IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v66y2014icp535-549.html
   My bibliography  Save this article

DEA (Data Envelopment Analysis) assessment of operational and environmental efficiencies on Japanese regional industries

Author

Listed:
  • Goto, Mika
  • Otsuka, Akihiro
  • Sueyoshi, Toshiyuki

Abstract

A balance between industrial pollution and economic growth becomes a major policy issue to attain a sustainable society in the world. To discuss the problem from economics and business perspectives, this study proposes a new use of DEA (Data Envelopment Analysis) as a methodology for unified (operational and environmental) assessment. A unique feature of the proposed approach is that it separates outputs into desirable and undesirable categories. Such separation is important because energy industries usually produce both desirable and undesirable outputs. This study discusses how to unify the two types of outputs under natural and managerial disposability. The proposed DEA approach evaluates various organizations by the three efficiency measures such as OE (Operational Efficiency), UEN (Unified Efficiency under Natural disposability) and UENM (Unified Efficiency under Natural and Managerial disposability). An important feature of UENM is that it separates inputs into two categories and unifies them under the two disposability concepts in addition to the proposed output separation and unification. This study incorporates an amount of capital assets for technology innovation, as one of the two input group, into the measurement of UENM. Then, it compares UENM with the other two efficiency measures. This study is the first research effort in which DEA has an analytical capability to quantify the importance of investment on capital assets for technology innovation. To confirm the practicality of the proposed approach, this study applies the three efficiency measures to a data set regarding manufacturing and non-manufacturing industries of 47 prefectures in Japan. This study empirically confirms the validity of Porter hypothesis in Japanese manufacturing industries, so implying that environmental regulation has been effective for betterment on the performance of Japanese manufacturing industries. Another important finding is that the emission of greenhouse gases is a main source of unified inefficiency in the two groups of industries. Therefore, Japanese industries, examined in this study, need to make their efforts to reduce the greenhouse gas emissions and air pollution substances by investing in capital assets for technology innovation.

