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The Good and the Bad: Environmental Efficiency in Northeastern U.S. Dairy Farming

  • Eric Njuki, Boris E. Bravo-Ureta and Deep Mukherjee
Abstract

This study evaluates the environmental performance of northeastern U.S. dairy operations that differ in size using a directional output-distance function that measures the joint production of milk and emissions while incorporating a four-way error approach that captures farm-size heterogeneity, transient and persistent technical efficiency, and random errors. For the emission component, a comprehensive pollution index is generated that incorporates three major sources of pollution in dairy farming: fuel, fertilizer, and livestock. Computed shadow prices and Morishima elasticities of substitution reveal that large dairy operations are environmentally inefficient compared to their smaller counterparts.

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Copyright
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
Corresponding author
Correspondence: Eric Njuki ■ 1376 Storrs Road, Unit 4021Storrs, CT 06269 ■ Phone 860.486.2917 ■ Email eric.njuki@uconn.edu.
References
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Agricultural and Resource Economics Review
  • ISSN: 1068-2805
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