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Technical efficiency of automobiles: A nonparametric approach incorporating carbon dioxide emissions

Listed author(s):
  • Hampf, Benjamin
  • Krüger, Jens J.

We conduct an empirical analysis of the technical efficiency of cars sold in Germany in 2010. The analysis is performed using traditional data envelopment analysis (DEA) as well as directional distance functions (DDF). The approach of DDF allows incorporating the reduction of carbon dioxide emissions as an environmental goal in the efficiency analysis. A frontier separation approach is used to gain deeper insight for different car classes and regions of origin. Natural gas driven cars and sports-utility-vehicles are also treated as different groups. The results show that the efficiency measurement is significantly influenced by the incorporation of carbon dioxide emissions. Moreover, we find that there is indeed a trade-off between technological performance and environmental performance.

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File URL: https://www.econstor.eu/bitstream/10419/43134/1/63053389X.pdf
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Paper provided by Darmstadt University of Technology, Department of Law and Economics in its series Darmstadt Discussion Papers in Economics with number 198.

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Date of creation: 2010
Handle: RePEc:zbw:darddp:dar_43177
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  1. Christos Papahristodoulou, 1997. "A DEA model to evaluate car efficiency," Applied Economics, Taylor & Francis Journals, vol. 29(11), pages 1493-1508.
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