IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03025380.html
   My bibliography  Save this paper

On the Axiomatic of Pollution-generating technologies : Non-parametric Production Analysis

Author

Listed:
  • Arnaud Abad

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique, LAMPS - LAboratoire de Modélisation Pluridisciplinaire et Simulations - UPVD - Université de Perpignan Via Domitia)

  • Walter Briec

    (LAMPS - LAboratoire de Modélisation Pluridisciplinaire et Simulations - UPVD - Université de Perpignan Via Domitia)

Abstract

This paper analyses the concept of Pollution-generating Technologies (PgT). Following the notion of output congestion, a suitable B-disposable assumption is introduced. This approach aims to reveal any PgT in production processes that are compatible with a minimal set of assumptions. Thus, a more general class of PgT (convex and non-convex) is defined. An empirical illustration is proposed to give an illustrative example of the new B-disposal assumption with respect to convex and non-convex non-parametric technologies.

Suggested Citation

  • Arnaud Abad & Walter Briec, 2019. "On the Axiomatic of Pollution-generating technologies : Non-parametric Production Analysis," Post-Print hal-03025380, HAL.
    • Handle: RePEc:hal:journl:hal-03025380
    DOI: 10.1016/j.ejor.2019.02.027
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-03025380
    as

    Download full text from publisher

    File URL: https://hal.inrae.fr/hal-03025380/document
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.ejor.2019.02.027?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. McFadden, Daniel, 1978. "Cost, Revenue, and Profit Functions," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.),Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 1, McMaster University Archive for the History of Economic Thought.
    2. Murty, Sushama, 2010. "Externalities and fundamental nonconvexities: A reconciliation of approaches to general equilibrium externality modeling and implications for decentralization," Journal of Economic Theory, Elsevier, vol. 145(1), pages 331-353, January.
    3. Fare, Rolf & Grosskopf, Shawna & Lovell, C A Knox, 1983. " The Structure of Technical Efficiency," Scandinavian Journal of Economics, Wiley Blackwell, vol. 85(2), pages 181-190.
    4. Mahlberg, Bernhard & Luptacik, Mikulas & Sahoo, Biresh K., 2011. "Examining the drivers of total factor productivity change with an illustrative example of 14 EU countries," Ecological Economics, Elsevier, vol. 72(C), pages 60-69.
    5. Walter Briec & Kristiaan Kerstens & Philippe Venden Eeckaut, 2004. "Non-convex Technologies and Cost Functions: Definitions, Duality and Nonparametric Tests of Convexity," Journal of Economics, Springer, vol. 81(2), pages 155-192, February.
    6. 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.
    7. Falavigna, Greta & Ippoliti, Roberto & Manello, Alessandro & Ramello, Giovanni B., 2015. "Judicial productivity, delay and efficiency: A Directional Distance Function (DDF) approach," European Journal of Operational Research, Elsevier, vol. 240(2), pages 592-601.
    8. Robert G. Chambers & Rulon D. Pope, 1996. "Aggregate Productivity Measures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1360-1365.
    9. Dakpo, K Hervé, 2016. "On modeling pollution-generating technologies: a new formulation of the by-production approach," Working Papers 245191, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    10. Forsund, Finn R., 2009. "Good Modelling of Bad Outputs: Pollution and Multiple-Output Production," International Review of Environmental and Resource Economics, now publishers, vol. 3(1), pages 1-38, August.
    11. Arnaud Abad, 2015. "An environmental generalised Luenberger-Hicks-Moorsteen productivity indicator and an environmental generalised Hicks-Moorsteen productivity index," Post-Print hal-03025374, HAL.
    12. F Pedraja-Chaparro & J Salinas-Jiménez & P Smith, 1999. "On the quality of the data envelopment analysis model," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(6), pages 636-644, June.
    13. Jacobsen, S E, 1970. "Production Correspondences," Econometrica, Econometric Society, vol. 38(5), pages 754-771, September.
    14. Tim Coelli & Ludwig Lauwers & Guido Huylenbroeck, 2007. "Environmental efficiency measurement and the materials balance condition," Journal of Productivity Analysis, Springer, vol. 28(1), pages 3-12, October.
