Andrés J. Picazo-Tadeo

Assessing farming eco-efficiency: A Data Envelopment Analysis approach

This paper assesses farming eco-efficiency using Data Envelopment Analysis (DEA) techniques. Eco-efficiency scores at both farm and environmental pressure-specific levels are computed for a sample of Spanish farmers operating in the rain-fed agricultural system of Campos County. The determinants of eco-efficiency are then studied using truncated regression and bootstrapping techniques. We contribute to previous literature in this field of research 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. Moreover, eco-inefficiency is closely related to technical inefficiencies in the management of inputs. Regarding the determinants of eco-efficiency, farmers benefiting from agri-environmental 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 an effective policy to improve eco-efficiency, although some doubts arise regarding their cost-benefit balance.

Assessing eco-efficiency with directional distance functions

Eco-efficiency is a matter of concern at present that is receiving increasing attention in political, academic and business circles. Broadly speaking, this concept refers to the ability to create more goods and services with less impact on the environment and less consumption of natural resources, thus involving both economic and also ecological issues. In this paper we propose the use of directional distance functions and Data Envelopment Analysis techniques to assess eco-efficiency. More specifically, we show how these functions can be used to compute a wide range of indicators representing different objectives regarding economic and ecological performance. This methodological approach is applied to a sample of Spanish olive-growing farms to illustrate its great potential to provide policymakers and farm managers with sound information as a basis for strategic decision making. We also suggest further avenues to explore in this burgeoning line of research.

Environmental externalities and efficiency measurement

Production of desirable outputs often produces by-products that have harmful effects on the environment. This paper investigates technologies where the biggest good output producer is not the greatest polluter, i.e. technologies located on the downward-sloping segment of the frontier depicted in Färe et al. (1989). Directional distance functions and Data Envelopment Analysis techniques are used to define an algorithm that allows them to be identified empirically. Furthermore, we show that in such situations producers can contribute social goods, i.e. reducing polluting wastes, without limiting their capacity to maximise production of marketable output. Finally, we illustrate our methodology with an empirical application to a sample of Spanish ceramic tile producers.

The role of environmental factors in water utilities’ technical efficiency. Empirical evidence from Spanish companies

This article computes input-specific scores of technical efficiency for a sample of water utilities located in the southern Spanish region of Andalusia. In addition, differences in efficiency between different operating environments are investigated. Concerning the debate about ownership and efficiency, we find that privately owned companies outperform public utilities in their management of labour. Furthermore, technical efficiency is found to be greater among firms located in highly populated areas and for utilities providing water services to tourist municipalities. Finally, no empirical evidence supporting the greater technical efficiency of consortia of water utilities, a managerial strategy strongly encouraged by regional politicians, is found.

Efficiency and Environmental Regulation

This paper proposes an extension of the enhancedefficiency indices of Färe, Grosskopf, Lovell andPasurka (1989) that considers undesirable outputsasymmetrically by assuming that firms can freelydispose of some undesirable productions, but areduction of other bad outputs generates a cost interms of desirable outputs. This methodologicalapproach is used to analyse the relative efficiency ofa sample of Spanish producers of wooden goods andfurnishings whose production process generates fourdifferent wastes. We obtain efficiency indices thatserve to measure the impact on firm performance inseveral scenarios related to environmental regulationsaimed to reduce the production of wastes. Whenenvironmental regulations are assumed, it is foundthat firms would have to sacrifice important amountsof potential desirable output in order to reallocateinputs into waste reduction. Secondly, we find thatfirms associated with a Technological Institute aswell as firms located at a marshallian type industrialdistrict are likely to be less affected byregulations.

The calculation of shadow prices for industrial wastes using distance functions: An analysis for Spanish ceramic pavements firms

Abstract This paper deals with the calculation of shadow prices for two industrial wastes generated on their production processes by 18 firms belonging to the Spanish ceramic pavements industry. These prices are then used to calculate an extended productivity index which takes into consideration wastes going with the production of marketable goods. We follow the methodological approach first proposed by Fare et al. (The Review of Economics and Statistics 75 (1993)). A negative correlation is found between absolute shadow prices and wastes production intensity, reflecting a greater marginal cost of eliminating wastes for those firms using less contaminant production processes. Differences between a conventional labour productivity index and an extended productivity index are also statistically related to firms characteristics such as size, previous investments in cleaner technologies and affiliation to a Technological Institute.

Can We Be Satisfied With Our Football Team? Evidence From Spanish Professional Football

This article assesses the sporting performance of Spanish professional football teams at competition level, namely, League, King’s Cup, and European competitions (Champions League and Union of European Football Associations [UEFA] Cup). Then, the gap between the result obtained by a team at the end of a season and that expected according to its potential is used as a proxy of the degree of satisfaction that fans should feel: the narrower the gap the greater the level of satisfaction. Regarding methodology, Data Envelopment Analysis techniques and directional distance functions are used. Results reveal that most teams perform rather differently across competitions, the lower average performance corresponding to the King’s Cup.

Accounting for operating environments in measuring water utilities' managerial efficiency

In this paper adjusted input-specific scores of technical efficiency are computed for a sample of Spanish water utilities. Performance is adjusted by netting out efficiency scores from the effect of operating environments and statistical noise. The results show that computation of adjusted efficiency scores at the input level manifestly improves the assessment of utilities’ performance in our sample of water utilities. In addition, several environmental variables capable of affecting input-specific technical management are discovered, ownership or demand seasonality among them. Finally, distributions of conventional and adjusted scores of technical performance are found to be statistically different for some inputs.

Does a red shirt improve sporting performance? Evidence from Spanish football

Recent research has linked red shirts to sporting success. In this article, we analyse the relationship between the colour red and sporting performance in the Spanish Professional Football League. Our foremost conclusion is that once the effect of the different endowments of resources and the ability of managers have been discounted, teams with red shirts do not show greater performance than teams wearing shirts of other colours.

Agricultural externalities and environmental regulation: evaluating good practice in citrus production

Economic activity takes place in a scenario characterized by an increasing number of environmental regulations aimed at bringing under control the emission of contaminating wastes. In this paper, we evaluate the impact of transforming a code of good practice in nitrogen fertilization on Spanish citrus fruit farms into an environmental regulation of compulsory fulfilment. Using data envelopment techniques, we calculate unrestricted and environmentally regulated short-run maximum profits. Both profit values are then used to compute an index of the cost of regulation. Our results suggest that the cost of shifting from a merely recommended practice to a binding rule is low. On average, the loss of profit computed is only about 4%. Furthermore, we find that farms’ overall efficiency is low and that the current gap between observed and regulated fertilization practices could be overcome by improving overall management efficiency.