A Comparative Study of the Sustainable Efficiency and Technical Efficiency of Upstream Cacao Production in Thailand

This paper conducts a comparative study between the proposed sustainable efficiency and technical efficiency. While technical efficiency only addresses the economic aspect, sustainable efficiency is defined as the means to simultaneously meet all three essential requirements, including economic, environmental, and social aspects. A slacks-based measure method is applied to measure sustainable efficiency and technical efficiency. The linear combination of defined input surpluses and output shortages is used to determine the efficiency score. The inputs include total costs, agricultural non-point source pollution, and land use, while the outputs include total cacao production, carbon captured, and employment promotion. Thailand’s upstream cacao production is used as a case study to demonstrate the applicability of the approach. Analyses of the effects of socio-economic factors on the efficiency score indicated that plant year has positive effects on the efficiency scores, while farm size and farming experience have no apparent effects on the efficiency scores. Empirical findings from this study offer quantitative evidence for policymakers pursuing a sustainable cacao production strategy that satisfies the three aforementioned requirements.