IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v51y2012icp349-357.html
   My bibliography  Save this article

The technology gap and efficiency measure in WEC countries: Application of the hybrid meta frontier model

Author

Listed:
  • Chiu, Yung-Ho
  • Lee, Jen-Hui
  • Lu, Ching-Cheng
  • Shyu, Ming-Kuang
  • Luo, Zhengying

Abstract

This study develops the hybrid meta frontier DEA model for which inputs are distinguished into radial inputs that change proportionally and non-radial inputs that change non-proportionally, in order to measure the technical efficiency and technology gap ratios (TGR) of four different regions: Asia, Africa, America, and Europe. This paper selects 87 countries that are members of the World Energy Council from 2005 to 2007. The input variables are industry and population, while the output variances are gross domestic product (GDP) and the amount of fossil-fuel CO2 emissions.

Suggested Citation

  • Chiu, Yung-Ho & Lee, Jen-Hui & Lu, Ching-Cheng & Shyu, Ming-Kuang & Luo, Zhengying, 2012. "The technology gap and efficiency measure in WEC countries: Application of the hybrid meta frontier model," Energy Policy, Elsevier, vol. 51(C), pages 349-357.
  • Handle: RePEc:eee:enepol:v:51:y:2012:i:c:p:349-357
    DOI: 10.1016/j.enpol.2012.08.026
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421512007082
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2012.08.026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. R Ramanathan, 2005. "Estimating energy consumption of transport modes in India using DEA and application to energy and environmental policy," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(6), pages 732-737, June.
    2. F J Arcelus & P Arocena, 2005. "Productivity differences across OECD countries in the presence of environmental constraints," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(12), pages 1352-1362, December.
    3. Berger, Allen N. & Humphrey, David B., 1991. "The dominance of inefficiencies over scale and product mix economies in banking," Journal of Monetary Economics, Elsevier, vol. 28(1), pages 117-148, August.
    4. Yujiro Hayami, 1969. "Sources of Agricultural Productivity Gap Among Selected Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(3), pages 564-575.
    5. Yang, Hongliang & Pollitt, Michael, 2009. "Incorporating both undesirable outputs and uncontrollable variables into DEA: The performance of Chinese coal-fired power plants," European Journal of Operational Research, Elsevier, vol. 197(3), pages 1095-1105, September.
    6. Zhou, Xianbo & Li, Kui-Wai & Li, Qin, 2011. "An analysis on technical efficiency in post-reform China," China Economic Review, Elsevier, vol. 22(3), pages 357-372, September.
    7. Henry Tulkens, 2006. "On FDH Efficiency Analysis: Some Methodological Issues and Applications to Retail Banking, Courts and Urban Transit," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 311-342, Springer.
    8. Fare, Rolf & Grosskopf, Shawna, 2004. "Modeling undesirable factors in efficiency evaluation: Comment," European Journal of Operational Research, Elsevier, vol. 157(1), pages 242-245, August.
    9. Emrouznejad, Ali & Anouze, Abdel Latef & Thanassoulis, Emmanuel, 2010. "A semi-oriented radial measure for measuring the efficiency of decision making units with negative data, using DEA," European Journal of Operational Research, Elsevier, vol. 200(1), pages 297-304, January.
    10. Wang, Eric C., 2007. "R&D efficiency and economic performance: A cross-country analysis using the stochastic frontier approach," Journal of Policy Modeling, Elsevier, vol. 29(2), pages 345-360.
    11. Víctor Moreira & Boris Bravo-Ureta, 2010. "Technical efficiency and metatechnology ratios for dairy farms in three southern cone countries: a stochastic meta-frontier model," Journal of Productivity Analysis, Springer, vol. 33(1), pages 33-45, February.
    12. Atakelty Hailu & Terrence S. Veeman, 2001. "Non-parametric Productivity Analysis with Undesirable Outputs: An Application to the Canadian Pulp and Paper Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 605-616.
    13. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    14. Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December.
    15. Chen, Zhuo & Song, Shunfeng, 2008. "Efficiency and technology gap in China's agriculture: A regional meta-frontier analysis," China Economic Review, Elsevier, vol. 19(2), pages 287-296, June.
    16. Sueyoshi, Toshiyuki & Goto, Mika, 2011. "DEA approach for unified efficiency measurement: Assessment of Japanese fossil fuel power generation," Energy Economics, Elsevier, vol. 33(2), pages 292-303, March.
    17. Christopher O’Donnell & D. Rao & George Battese, 2008. "Metafrontier frameworks for the study of firm-level efficiencies and technology ratios," Empirical Economics, Springer, vol. 34(2), pages 231-255, March.
