The Role of Technical Efficiency Achieving Sustainable Development: A Dynamic Analysis of Norwegian Dairy Farms

Growing environmental concerns have prompted governments to make sustainable choices in agricultural resource use. Evaluating the sustainability of systems is a key issue for implementation policies and practices aimed at revealing sustainability. This study evaluate performance Norwegian dairy farms, accounting marginal effects (exogenous) variables. We adopted dynamic parametric approach within input distance function framework estimate focusing on technical efficiency determinates. For comparison, we also estimated static model, which was used by previous studies. unbalanced farm-level panel data period 2000–2018. The result shows mean score 0.92 model 0.87 models. empirical that studies focused reported biased farms. suggests farms can reduce requirement producing average output 8% if operation becomes technically efficient. variables different effect farmers; thus, policymakers need place special focus these development sector.