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Environmental Efficiency Measurement with Translog Distance Functions: A Parametric Approach

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Author Info

  • Cuesta, Rafael A.

    ()
    (Departamento de Economía, Universidad de Oviedo, E-33071, Oviedo, Spain.)

  • Knox, C.A.

    ()
    (Department of Economics, Terry College of Business, University of Georgia, Athens, GA 30602, USA)

  • Zofío, José Luis

    ()
    (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.)

Abstract

We use a flexible parametric hyperbolic distance function to estimate environmental efficiency when some outputs are undesirable. Cuesta and Zofio (J. Prod. Analysis (2005), 31-48) introduced this distance function specification in conventional input-output space to estimate technical efficiency within a stochastic frontier context. We extend their approach to accommodate undesirable outputs and to estimate environmental efficiency within a stochastic frontier context. This provides a parametric counterpart to Färe et al.’s popular nonparametric environmental efficiency measures (Rev. Econ. Stat. 75 (1989), 90-98). The distance function model is applied to a panel of U.S. electricity generating units that produce marketed electricity and non-marketed SO2 emissions.

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Paper provided by Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History) in its series Working Papers in Economic Theory with number 2007/02.

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Length: 21 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:uam:wpaper:200702

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Keywords: Undesirable outputs; parametric distance functions; stochastic frontier analysis; environmental efficiency;

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Cited by:
  1. Mehdiloozad, Mahmood & Sahoo, Biresh K. & Roshdi, Israfil, 2014. "A generalized multiplicative directional distance function for efficiency measurement in DEA," European Journal of Operational Research, Elsevier, Elsevier, vol. 232(3), pages 679-688.
  2. Yang, Fuxia & Yang, Mian & Nie, Hualin, 2013. "Productivity trends of Chinese regions: A perspective from energy saving and environmental regulations," Applied Energy, Elsevier, Elsevier, vol. 110(C), pages 82-89.
  3. Hoang, Viet-Ngu & Rao, D.S. Prasada, 2010. "Measuring and decomposing sustainable efficiency in agricultural production: A cumulative exergy balance approach," Ecological Economics, Elsevier, Elsevier, vol. 69(9), pages 1765-1776, July.
  4. Sébastien MARCHAND & Huanxiu GUO, 2012. "The environmental efficiency of non-certified organic farming in China: a case study of paddy rice production," Working Papers 201238, CERDI.
  5. Wamisho, Kassu, 2012. "The Shadow Price of GHG Reduction in Corn Ethanol Plants," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil, International Association of Agricultural Economists 126862, International Association of Agricultural Economists.
  6. Requillart, Vincent & Nauges, Celine & Simioni, Michel & Bontemps, Christophe, 2012. "Food Safety Regulation and Firm Productivity: Evidence from the French Food Industry," Congress Papers, Italian Association of Agricultural and Applied Economics (AIEAA) 124378, Italian Association of Agricultural and Applied Economics (AIEAA).
  7. Anthony J. Glass & Karligash Kenjegalieva & Robin Sickles, 2012. "The Effects of Efficiency and TFP Growth on Nitrogen and Sulphur Emissions in Europe: A Multistage Spatial Analysis," Discussion Paper Series, Department of Economics, Loughborough University 2012_11, Department of Economics, Loughborough University, revised Oct 2012.
  8. Yang, Mian & Yang, Fu-Xia & Chen, Xing-Peng, 2011. "Effects of substituting energy with capital on China's aggregated energy and environmental efficiency," Energy Policy, Elsevier, Elsevier, vol. 39(10), pages 6065-6072, October.
  9. Wamisho, Kassu, 2012. "The Shadow Price of GHG Reduction in Corn Ethanol Plants," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington, Agricultural and Applied Economics Association 124719, Agricultural and Applied Economics Association.
  10. Hang Xiong, 2012. "Effects of One-Sided Fiscal Decentralization on Environmental Efficiency of Chinese Provinces," Working Papers, HAL halshs-00672450, HAL.
  11. Thai-Thanh Dang & Annabelle Mourougane, 2014. "Estimating Shadow Prices Of Pollution In Oecd Economies," Working Papers, Department of Research, Ipag Business School 2014-479, Department of Research, Ipag Business School.
  12. Anthony Glass & Karligash Kenjegalieva & Robin Sickles, 2013. "How efficiently do U.S. cities manage roadway congestion?," Journal of Productivity Analysis, Springer, Springer, vol. 40(3), pages 407-428, December.
  13. Thai-Thanh Dang & Annabelle Mourougane, 2014. "Adjusting Productivity For Pollution In Selected Asian Economies," Working Papers, Department of Research, Ipag Business School 2014-491, Department of Research, Ipag Business School.
  14. Dong, Feng & Li, Xiaohui & Long, Ruyin & Liu, Xiaoyan, 2013. "Regional carbon emission performance in China according to a stochastic frontier model," Renewable and Sustainable Energy Reviews, Elsevier, Elsevier, vol. 28(C), pages 525-530.

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