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

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  • Benjamin Hampf

Abstract

In this paper we present a new approach to evaluate the environmental efficiency of decision making units. We propose a model that describes a two-stage process consisting of a production and an end-of-pipe abatement stage with the environmental efficiency being determined by the efficiency of both stages. Taking the dependencies between the two stages into account, we show how nonparametric methods can be used to measure environmental efficiency and to decompose it into production and abatement efficiency. For an empirical illustration we apply our model to an analysis of US power plants. Copyright Springer Science+Business Media New York 2014

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  • Benjamin Hampf, 2014. "Separating environmental efficiency into production and abatement efficiency: a nonparametric model with application to US power plants," Journal of Productivity Analysis, Springer, vol. 41(3), pages 457-473, June.
    • Handle: RePEc:kap:jproda:v:41:y:2014:i:3:p:457-473
    DOI: 10.1007/s11123-013-0357-8
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    More about this item

    Keywords

    Nonparametric efficiency analysis; Pollution abatement; Network DEA; Materials balance condition; Fossil-fueled power plants; C14; L94; Q53;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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