Do ecological protection approaches affect total factor productivity change of cropland production in Sweden?

Abstract

Ecological protection approaches are important in achieving sustainable productivity growth in agriculture. Based on an unbalanced panel dataset for 2010–2016, we used stochastic frontier analysis-based Malmquist total factor productivity index to estimate total factor productivity change of Swedish crop production and its components (efficiency change, technical change, scale change). We then examined the effect of ecological protection approaches on total factor productivity change. The empirical results demonstrated that ecological protection approaches such as organic farming, mixed cropping or integrated farming could hamper total factor productivity growth. The results also indicated that average total factor productivity change in the study period was positive and average technical efficiency of the Swedish crop production was 71%. Among the components of total factor productivity change, average scale change was positive. Average technical efficiency change and average technical change were both negative. If technical efficiency and technological progress can be improved, that would increase the positive change in total factor productivity. This suggests that policies on compensation or insurance against productivity loss are required to encourage mainstreaming of ecological protection approaches among farmers.