On the development of a unified, nonparametric materials balance-based efficiency analysis model and its applications

Kenneth Løvold Rødseth ()
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Kenneth Løvold Rødseth: Institute of Transport Economics

Journal of Productivity Analysis, 2025, vol. 64, issue 3, No 4, 305-319

Abstract: Abstract This paper demonstrates that the conventional weak G-disposable Data Envelopment Analysis estimator can equally be represented by i) an extended weak G-disposability model that characterizes uncontrolled emissions, end-of-pipe abatement and input quality differences and ii) a convex regression-based factorially determined multi-output production framework. Using these new results, the paper demonstrates that other seminal models proposed in the literature on materials balance-based production analysis are special cases of the original weak G-disposable framework. Thereby, it contributes to reconciling competing methods used for environmental production analysis. The paper further demonstrates novel applications of the unified approach by offering an extended decomposition of environmental efficiency when also considering pollution control and input quality differences among Decision Making Units. A transparent numerical example and applied environmental efficiency analysis of US electricity generating units showcase the virtues of the unified approach.

Keywords: Environmental efficiency; Materials balance principle; Data envelopment analysis; Power generation; D24; C61; Q50 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11123-025-00768-0

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