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Economic Efficiency in Organic Farming: Evidence from Cotton Farms in Viotia, Greece

Published online by Cambridge University Press:  28 April 2015

Vangelis Tzouvelekas ,
Christos J. Pantzios  and
Christos Fotopoulos
Vangelis Tzouvelekas
Affiliation:
Department of Economics, University of Crete, Greece
Christos J. Pantzios
Affiliation:
Department of Economics, University of Patras, Greece
Christos Fotopoulos
Affiliation:
Department of Farm Management, University of Ioannina, Greece
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Abstract

Using recent advances in the stochastic production frontier framework, this paper presents an empirical analysis of technical, allocative and economic efficiency of a sample of organic and conventional cotton farms located in Greece. The results suggest that both farm types in the sample examined are technically, allocatively and economically inefficient. Farmer's age and education and farm size are important factors in explaining differentials in efficiency estimates. In comparative terms, organic farms exhibit lower efficiency scores vis-à-vis their conventional counterparts in terms of technical and economic efficiency; regarding allocative efficiency both farm types are almost equally inefficient. Low efficiency scores in both types of farming may be attributed to the respective intervention policies of the last 20 years.

Keywords

cottonefficiencyorganic farmingstochastic production frontier
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 33 , Issue 1 , April 2001 , pp. 35 - 48
Copyright
Copyright © Southern Agricultural Economics Association 2001

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