The environmental efficiency of non-certified organic farming in China: A case study of paddy rice production

- Environmental efficiency (EE) is defined by the efficient use of pure nitrogen in smallholder paddy rice production in South China.
- We analyze the variation in EE between organic and conventional farming system.
- EE is derived from a translog stochastic frontier model.
- Organic farming does not systematically reduce the use of N in smallholder farming, especially during the scale-up period (after 2009).
- More efficient organic farming necessitates additional efforts on the control of nitrogen input.

This case study compares the environmental efficiency of non-certified organic and conventional rice production in southern China. Using plot-season level survey data, we test the existence of a “technology gap” between the two types of production, and calculate their environmental efficiency scores based on the level of pure nitrogen use, which is considered as an environmentally detrimental input within the framework of the stochastic frontier analysis. Our analysis reveals that organic farming loses its environmental performance at high nitrogen levels and that during the initial conversion period to organic farming newly converted organic farmers increase the use of external nutrients such as nitrogen to compensate for potential yield losses. These results highlight the uncertainty with which conventional farmers initially tend to view organic farming. However, we find that the experience gained by organic farmers over time helps them increase and maintain the environmental efficiency. We warn against the rapid expansion of organic farming and recommend more technical support and strict nutrient regulation to foster the environmental efficiency of organic farming.