Does the energy-related greenhouse gas emission abatement cost depend on the optimization direction: shadow pricing based on the weak disposability technology in the European Union agriculture

Justas Streimikis, Z. Y. Shen () and Tomas Baležentis
Additional contact information
Justas Streimikis: Lithuanian Centre for Social Sciences
Z. Y. Shen: Lithuanian Centre for Social Sciences

Central European Journal of Operations Research, 2024, vol. 32, issue 3, No 3, 593-619

Abstract: Abstract The European Green Deal and similar strategies seek to improve sustainability of the agricultural sector via public support programmes. It is important to assess the costs of sustainable energy use in agriculture by exploiting the shadow price approach. However, the earlier literature often ignored the fact that shadow price analysis may be sensitive to the assumed direction of optimization. This paper seeks to disentangle the major patterns in energy-related greenhouse gas (GHG) emission performance in the selected European Union countries by assuming different optimization directions. The country-level data are used to construct the environmental production technology by means of the data envelopment analysis. The different directional output distance functions (aggregate, unit and radial) for the weak disposability data envelopment analysis models are used to quantify the shadow prices of the energy-relevant GHG emission and construct the marginal abatement cost curves. The results indicate spatial and temporal variation in the environmental performance that can be addressed by adjusting the support programmes.

Keywords: Shadow price; Data envelopment analysis; Energy-related GHG emission; Agriculture; 90C05 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10100-023-00866-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:cejnor:v:32:y:2024:i:3:d:10.1007_s10100-023-00866-0

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/10100

DOI: 10.1007/s10100-023-00866-0

Access Statistics for this article

Central European Journal of Operations Research is currently edited by Ulrike Leopold-Wildburger

More articles in Central European Journal of Operations Research from Springer, Slovak Society for Operations Research, Hungarian Operational Research Society, Czech Society for Operations Research, Österr. Gesellschaft für Operations Research (ÖGOR), Slovenian Society Informatika - Section for Operational Research, Croatian Operational Research Society
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().