    15. 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.
    16. Rüdiger Pethig, 2003. "The 'materials balance approach' to pollution: its origin, implications and acceptance," Volkswirtschaftliche Diskussionsbeiträge 105-03, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
    17. Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
    18. Timo Kuosmanen, 2005. "Weak Disposability in Nonparametric Production Analysis with Undesirable Outputs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 1077-1082.
    19. Hampf, Benjamin & Rødseth, Kenneth Løvold, 2015. "Carbon dioxide emission standards for U.S. power plants: An efficiency analysis perspective," Energy Economics, Elsevier, vol. 50(C), pages 140-153.
    20. Shen, Zhiyang & Boussemart, Jean-Philippe & Leleu, Hervé, 2017. "Aggregate green productivity growth in OECD’s countries," International Journal of Production Economics, Elsevier, vol. 189(C), pages 30-39.
    21. Pethig, Rudiger, 2006. "Non-linear production, abatement, pollution and materials balance reconsidered," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 185-204, March.
    22. Sushama Murty, 2015. "On the properties of an emission-generating technology and its parametric representation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(2), pages 243-282, October.
    23. Fuss, Melvyn & McFadden, Daniel (ed.), 1978. "Production Economics: A Dual Approach to Theory and Applications," Elsevier Monographs, Elsevier, edition 1, number 9780444850133.
    24. Lauwers, Ludwig, 2009. "Justifying the incorporation of the materials balance principle into frontier-based eco-efficiency models," Ecological Economics, Elsevier, vol. 68(6), pages 1605-1614, April.
    25. 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.
    26. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (I): The Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 1, number fuss1978.
    27. Leleu, Hervé, 2013. "Shadow pricing of undesirable outputs in nonparametric analysis," European Journal of Operational Research, Elsevier, vol. 231(2), pages 474-480.
    28. Timo Kuosmanen, 2003. "Duality Theory of Non-convex Technologies," Journal of Productivity Analysis, Springer, vol. 20(3), pages 273-304, November.
    29. Golany, B & Roll, Y, 1989. "An application procedure for DEA," Omega, Elsevier, vol. 17(3), pages 237-250.
    30. A. Abad & P. Ravelojaona, 2017. "Exponential environmental productivity index and indicators," Journal of Productivity Analysis, Springer, vol. 48(2), pages 147-166, December.
    31. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (II): Applications of the Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 2, number fuss1978a.
    32. K Hervé Dakpo, 2016. "On modeling pollution-generating technologies: a new formulation of the by-production approach," Working Papers SMART 16-06, INRAE UMR SMART.
    33. 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.
    34. Picazo-Tadeo, Andres J. & Reig-Martinez, Ernest & Hernandez-Sancho, Francesc, 2005. "Directional distance functions and environmental regulation," Resource and Energy Economics, Elsevier, vol. 27(2), pages 131-142, June.
    35. 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.
    36. 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.
    37. Ayres, Robert U & Kneese, Allen V, 1969. "Production , Consumption, and Externalities," American Economic Review, American Economic Association, vol. 59(3), pages 282-297, June.
    38. Podinovski, Victor V. & Kuosmanen, Timo, 2011. "Modelling weak disposability in data envelopment analysis under relaxed convexity assumptions," European Journal of Operational Research, Elsevier, vol. 211(3), pages 577-585, June.
    39. Robert Russell, R., 1985. "Measures of technical efficiency," Journal of Economic Theory, Elsevier, vol. 35(1), pages 109-126, February.
    40. Murty, Sushama & Robert Russell, R. & Levkoff, Steven B., 2012. "On modeling pollution-generating technologies," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 117-135.
    41. Walter Briec & Kristiaan Kerstens & Ignace Van de Woestyne, 2016. "Congestion in production correspondences," Journal of Economics, Springer, vol. 119(1), pages 65-90, September.
