An Analysis of the Eco-Efficiency of the Agricultural Industry in the Brazilian Amazon Biome

Abstract

The exponential growth of the agricultural industry in the Amazon region has brought about notable economic advancements. However, this growth has substantially cost the region’s ecosystems, manifesting in increased deforestation and biodiversity degradation within the Amazon forest. This article is dedicated to assessing the eco-efficiency of agricultural production in Amazon biome municipalities. It places particular emphasis on identifying critical determinants through the utilization of the classic Data Envelopment Analysis (DEA) model for efficiency computation, super-efficiency models for distinctive characterization, bootstrap computational techniques for robust resampling, and the Malmquist index for calculating annual eco-efficiency indices of each Decision-Making Unit (DMU). An exploration of the correlation between efficiency and meteorological attributes of the municipalities is conducted. The findings of this study reveal several significant points: 1) Eco-efficient municipalities within the Amazon Biome can serve as benchmarks for other DMUs striving to attain optimal input-output levels. 2) Most municipalities in the Amazon Biome operate closely to the productive frontier due to the prevalent technology employed in their agricultural activities. 2) The nature of the technological frontier’s return suggests that small and large DMUs possess eco-efficiency potential. 4) The current dataset does not yield conclusive evidence regarding a direct correlation between the variables. Leveraging this information, strategic pathways can be formulated to drive economic development in tandem with the sustainability of Amazon Biome municipalities. These strategies promise to foster social, economic, and environmental benefits for the populace while providing valuable insights to inform future research within this thematic domain.