A Comparative Study of Parametric and Non-parametric Energy Use Efficiency in Paddy Production

In the present study an attempt has been made to use a non-parametric method Data Envelopment Analysis (DEA) for assessing source-wise and operation-wise the Technical Efficiency (TE) and Return-to-Scale (RTS) for paddy production in four zones of the state of Punjab, India. The results were then compared to corresponding ones already obtained from a parametric method (Cobb-Douglas production function). The data from farmers growing rice in four zones including labor-h, machine-h, power source, horse power and hours used, kind of machinery used, physical inputs such as seed, fertilizers and pesticides (as inputs) and the yield (as output) were transformed into energy terms (MJ ha(-1)). The results revealed that farmers in zone 2 with a source-wise TE of 0.91, have consumed energy from more efficient sources, followed by zone 4 (0.90) and then zones 3 and 5 (0.85). No significant correlation could be established between the parametric and non-parametric TE for source-wise energy inputs. According to the DEA results, it was observed that 55.6% and 64.1% of inefficient farmers had an increasing RTS for operation-wise and source-wise energy inputs, respectively. However, a constant RTS had been reported by the parametric frontier function.