Habtamu Alem

Research Scientist

(+47) 993 67 513
habtamu.alem@nibio.no

Place
Ås O43

Visiting address
Oluf Thesens vei 43, 1433 Ås

Attachments

CV

Biography

Alem holds Ph.D. and M.Sc. in Economics from the Norwegian University of Life Sciences (NMBU). He works as a research scientist at the Norwegian Institute of Bioeconomy Research (NIBIO) in the Department of Economics and Society. Alem was a researcher for the Ethiopian Institute of Agricultural Research and an executive officer for the Norwegian Institute of Agricultural Research. He is now the project coordinator for the SYSTEMIC project, which covers eight EU nations.

His research interest is food and nutrition security; Environmental and production economics; Climate change; Econometrics; impact assessment; circular economics; cost benefit analysis; consumer economics; Risk analysis; and topics related to development economics (developing and developed countries)

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Abstract

The literature shows that organic farming has become the centre of policies aiming to achieve sustainable agriculture due to its environmental benefits, such as increased biodiversity, reduced greenhouse emissions, etc. However, there is a gap in the literature on the productivity effects of organic farming over and above the conventional method to understand whether widely converting conventional farms pays off. The current study estimated the productivity function using a semi-parametric smooth-coefficient (SPSC) approach based on unbalanced panel data set from Norwegian dairy and crop farms during 1991 to 2020. The results show that organic farming, compared to conventional farming, increase productivity for most of the dairy farms, while for crop farms the effect is mixed. This finding suggests that organic farming for many farms can yield a productivity higher than or equal to conventional farming. However, the results depend on the farm under consideration, and there exists a large degree of heterogeneity among the farms. Likewise, the technical change is heterogeneous, indicating that some farms underwent technical progress (regress) or a neutral change during the study period. Finally, the returns to scale (RTS) are at the mean about 0.89 and 1.05 for dairy and crop farms, respectively, implying that these farms operate at a decreasing (increasing) returns to scale and can improve their productivity by decreasing (increasing) the current scale of operation.