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On the opportunity cost of crop diversification: A Network DEA Application to UK Cereal Farms

Lookup NU author(s): Dr Francisco ArealORCiD



This is the authors' accepted manuscript of an article that has been published in its final definitive form by Wiley-Blackwell Publishing Ltd., 2018.

For re-use rights please refer to the publisher's terms and conditions.


Distance functions are increasingly being augmented, with environmental goods treated as conventional outputs. A common approach to evaluate the opportunity cost of providing an environmental good is the exploitation of the distance function's dual relationship to the value function. This implies that the opportunity cost is assumed to be non‐negative. This approach also requires a convex technology set. Focusing on crop diversification for a balanced sample of 44 cereal farms in the East of England for the years 2007–2013, this paper develops a novel opportunity cost measure that does not depend on these strong assumptions. We find that the opportunity cost of crop diversification is negative for most farms

Publication metadata

Author(s): Ang FKG, Mortimer SR, Areal FJ, Tiffin R

Publication type: Article

Publication status: Published

Journal: Journal of Agricultural Economics

Year: 2018

Volume: 69

Issue: 3

Pages: 794-814

Print publication date: 01/09/2018

Online publication date: 16/05/2018

Acceptance date: 01/01/2018

Date deposited: 29/04/2019

ISSN (print): 0021-857X

ISSN (electronic): 1477-9552

Publisher: Wiley-Blackwell Publishing Ltd.


DOI: 10.1111/1477-9552.12272


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