Modelling Pollution-Generating Technologies: A Numerical Comparison of Non-parametric Approaches

K Hervé Dakpo (), Philippe Jeanneaux and Laure Latruffe
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K Hervé Dakpo: Economie Publique, INRA, AgroParisTech, Université Paris-Saclay
Philippe Jeanneaux: VetAgro Sup, UMR Territoires

A chapter in Advances in Efficiency and Productivity II, 2020, pp 67-85 from Springer

Abstract: Abstract In this chapter, we compare the existing non-parametric approaches that account for undesirable outputs in technology modelling. The approaches are grouped based on Lauwers’ (Ecological Economics 68:1605–1614, 2009) seminal three-group classification and extended to a fourth group of recent models grounded on the estimation of several sub-technologies depending on the type of the outputs. With this fourth group of models, we provide a new complete picture of pollution-technologies modelling in the non-parametric framework of data envelopment analysis (DEA). We undertake a numerical comparison of the most recent models – the approach based on materials balance principle and weak G-disposability and the multiple equation technologies, namely, the by-production model and its various extensions, as well as the unified framework of natural and managerial disposability. The results reveal that the weak G-disposability and the unified natural and managerial disposability perform poorly compared to the multiple equation models. In addition, simulation fails to explicitly discriminate between the various multiple equation models.

Keywords: Eco-efficiency; Undesirable outputs; Materials balance principle; By-production; Non-parametric technology modelling (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/978-3-030-41618-8_5

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