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A dynamic multi-stage data envelopment analysis model with application to energy consumption in the cotton industry

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  • Khalili-Damghani, Kaveh
  • Tavana, Madjid
  • Santos-Arteaga, Francisco J.
  • Mohtasham, Sima

Abstract

Data envelopment analysis (DEA) is a non-parametric method for evaluating the relative efficiency of homogenous decision making units (DMUs) with multiple inputs and outputs. In this paper, we present a dynamic multi-stage DEA (DMS-DEA) approach to evaluate the efficiency of cotton production energy consumption. In the proposed model, the farms which consume resources (i.e., fertilizers, seeds, and pesticides) to produce cotton are assumed to be the DMUs. Inputs not consumed during a planning period are carried over to the next period in the planning horizon. Initially, a DMS-DEA model is used to determine the overall efficiency of the DMUs with dynamic inputs. Next, the efficiency score of each DMU is calculated for each time period in the planning horizon. We demonstrate the applicability of the proposed method and exhibit the efficacy of the procedures and algorithms with a real-life case study of energy consumption in the cotton industry.

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  • Khalili-Damghani, Kaveh & Tavana, Madjid & Santos-Arteaga, Francisco J. & Mohtasham, Sima, 2015. "A dynamic multi-stage data envelopment analysis model with application to energy consumption in the cotton industry," Energy Economics, Elsevier, vol. 51(C), pages 320-328.
    • Handle: RePEc:eee:eneeco:v:51:y:2015:i:c:p:320-328
    DOI: 10.1016/j.eneco.2015.06.020
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    2. Santos Arteaga, Francisco J. & Tavana, Madjid & Di Caprio, Debora & Toloo, Mehdi, 2019. "A dynamic multi-stage slacks-based measure data envelopment analysis model with knowledge accumulation and technological evolution," European Journal of Operational Research, Elsevier, vol. 278(2), pages 448-462.
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    More about this item

    Keywords

    Data envelopment analysis; Dynamic; Multi-stage; Farm efficiency; Energy planning;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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