Environmental Efficiency and Economic Performance of Cotton Production in Benin: What Relationship?

Abstract

Since the Rio Earth Conference in 1992, particular attention has been paid to environmental sustainability. Different strategies are then put in place in various areas of activity to reduce environmental impacts and improve environmental performance. This study then aims to analyze the relationship between environmental efficiency and the economic performance of cotton production in Benin. The study was conducted with 355 cotton producers (175 conventional and 180 organic) randomly selected in northern Benin. Indicators to measure economic performance are s are gross margin per hectare, capital and labor productivity. Data analysis were performed by using the Spearman correlation coefficient and linear regression. Findings show that there is a positive and significant relationship between environmental efficiency and economic performance indicators listed above. Results provide insightful information to producers and policy-makers regarding the importance of integrating environmental objectives into production decisions. In addition, improvement in capacity building of producers through environmental awareness and education is then essential for a better integration of sustainable technologies that reduce the level of pollution in the production process in order to promote sustainable development. Keyword: Environmental efficiency, Economic performance, Organic cotton; Conventional cotton, Benin.