Assessing eco-efficiency: A metafrontier directional distance function
approach using life cycle analysis
Mercedes Beltrán-Esteve
a,
⁎, Ernest Reig-Martínez
b
, Vicent Estruch-Guitart
c
a
Department of Applied Economics II, University of Valencia, Spain
b
Department of Applied Economics II, University of Valencia, Ivie, Spain
c
Department of Economy and Social Sciences, Polytechnic University of Valencia, Spain
abstract article info
Article history:
Received 8 March 2016
Received in revised form 4 October 2016
Accepted 3 January 2017
Available online xxxx
Sustainability analysis requires a joint assessment of environmental, social and economic aspects of production
processes. Here we propose the use of Life Cycle Analysis (LCA), a metafrontier (MF) directional distance function
(DDF) approach, and Data Envelopment Analysis (DEA), to assess technological and managerial differences in
eco-efficiency between production systems. We use LCA to compute six environmental and health impacts asso-
ciated with the production processes of nearly 200 Spanish citrus farms belonging to organic and conventional
farming systems. DEA is then employed to obtain joint economic-environmental farm's scores that we refer to
as eco-efficiency. DDF allows us to determine farms' global eco-efficiency scores, as well as eco-efficiency scores
with respect to specific environmental impacts. Furthermore, the use of an MF helps us to disentangle technolog-
ical and managerial eco-inefficiencies by comparing the eco-efficiency of both farming systems with regards to a
common benchmark. Our core results suggest that the shift from conventional to organic farming technology
would allow a potential reduction in environmental impacts of 80% without resulting in any decline in economic
performance. In contrast, as regards farmers' managerial capacities, both systems display quite similar mean
scores.
© 2017 Elsevier Inc. All rights reserved.
Keywords:
Data envelopment analysis
Directional distance function
Eco-efficiency
Life cycle analysis
Metafrontier
Organic citrus farming
1. Introduction
Modern agricultural systems can be considered as ecosystems
whose properties have been amended in some way to increase produc-
tivity (Pretty, 2008), thus providing food and fibre to a rapidly growing
human population. The relationship between agricultural systems and
natural ecosystems covers a wide range of positive and negative effects
(Power, 2010; Swinton et al., 2007; Zhang et al., 2007), and a variety of
frameworks have been developed to explore the links between farming
and the environment (EEA, 2005; EEA, 2006; OECD, 1993, 1999a, 1999b,
2001; Rao and Rogers, 2006; Smyth and Dumanski, 1993; van
Cauwenbergh et al., 2007). It is within this context that the term ‘agri-
cultural sustainability’ has been coined, relating to the concern about
the potential negative consequences of modern farming, such as the de-
pletion or degradation of natural resources. Nevertheless, as shown by
its wide range of alternative meanings, sustainability is something of
an elusive concept. This explains why some experts in the field have
consistently argued in favour of developing sustainability indicators, be-
cause it “pulls the discussion of sustainability away from abstract
formulations and encourages explicit discussion of the operational
meaning of the term” (Rigby et al., 2000, p. 5).
Broadly speaking, two main ways of empirically assessing agricul-
tural sustainability have been explored. One is based on the identifica-
tion of management strategies deemed sustainable (e.g. organic
agriculture), and the other on achieving a targeted state of the agro-sys-
tem defined as sustainable and evaluated with a set of indicators. Now-
adays, organic farming systems are widely regarded as ‘sustainable’ by
the general public, or at least as relatively more ‘sustainable’ than con-
ventional ones. Promoting organic farming may pave the way for a sus-
tainable agriculture. The advantages of organic systems over
conventional systems with respect to the conservation of natural re-
sources and the reduction of environmental impacts per unit area
have been demonstrated by several meta-analyses of research carried
out on a global (Mondelaers et al., 2009) and European scale
(Tuomisto et al., 2012), though there is a wide range of impact variation
between different impact categories within both types of farming sys-
tems. Nevertheless, inferior yields per hectare and reduced economic
competitiveness of organic versus conventional farming is an issue
that frequently places organic systems at disadvantage and can neutral-
ize some of their environmental benefits (Beltrán-Esteve and
Reig-Martínez, 2014; De Ponti et al., 2012; Offermann and Nieberg,
2000). Therefore, it is of paramount importance on both scientific and
Environmental Impact Assessment Review 63 (2017) 116–127
⁎ Corresponding author at: Department of Applied Economics II, Faculty of Economics,
University of Valencia, Campus de Tarongers, 46022 Valencia, Spain.
E-mail address: mercedes.beltran@uv.es (M. Beltrán-Esteve).
http://dx.doi.org/10.1016/j.eiar.2017.01.001
0195-9255/© 2017 Elsevier Inc. All rights reserved.
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