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Incentive regulation and performance measurement of Taiwan’s incineration plants: an application of the four-stage DEA method

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  • Po-Chi Chen

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  • Ching-Cheng Chang
  • Chih-Li Lai

Abstract

The aim of this paper is to provide a technical efficiency assessment of Taiwan’s incineration plants as the basis of incentive regulation schemes. We integrate the four-stage approach with Simar and Wilson’s (in J Econom 136:31–64, 2007 ) double bootstrapping to filter out the impacts of external variables in the efficiency measurement. Empirical results show that there is room for 15 % cost reductions and capacity, ownership, location and experience are all influential in improving the performance of these plants. We also demonstrate how the results can be applied to modify a yardstick incentive scheme. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Po-Chi Chen & Ching-Cheng Chang & Chih-Li Lai, 2014. "Incentive regulation and performance measurement of Taiwan’s incineration plants: an application of the four-stage DEA method," Journal of Productivity Analysis, Springer, vol. 41(2), pages 277-290, April.
  • Handle: RePEc:kap:jproda:v:41:y:2014:i:2:p:277-290
    DOI: 10.1007/s11123-013-0341-3
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    References listed on IDEAS

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    Keywords

    Incinerator; Data envelopment analysis; Environmental variables; Bootstrap; C61; L51; L97;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General

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