Measuring economic and environmental efficiency for agricultural zones in Iraq using data envelopment analysis

Abstract

Data envelopment analysis (DEA) is a non-parametric linear programming based on method for evaluating performance of similar production units such as agricultural firms. Although the method is already extensively applied in many areas of economics, its use in environmental economics and related fields is still limited. The productivity of the agriculture sector in Iraq has yet to reach an acceptable level to control resources and increase production to meet the modern century requirements. The concept recognises the need to simultaneously raise yields, increase input use efficiency and reduce the negative environmental impacts of farming systems to secure future food production and to sustainably use the limited resources for agriculture. Accordingly, this paper proposes a novel approach to measure using DEA to evaluate five zones in production strategic crops. The significance of this objective lies in the fact that some of the zones have limitations while others adversely impact their environment. This paper also employs a model to determine the efficiency of one over zone over the others and to improve optimal mix of the resources and paths to improve the index of technical efficiency and eco efficiency. Incorporating provision of environmental goods as one of the outputs of the farm and reducing environmental pressures are also outlined.