Technology adoption and assessment of eco-efficiency in water management

Abstract

This study focuses on the importance of water management in agriculture, considering both economic and environmental aspects. We aim to assess the eco-efficiency of farms by incorporating water-related indicators into performance evaluations. These eco-efficiency scores are further decomposed into water conservation efficiency (WCE) and water use efficiency (WUE). This paper uses a combination of Data Envelopment Analysis (DEA) and econometric analysis to calculate efficiency scores and identify the factors that influence efficiency for small-scale greenhouse farms in Crete (Greece) from 2009 to 2013. Findings reveal that: i) the average technical efficiency (TE) score for the sample is 0.891, indicating a relatively high level of efficiency; ii) the scores for WCE and WUE are 0.180 and 0.174 on average, respectively, suggesting room for improvement in managing water resources; iii) farmers who adopt alternative irrigation technology demonstrate higher technical efficiency compared to the overall sample, while non-adopters show even higher levels of efficiency. Moreover, non-adopters have been found to exhibit relatively better water conservation and use efficiency, indicating that adopters need to adjust their irrigation management practices and fine-tune the system's settings. Lastly, the findings suggest that utilizing more advanced irrigation technologies can enable farmers to effectively counteract the detrimental effects of aridity in managing water resources.