Justifying the incorporation of the materials balance principle into frontier-based eco-efficiency models
Frontier-based models are an alternative to traditional eco-efficiency ratio indicators. This paper considers two different types, environmentally adjusted production efficiency models and frontier eco-efficiency models, and tries to find justification for incorporating the materials balance principle (MBP) in them. Similar importance is attached to the economic and environmental outcomes of a production process. Like economic outcomes can be derived from inputs and outputs and respective prices, some cases allow for deriving environmental outcomes from the production function with the MBP. After an overview of attempts to incorporate environmental issues in production efficiency models and some reflections why MBP has been neglected in environmental economics and production efficiency analysis, the paper gives basic principles to incorporate the MBP in conventional production efficiency methods and shows how this adjustment leads to a more diversified diagnosis of eco-efficiency. Finally, potentialities and bottlenecks are discussed. Exploiting the MBP in production efficiency and eco-efficiency analysis will facilitate more pro-active eco-efficiency research.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Murty, Sushama & Russell, R. Robert, 2010.
"On modeling pollution-generating technologies,"
The Warwick Economics Research Paper Series (TWERPS)
931, University of Warwick, Department of Economics.
- Sushama Murty & R. Robert Russell & Steven B. Levkoff, 2011. "On modeling pollution-generating technologies," Discussion Papers 1101, Exeter University, Department of Economics.
- Frank Figge & Tobias Hahn, 2004. "Value-oriented impact assessment: the economics of a new approach to impact assessment," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 47(6), pages 921-941.
- Coggins, Jay S. & Swinton, John R., 1996. "The Price of Pollution: A Dual Approach to Valuing SO2Allowances," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 58-72, January.
- JAY S. COGGINS & John R. Swinton, 1994. "The Price of Pollution: A Dual Approach to Valuing SO2 Allowances," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 378, Wisconsin-Madison Agricultural and Applied Economics Department.
- Krysiak, Frank C. & Krysiak, Daniela, 2003. "Production, consumption, and general equilibrium with physical constraints," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 513-538, November.
- S Reinhard & G Thijssen, 2000. "Nitrogen efficiency of Dutch dairy farms: a shadow cost system approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(2), pages 167-186, June.
- Kortelainen, Mika, 2008. "Dynamic environmental performance analysis: A Malmquist index approach," Ecological Economics, Elsevier, vol. 64(4), pages 701-715, February.
- Rolf Färe & Shawna Grosskopf & Carl A Pasurka, Jr., 2001. "Accounting for Air Pollution Emissions in Measures of State Manufacturing Productivity Growth," Journal of Regional Science, Wiley Blackwell, vol. 41(3), pages 381-409.
- 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.
- Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
- Ayres, Robert U & Kneese, Allen V, 1969. "Production , Consumption, and Externalities," American Economic Review, American Economic Association, vol. 59(3), pages 282-297, June.
- Kleijn, René & van der Voet, Ester & Udo de Haes, Helias A., 2008. "The need for combining IEA and IE tools: The potential effects of a global ban on PVC on climate change," Ecological Economics, Elsevier, vol. 65(2), pages 266-281, April.
- Baumgartner, Stefan & Dyckhoff, Harald & Faber, Malte & Proops, John & Schiller, Johannes, 2001. "The concept of joint production and ecological economics," Ecological Economics, Elsevier, vol. 36(3), pages 365-372, March.
- Fare, Rolf, et al, 1993. "Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 374-380, May.
- McKitrick, Ross, 1999. "A Derivation of the Marginal Abatement Cost Curve," Journal of Environmental Economics and Management, Elsevier, vol. 37(3), pages 306-314, May.
- 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.
- Wossink, G. A. A. & Oude Lansink, A. G. J. M. & Struik, P. C., 2001. "Non-separability and heterogeneity in integrated agronomic-economic analysis of nonpoint-source pollution," Ecological Economics, Elsevier, vol. 38(3), pages 345-357, September.
- 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.
- RÃ¼diger Pethig, 2005. "Nonlinear Production, Abatement, Pollution and Materials Balance Reconsidered," CESifo Working Paper Series 1549, CESifo Group Munich.
- Udo Ebert & Heinz Welsch, 2007. "Environmental Emissions and Production Economics: Implications of the Materials Balance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 287-293.
- Raimund Bleischwitz, 2001. "Rethinking Productivity: Why has Productivity Focussed on Labour Instead of Natural Resources?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(1), pages 23-36, May.
- 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.
- Michael E. Porter & Claas van der Linde, 1995. "Toward a New Conception of the Environment-Competitiveness Relationship," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 97-118, Fall.
- Callens, Isabelle & Tyteca, Daniel, 1999. "Towards indicators of sustainable development for firms: A productive efficiency perspective," Ecological Economics, Elsevier, vol. 28(1), pages 41-53, January.
- Shaik, Saleem & Helmers, Glenn A. & Langemeier, Michael R., 2002. "Direct And Indirect Shadow Price And Cost Estimates Of Nitrogen Pollution Abatement," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(02), December.
- Mette Asmild & Jens Leth Hougaard, 2006. "Economic versus environmental improvement potentials of Danish pig farms," Agricultural Economics, International Association of Agricultural Economists, vol. 35(2), pages 171-181, 09.
- Isabelle Piot-Lepetit & Dominique Vermersch, 1998. "Pricing Organic Nitrogen Under The Weak Disposability Assumption: An Application to the French Pig Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(1), pages 85-99.
- 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)
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:68:y:2009:i:6:p:1605-1614. 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: (Dana Niculescu)
If references are entirely missing, you can add them using this form.