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Energy efficiency measurement is crucial when planning energy reduction policies.However, decision makers understandably will be reluctant to act in the absence of solid dataand results supporting a policy position. The main objective of this paper is to propose analternative method to measure farm energy efficiency. This method is based on the DataEnvelopment Analysis (DEA) approach in a cost framework introduced by Farrell (1957) anddeveloped by Färe et al. (1985). We decompose the energy efficiency measurement into twocomponents, namely technical and allocative efficiencies. Here, input prices are replaced bytheir energy content. The energy efficiency model is used to explore the optimal input-mixthat produces the current outputs at minimum energy-consumption. We show that thisdecomposition can help policy makers considerably to design accurate energy policies. Thepresence of uncertainty on data, and more particularly on energy content of inputs, leads us torecommend exploiting the methodologies proposed for calculating the bounds of efficiencymeasurement in order to produce more robust results. We expect to alert policy-makers in thefact that efficiency is not a fixed value and should be considered with caution. A 2007database of French farms specialized in crops is used for empirical illustration.

Keywords: Crop-farming ; Data Envelopment Analysis ; energy efficiency ; uncertainty

Subject(s): Research and Development/Tech Change/Emerging Technologies

Research Methods/ Statistical Methods

Issue Date: 2012

Publication Type: Conference Paper/ Presentation

PURL Identifier:

Total Pages: 21

JEL Codes: D24; O13; Q15; Q4

Record appears in: International Association of Agricultural Economists (IAAE) > 2012 Conference, August 18-24, 2012, Foz do Iguaçu, Brazil

Autor: Blancard, Stephane ; Martin, Elsa


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