Proposing effective strategies for meeting an environmental regulation with attainable technology improvement targets

Abstract

The Japanese government will adopt the CAFE standard after 2020. By using a "modified" slack-based measure (SBM) model, this study analyzed the technical efficiency of 113 gasoline vehicle models (GVs) and 54 hybrid vehicle models (HVs) sold by Japanese manufacturers in 2016. We also estimated attainable fuel efficiency of specific vehicle models that can be further improved referring to the nearest point on the best practice frontier. The improved CAFE values and standards of the nine automobile manufacturers were calculated. The technology gap from the vehicle technology frontier was more noticeable among gasoline vehicles than among hybrids. Moreover, most automobile manufacturers can achieve the CAFE standard through an effective achievement strategy based on best practice technologies, whereas the others will not achieve the CAFE standard even given a rapid technology innovation beyond the best practice frontiers for GVs and HVs.

Production Efficiency of Animal-Feed Obtained From Food Waste in Japan

“…𝐒𝐏 𝑛 𝑦 = 𝐬 𝑦 𝐲 𝒏 (11) where 𝐒𝐏 𝑛 𝑥 and 𝐒𝐏 𝑛 𝑦 denote the input and output SP vectors for DMU 𝑛, respectively. SP could be regarded as the technology improvement potential of the prevailing technology level of each input and output (Eguchi et al, 2021;Nakaishi et al, 2021). Note that the SP ranges from 0 to 1; moreover, a higher slack proportion value indicates greater inefficiency.…”

“…The SP, calculated in Eqs. ( 10) and ( 11), indicates the technology improvement potential of the prevailing technology level of each input and output (Eguchi et al, 2021). In other words, the magnitude of the SP could be directly interpreted as the magnitude of inefficiency, considering a specific input and output.…”

“…obtained slack values indicated a potential reduction (expansion) in the input (output); higher slack values indicated greater inefficiency. However, DMUs with a higher input and output tended to have higher slack values Eguchi et al (2021). andNakaishi et al (2021) normalized slack values by calculating the SP.…”

“…andNakaishi et al (2021) normalized slack values by calculating the SP. FollowingEguchi et al (2021) andNakaishi et al (2021), SP was calculated as follows:…”