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Journal of Productivity Analysis

, Volume 45, Issue 2, pp 197–214 | Cite as

Exploring cost dominance in crop farming systems between high and low pesticide use

  • Jean-Philippe Boussemart
  • Hervé Leleu
  • Oluwaseun Ojo
Article

Abstract

The purpose of this paper is to assess cost dominance in direct inputs between arable crop-based systems using low or high pesticide levels per hectare. Our investigation departs from a traditional efficiency analysis and aims at comparing two minimal direct cost functions excluding pesticide expenses. This means that we evaluate the gap between two efficient frontiers instead of focusing on individual farm inefficiency scores. Our only objective is to compare two optimal cost benchmarks for systems respectively defined with high or low pesticide levels per hectare by varying their scale and output mix. A robust approach frontier is introduced to control the influence of potential outliers and unobserved heterogeneity. Based on 707 French crop farms observed in 2008, our simulations show that agricultural practices using less pesticide per hectare are unambiguously more cost-competitive in terms of direct inputs while inducing no other substitution costs. This cost dominance is a robust phenomenon regardless of the size and scope of crop activities, which supports more ecofriendly practices.

Keywords

Pesticide use (PU) Arable crops farming systems Activity analysis model (AAM) Non parametric robust cost function (NPRCF) Hamming distance (HD) 

JEL classification

C61 D22 D24 Q12 

Notes

Acknowledgments

This research was supported by the “Agence Nationale de la Recherche” on the project “Popsy: Arable Crop Production, Environment and Regulation”, Decision No. ANR-08-STRA-12-05. We used a database of CERFRANCE Alliance Centre. Special thanks to Loïc Guindé, Henri-Bertrand Lefer, and Frederic Chateau for assisting us in the database construction.

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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • Jean-Philippe Boussemart
    • 1
  • Hervé Leleu
    • 2
  • Oluwaseun Ojo
    • 2
  1. 1.University of Lille 3 and IÉSEG School of Management, LEM-CNRS (UMR 9221)LilleFrance
  2. 2.LEM-CNRS (UMR 9221) and IÉSEG School of ManagementLilleFrance

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