Assessing the Environmental Efficiency of Greek Dairy Sheep Farms: GHG Emissions and Mitigation Potential

One of the main ecological challenges that agricultural and especially livestock production systems face is the adoption of management practices that encourage the mitigation of greenhouse gas (GHG) emissions, while maintaining their production level. According to the relevant literature, the potential for GHG reduction lies mainly in greater efficiency in meat and dairy production, which suggests that the ecological modernization of livestock farms follows the efficiency/substitution pathway. This study aims to investigate the above assumption and explore the link between the technical efficiency (TE) and environmental efficiency (EE) of livestock farms using data envelopment analysis (DEA). The analysis focuses on dairy sheep farming, since the activity is important for the Greek rural economy while at the same time responsible for half of the country’s agricultural methane emissions. Results indicate that the correlation between technical and environmental efficiency of sheep farms is significant. Environmental efficiency is affected by farm size, specialization and production orientation. Feeding practices, like the ratio of concentrates to forage, also appear to have a positive effect on environmental efficiency. On the other hand, experienced farmers tend to have lower environmental efficiency, which may indicate their reluctance to adopt modern farming practices.