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Original Articles

A measure of sustainability of Brazilian agribusiness using directional distance functions and data envelopment analysis

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Pages 210-222 | Received 29 Oct 2013, Accepted 03 Mar 2014, Published online: 09 Apr 2014
 

Abstract

The social and environmental impacts caused by the modernization of Brazilian agribusiness have evoked a growing interest in the search of balance between social-economics development and the adequate use of natural resources, driving the country to sustainable development. Therefore, the main aim of this article is to estimate a set of indicators of relative efficiency in the Brazilian agricultural sector, which satisfy the concept of Pareto optimality, potentiates simultaneously both economic, ecological dimensions and social functions. To reach this purpose, the method of directional distance functions and data envelopment analysis was applied. These indicators confirm, in different ways, the hypothesis that it is possible to perform consistent productive strategies with the maximization of social welfare, despite the apparent antagonism among these three dimensions. In addition, it is shown that efficient Brazilian states tend to combine the three dimensions in different ways. Hence, it can be concluded that several equilibrium taken sustainable can be achieved through different actions on poverty and environmental impact reduction without necessarily generating productive inefficiencies. This result can be considered of prominent importance for sustainable development in Brazil and can also serve as a reference in the definition of goals of the plan ‘Brazil without Misery’ and international commitments to reduce Greenhouse Gas – GHG – in Brazil, especially for the 17 inefficient Brazilian states.

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