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Measuring Carbon Emissions Performance in 123 Countries: Application of Minimum Distance to the Strong Efficiency Frontier Analysis

Author

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  • Ling Wang

    () (School of Economics and Business Administration, Chongqing University, Chongqing, 400044, China)

  • Zhongchang Chen

    () (School of Public Affairs, Chongqing University, Chongqing, 400044, China)

  • Dalai Ma

    () (School of Economics and Business Administration, Chongqing University, Chongqing, 400044, China)

  • Pei Zhao

    () (School of Economics and Business Administration, Chongqing University, Chongqing, 400044, China)

Abstract

In this paper, we have proposed a general approach to obtain a projection of the nearest targets and minimum distance for a given unit. The method takes undesirable output into account. The idea behind it is that nearest targets and minimum distance lead to less variation in inputs and outputs of the inefficient decision making units (DMUs) being evaluated to reach the production possibility set (PPS) frontier. Our results have shown that the carbon emissions comprehensive performance indexes (CECPIs) of developing countries are lower than those of developed countries, and that the inefficiency shares of energy consumption, capital stock and desirable output are declining while those of labor force and undesirable output are climbing. Further, using cluster analysis, we have shown that nine countries, including Ukraine, Kazakhstan, Uzbekistan and Iraq, should take severe measures to save energy and reduce carbon emissions. Moreover, the gap in CECPIs among the 123 countries is narrowing by kernel density estimation.

Suggested Citation

  • Ling Wang & Zhongchang Chen & Dalai Ma & Pei Zhao, 2013. "Measuring Carbon Emissions Performance in 123 Countries: Application of Minimum Distance to the Strong Efficiency Frontier Analysis," Sustainability, MDPI, Open Access Journal, vol. 5(12), pages 1-14, December.
  • Handle: RePEc:gam:jsusta:v:5:y:2013:i:12:p:5319-5332:d:31146
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    References listed on IDEAS

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    1. Cooper, William W. & Ruiz, Jose L. & Sirvent, Inmaculada, 2007. "Choosing weights from alternative optimal solutions of dual multiplier models in DEA," European Journal of Operational Research, Elsevier, vol. 180(1), pages 443-458, July.
    2. Wang, Ke & Lu, Bin & Wei, Yi-Ming, 2013. "China’s regional energy and environmental efficiency: A Range-Adjusted Measure based analysis," Applied Energy, Elsevier, vol. 112(C), pages 1403-1415.
    3. Zhang, Zhong Xiang, 1998. "Macroeconomic Effects of CO2 Emission Limits: A Computable General Equilibrium Analysis for China," Journal of Policy Modeling, Elsevier, vol. 20(2), pages 213-250, April.
    4. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 353-377.
    5. Zhou, P. & Ang, B.W. & Poh, K.L., 2006. "Slacks-based efficiency measures for modeling environmental performance," Ecological Economics, Elsevier, vol. 60(1), pages 111-118, November.
    6. Juan Aparicio & José Ruiz & Inmaculada Sirvent, 2007. "Closest targets and minimum distance to the Pareto-efficient frontier in DEA," Journal of Productivity Analysis, Springer, vol. 28(3), pages 209-218, December.
    7. 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.
    8. Justin Tevie & Kristine M. Grimsrud & Robert P. Berrens, 2011. "Testing the Environmental Kuznets Curve Hypothesis for Biodiversity Risk in the US: A Spatial Econometric Approach," Sustainability, MDPI, Open Access Journal, vol. 3(11), pages 1-18, November.
    9. Stephen Casler & Adam Rose, 1998. "Carbon Dioxide Emissions in the U.S. Economy: A Structural Decomposition Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 349-363, April.
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    Citations

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    Cited by:

    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. Wen Guo & Tao Sun & Hongjun Dai, 2016. "Effect of Population Structure Change on Carbon Emission in China," Sustainability, MDPI, Open Access Journal, vol. 8(3), pages 1-20, March.
    3. repec:gam:jsusta:v:8:y:2016:i:3:p:225:d:65145 is not listed on IDEAS

    More about this item

    Keywords

    carbon emissions efficiency; minimum distance to the strong efficiency frontier; kernel density estimation; cluster analysis; data envelopment analysis;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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