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Capacity utilization and energy-related GHG emission in the European agriculture: A data envelopment analysis approach


Capacity utilization (CU) measures may show the potential for production growth under improved availability of
the (variable and fixed) inputs. However, the environmental constraints should be considered when taking the
production decisions. These questions are important in the context of the agricultural sector that needs to ensure
food security and sustainability. This paper proposes a novel approach that integrates weak disposability technology
with observation-specific abatement factors with input- and output-orientated capacity utilization measures
in the short and long run. The case of European Union agricultural sector is analyzed. The results indicate
that the multiple output-oriented CU measures considered in the study yield often conflicting results. Italy,
Germany and France show the highest levels of the agricultural capacity utilization. At the other end of spectrum,
the underdeveloped economies often showed lower values thereof. The inclusion of the energy-related GHG
emission in the model generally reduced the performance gaps among the countries considered. Results of the
research are important in assessing the possibilities for sustainable agricultural growth and development in the
European Union as the CU levels may vary for a certain depending on the inclusion of the environmental
pressures in the model.


Keywords: Capacity utilization; Energy-related GHG emission; Data envelopment analysis; Weak disposability.


Shen, Z.; Baležentis, T.; Štreimikis, J. 2022. Capacity utilization and energy-related GHG emission in the European agriculture: A data envelopment analysis approach. Journal of environmental management : Academic Press Inc Elsevier Science. ISSN 0301-4797. eISSN 1095-8630. 318, 115517, p. 1-12. DOI: 10.1016/j.jenvman.2022.115517. [Science Citation Index Expanded (Web of Science); Scopus; GEOBASE].



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