Steven Van Passel

MOTIFS: a monitoring tool for integrated farm sustainability

Indicator-based monitoring tools are frequently applied for sustainability assessments, also in agriculture. However, many indicators focus on a rather restricted number of sustainability aspects such as economy or ecology. Moreover the choice of the indicator is rarely explained. The aim of our study was to develop an indicator-based monitoring tool for integrated farm sustainability — i.e. taking into account economic and ecological and social aspects — based on a supported vision of sustainable agriculture and using a set of relevant indicators. Hereby, specific attention was paid to aspects of communication and user-friendliness. Four methodological steps were considered: (i) translating the major principles of a supported vision of sustainable Flemish agriculture into concrete and relevant themes; (ii) designing indicators to monitor progress towards sustainability for each of those themes; (iii) aggregating the indicators into an integrated farm sustainability monitoring tool and (iv) applying the monitoring tool on a practical farm, as a first attempt at end-use validation. Stakeholder participation and expert consulting played an important part in each of these methodological steps. As a case study, the methodology was applied to Flemish dairy farms. As a result, we developed MOTIFS, a user-friendly and strongly communicative indicator-based monitoring tool that allows the measurement of progress towards integrated sustainable dairy farming systems and fits within a well-founded methodological framework. MOTIFS is based on the equality of the economic, ecological and social sustainability dimensions, and this equality is inherently built into the system. Through the applied methodology, we founded the selected themes and indicators and we avoided using indicators that are not relevant to the problem at hand.

Sustainable value assessment of farms using frontier efficiency benchmarks

Appropriate assessment of firm sustainability facilitates actor-driven processes towards sustainable development. The methodology in this paper builds further on two proven methodologies for the assessment of sustainability performance: it combines the sustainable value approach with frontier efficiency benchmarks. The sustainable value methodology tries to relate firm performance to the use of different resources. This approach assesses contributions to corporate sustainability by comparing firm resource productivity with the resource productivity of a benchmark, and this for all resources considered. The efficiency is calculated by estimating the production frontier indicating the maximum feasible production possibilities. In this research, the sustainable value approach is combined with efficiency analysis methods to benchmark sustainability assessment. In this way, the production theoretical underpinnings of efficiency analysis enrich the sustainable value approach. The methodology is presented using two different functional forms: the Cobb-Douglas and the translog functional forms. The simplicity of the Cobb-Douglas functional form as benchmark is very attractive but it lacks flexibility. The translog functional form is more flexible but has the disadvantage that it requires a lot of data to avoid estimation problems. Using frontier methods for deriving firm specific benchmarks has the advantage that the particular situation of each company is taken into account when assessing sustainability. Finally, we showed that the methodology can be used as an integrative sustainability assessment tool for policy measures.

Comparing frontier methods for economic–environmental trade-off analysis

This paper uses a mechanistic frontier approach as a reference to evaluate the ability of conventional parametric (SFA) and non-parametric (DEA) frontier approaches for analyzing economic-environmental trade-offs. Conventional frontier approaches are environmentally adjusted through incorporating the materials balance principle. The analysis is worked out for the Flemish pig finishing case, which is both representative and didactic. Results show that, on average, SFA and DEA yield adequate economic-environmental trade-offs. Both methods are good estimators for technical efficiency. Cost allocative and environmental allocative efficiency scores are less robust, due to the well-known methodological advantages and disadvantages of SFA and DEA. For particular firms, SFA, DEA and the mechanistic approach may yield different economic-environmental trade-offs. One has therefore to be careful when using conventional frontier approaches for firm-specific decision support. The mechanistic approach allows for optimizing performances per average present finisher, which is the production unit in pig finishing. Conventional frontier methods do not allow for this optimization since the number of average present finishers varies along the production functions. Since the mechanistic production function is based on underlying growth, feed uptake and mortality functions, additional firm-specific indicators can also be calculated at each point of the production function.