Suggested Citation

  • Goto, Mika & Otsuka, Akihiro & Sueyoshi, Toshiyuki, 2014. "DEA (Data Envelopment Analysis) assessment of operational and environmental efficiencies on Japanese regional industries," Energy, Elsevier, vol. 66(C), pages 535-549.
  • Handle: RePEc:eee:energy:v:66:y:2014:i:c:p:535-549
    DOI: 10.1016/j.energy.2013.12.020
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544213010773
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.energy.2013.12.020?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sueyoshi, Toshiyuki & Goto, Mika, 2014. "DEA radial measurement for environmental assessment: A comparative study between Japanese chemical and pharmaceutical firms," Applied Energy, Elsevier, vol. 115(C), pages 502-513.
    2. Yadav, Vinod Kumar & Padhy, N.P. & Gupta, H.O., 2010. "A micro level study of an Indian electric utility for efficiency enhancement," Energy, Elsevier, vol. 35(10), pages 4053-4063.
    3. Zhou, Guanghui & Chung, William & Zhang, Xiliang, 2013. "A study of carbon dioxide emissions performance of China's transport sector," Energy, Elsevier, vol. 50(C), pages 302-314.
    4. Olanrewaju, O.A. & Jimoh, A.A. & Kholopane, P.A., 2012. "Integrated IDA–ANN–DEA for assessment and optimization of energy consumption in industrial sectors," Energy, Elsevier, vol. 46(1), pages 629-635.
    5. Zhou, P. & Ang, B.W. & Han, J.Y., 2010. "Total factor carbon emission performance: A Malmquist index analysis," Energy Economics, Elsevier, vol. 32(1), pages 194-201, January.
    6. Sueyoshi, Toshiyuki & Goto, Mika, 2011. "Methodological comparison between two unified (operational and environmental) efficiency measurements for environmental assessment," European Journal of Operational Research, Elsevier, vol. 210(3), pages 684-693, May.
    7. Sueyoshi, Toshiyuki & Goto, Mika, 2013. "A comparative study among fossil fuel power plants in PJM and California ISO by DEA environmental assessment," Energy Economics, Elsevier, vol. 40(C), pages 130-145.
    8. Bozoğlu, Mehmet & Ceyhan, Vedat, 2009. "Energy conversion efficiency of trout and sea bass production in the Black Sea, Turkey," Energy, Elsevier, vol. 34(2), pages 199-204.
    9. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "Returns to scale and damages to scale on U.S. fossil fuel power plants: Radial and non-radial approaches for DEA environmental assessment," Energy Economics, Elsevier, vol. 34(6), pages 2240-2259.
    10. Vaninsky, Alexander, 2010. "Prospective national and regional environmental performance: Boundary estimations using a combined data envelopment – stochastic frontier analysis approach," Energy, Elsevier, vol. 35(9), pages 3657-3665.
    11. Macek, Karel & Mařík, Karel, 2012. "A methodology for quantitative comparison of control solutions and its application to HVAC (heating, ventilation and air conditioning) systems," Energy, Elsevier, vol. 44(1), pages 117-125.
    12. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "Data envelopment analysis for environmental assessment: Comparison between public and private ownership in petroleum industry," European Journal of Operational Research, Elsevier, vol. 216(3), pages 668-678.
    13. Sueyoshi, Toshiyuki & Goto, Mika & Ueno, Takahiro, 2010. "Performance analysis of US coal-fired power plants by measuring three DEA efficiencies," Energy Policy, Elsevier, vol. 38(4), pages 1675-1688, April.
    14. Thakur, Tripta & Deshmukh, S.G. & Kaushik, S.C., 2006. "Efficiency evaluation of the state owned electric utilities in India," Energy Policy, Elsevier, vol. 34(17), pages 2788-2804, November.
    15. Sueyoshi, Toshiyuki & Goto, Mika, 2013. "Returns to scale vs. damages to scale in data envelopment analysis: An impact of U.S. clean air act on coal-fired power plants," Omega, Elsevier, vol. 41(2), pages 164-175.
    16. Fallahi, Alireza & Ebrahimi, Reza & Ghaderi, S.F., 2011. "Measuring efficiency and productivity change in power electric generation management companies by using data envelopment analysis: A case study," Energy, Elsevier, vol. 36(11), pages 6398-6405.
    17. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "DEA radial and non-radial models for unified efficiency under natural and managerial disposability: Theoretical extension by strong complementary slackness conditions," Energy Economics, Elsevier, vol. 34(3), pages 700-713.
    18. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "Returns to Scale, Damages to Scale, Marginal Rate of Transformation and Rate of Substitution in DEA Environmental Assessment," Energy Economics, Elsevier, vol. 34(4), pages 905-917.
    19. Khoshnevisan, Benyamin & Rafiee, Shahin & Omid, Mahmoud & Mousazadeh, Hossein, 2013. "Reduction of CO2 emission by improving energy use efficiency of greenhouse cucumber production using DEA approach," Energy, Elsevier, vol. 55(C), pages 676-682.
    20. Sueyoshi, Toshiyuki & Goto, Mika, 2013. "DEA environmental assessment in a time horizon: Malmquist index on fuel mix, electricity and CO2 of industrial nations," Energy Economics, Elsevier, vol. 40(C), pages 370-382.
    21. Khoshnevisan, Benyamin & Rafiee, Shahin & Omid, Mahmoud & Mousazadeh, Hossein, 2013. "Applying data envelopment analysis approach to improve energy efficiency and reduce GHG (greenhouse gas) emission of wheat production," Energy, Elsevier, vol. 58(C), pages 588-593.
    22. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "Weak and strong disposability vs. natural and managerial disposability in DEA environmental assessment: Comparison between Japanese electric power industry and manufacturing industries," Energy Economics, Elsevier, vol. 34(3), pages 686-699.
    23. Lin, Boqiang & Liu, Xia, 2012. "Dilemma between economic development and energy conservation: Energy rebound effect in China," Energy, Elsevier, vol. 45(1), pages 867-873.
    24. Lee, Wen-Shing & Kung, Chung-Kuan, 2011. "Using climate classification to evaluate building energy performance," Energy, Elsevier, vol. 36(3), pages 1797-1801.
    25. Sueyoshi, Toshiyuki & Goto, Mika & Sugiyama, Manabu, 2013. "DEA window analysis for environmental assessment in a dynamic time shift: Performance assessment of U.S. coal-fired power plants," Energy Economics, Elsevier, vol. 40(C), pages 845-857.
    26. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "Returns to Scale and Damages to Scale with Strong Complementary Slackness Conditions in DEA Assessment: Japanese Corporate Effort on Environment Protection," Energy Economics, Elsevier, vol. 34(5), pages 1422-1434.
    27. Zhang, Bing & Bi, Jun & Fan, Ziying & Yuan, Zengwei & Ge, Junjie, 2008. "Eco-efficiency analysis of industrial system in China: A data envelopment analysis approach," Ecological Economics, Elsevier, vol. 68(1-2), pages 306-316, December.
    28. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "DEA environmental assessment of coal fired power plants: Methodological comparison between radial and non-radial models," Energy Economics, Elsevier, vol. 34(6), pages 1854-1863.
    29. Lee, Wen-Shing, 2010. "Benchmarking the energy performance for cooling purposes in buildings using a novel index-total performance of energy for cooling purposes," Energy, Elsevier, vol. 35(1), pages 50-54.
    30. Akihiro Otsuka & Mika Goto & Toshiyuki Sueyoshi, 2010. "Industrial agglomeration effects in Japan: Productive efficiency, market access, and public fiscal transfer," Papers in Regional Science, Wiley Blackwell, vol. 89(4), pages 819-840, November.
    31. Lozano, Sebastián & Gutiérrez, Ester, 2008. "Non-parametric frontier approach to modelling the relationships among population, GDP, energy consumption and CO2 emissions," Ecological Economics, Elsevier, vol. 66(4), pages 687-699, July.
    32. 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.
    Full references (including those not matched with items on IDEAS)

