Managing nitrogen environmental impacts to improve green technical efficiency in Philippines rice cultivation

The efficient use of nitrogen fertilisers is a global priority to optimise the economic and environmental outcomes of farming. This paper is the first to consider pollution in the form of nitrous oxide emissions and excess nitrogen to analyse technical efficiency (TE) in farming. This is done by extending the two-stage double bootstrap Data Envelopment Analysis to explicitly model nitrogen pollutants as undesirable outputs. We compared green TE (when undesirable pollutants are considered) and conventional TE (without pollutants) using a case study of 33 rice-producing provinces in the Philippines. Provinces in Mindanao, Luzon, and Visayas islands experienced improvements in green TE but stagnant conventional TE from 2006 to 2017. Although transplanting rice seedlings (rather than direct sowing of seeds) improved both green and conventional TE, seed quality was also identified as an important factor for green TE but not for conventional TE. Our analysis has implications for sustainable rice production and such analysis can be extended to other crops. To advance the effective green transformation of rice production, future research should analyse farm-level data to understand farmers' de-cisions regarding seed quality, crop establishment method and nitrogen fertiliser application to devise comprehensive farm integrated management plans.