Environmental efficiency of energy, materials, and emissions

Abstract

This study estimates the environmental efficiency of international listed firms in 10 worldwide sectors from 2007-2013 by applying an order-m method, a non-parametric approach based on free disposal hull with subsampling bootstrapping. Using a conventional output of gross profit and two conventional inputs of labor and capital, this study examines the order-m environmental efficiency accounting for the presence of each of 10 undesirable inputs/outputs and measures the shadow prices of each undesirable input and output. The results show that there is greater potential for the reduction of undesirable inputs rather than bad outputs. On average, total energy, electricity, or water usage has the potential to be reduced by 50%. The median shadow prices of undesirable inputs, however, are much higher than the surveyed representative market prices.Approximately 10% of the firms in the sample appear to be potential sellers or production reducers in terms of undesirable inputs/outputs, which implies that the price of each item at the current level has little impact on most of the firms. Moreover, this study shows that the environmental, social, and governance activities of a firm do not considerably affect environmental efficiency.

Sustainability Assessment of Refining Enterprises Using a DEA-Based Model

“…It showed that the stringent environmental regulations have a positive effect on firms' efficiency improvements [26]. By using data envelopment analysis, Yagi et al (2015) indicated that the environmental, social, and governance activities of firms do not considerably affect environmental efficiency [27]. proposed optimal production resources reallocation to reduce CO 2 emission based on data envelopment analysis [28].…”

Analysis of Interval Data Envelopment Efficiency Model Considering Different Distribution Characteristics—Based on Environmental Performance Evaluation of the Manufacturing Industry

“…Yagi et al [67] regard the variables Y = {y 1 , y 2 , · · · , y 25 } of the above model as shadow price, DMU j is efficient when the profit of shadow price equals zero. DMU 1 is evaluated DMU in this model.…”

Assessment and Decomposition of Total Factor Energy Efficiency: An Evidence Based on Energy Shadow Price in China

“…The estimation of shadow price can offer theoretical support for policy decision. In recent years, shadow price is widely used in the area of estimation of pollutant price [18][19][20][21]. For example, Kaneko et al [18] used a non-parametric DDF approach to calculate the shadow prices of sulfur dioxide, and then estimated the regional pollution abatement cost under the financial allocation strategy in China.…”