Analysis of Consumption of Nitrogen Fertilisers and Environmental Efficiency in Crop Production of EU Countries

Abstract

Mineral fertilisers such as nitrogen (N) or phosphorus (P) are commonly used as important inputs in agricultural production. Their inadequate use can result in lower yields and loss of quality. However, excessive use of nitrogen can lead to environmental pollution and adverse effects on human health. This paper assesses nitrogen fertiliser use and the environmental efficiency of crop production of EU member states using the stochastic frontier analysis (SFA) approach. The results of the analysis show that the crop sector in the five member states of the European Union (i.e., Slovenia, Italy, Greece, Austria and Spain) is relatively environmentally efficient. In the remaining member states, efficiency is lower by varying degrees. This means that their agricultural sectors use too much fertiliser to produce the same output as more efficient farms, compared to other countries. The results of the study shed light on the environmental efficiency of crop production in the tEU and can contribute to the application of better management techniques and more effective agricultural policies.