A deterministic parametric metafrontier Luenberger indicator for measuring environmentally-sensitive productivity growth: A Korean fossil-fuel power case
Ning Zhang and
Bing Wang
Energy Economics, 2015, vol. 51, issue C, 88-98
Abstract:
This paper contributes to the current literature by proposing an alternative parametric metafrontier productivity approach called the deterministic parametric metafrontier Luenberger Productivity Indicator (DPMLPI) for measuring environmentally sensitive productivity growth incorporating technological heterogeneities. The Luenberger productivity indicator is constructed based on a quadratic output directional distance function with undesirable outputs, and then combined with the deterministic metafrontier to develop DPMLPI. The DPMLPI can be decomposed into efficiency change, technological change and productivity growth gap. The productivity growth gap can be further divided into efficiency change gap and technological change gap. The parametric linear programming technique is used to estimate parameters and construct the metafrontier. An empirical study for the Korean fossil fuel power industry at the plant-level is conducted for the 2003–2011 period. The results show a 0.15% increase in environmentally-sensitive productivity growth, which is mainly driven by environmental technological change. The oil-fired power plants show higher levels than the coal-fired ones of environmentally sensitive productivity growth and technological change performance. Some related policy implications are also proposed for the Korean fossil-fuel power sector.
Keywords: Luenberger productivity indicator; Deterministic Parametric Metafrontier; Korean fossil fuel power plants; Environmentally-sensitive productivity growth (search for similar items in EconPapers)
JEL-codes: C61 D24 Q54 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988315001760
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:51:y:2015:i:c:p:88-98
DOI: 10.1016/j.eneco.2015.06.003
Access Statistics for this article
Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant
More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().