Higher sustainability performance of intensive grazing versus zero-grazing dairy systems

Although grazing of dairy cows is an integral part of dairy farming in many European countries, farmers today more often choose for zero-grazing systems, where cows are housed throughout the year. Some studies already compared grazing and zero-grazing systems for specific issues such as labor efficiency, environmental impact, or animal welfare. In our study, we perform a more integrated evaluation, considering relevant ecological, economic, and social aspects. This allows for a balanced and more complete comparison of the sustainability performance of the two production methods. We evaluated ten intensive grazing and ten zero-grazing specialized Flemish dairy farms on the use of nutrients and energy, productivity and profitability, labor input, and animal welfare. In addition, we put special effort in formulating useful management advice for farmers. Therefore, we combined a detailed analysis of the sustainability indicators with an intensive interaction and discussion with farmers and farm advisors. Results show that, on average, the zero-grazing farms performed significantly worse from an ecological and economic point of view. This fact is explained mainly due to a less efficient use of concentrates and byproducts. Social sustainability performance did not differ significantly between the two groups. As a result, the integrated sustainability performance was significantly lower for the zero-grazing group. This finding shows that a further shift from intensive grazing to zero-grazing can move dairy farming in Flanders further away from sustainability. An important advice to improve the ecological and economic performance of zero-grazing farms is to optimize cows’ rations to include more forages and optimize forage production and use. More detailed site- and case-specific management advice for farmers of both groups was provided during a discussion meeting. We consider this an essential additional step to any sustainability evaluation, since progress can only be made when monitoring results are translated into practical measures.

Cost-efficient emission abatement of energy and transportation technologies: Mitigation costs and policy impacts for Belgium

In the light of global warming, this paper develops a framework to compare energy and transportation technologies in terms of cost-efficient GHG emission reduction. We conduct a simultaneous assessment of economic and environmental performances through life cycle costing and life cycle assessment. To calculate the GHG mitigation cost, we create reference systems within the base scenario. Further, we extend the concept of the mitigation cost, allowing (i) comparision of technologies given a limited investment resource, and (ii) evaluation of the direct impact of policy measures by means of the subsidized mitigation cost. The framework is illustrated with a case of solar photovoltaics (PV), grid powered battery electric vehicles (BEVs), and solar powered BEVs for a Belgian small and medium sized enterprise. The study’s conclusions are that the mitigation cost of solar PV is high, even though this is a mature technology. The emerging mass produced BEVs on the other hand are found to have a large potential for cost-efficient GHG mitigation as indicated by their low cost of mitigation. Finally, based on the subsidized mitigation cost, we conclude that the current financial stimuli for all three investigated technologies are excessive when compared to the CO2 market value under the EU Emission Trading Scheme.

Farm-level evidence on risk balancing behavior in the EU-15

Purpose - – The purpose of this paper is to present empirical evidence of risk balancing behavior by European farmers. More specifically, the authors investigate strategic adjustments in the level of financial risk (FR) in response to changes in the level of business risk (BR). Design/methodology/approach - – The authors conducted a correlation relationship analysis and run several linear fixed effects regression models using the European Union (EU)-15 FADN panel data set for the period 1995-2008. Findings - – Overall, the paper finds EU evidence of risk balancing. The correlation relationship analysis suggests that just over half of the farm observations are risk balancers whereas the other (smaller) half are not. The coefficient in our fixed effects regression suggests that a 1 percent increase in BR reduces FR by 0.043 percent and has a standard error so low that the existence of non-risk balancers is doubtful. The results reject evidence of strong-form risk balancing – inverse trade-offs between FR and BR keeping total risk (TR) constant – but cannot reject weak-form risk balancing – inverse trade-offs between FR and BR with some observed changes in TR. Furthermore, the extent of risk balancing behavior is found to differ between different European countries and across farm typologies. Practical implications - – This study provides European policy makers a first insight into risk balancing behavior of EU farmers. When risk balancing occurs, BR-reducing agricultural policies induce strategic upwards leverage adjustments that unintentionally reestablish or even increase total farm-level risk. Originality/value - – Making use of the large and unique FADN database, to the best of the authors knowledge, this study is the first that provides European (EU-15) evidence on risk balancing behavior, is conducted at an unprecedented large scale, and presents the first risk balancing evidence across countries and farming systems.