    42. Lauwers, Ludwig H. & Van Huylenbroeck, Guido, 2003. "Materials Balance Based Modelling Of Environmental Efficiency," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25916, International Association of Agricultural Economists.
    43. Rolf Färe & Shawna Grosskopf, 2003. "Nonparametric Productivity Analysis with Undesirable Outputs: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 1070-1074.
    44. 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.
    45. Russell, R. Robert, 1985. "On the Axiomatic Approach to the Measurement of Technical Efficiency," Working Papers 85-33, C.V. Starr Center for Applied Economics, New York University.
    46. V V Podinovski, 2004. "Bridging the gap between the constant and variable returns-to-scale models: selective proportionality in data envelopment analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(3), pages 265-276, March.
    47. Murat Bilsel & Nurhan Davutyan, 2014. "Hospital efficiency with risk adjusted mortality as undesirable output: the Turkish case," Annals of Operations Research, Springer, vol. 221(1), pages 73-88, October.
    48. Atakelty Hailu, 2003. "Nonparametric Productivity Analysis with Undesirable Outputs: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 1075-1077.
    49. 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.
    50. 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.
    51. Pérez, Karen & González-Araya, Marcela C. & Iriarte, Alfredo, 2017. "Energy and GHG emission efficiency in the Chilean manufacturing industry: Sectoral and regional analysis by DEA and Malmquist indexes," Energy Economics, Elsevier, vol. 66(C), pages 290-302.
    52. Fare, Rolf & Grosskopf, Shawna, 1983. "Measuring output efficiency," European Journal of Operational Research, Elsevier, vol. 13(2), pages 173-179, June.
    53. Varian, Hal R, 1984. "The Nonparametric Approach to Production Analysis," Econometrica, Econometric Society, vol. 52(3), pages 579-597, May.
    54. Kuosmanen, Timo & Kazemi Matin, Reza, 2011. "Duality of weakly disposable technology," Omega, Elsevier, vol. 39(5), pages 504-512, October.
    55. 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.
    56. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    57. Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
    58. Manello, Alessandro, 2017. "Productivity growth, environmental regulation and win–win opportunities: The case of chemical industry in Italy and Germany," European Journal of Operational Research, Elsevier, vol. 262(2), pages 733-743.
    59. 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. Mehdiloo, Mahmood & Podinovski, Victor V., 2021. "Strong, weak and Farrell efficient frontiers of technologies satisfying different production assumptions," European Journal of Operational Research, Elsevier, vol. 294(1), pages 295-311.
    2. Arnaud Abad & Paola Ravelojaona, 2020. "A Generalization of Environmental Productivity Analysis," Working Papers hal-02964799, HAL.
    3. Shen, Zhiyang & Wu, Haitao & Bai, Kaixuan & Hao, Yu, 2022. "Integrating economic, environmental and societal performance within the productivity measurement," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    4. Shen, Zhiyang & Bai, Kaixuan & Hong, Tianyang & Balezentis, Tomas, 2021. "Evaluation of carbon shadow price within a non-parametric meta-frontier framework: The case of OECD, ASEAN and BRICS," Applied Energy, Elsevier, vol. 299(C).
    5. Walter Briec & Kristiaan Kerstens & Ignace Van de Woestyne, 2022. "Nonconvexity in Production and Cost Functions: An Exploratory and Selective Review," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 18, pages 721-754, Springer.
    6. Arnaud Abad & Paola Ravelojaona, 2021. "Pollution‐adjusted productivity analysis: The use of Malmquist and Luenberger productivity measures," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(3), pages 635-648, April.
    7. Frederic Ang & Kristiaan Kerstens & Jafar Sadeghi, 2023. "Energy productivity and greenhouse gas emission intensity in Dutch dairy farms: A Hicks–Moorsteen by‐production approach under non‐convexity and convexity with equivalence results," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 492-509, June.
    8. Stefano NASINI & Rabia NESSAH, 2021. "Endogenous Learning in Multi-Sector Economies," Working Papers 2021-EQM-08, IESEG School of Management, revised Oct 2023.
    9. Arnaud Abad, 2020. "Environmental Efficiency and Productivity Analysis," Working Papers hal-03032038, HAL.