    18. Necmi Avkiran & Kaoru Tone & Miki Tsutsui, 2008. "Bridging radial and non-radial measures of efficiency in DEA," Annals of Operations Research, Springer, vol. 164(1), pages 127-138, November.
    19. Zhou, Peng & Poh, Kim Leng & Ang, Beng Wah, 2007. "A non-radial DEA approach to measuring environmental performance," European Journal of Operational Research, Elsevier, vol. 178(1), pages 1-9, April.
    20. Dong-hyun Oh & Jeong-dong Lee, 2010. "A metafrontier approach for measuring Malmquist productivity index," Empirical Economics, Springer, vol. 38(1), pages 47-64, February.
    21. George Battese & D. Rao & Christopher O'Donnell, 2004. "A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies," Journal of Productivity Analysis, Springer, vol. 21(1), pages 91-103, January.
    22. George E. Battese & D. S. Prasada Rao, 2002. "Technology Gap, Efficiency, and a Stochastic Metafrontier Function," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 1(2), pages 87-93, August.
    23. Reinhard, Stijn & Knox Lovell, C. A. & Thijssen, Geert J., 2000. "Environmental efficiency with multiple environmentally detrimental variables; estimated with SFA and DEA," European Journal of Operational Research, Elsevier, vol. 121(2), pages 287-303, March.
    24. Mainak Mazumdar & Meenakshi Rajeev, 2009. "A Comparative Analysis of Efficiency and Productivity of the Indian Pharmaceutical Firms: A Malmquist-Meta-Frontier Approach," Working Papers 223, Institute for Social and Economic Change, Bangalore.
    25. Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "A survey of data envelopment analysis in energy and environmental studies," European Journal of Operational Research, Elsevier, vol. 189(1), pages 1-18, August.
    26. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    27. J A Sharp & W Meng & W Liu, 2007. "A modified slacks-based measure model for data envelopment analysis with ‘natural’ negative outputs and inputs," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(12), pages 1672-1677, December.
    28. Fare, Rolf, et al, 1989. "Multilateral Productivity Comparisons When Some Outputs Are Undesirable: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 90-98, February.
    29. Seiford, Lawrence M. & Zhu, Joe, 2002. "Modeling undesirable factors in efficiency evaluation," European Journal of Operational Research, Elsevier, vol. 142(1), pages 16-20, October.
    30. Kontolaimou, Alexandra & Tsekouras, Kostas, 2010. "Are cooperatives the weakest link in European banking? A non-parametric metafrontier approach," Journal of Banking & Finance, Elsevier, vol. 34(8), pages 1946-1957, August.
    31. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    32. Seiford, Lawrence M. & Zhu, Joe, 2005. "A response to comments on modeling undesirable factors in efficiency evaluation," European Journal of Operational Research, Elsevier, vol. 161(2), pages 579-581, March.
    33. Chen, Ku-Hsieh & Huang, Yi-Ju & Yang, Chih-Hai, 2009. "Analysis of regional productivity growth in China: A generalized metafrontier MPI approach," China Economic Review, Elsevier, vol. 20(4), pages 777-792, December.
    34. Mainak Mazumdar & Meenakshi Rajeev, 2009. "Comparing the Efficiency and Productivity of the Indian Pharmaceutical Firms: A Malmquist-Meta-Frontier Approach," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 8(2), pages 159-181, August.
    35. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2007. "Data Envelopment Analysis," Springer Books, Springer, edition 0, number 978-0-387-45283-8, September.
    36. Scheel, Holger, 2001. "Undesirable outputs in efficiency valuations," European Journal of Operational Research, Elsevier, vol. 132(2), pages 400-410, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    2. Sadaf Hafeez & Noreen Izza Arshad & Lukman Bin A B Rahim & Muhammad Farooq Shabbir & Jawad Iqbal, 2020. "Innovation in Chinese internet companies: A meta-frontier analysis," PLOS ONE, Public Library of Science, vol. 15(5), pages 1-15, May.
    3. He, Yan & Chiu, Yung-ho & Zhang, Bin, 2015. "The impact of corporate governance on state-owned and non-state-owned firms efficiency in China," The North American Journal of Economics and Finance, Elsevier, vol. 33(C), pages 252-277.
    4. Sueyoshi, Toshiyuki & Yuan, Yan & Li, Aijun & Wang, Daoping, 2017. "Methodological comparison among radial, non-radial and intermediate approaches for DEA environmental assessment," Energy Economics, Elsevier, vol. 67(C), pages 439-453.
    5. Wang, Nannan & Chen, Ji & Yao, Shengnan & Chang, Yen-Chiang, 2018. "A meta-frontier DEA approach to efficiency comparison of carbon reduction technologies on project level," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2606-2612.
