Measuring agricultural eco-total factor productivity growth: a nonparametric approach integrating ecosystem service value

This study incorporates the value of ecosystem services in calculation of the green total factor productivity growth based on a non-parametric framework. To calculate the agricultural ecosystem services’ monetary value, we have analyzed panel data from 30 Chinese provinces between 2009 and 2023. The Luenberger-Hicks-Moorsteen productivity indicator is based on a directional distance function that is implemented through nonparametric data envelopment analysis. China’s agricultural ecological total factor productivity growth is measured and broken down to capture regional variations and temporal evolution. Results indicate that ecosystem service value remained generally stable but varied significantly across regions. National agricultural ecological total factor productivity increased steadily, though at a slower pace than agricultural green total factor productivity, suggesting that improvements were mainly driven by technological efficiency rather than ecological contributions or scale effects. The findings emphasize the importance of enhancing resource allocation and technical efficiency and offer policy guidance for promoting both ecological sustainability and economic expansion within China’s farming.