    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. 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.
    2. Leleu, Hervé, 2013. "Shadow pricing of undesirable outputs in nonparametric analysis," European Journal of Operational Research, Elsevier, vol. 231(2), pages 474-480.
    3. Arnaud Abad, 2020. "Environmental Efficiency and Productivity Analysis," Working Papers hal-03032038, HAL.
    4. Pham, Manh D. & Zelenyuk, Valentin, 2019. "Weak disposability in nonparametric production analysis: A new taxonomy of reference technology sets," European Journal of Operational Research, Elsevier, vol. 274(1), pages 186-198.
    5. Andreas Eder, 2022. "Environmental efficiency measurement when producers control pollutants under heterogeneous conditions: a generalization of the materials balance approach," Journal of Productivity Analysis, Springer, vol. 57(2), pages 157-176, April.
    6. Andreas Eder, 2021. "Environmental efficiency measurement when producers control pollutants under heterogeneous conditions: a generalization of the materials balance approach," Working Papers 752021, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    7. Roshdi, Israfil & Hasannasab, Maryam & Margaritis, Dimitris & Rouse, Paul, 2018. "Generalised weak disposability and efficiency measurement in environmental technologies," European Journal of Operational Research, Elsevier, vol. 266(3), pages 1000-1012.
    8. repec:zbw:inwedp:752021 is not listed on IDEAS
    9. 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.
    10. Ke Wang & Zhifu Mi & Yi‐Ming Wei, 2019. "Will Pollution Taxes Improve Joint Ecological and Economic Efficiency of Thermal Power Industry in China?: A DEA‐Based Materials Balance Approach," Journal of Industrial Ecology, Yale University, vol. 23(2), pages 389-401, April.
    11. Aparicio, Juan & Kapelko, Magdalena & Zofío, José L., 2020. "The measurement of environmental economic inefficiency with pollution-generating technologies," Resource and Energy Economics, Elsevier, vol. 62(C).
    12. Cherchye, Laurens & Rock, Bram De & Walheer, Barnabé, 2015. "Multi-output efficiency with good and bad outputs," European Journal of Operational Research, Elsevier, vol. 240(3), pages 872-881.
    13. Dakpo, K Hervé, 2016. "On modeling pollution-generating technologies: a new formulation of the by-production approach," Working Papers 245191, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    14. Wang, Ke & Wei, Yi-Ming & Huang, Zhimin, 2018. "Environmental efficiency and abatement efficiency measurements of China's thermal power industry: A data envelopment analysis based materials balance approach," European Journal of Operational Research, Elsevier, vol. 269(1), pages 35-50.
    15. Dakpo, Hervé K & Jeanneaux, Philippe & Latruffe, Laure, 2014. "Inclusion of undesirable outputs in production technology modeling: The case of greenhouse gas emissions in French meat sheep farming," Working Papers 207806, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    16. K Hervé Dakpo, 2016. "On modeling pollution-generating technologies: a new formulation of the by-production approach," Working Papers SMART 16-06, INRAE UMR SMART.
    17. Ke Wang & Yi-Ming Wei & Zhimin Huang, 2017. "Environmental efficiency and abatement efficiency measurements of China¡¯s thermal power industry: A data envelopment analysis based materials balance approach," CEEP-BIT Working Papers 108, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    18. 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.
    19. Manh D. Pham & Valentin Zelenyuk, 2017. "Convexity, Disposability and Returns to Scale in Production Analysis," CEPA Working Papers Series WP042017, School of Economics, University of Queensland, Australia.
    20. Benjamin Hampf, 2018. "Measuring inefficiency in the presence of bad outputs: Does the disposability assumption matter?," Empirical Economics, Springer, vol. 54(1), pages 101-127, February.
    21. Forsund, Finn R., 2009. "Good Modelling of Bad Outputs: Pollution and Multiple-Output Production," International Review of Environmental and Resource Economics, now publishers, vol. 3(1), pages 1-38, August.

    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:hal:journl:hal-03025380. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.