New Zealand Dairy Farms: An Examination and Comparison of DEA Approaches for incorporating Undesirable Outputs and Weight Restrictions

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dc.contributor.advisor Harrison, J en
dc.contributor.advisor Rouse, P en Chen, Yan en 2014-10-20T01:30:03Z en 2014 en
dc.identifier.citation 2014 en
dc.identifier.uri en
dc.description Full text is available to authenticated members of The University of Auckland only. en
dc.description.abstract Data Envelopment Analysis (DEA) is a non-parametric technique designed to assess the relative performance of a series of decision-making units operating with similar goals and objectives. In utilising DEA, this study analyses the relative efficiency of a group of dairy farms in New Zealand over the 2011-2012 season. Particular attention is drawn to the examination and comparison of the various approaches proposed by prior literature on incorporating the impact of undesirable factors into the DEA models. Four major approaches have been applied and analysed in the paper. They are the input method, linear transformation, inverse transformation, and the weak disposability method. Nitrogen leaching, which measures the amount of nitrogen (nitrate) leaching losses from dairy farm, is the environmentally undesirable factor being integrated into the DEA models examined in this paper. Results suggest that the efficiency assessments of farms vary considerably according to the DEA approach selected for incorporating the undesirable output (nitrogen leaching). Due to the deficiencies identified in the linear transformation and inverse transformation models, and to the fact the weak disposability treatment produces overestimated performance results, the input method is regarded as the preferred approach to integrate undesirable factors into the DEA analyses. The findings from applying this model show a a negative relationship between the farms’ technical efficiency and nitrogen leaching per hectare (and per cow). Thus, a farm discharging greater amounts of nitrogen leaching per hectare or per cow is less likely to operate efficiently. A farm’s technical efficiency, however, is not closely associated with its operating profit per hectare or per cow. en
dc.publisher ResearchSpace@Auckland en
dc.relation.ispartof Masters Thesis - University of Auckland en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights Restricted Item. Available to authenticated members of The University of Auckland. en
dc.rights.uri en
dc.title New Zealand Dairy Farms: An Examination and Comparison of DEA Approaches for incorporating Undesirable Outputs and Weight Restrictions en
dc.type Thesis en The University of Auckland en Masters en
dc.rights.holder Copyright: The Author en
pubs.elements-id 458839 en
pubs.record-created-at-source-date 2014-10-20 en

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