A REVIEW ABOUT USING STOCHASTIC FRONTIER ANALYSIS (SFA) AND DATA ENVELOPMENT ANALYSIS (DEA) APPROACH TO MEASURE ENVIRONMENTAL EFFICIENCY IN AGRICULTURAL PRODUCTION

Abstract

Environmental efficiency evaluation is becoming one of the interest topics of many researchers in the world for the purpose of sustainable agricultural development. Recently, there are two popular methods applied to measure environmental performance in agricultural production, namely Data envelopment analysis (DEA) and Stochastic frontier analysis (SFA). This study aims to systematically review the papers about theory and show advantages and limitations of the application DEA and SFA approach to measure the environmental efficiency in agricultural production. The results will help future researchers to give a choice DEA or SFA method to evaluate environmental efficiency in agricultural production. In conclusion, this  study has shown the strengths and limitations when using the DEA or SFA methods, most of which are related to the requirement of undesirable output data (DEA) and the requirement of the input data with SFA.