EconPapers    
Economics at your fingertips  
 

Environmental efficiency measurement when producers control pollutants under heterogeneous conditions: a generalization of the materials balance approach

Andreas Eder ()

Journal of Productivity Analysis, 2022, vol. 57, issue 2, No 3, 157-176

Abstract: Abstract This article provides a generalization of the materials balance-based production model introduced by Coelli et al. (2007). Based on this, some new environmental efficiency (EE) measures are presented. The Coelli et al. (2007) EE measure and its extension by Rødseth (2016) produce biased efficiency estimates if the material flow coefficients (MFCs) are heterogeneous across decision-making units and non-discretionary. Furthermore, the Coelli et al. (2007) measure fails to reward emission reductions by emission control. To overcome these shortcomings, this paper proposes production models which allow for heterogeneous MFCs reflecting differences of external environmental factors or non-controllable heterogeneities in inputs and outputs, and which properly take into account emission abatement activities. Based on this, EE measures are provided and decomposed into (i) a part reflecting emission control efficiency (ECE), (ii) a part measuring material input efficiency (MIE), and (iii) a part reflecting the efficient allocation between material and non-material inputs (environmental allocative efficiency, EAE). The approach is illustrated by an empirical application to arable farming in Austria utilizing data from 90 farms for the year 2011. Soil erosion is considered an undesirable output and land a material input. The average EE, ECE, MIE, and EAE are 0.53, 0.96, 0.69, and 0.79, respectively. The results indicate that actual output can be potentially achieved with 47% less soil loss. Most of the potential to improve EE is due to differences in MIE and EAE. Removing inefficiencies in the implementation of existing, subsidized erosion controls allows soil loss to be reduced by 4%.

Keywords: Emission-generating technologies; Materials balance condition; Weak-G disposability; Data envelopment analysis; Non-discretionary factors; Soil erosion; Crop farms (search for similar items in EconPapers)
JEL-codes: C61 D24 Q12 Q15 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11123-021-00623-y Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Environmental Efficiency Measurement When Producers Control Pollutants Under Heterogeneous Conditions: A Generalization of the Materials Balance Approach (2021) Downloads
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:kap:jproda:v:57:y:2022:i:2:d:10.1007_s11123-021-00623-y

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11123/PS2

DOI: 10.1007/s11123-021-00623-y

Access Statistics for this article

Journal of Productivity Analysis is currently edited by William Greene, Chris O'Donnell and Victor Podinovski

More articles in Journal of Productivity Analysis from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2022-11-14
Handle: RePEc:kap:jproda:v:57:y:2022:i:2:d:10.1007_s11123-021-00623-y