Our contribution in this article is to compare two methods of adjusting agricultural productivity estimates for the effects of bad environmental outputs. One method is a direct non-parametric Malmquist index with the environmental variables include. The other method is to use the shadow prices...

Traditional measures of agricultural productivity only incorporate those inputs and outputs that are recorded in market transactions. However, such measures do not account for externalities such as environmental damage. This study uses an output distance function framework to estimate a...