Z., Wang, Y., Xue, B., & Chen, X. (2020). Measuring regional eco-efficiency in China (2003-2016): a ?full world? perspective and Network Data Envelopment Analysis. International Journal of Environmental Research and Public Health, 17, 3456. doi: 10.3390/ijerph17103456. DOI: https://doi.org/10.3390/ijerph17103456
    View in Google Scholar
30. Richterová, E., Richter, M., & Palkovič, J. (2020). World`s 24 biggest agricultural producers` eco-efficiency considering undesirable outputs. Agris on-line Papers in Economics and Informatics, 13. doi: 10.7160/aol.2021.13xxxx. DOI: https://doi.org/10.7160/aol.2021.130309
    View in Google Scholar
31. Robaina-Alves, M., Moutinho, V., & Macedo, P. (2015). A new frontier approach to model the eco-efficiency in European countries. Journal of Cleaner Production, 103(15), 562?573. doi: 10.1016/j.jclepro.2015.01.038. DOI: https://doi.org/10.1016/j.jclepro.2015.01.038
    View in Google Scholar
32. Rybaczewska-Błazejowska, M., & Masternak-Janus, A. (2018). Eco-efficiency assessment of Polish regions: joint application of life cycle assessment and data envelopment analysis. Journal of Cleaner Production, 172, 1180?1192. doi: 10.1016/j.jclepro.2017.10.204. DOI: https://doi.org/10.1016/j.jclepro.2017.10.204
    View in Google Scholar
33. Rybaczewska-Błażejowska, M., & Gierulski, W. (2018). Eco-efficiency Evaluation of Agricultural Production in the EU-28. Sustainability, 10, 4544. doi: 10.3390/ su10124544. DOI: https://doi.org/10.3390/su10124544
    View in Google Scholar
34. Seppälä, J., Melanen, M., Mäenpää, I., Koskela, S., Tenhunen, J., & Hiltunen, M. R. (2005). How can the eco-efficiency of a region be measured and monitored. Journal of Industrial Ecology, 9(4), 117?130. doi: 10.1162/108819805775 247972. DOI: https://doi.org/10.1162/108819805775247972
    View in Google Scholar
35. Serr?o, A. (2008). Measuring eco-efficiency of agricultural activity in European countries: a Malmquist index approach. [Conference presentation]. American Agricultural Economics Association Annual Meeting, Orlando, Florida, 2008. doi: 10.22004/ag.econ.6152.
    View in Google Scholar
36. Schaltegger, S., & Sturm, A. (1990). Ökologische Rationalität: Ansatzpunkte zur Ausgestaltung von ökologieorientierten Managementinstrumenten. Die Unternehmung, 44(4), 273?290.
    View in Google Scholar
37. Shao, Q., Schaffartzik, A., Mayer, A., & Krausmann, F. (2017). The high ?price? of dematerialization: a dynamic panel data analysis of material use and economic recession. Journal of Cleaner Production, 167(20), 120?132. doi: 10.1016/j.jcl epro.2017.08.158. DOI: https://doi.org/10.1016/j.jclepro.2017.08.158
    View in Google Scholar
38. Staníčková, M., & Melecký, L. (2012). Assessment of efficiency in Visegrad countries and regions using DEA models. Central European Review of Economic, 15, 145?156. doi: 10.7327/cerei.2012.09.02. DOI: https://doi.org/10.7327/cerei.2012.09.02
    View in Google Scholar
39. Stepień, S., Czyzewski, B., Sapa, A., Borychowski, M., Poczta, W., & Poczta-Wajda, A. (2021). Eco-efficiency of small-scale farming in Poland and its institutional drivers. Journal of Cleaner Production, 279, 123721. doi: 10.1016/j.jcl epro.2020.123721. DOI: https://doi.org/10.1016/j.jclepro.2020.123721
    View in Google Scholar
40. Svatoš, M., Smutka, L., Elshibani, B. A. M., & Mousbah, S. A. (2013). Development of Visegrad countries? agricultural trade in relation to agricultural production development. Agris on-line Papers in Economics and Informatics, 5(1), 1?11. doi: 10.22004/ag.econ.148104.
    View in Google Scholar
41. UNESCAP (2009). Eco-efficiency indicators: measuring resource-use efficiency and the impact of economic activities on the environment. Greening of economic growth series. Retrieved from https://sustainabledevelopment.un.org/co ntent/documents/785eco.pdf (17. 12. 2020).
    View in Google Scholar
42. Van Passel, S., Nevens, F., Mathijs, E., & Van Huylenbroeck, G. (2006). Explaining differences in farm sustainability: evidence from Flemish dairy farms. [Conference presentation]. International Association of Agricultural Economists Conference, Gold Coast, Australia, 2006. doi: 10.22004/ag.econ.25262.
    View in Google Scholar
43. Vilke, R., Gedminait?-Raudon?, Ž., Baležentis, T., & Štreimikien?, D. (2020). Farmers' awareness of eco-efficiency and cleaner production as environmental responsibility: Lithuanian case. Corporate Social Responsibility and Environmental Management, 28, 288?298. doi: 10.1002/csr.2049. DOI: https://doi.org/10.1002/csr.2049
    View in Google Scholar
44. Wang, W., & Ye, Y. (2017). Evaluation of agricultural ecological efficiency and its improvement measures in China taking Guizhou province as an example. Nature Environment and Pollution Technology, 16(2), 515?521.
    View in Google Scholar
45. Zhang, B., Bi, J., Fan, Z., & Yuan, Z. (2008). Eco-efficiency of industrial system in China: a data envelopment analysis approach. Ecological Economics, 68(1-2), 306?316. doi: 10.1016/j.ecolecon.2008.03.009. DOI: https://doi.org/10.1016/j.ecolecon.2008.03.009
    View in Google Scholar