Eco-Efficiency Analysis of Consumer Durables Using Absolute Shadow Prices

Mika Kortelainen and Timo Kuosmanen

Public Economics from University Library of Munich, Germany

Abstract: We develop a method for eco-efficiency analysis of consumer durables by utilizing Data Envelopment Analysis (DEA). In contrast to previous product efficiency studies, we consider the measurement problem from the perspective of a policy maker. The novel innovation of the paper is to measure efficiency in terms of absolute shadow prices that are optimized endogenously within the model to maximize efficiency of the good. Thus, the efficiency measure has a direct economic interpretation as a monetary loss due to inefficiency, expressed in some currency unit. The advantages as well as technical differences between the proposed approach and the traditional production-side methods are discussed in detail. We illustrate the approach by an application to eco-efficiency evaluation of Sport Utility Vehicles.

Keywords: Activity Analysis; Data Envelopment Analysis (DEA); Environmental efficiency; Product evaluation; Sport Utility Vehicles (SUVs) (search for similar items in EconPapers)
JEL-codes: C14 C61 D61 D62 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2005-11-29
New Economics Papers: this item is included in nep-eff and nep-ene
Note: Type of Document - pdf; pages: 39
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/pe/papers/0511/0511022.pdf (application/pdf)

Related works:
Journal Article: Eco-efficiency analysis of consumer durables using absolute shadow prices (2007)
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:wpa:wuwppe:0511022

Access Statistics for this paper

More papers in Public Economics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).