Environmental Valuation & Cost-Benefit News
Productivity and environmental regulation: the effect of the nitrates directive in the French pig sector
11/24/07
11:30:34 pm, by damageva 
, 223 words, 120 views 
Categories: Water, Europe, Companies,CSR,Business,Finance, Academic Study/Journal Article, Agriculture, Forestry and Food, Regulatory Analysis, Environmental Economics / Ecological Economics, Costs and Benefits
Productivity and environmental regulation: the effect of the nitrates directive in the French pig sector
Abstract: This paper measures the ensuing changes in productivity in the French pig sector following the introduction of the European regulation addressing water pollution by nitrates from agriculture. Productivity is measured using the Malmquist–Luenberger index. The sources of changes in productivity observed are examined by breaking down this index into its technical progress and efficiency components. The results show that in the early stages, increases in productivity were stimulated by increased efficiency, before being driven by technical progress. The estimations regarding the sources of efficiency gains for the farms in the sample (technical efficiency, efficiency of scale and environmental efficiency) are then used to estimate the indirect costs and benefits (or negative costs) linked to the introduction of the environmental regulation controlling the disposal of organic manure and the management of nitrogen surplus from pig farms. The existence of a “win-win” effect as regards the Porter hypothesis relation between efficiency and environmental regulation is highlighted for the French pig sector.
Keywords: Environmental costs, Porter Hypothesis, Environmental efficiency, Productive efficiency, Directional distance function, Malmquist–Luenberger index
by Isabelle Piot-Lepetit and Monique Le Moing both of INRA-UR122, 4 allée Adolphe Bobierre, CS 61103, Rennes cedex, 35011, France; Email: Isabelle.Piot@rennes.inra.fr
Environmental and Resource Economics via Springer Netherlands www.SpringerLink.com
Volume 38, Number 4; December, 2007; Pages 433-446
DOI: 10.1007/s10640-007-9086-7
http://www.springerlink.com/content/46315w7j28611577/
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