Separating Environmental Efficiency into Production and Abatement Efficiency – A Nonparametric Model with Application to U.S. Power Plants
AbstractIn 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 U.S. power plants.
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Bibliographic InfoPaper provided by Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL) in its series Darmstadt Discussion Papers in Economics with number 53901.
Date of creation: Aug 2011
Date of revision:
Publication status: Published in Darmstadt Discussion Papers in Economics . 204 (2011-08)
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nonparametric efficiency analysis; pollution abatement; network DEA; materials balance condition; fosil-fueled power plants;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-09-05 (Agricultural Economics)
- NEP-ALL-2011-09-05 (All new papers)
- NEP-CSE-2011-09-05 (Economics of Strategic Management)
- NEP-EFF-2011-09-05 (Efficiency & Productivity)
- NEP-ENE-2011-09-05 (Energy Economics)
- NEP-ENV-2011-09-05 (Environmental Economics)
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