Separating environmental efficiency into production and abatement efficiency: a nonparametric model with application to US power plants

Hampf, Benjamin

doi:10.1007/s11123-013-0357-8

Cited by 63 publications

(37 citation statements)

References 46 publications

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“…This relatively small sample size is in line with the numbers of plants analyzed in previous studies using detailed data as described above (see e.g. Färe et al (2013) and Hampf (2014)). Other studies which analyze larger sample sizes of power plants usually aggregate different power plant technologies (e.g.…”

Section: Construction Of the Datasetsupporting

confidence: 77%

Rational inefficiency, adjustment costs and sequential technologies

Hampf

2017

European Journal of Operational Research

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. In this paper we propose a novel approach to estimate the rational inefficiency of decision making units in the presence of adjustment costs. Using sequential definitions of the production technology, we show how cost inefficiency can be decomposed into rational and residual inefficiency as well as inefficiency caused by technical change. Furthermore, we estimate lower bounds for the unobserved adjustment costs based on unexploited cost reductions due to rational inefficiency. Terms of use: Documents in EconStor mayThese adjustment costs are used to evaluate the feasibility of exploiting cost reductions caused by residual inefficiency. We demonstrate the empirical applicability of our model by estimating and decomposing the cost inefficiency of U.S. coal-fired power plants using panel data which cover the period between 1994 and 2009.JEL classification: D24, L20, O33

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Section: Construction Of the Datasetsupporting

confidence: 77%

Rational inefficiency, adjustment costs and sequential technologies

Hampf

2017

European Journal of Operational Research

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“…This can be generalised to other problems 4 For more on materials balance-based models of environmental efficiency, see Coelli et al (2007). See also Hampf (2014) for a justification of the strong disposability condition in material balance models. Where a nh is the unit coefficient of substance h for input n, which may be null for some inputs.…”

Section: Presentation Of the Different Modelsmentioning

confidence: 99%

Input aggregation bias in technical efficiency with multiple criteria analysis

Aldanondo

Casasnovas

2014

Applied Economics Letters

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“…A directional output distance function is used to compute an efficiency score. The other is Hampf (2014), which considers also a two-stage production and abatement system. In this case a weighted input-oriented approach is used.…”

Section: Introductionmentioning

confidence: 99%

“…The latter can incorporate weights for the different pollutants, thus reflecting their environmental impact or their allowance costs. Different to Hampf (2014) the MBP equations for the pollutants do not appear explicitly in the models but are considered implicitly.…”

Section: Introductionmentioning

confidence: 99%

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Technical and environmental efficiency of a two-stage production and abatement system

Lozano

2015

Ann Oper Res

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In this paper, a network data envelopment analysis system that considers a production stage followed by an abatement stage is studied. Two DEA models are proposed for assessing, respectively, the technical and the environmental efficiency of the system. The technical efficiency model computes a network slacks-based inefficiency measure. In the case of the environmental efficiency model the reduction in the pollutants emissions can be weighted according to their environmental impact or to their allowance costs, thus allowing inputs as well as pollutants substitution. An allocative efficiency score can also be computed comparing the technical efficient projection with that of the environmental efficiency model. A key feature of the proposed approach is that it assumes that any inputs, outputs or intermediate products that contain the pollutants of interest are not freely disposable. Assuming otherwise would violate the materials balance principle. The proposed approach has been applied to a dataset involving 23 coal-fired power plants and a single pollutant. The results show that the technical efficiency model estimates maximum input reductions and output increases, which brings about significant emissions reductions. Those reductions are, however, smaller than those than can be achieved when environmental efficiency is the goal.

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Separating environmental efficiency into production and abatement efficiency: a nonparametric model with application to US power plants

Cited by 63 publications

References 46 publications

Rational inefficiency, adjustment costs and sequential technologies

Rational inefficiency, adjustment costs and sequential technologies

Input aggregation bias in technical efficiency with multiple criteria analysis

Technical and environmental efficiency of a two-stage production and abatement system

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