Advanced Search
MyIDEAS: Login to save this paper or follow this series

Eco-Efficiency Analysis of Consumer Durables Using Absolute Shadow Prices

Contents:

Author Info

  • Mika Kortelainen

    (University of Joensuu, Department of Business & Economics)

  • Timo Kuosmanen

    (Wageningen University, Environmental Economics & Natural Resources Group)

Abstract

We develop a method for eco-efficiency analysis of consumer durables by utilizing Data Envelopment Analysis (DEA). In contrast to previous product efficiency studies, we consider the measurement problem from the perspective of a policy maker. The novel innovation of the paper is to measure efficiency in terms of absolute shadow prices that are optimized endogenously within the model to maximize efficiency of the good. Thus, the efficiency measure has a direct economic interpretation as a monetary loss due to inefficiency, expressed in some currency unit. The advantages as well as technical differences between the proposed approach and the traditional production-side methods are discussed in detail. We illustrate the approach by an application to eco-efficiency evaluation of Sport Utility Vehicles.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://128.118.178.162/eps/pe/papers/0511/0511022.pdf
Download Restriction: no

Bibliographic Info

Paper provided by EconWPA in its series Public Economics with number 0511022.

as in new window
Length: 39 pages
Date of creation: 29 Nov 2005
Date of revision:
Handle: RePEc:wpa:wuwppe:0511022

Note: Type of Document - pdf; pages: 39
Contact details of provider:
Web page: http://128.118.178.162

Related research

Keywords: Activity Analysis; Data Envelopment Analysis (DEA); Environmental efficiency; Product evaluation; Sport Utility Vehicles (SUVs);

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Christos Papahristodoulou, 1997. "A DEA model to evaluate car efficiency," Applied Economics, Taylor & Francis Journals, vol. 29(11), pages 1493-1508.
  2. Mika Kortelainen & Timo Kuosmanen, 2004. "Measuring Eco-efficiency of Production: A Frontier Approach," Econometrics 0411006, EconWPA.
  3. 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.
  4. Timo Kuosmanen & Laurens Cherchye & Timo Sipiläinen, 2003. "The Law of One Price in Data Envelopment Analysis: Restricting Weight Flexibility Across Firms," Microeconomics 0312006, EconWPA, revised 18 Dec 2003.
  5. Fare, Rolf & Grosskopf, Shawna & Nelson, Julianne, 1990. "On Price Efficiency," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(3), pages 709-20, August.
  6. Timo Kuosmanen & Mika Kortelainen, 2004. "Data Envelopment Analysis in Environmental Valuation: Environmental Performance, Eco-efficiency and Cost-Benefit Analysis," Others 0409004, EconWPA.
  7. Doyle, JR & Green, RH, 1991. "Comparing products using data envelopment analysis," Omega, Elsevier, vol. 19(6), pages 631-638.
  8. Fare, Rolf & Grosskopf, Shawna & Tyteca, Daniel, 1996. "An activity analysis model of the environmental performance of firms--application to fossil-fuel-fired electric utilities," Ecological Economics, Elsevier, vol. 18(2), pages 161-175, August.
  9. Kuosmanen, Timo & Kortelainen, Mika, 2007. "Valuing environmental factors in cost-benefit analysis using data envelopment analysis," Ecological Economics, Elsevier, vol. 62(1), pages 56-65, April.
  10. Dyson, R. G. & Allen, R. & Camanho, A. S. & Podinovski, V. V. & Sarrico, C. S. & Shale, E. A., 2001. "Pitfalls and protocols in DEA," European Journal of Operational Research, Elsevier, vol. 132(2), pages 245-259, July.
  11. Timo Kuosmanen & Mika Kortelainen & Timo Sipiläinen & Laurens Cherchye, 2005. "Firm and Industry Level Profit Efficiency Analysis Under Incomplete Price Data: A Nonparametric Approach based on Absolute and Uniform Shadow Prices," Microeconomics 0509011, EconWPA.
  12. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
  13. Angel S. Fernandez-Castro & Peter C. Smith, 2002. "Lancaster's characteristics approach revisited: product selection using non-parametric methods," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 23(2), pages 83-91.
  14. Norman Keith Womer & Homee Shroff & Thomas Gulledge & Kingsley Haynes, 2003. "Measuring efficiency with a linear economic model," Applied Economics, Taylor & Francis Journals, vol. 35(13), pages 1459-1467.
  15. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  16. Matthias Staat & Hans H. Bauer & Maik Hammerschmidt, 2004. "Structuring Product-Markets: An Approach Based On Customer Value," Microeconomics 0401002, EconWPA.
  17. Korhonen, Pekka J. & Luptacik, Mikulas, 2004. "Eco-efficiency analysis of power plants: An extension of data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 154(2), pages 437-446, April.
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 in new window

Cited by:
  1. Kuosmanen, Timo & Bijsterbosch, Neil & Dellink, Rob, 2009. "Environmental cost-benefit analysis of alternative timing strategies in greenhouse gas abatement: A data envelopment analysis approach," Ecological Economics, Elsevier, vol. 68(6), pages 1633-1642, April.
  2. Picazo-Tadeo, Andrés J. & Beltrán-Esteve, Mercedes & Gómez-Limón, José A., 2012. "Assessing eco-efficiency with directional distance functions," European Journal of Operational Research, Elsevier, vol. 220(3), pages 798-809.
  3. Bosetti, Valentina & Buchner, Barbara, 2009. "Data Envelopment Analysis of different climate policy scenarios," Ecological Economics, Elsevier, vol. 68(5), pages 1340-1354, March.
  4. Kuosmanen, Timo & Kortelainen, Mika, 2007. "Valuing environmental factors in cost-benefit analysis using data envelopment analysis," Ecological Economics, Elsevier, vol. 62(1), pages 56-65, April.
  5. O.A. Carboni & P. Russu, 2014. "Measuring Environmental and Economic Efficiency in Italy: an Application of the Malmquist-DEA and Grey Forecasting Model," Working Paper CRENoS 201401, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  6. Kuosmanen, Timo & Kazemi Matin, Reza, 2011. "Duality of weakly disposable technology," Omega, Elsevier, vol. 39(5), pages 504-512, October.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwppe:0511022. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.