Nonparametric measures of efficiency in the presence of undesirable outputs: a by-production approach

Ray, Subhash C.; Mukherjee, Kankana; Venkatesh, Anand

doi:10.1007/s00181-017-1234-5

Cited by 58 publications

(56 citation statements)

References 18 publications

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“…Thus, a more general approach that considers the incorporation of undesirable outputs, in addition to the usual inputs and outputs, can be potentially appealing as indicated, such as in Ray et al. () and in different articles within the same special issue. Those approaches are static and pertain to productive efficiency assessments that are not the object of the current paper.…”

Section: Efficiency Measurement and Quality: A Brief Digressionmentioning

confidence: 99%

Service Quality in Electricity Distribution in Brazil: A Malmquist Approach

Marinho

Resende

2019

Ann Public Coop Econ

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The paper undertakes a dynamic analysis for service quality in the electricity distribution in Brazil between 2010 and 2014 based on Malmquist indexes constructed upon Data Envelopment Analysis (DEA) distance functions. The motivation for the less usual consideration of efficiency frontiers for service quality, that does not rely on traditional inputs and outputs but rather on quality indicators, builds on previous static applications in the context of telecommunications. The analysis considers undesirable technical indicators for quality as inputs and desirable consumer satisfaction indicators for quality as outputs in the efficiency frontier analysis. The bootstrap-corrected Malmquist indexes indicated service quality deterioration in 38.1 per cent, quality stagnation in 40.5 per cent and quality improvement only in 21.4 per cent of the cases. When one decomposes the Malmquist index, the evidence does not suggest relevant frontier shifts and indicates a dominant role for the catch-up effect. Finally, Malmquist indexes are regressed against variables that may portray heterogeneities, such as firm size, service area, density, ownership and regional dummies in terms of a well-known two-stage procedure. The mostly weak significance results reinforce the plausibility of the initial analysis.

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Section: Efficiency Measurement and Quality: A Brief Digressionmentioning

confidence: 99%

Service Quality in Electricity Distribution in Brazil: A Malmquist Approach

Marinho

Resende

2019

Ann Public Coop Econ

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“…The increased awareness of the usefulness of DEA models together with the need to accurately describe production technologies has led to develop a research stream that, besides canonical DEA models evaluating inputs and desirable outputs (see section 3.1), introduces undesirable outputs in the analysis (Kuosmanen 2005, Ray et al 2018. Studies addressing the joint treatment of good and bad outputs are relatively common in the banking literature (e.g., Park and Weber 2006, Barros et al 2012, Epure and Lafuente 2015, Pham and Zelenyuk 2018) and, at the territorial level, in environmental research (e.g., Färe et al 2004, Kumar 2006, Sueyoshi and Goto 2011, Murty and Russell 2018.…”

Section: The Simultaneous Production Of Desirable and Undesirable Outmentioning

confidence: 99%

Territorial efficiency: Analysis of the role of public work safety controls

Lafuente

Abad

2021

Safety Science

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This study analyzes the efficiency of Spanish provinces in a model that incorporates occupational health and safety (OHS) policy controls and work accidents into the analysis. Building on productivity models rooted in non-parametric frontier methods, namely Data Envelopment Analysis, the proposed approach allows the development of a production function that accurately models the joint production of desirable (GDP) and undesirable (work accidents) outputs. The efficiency analysis of the 50 Spanish provinces during 2003-2012 reveals that territories that drastically cut resources dedicated to OHS controls-in our case, safety inspections and economic sanctions for safety violations-show higher inefficiency levels. Nevertheless, the changes in OHS policies introduced by Spanish provinces after the change in the state of the economy in 2008 had a heterogeneous impact on their efficiency level. Effective OHS policy is not necessarily linked to merely implementing more OHS policy controls, but rather to the capacity of territories to efficiently allocate their available OHS resources and monitor business activity. Policy implications and future research avenues are discussed.

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“…For example, in thermal power plants, a 10% reduction in sulfur dioxide emission is possible if accompanied by a 10% reduction in electricity generation [45]. Another explanation is that when pollution reduction is the primary task, some neutral inputs (such as labor and capital) can be converted to deal with pollutants, so that the desirable output and the undesirable output decline at the same time [46,47]. It can be found that no matter which explanation ignores the potential relationship between energy input and pollutants.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Since the pollutants mainly come from the huge consumption of fossil energy, reducing energy consumption, the corresponding pollutants should also be reduced [ 18 ]. For this reason, Ray et al [ 47 ] give the specific formula of cost disposability in the black box framework for the first time. The production technology with cost disposability (

) can be shown in Equation (2):

…”

Section: Model Construction and Solutionmentioning

confidence: 99%

The Unified Efficiency Evaluation of China’s Industrial Waste Gas Considering Pollution Prevention and End-Of-Pipe Treatment

Tang

Chen

Yang

et al. 2020

IJERPH

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With the deepening of industrialization and urbanization in China, air pollution has become the most serious environmental issue due to huge energy consumption, which threatens the health of residents and the sustainable development of the country. Increasing attention has been paid to the efficiency evaluation of industrial system due to its fast development and severe air pollution emissions, but the efficiency evaluation on China’s industrial waste gas still has scope for improvement. This paper proposes a global non-radial Network Data Envelopment Analysis (NDEA) model from the perspective of pollution prevention (PP) and end-of-pipe treatment (ET), to explore the potential reduction of generation and emission of air pollutants in China’s industrial system. Given the differences of different air pollution treatment capacities, the ET stage is further subdivided into three parallel sub-stages, corresponding to SO2, NOX, and soot and dust (SD), respectively. Then, grey relation analysis (GRA) is adopted to figure out the key factor affecting the unified efficiency. The main findings are summarized as follows: firstly, the unified efficiency of China’s industrial waste gas underperformed nationwide, and most provinces had the potential to reduce the generation and emission of industrial waste gas. Secondly, the PP efficiency outperformed the ET efficiency in many provinces and the efficiency gap between two stages increasingly narrowed except in 2014. Thirdly, the unified efficiency in the eastern area performed well, while the area disparities increased significantly after 2012. Fourthly, significant differences were found in three ET efficiencies and the ET efficiency of NOX was higher than that of SO2 and SD in the sample period. Finally, the results of GRA indicated that different air pollutants had distinct influence on the improvement of the unified efficiency in three areas. To promote the unified efficiency of industrial waste gas, some pertinent policy suggestions are put forward from the perspectives of sub-stages, air pollutants and areas.

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Nonparametric measures of efficiency in the presence of undesirable outputs: a by-production approach

Cited by 58 publications

References 18 publications

Service Quality in Electricity Distribution in Brazil: A Malmquist Approach

Service Quality in Electricity Distribution in Brazil: A Malmquist Approach

Territorial efficiency: Analysis of the role of public work safety controls

The Unified Efficiency Evaluation of China’s Industrial Waste Gas Considering Pollution Prevention and End-Of-Pipe Treatment

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