Cost-effectiveness analysis to assess commercial TiO2 photocatalysts for acetaldehyde degradation in air

In the commercialisation of photocatalytic air purifiers, the performance as well as the cost of the catalytic material plays an important role. Where most comparative studies only regard the photocatalytic activity as a decisive parameter, in this study both activity and cost are taken into account. Using a cost-effectiveness analysis, six different commercially available TiO2-based catalysts are evaluated in terms of their activities in photocatalytic degradation of acetaldehyde as a model reaction for indoor air purification.

Environmental and economic performance of plasma gasification in Enhanced Landfill Mining

This paper describes an environmental and economic assessment of plasma gasification, one of the viable candidates for the valorisation of refuse derived fuel from Enhanced Landfill Mining. The study is based on life cycle assessment and life cycle costing. Plasma gasification is benchmarked against conventional incineration, and the study indicates that the process could have significant impact on climate change, human toxicity, particulate matter formation, metal depletion and fossil depletion. Flue gas emission, oxygen usage and disposal of residues (plasmastone) are the major environmental burdens, while electricity production and metal recovery represent the major benefits. Reductions in burdens and improvements in benefits are found when the plasmastone is valorised in building materials instead of landfilling. The study indicates that the overall environmental performance of plasma gasification is better than incineration. The study confirms a trade-off between the environmental and economic performance of the discussed scenarios. Net electrical efficiency and investment cost of the plasma gasification process and the selling price of the products are the major economic drivers.

Landfill taxes and Enhanced Waste Management: combining valuable practices with respect to future waste streams

Both landfill taxes and Enhanced Waste Management (EWM) practices can mitigate the scarcity issue of landfill capacity by respectively reducing landfilled waste volumes and valorising future waste streams. However, high landfill taxes might erode incentives for EWM, even though EWM creates value by valorising waste. Concentrating on Flanders (Belgium), the paper applies dynamic optimisation modelling techniques to analyse how landfill taxation and EWM can reinforce each other and how taxation schemes can be adjusted in order to foster sustainable and welfare maximising ways of processing future waste streams. Based on the Flemish simulation results, insights are offered that are generally applicable in international waste and resource management policy. As shown, the optimal Flemish landfill tax that optimises welfare in the no EWM scenario is higher than the one in the EWM scenario (93 against €50/ton). This difference should create incentives for applying EWM and is driven by the positive external effects that are generated by EWM practices. In Flanders, as the current landfill tax is slightly lower than these optimal levels, the choice that can be made is to further increase taxation levels or show complete commitment to EWM. A first generally applicable insight that was found points to the fact that it is not necessarily the case that the higher the landfill tax, the more effective waste management improvements can be realised. Other insights are about providing sufficient incentives for applying EMW practices and formulating appropriate pleas in support of technological development. By these insights, this paper should provide relevant information that can assist in triggering the transition towards a resource-efficient, circular economy in Europe.

Economic and environmental multi-objective optimisation to evaluate the impact of Belgian policy on solar power and electric vehicles

This research uses multi-objective optimisation to determine the optimal mixture of energy and transportation technologies, while optimising economic and environmental impacts. We demonstrate the added value of using multi-objective mixed integer linear programming (MOMILP) considering economies of scale versus using continuous multi-objective linear programming assuming average cost intervals. This paper uses an improved version to solve MOMILPs exactly. To differentiate optimal solutions with and without subsidies, the impact of policy on the Pareto frontier is assessed. We distinguish between minimising economic life cycle costs (complete rationality) and required investments (bounded rationality). The approach is illustrated using a Belgian company with demands for electricity and transport. Electricity technologies are solar photovoltaics and the grid; transportation includes internal combustion engine vehicles, grid powered battery electric vehicles (BEVs), and solar-powered BEVs. The impact of grid powered BEVs to reduce GHG emissions is limited, yet they are less costly than solar panels to decrease emissions. Current policy measures are found to be properly targeting rational investors who consider life cycle costs, while private (potentially bounded rational) investors often focus on required investments only.