Environmental Efficiency Analysis in Rice Production: A Case Study in Tra Vinh Province of Vietnam

Abstract

Rice farmers do not recognize the negative impacts of overusing agricultural chemicals in farming activities on the environment. Hence, this study aimed to estimate technical and environmental efficiency for the rice producers in Tra Vinh province of Vietnam using the translog stochastic production frontier approach. Nutrients of NPK and pesticide cost were assumed to be environmentally detrimental inputs for environmental efficiency estimation. Empirical results indicated that the mean technical efficiency score was 0.74 showing technical inefficiency in the sample farms. The average environmental efficiency indexes were 0.55 for two detrimental inputs, 0.51 for nutrients of NPK, and only 0.10 for pesticide alone, indicating that the rice farms have huge potential to decrease the use of these inputs. The reduction in fertilizer, especially pesticide use, will help the rice farmers achieve higher profitability and be more sustainable. Regarding determinants of farms’ efficiencies, the regression analysis revealed that participating in agricultural cooperatives has emerged to be a favorable factor associated with technical and environmental efficiency, suggesting that the development of agricultural cooperative models should be prioritized to promote and encourage farmers’ participation. The present study results could be seen as key points for farmers' adjustment in rice production, leading to a safer environment and a driving force in the sustainable agriculture development in the Mekong Delta of Vietnam.