    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. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    2. Sueyoshi, Toshiyuki & Goto, Mika, 2014. "Investment strategy for sustainable society by development of regional economies and prevention of industrial pollutions in Japanese manufacturing sectors," Energy Economics, Elsevier, vol. 42(C), pages 299-312.
    3. Sueyoshi, Toshiyuki & Yuan, Yan, 2016. "Returns to damage under undesirable congestion and damages to return under desirable congestion measured by DEA environmental assessment with multiplier restriction: Economic and energy planning for s," Energy Economics, Elsevier, vol. 56(C), pages 288-309.
    4. Sueyoshi, Toshiyuki & Yuan, Yan, 2016. "Marginal Rate of Transformation and Rate of Substitution measured by DEA environmental assessment: Comparison among European and North American nations," Energy Economics, Elsevier, vol. 56(C), pages 270-287.
    5. Sueyoshi, Toshiyuki & Goto, Mika, 2015. "DEA environmental assessment in time horizon: Radial approach for Malmquist index measurement on petroleum companies," Energy Economics, Elsevier, vol. 51(C), pages 329-345.
    6. Sueyoshi, Toshiyuki & Yuan, Yan & Li, Aijun & Wang, Daoping, 2017. "Methodological comparison among radial, non-radial and intermediate approaches for DEA environmental assessment," Energy Economics, Elsevier, vol. 67(C), pages 439-453.
    7. Sueyoshi, Toshiyuki & Goto, Mika, 2013. "A comparative study among fossil fuel power plants in PJM and California ISO by DEA environmental assessment," Energy Economics, Elsevier, vol. 40(C), pages 130-145.
    8. Sueyoshi, Toshiyuki & Yuan, Yan, 2015. "Comparison among U.S. industrial sectors by DEA environmental assessment: Equipped with analytical capability to handle zero or negative in production factors," Energy Economics, Elsevier, vol. 52(PA), pages 69-86.
    9. Sueyoshi, Toshiyuki & Goto, Mika, 2015. "Environmental assessment on coal-fired power plants in U.S. north-east region by DEA non-radial measurement," Energy Economics, Elsevier, vol. 50(C), pages 125-139.
    10. Sueyoshi, Toshiyuki & Goto, Mika, 2017. "Measurement of returns to scale on large photovoltaic power stations in the United States and Germany," Energy Economics, Elsevier, vol. 64(C), pages 306-320.
    11. Wang, Derek & Li, Shanling & Sueyoshi, Toshiyuki, 2014. "DEA environmental assessment on U.S. Industrial sectors: Investment for improvement in operational and environmental performance to attain corporate sustainability," Energy Economics, Elsevier, vol. 45(C), pages 254-267.
    12. Sueyoshi, Toshiyuki & Yuan, Yan, 2015. "China's regional sustainability and diversified resource allocation: DEA environmental assessment on economic development and air pollution," Energy Economics, Elsevier, vol. 49(C), pages 239-256.
    13. Sueyoshi, Toshiyuki & Goto, Mika, 2016. "Undesirable congestion under natural disposability and desirable congestion under managerial disposability in U.S. electric power industry measured by DEA environmental assessment," Energy Economics, Elsevier, vol. 55(C), pages 173-188.
    14. Sueyoshi, Toshiyuki & Goto, Mika, 2015. "Japanese fuel mix strategy after disaster of Fukushima Daiichi nuclear power plant: Lessons from international comparison among industrial nations measured by DEA environmental assessment in time hori," Energy Economics, Elsevier, vol. 52(PA), pages 87-103.
    15. Sueyoshi, Toshiyuki & Wang, Derek, 2014. "Sustainability development for supply chain management in U.S. petroleum industry by DEA environmental assessment," Energy Economics, Elsevier, vol. 46(C), pages 360-374.
    16. Sueyoshi, Toshiyuki & Wang, Derek, 2014. "Radial and non-radial approaches for environmental assessment by Data Envelopment Analysis: Corporate sustainability and effective investment for technology innovation," Energy Economics, Elsevier, vol. 45(C), pages 537-551.
    17. Sueyoshi, Toshiyuki & Goto, Mika, 2014. "Environmental assessment for corporate sustainability by resource utilization and technology innovation: DEA radial measurement on Japanese industrial sectors," Energy Economics, Elsevier, vol. 46(C), pages 295-307.
    18. Sueyoshi, Toshiyuki & Yuan, Yan, 2017. "Social sustainability measured by intermediate approach for DEA environmental assessment: Chinese regional planning for economic development and pollution prevention," Energy Economics, Elsevier, vol. 66(C), pages 154-166.
    19. Sueyoshi, Toshiyuki & Wang, Derek, 2018. "DEA environmental assessment on US petroleum industry: Non-radial approach with translation invariance in time horizon," Energy Economics, Elsevier, vol. 72(C), pages 276-289.
    20. Sueyoshi, Toshiyuki & Wang, Derek, 2017. "Measuring scale efficiency and returns to scale on large commercial rooftop photovoltaic systems in California," Energy Economics, Elsevier, vol. 65(C), pages 389-398.

    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:eee:energy:v:66:y:2014:i:c:p:535-549. 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: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    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.