Returns to scale vs. damages to scale in data envelopment analysis: An impact of U.S. clean air act on coal-fired power plants

Omega ◽  
2013 ◽  
Vol 41 (2) ◽  
pp. 164-175 ◽  
Author(s):  
Toshiyuki Sueyoshi ◽  
Mika Goto
2020 ◽  
Vol 25 (1) ◽  
pp. 4
Author(s):  
Mehdi Karami Khorramabadi ◽  
Majid Yarahmadi ◽  
Mojtaba Ghiyasi

It is considerably important to calculate the cost efficiency in data envelopment analysis for the efficiency evaluation of decision-making units. The present paper develops the classical cost efficiency model in which all the input prices are constant and certain for each decision-making unit, considering undesirable outputs under the semi-disposability assumption. The proposed models are interval and uncertain under the constant returns to scale and also variable returns to scale assumptions, for the easy solution of which, their lower and upper bounds are obtained on the basis of the theorem presented in the text. In order to simulate the proposed models and show their scientific capabilities, additionally, 56 electricity producing thermal power plants in Iran were studied in 2015. Results of the present study show that under both assumptions of constant returns to scale and variable returns to scale, the highest cost efficiency bounds belonged to the combined and steam cycle power plants. Moreover, the average of lower and upper cost efficiency bounds of the power plants under study were 34% and 35%, respectively, in 2015, under the constant returns to scale assumption, and 52% and 54%, respectively, under the variable returns to scale assumption.


Author(s):  
M. Ebrahimzade Adimi ◽  
M. Rostamy-Malkhalifeh ◽  
F. Hosseinzadeh Lotfi ◽  
R Mehrjoo

2011 ◽  
Vol 43 (4) ◽  
pp. 515-528 ◽  
Author(s):  
Amin W. Mugera ◽  
Michael R. Langemeier

In this article, we used bootstrap data envelopment analysis techniques to examine technical and scale efficiency scores for a balanced panel of 564 farms in Kansas for the period 1993–2007. The production technology is estimated under three different assumptions of returns to scale and the results are compared. Technical and scale efficiency is disaggregated by farm size and specialization. Our results suggest that farms are both scale and technically inefficient. On average, technical efficiency has deteriorated over the sample period. Technical efficiency varies directly by farm size and the differences are significant. Differences across farm specializations are not significant.


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