Using common weights and efficiency invariance principles for resource allocation and target setting

Feng, Lei; Song, Jian; Dolgui, Alexandre; Liang, Liang

doi:10.1080/00207543.2017.1287450

Cited by 41 publications

(14 citation statements)

References 52 publications

(89 reference statements)

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“…Resource allocation problem has traditionally become one of the most important application areas of DEA methodology (Fang & Zhang, 2008;Korhonen & Syrj€ anen, 2004;Li, Song, Dolgui, & Liang, 2017b). Among the literature, most studies are brought in a centralized environment (Asmild, Paradi, & Pastor, 2009;Lozano & Villa, 2004).…”

Section: Dea-based Resource Allocation Studymentioning

confidence: 99%

Carbon emission abatement quota allocation in Chinese manufacturing industries: An integrated cooperative game data envelopment analysis approach

Emrouznejad

Yang

et al. 2019

Journal of the Operational Research Society

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The Chinese government announced to cut its carbon emissions intensity by 60%-65% from its 2005 level. To realize the national abatement commitment, a rational allocation into its subunits (i.e. industries, provinces) is eagerly needed. Centralized allocation models can maximize the overall interests, but might cause implementation difficulty and fierce resistance from individual subunits. Based on this observation, this article will address the carbon emission abatement quota allocation problem from decentralized perspective, taking the competitive and cooperative relationships simultaneously into account. To this end, this article develops an integrated cooperative game data envelopment analysis (DEA) approach. We first investigate the relative efficiency evaluation by taking flexible carbon emission abatement allocation plans into account, and then define a super-additive characteristic function for developing a cooperative game among units. To calculate the nucleolus-based allocation plan, a practical computation procedure is developed based on the constraint generation mechanism. Further, we present a two-layer way to allocate the CO 2 abatement quota into different sub-industries and further different provinces in Chinese manufacturing industries. The empirical results show that five sub-industries (Processing of petroleum, coking and processing of nuclear fuel; Smelting and pressing of ferrous metals; Manufacture of non-metallic mineral products; Manufacture of raw chemical materials and chemical product; Smelting and pressing of non-ferrous metals) and two provinces (Guangdong and Shandong) will be allocated more than 10% of the total national carbon emission abatement quota.

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Section: Dea-based Resource Allocation Studymentioning

confidence: 99%

Carbon emission abatement quota allocation in Chinese manufacturing industries: An integrated cooperative game data envelopment analysis approach

Emrouznejad

Yang

et al. 2019

Journal of the Operational Research Society

Self Cite

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“…Recently, proposed a new proportional sharing method for allocating the fixed cost based on two assumptions of efficiency invariance and zero slack simultaneously. Jahanshahloo et al (2017) and Li et al (2017) determined a unique allocation plan based on common weights and efficiency invariance principles simultaneously. extended the efficiency invariance principle to super-efficiency situations, and then suggested three models, which guarantee piratical feasibility, to allocating a fixed cost as well as allocating a fixed resource along with sharing a common output target.…”

Section: Introductionmentioning

confidence: 99%

Allocating the fixed cost: an approach based on data envelopment analysis and cooperative game

Liu

Emrouznejad

et al. 2018

Ann Oper Res

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Allocating the fixed cost among a set of users in a fair way is an important issue both in management and economic research. Recently, Du et al. (2014) proposed a novel approach for allocating the fixed cost based on the game cross-efficiency method by taking the game relations among users in efficiency evaluation. This paper proves that the novel approach of Du et al. (2014) is equivalent to the efficiency maximization approach of Li et al. (2013), and may exist multiple optimal cost allocation plans. Taking into account the game relations in the allocation process, this paper proposes a cooperative game approach, and uses the nucleolus as a solution to the proposed cooperative game. The proposed approach in this paper is illustrated with a dataset from the prior literature and a real dataset of a steel and iron enterprise in China.

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“…The non-homogeneity of the DMUs were also considered to investigate the relationship between energy constraints and the enterprises' profit ratios (Wang, Chen, and Song 2018). Apart from efficiency analysis, DEAbased permits and resource allocation models have also been constructed and applied (Wu et al 2016b;Li et al 2017). Kroes, Subramanian, and Subramanyam (2012) used data on utility firms operating coal-fired generation units to examine the relationships between levers for compliance, environmental performance and firm performance.…”

Section: Introductionmentioning

confidence: 99%

The impacts of the coal-electricity price linkage on the profit efficiency of China’s thermal power plants

Duan

Guo

Zhou

et al. 2018

International Journal of Production Research

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Under the dual track mechanism of 'market coal and plan electricity', China's power price cannot be adjusted in a timely manner according to the changes in the coal price. The authorities put forward the policy of coal electricity linkage to overcome this dilemma in 2004 and updated the relevant details in 2016. Based on the directional distance function, this study measured the profit efficiency of over 1300 thermal power plants in China during 2002-2011 and investigated the impacts of the linkage policy using scenario analysis. We implemented the bootstrap method to analyse the sensitivity of the estimators of efficiency to sample variation and the impacts of plant-specific factors. The empirical results show that: First, compared to the predetermined directional vector approach, the generalised endogenous projection vectors made the estimated inefficiency scores perform better in objectivity, feasibility, and differentiation. Second, technical inefficiency was the primary cause of the profit inefficiency during the study period rather than allocative inefficiency. The large generation groups attained higher profit efficiencies than the power plants not affiliated to them. Finally, in straightening out the relationship between the coal and power prices, the linkage mechanism could only be a transitory step to the electricity market-oriented reform.

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Using common weights and efficiency invariance principles for resource allocation and target setting

Cited by 41 publications

References 52 publications

Carbon emission abatement quota allocation in Chinese manufacturing industries: An integrated cooperative game data envelopment analysis approach

Carbon emission abatement quota allocation in Chinese manufacturing industries: An integrated cooperative game data envelopment analysis approach

Allocating the fixed cost: an approach based on data envelopment analysis and cooperative game

The impacts of the coal-electricity price linkage on the profit efficiency of China’s thermal power plants

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