    6. Sueyoshi, Toshiyuki & Yuan, Yan, 2016. "Marginal Rate of Transformation and Rate of Substitution measured by DEA environmental assessment: Comparison among European and North American nations," Energy Economics, Elsevier, vol. 56(C), pages 270-287.
    7. Gowangwoo Park & Seok-Kee Lee & Kanghwa Choi, 2021. "Evaluating the Service Operating Efficiency and Its Determinants in Global Consulting Firms: A Metafrontier Analysis," Sustainability, MDPI, vol. 13(18), pages 1-18, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lu, Ching-Cheng & Chiu, Yung-Ho & Shyu, Ming-Kuang & Lee, Jen-Hui, 2013. "Measuring CO2 emission efficiency in OECD countries: Application of the Hybrid Efficiency model," Economic Modelling, Elsevier, vol. 32(C), pages 130-135.
    2. Sahoo, Biresh K. & Luptacik, Mikulas & Mahlberg, Bernhard, 2011. "Alternative measures of environmental technology structure in DEA: An application," European Journal of Operational Research, Elsevier, vol. 215(3), pages 750-762, December.
    3. Li, Mingquan & Wang, Qi, 2014. "International environmental efficiency differences and their determinants," Energy, Elsevier, vol. 78(C), pages 411-420.
    4. Afzalinejad, Mohammad, 2020. "Reverse efficiency measures for environmental assessment in data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    5. Du, Kerui & Lu, Huang & Yu, Kun, 2014. "Sources of the potential CO2 emission reduction in China: A nonparametric metafrontier approach," Applied Energy, Elsevier, vol. 115(C), pages 491-501.
    6. Barnabé Walheer, 2020. "Output, input, and undesirable output interconnections in data envelopment analysis: convexity and returns-to-scale," Annals of Operations Research, Springer, vol. 284(1), pages 447-467, January.
    7. George Halkos & George Papageorgiou, 2016. "Spatial environmental efficiency indicators in regional waste generation: a nonparametric approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 59(1), pages 62-78, January.
    8. Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "A survey of data envelopment analysis in energy and environmental studies," European Journal of Operational Research, Elsevier, vol. 189(1), pages 1-18, August.
    9. Long, Xingle & Wu, Chao & Zhang, Jijian & Zhang, Jing, 2018. "Environmental efficiency for 192 thermal power plants in the Yangtze River Delta considering heterogeneity: A metafrontier directional slacks-based measure approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3962-3971.
    10. Kerstens, Kristiaan & O’Donnell, Christopher & Van de Woestyne, Ignace, 2019. "Metatechnology frontier and convexity: A restatement," European Journal of Operational Research, Elsevier, vol. 275(2), pages 780-792.
    11. Feng, Chao & Zhang, Hua & Huang, Jian-Bai, 2017. "The approach to realizing the potential of emissions reduction in China: An implication from data envelopment analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 859-872.
    12. Xiangyu Teng & Danting Lu & Yung-ho Chiu, 2019. "Emission Reduction and Energy Performance Improvement with Different Regional Treatment Intensity in China," Energies, MDPI, vol. 12(2), pages 1-18, January.
    13. Halkos, George & Petrou, Kleoniki Natalia, 2019. "Treating undesirable outputs in DEA: A critical review," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 97-104.
    14. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    15. Ching-Cheng Lu & Liang-Chun Lu, 2019. "Evaluating the energy efficiency of European Union countries: The dynamic data envelopment analysis," Energy & Environment, , vol. 30(1), pages 27-43, February.
    16. Dan Wu & Ching-Cheng Lu & Xiang Chen & Pei-Chieh Tu & An-Chi Yang & Chih-Yu Yang, 2021. "Evaluating the Dynamic Energy Production Efficiency in APEC Economies," Energies, MDPI, vol. 14(14), pages 1-20, July.
    17. Jeanneaux, Philippe & Latruffe, Laure, 2016. "Modelling pollution-generating technologies in performance benchmarking: Recent developments, limits and future prospects in the nonparametric frameworkAuthor-Name: Dakpo, K. Hervé," European Journal of Operational Research, Elsevier, vol. 250(2), pages 347-359.
    18. Gómez-Calvet, Roberto & Conesa, David & Gómez-Calvet, Ana Rosa & Tortosa-Ausina, Emili, 2014. "Energy efficiency in the European Union: What can be learned from the joint application of directional distance functions and slacks-based measures?," Applied Energy, Elsevier, vol. 132(C), pages 137-154.
    19. Toloo, Mehdi & Hančlová, Jana, 2020. "Multi-valued measures in DEA in the presence of undesirable outputs," Omega, Elsevier, vol. 94(C).
    20. Cheng, Zhonghua & Li, Lianshui & Liu, Jun & Zhang, Huiming, 2018. "Total-factor carbon emission efficiency of China's provincial industrial sector and its dynamic evolution," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 330-339.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:51:y:2012:i:c:p:349-357. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.