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

Po-Chi Chen (), Ching-Cheng Chang and Chih-Li Lai

Journal of Productivity Analysis, 2014, vol. 41, issue 2, 277-290

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

Keywords: Incinerator; Data envelopment analysis; Environmental variables; Bootstrap; C61; L51; L97 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s11123-013-0341-3

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