EconPapers    
Economics at your fingertips  
 

Modelling environmental inefficiency under a quota system

Juan Aparicio (), Magdalena Kapelko () and Lidia Ortiz
Additional contact information
Lidia Ortiz: Miguel Hernandez University of Elche (UMH)

Operational Research, 2021, vol. 21, issue 2, No 13, 1097-1124

Abstract: Abstract This paper introduces the methodology necessary to evaluate inefficiency of regulated decision making units that operate under quotas through data envelopment analysis, accounting for both quotas restrictions and negative environmental externalities of production. Three technical inefficiency measures are proposed: inefficiency in the production of marketed output, environmental inefficiency, and inefficiency with quotas. It is then shown how to aggregate these measures in order to obtain indicators of overall performance. The new approach is illustrated through a numerical example that uses real data available for the European Union dairy sector. The results show that considerable differences in inefficiencies could be found when quotas restrictions are accounted for in the model than in the model without quota imposition, indicating that not accounting explicitly for quotas when measuring performance in regulated sectors may lead to a not accurate estimation of firms’ technical inefficiency.

Keywords: Data envelopment analysis; Environmental and technical inefficiency; Production under quotas (search for similar items in EconPapers)
Date: 2021
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/s12351-019-00487-z 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:operea:v:21:y:2021:i:2:d:10.1007_s12351-019-00487-z

Ordering information: This journal article can be ordered from
https://www.springer ... search/journal/12351

DOI: 10.1007/s12351-019-00487-z

Access Statistics for this article

Operational Research is currently edited by Nikolaos F. Matsatsinis, John Psarras and Constantin Zopounidis

More articles in Operational Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2022-01-09
Handle: RePEc:spr:operea:v:21:y:2021:i:2:d:10.1007_s12351-019-00487-z