Investigating the efficiency of greenhouse production in Oman: A two-stage approach based on Data Envelopment Analysis and double bootstrapping

Abstract This paper investigates the performance of greenhouse production in the Sultanate of Oman in two-stages. In the first stage, Data Envelopment Analysis is used to estimate the efficiency of greenhouse farmers and pinpoint the wasted resources. The efficiency results show that 79% of greenhouse farmers are technically inefficient, with an average efficiency score of 73%. Moreover, slack analysis indicates that water and electricity consumption both exceed the efficiency norm by up to 54% and 46%, respectively. The second stage aims to identify the contextual (socioeconomic and environmental) factors that influence the efficiency of greenhouse farms. This is accomplished using a truncated regression model along with a double bootstrapping mechanism found in the greenhouse production literature. Results reveal that ground water salinity is the environmental factor that has the most negative impact on greenhouse efficiency. The socioeconomic factor that has the most positive effect on greenhouse efficiency is the secondary occupation of the farmer; especially when that occupation pertains to the government agricultural sector. To enhance efficiency of greenhouse farms two main courses of action are recommended. On the greenhouse farmer’s side, training programs are needed to educate the farmers on methods that promote more rational resource consumption. For policies and regulations, a regulated water framework is essential, as well as an appropriate revision of the government’s subsidy policies.