Optimal Directions for Directional Distance Functions: An Exploration of Potential Reductions of Greenhouse Gases
AbstractThis study explores the reduction potential of greenhouse gases for major pollution emitting countries of the world using nonparametric productivity measurement methods and directional distance functions. In contrast to the existing literature we apply optimization methods to endogenously determine optimal directions for the efficiency analysis. These directions represent the compromise of output enhancement and emissions reduction. The results show that for reasonable directions the adoption of best-practices would lead to sizable emission reductions in a range of about 20 percent compared to current levels.
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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 60952.
Date of creation: 12 Mar 2013
Date of revision:
Publication status: Published in Darmstadt Discussion Papers in Economics . 216 (2013-03-12)
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climate policy; nonparametric frontier functions; directional distance functions;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-18 (All new papers)
- NEP-EFF-2013-10-18 (Efficiency & Productivity)
- NEP-ENE-2013-10-18 (Energy Economics)
- NEP-ENV-2013-10-18 (Environmental Economics)
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