Choice of models for emission-generating technologies and designing technical efficiency improvements

Sushama Murty () and Resham Nagpal ()
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Resham Nagpal: Jawaharlal Nehru University

Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers from Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India

Abstract: Theoretical and empirical comparisons of weak-disposability(WD), joint-disposability(JD), by-production(BP), and input(I)-based approaches to modelling emission-generating technologies are made. Under constant or non-increasing returns, BP-based model satisfies JD, but stands unique in the class of DEA technologies, where graph-based indexes of technical efficiency improvements (TEIs) are identical for WD, JD, and I-based approaches, which are nested. Multi-relations-based BP approach is more successful in capturing the true data-generating process, and TEIs in input-usage result in an intuitive trade-o? between optimal TEIs in good and bad output-production, not seen under other approaches. A table covering all configurations of optimal TEIs is derived for BP-approach and applied to study di?erences in optimal TEIs for non-performing production-units.

Pages: 46 pages
New Economics Papers: this item is included in nep-eff and nep-env
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