Measuring operational and quality-adjusted efficiency of Chilean water companies

The path to a sustainable management of the urban water cycle requires the assessment of both operational and quality-adjusted efficiency in a unified manner. This can be done by the use of non-radial Data Envelopment Analysis models. This study used Range Adjusted Measure models to evaluate the operational, quality-adjusted, and operational & quality-adjusted efficiency (O&QAE) scores of the Chilean water industry including water leakage and unplanned interruptions as undesirable outputs. It was found that on average water utilities presented large O&QAE scores over time. The mean O&QAE score was 0.964 which means that water utilities could further reduce costs and undesirable outputs by 3.6% on average, while trying to expand the scale of operation. This finding suggests that excellent quality-adjusted efficiency at an efficient expenditure could be feasible. It was also evidenced that customer density, mixed water resources, and ownership influenced the O&QAE of Chilean water companies.

Evaluating Green Innovation Efficiency and Its Socioeconomic Factors Using a Slack-Based Measure with Environmental Undesirable Outputs

Understanding green innovation efficiency (GIE) is crucial in assessing achievements of the current development strategy scientifically. Existing literature on measuring green innovation efficiency with considering environmental undesirable outputs at the city level is limited. Consulting existing studies, this paper constructs an evaluation index system to measure green innovation efficiency and its socioeconomic impact factors. Employing a super slacks-based measure (Super-SBM) model, which takes into account undesirable outputs (industrial wastewater emissions, industrial exhaust emissions and CO2 emissions), and a Global Malmquist–Luenberger index (GML), we calculate the green innovation efficiency of 15 cities in the Pearl River Delta (PRD) urban agglomeration from 2009 to 2017, exploring the impact factors behind green innovation efficiency using a Tobit panel regression model. The empirical results are as follows: Due to the heterogeneity of urban functional division and economic development in the Pearl River Delta, more than half of the region’s cities were found to be in ineffective or transitional states with respect to their green innovation efficiency. A GML decomposition index shows that technological efficiency and technological progress are out of step with one another in the Pearl River Delta, an asymmetry which is restricting regional green innovation growth. The influencing factors of industrial structure, the level of economic openness, and the urban informationization level are shown to have promoted green innovation efficiency in the Pearl River Delta’s cities, while government R&D expenditure and education expenditure exerted negative effects. This paper concludes by highlighting the importance of cooperation between the government and enterprises in achieving green innovation.

Spatial distribution and regional difference of carbon emissions efficiency of industrial energy in China

The three-stage super-efficiency slack-based measure and data envelopment analysis (SBM-DEA) model with undesirable outputs is used to calculate carbon emissions efficiency of industrial energy (CEEIE) of 30 provinces in China from 2000 to 2017. Then ArcGIS software is used to illustrate the spatial distribution of CEEIE, and Dagum Gini ratio is calculated to decompose the regional difference. The results show that the spatial distribution of CEEIE changes from disorder to order and provinces characterized with high or low CEEIE cluster in space over time. The total Dagum Gini coefficient indicates that the interprovincial difference in CEEIE across China is gradually expanding, which is mainly induced by the difference between regions. Our findings attach more importance to interregional integration policies for carbon emissions reduction in China.

World´s 24 Biggest Agricultural Producers` Eco-Efficiency Considering Undesirable Outputs

There is still a lack of studies, which are comparing the eco-efficiency of the world`s biggest agricultural producers, which affect the development of agricultural policy the most, not just EU countries. Therefore, the main goal of this article is to evaluate and compare the eco-efficiency of the world`s 24 biggest agricultural producers in time and space and verifying the hypothesis that all the biggest agriculture producers are eco-efficient. Due to the improvement of technologies, we expect a positive development of agricultural eco-efficiency during the time. Eco-efficiency of the world’s 24 biggest agricultural producers is computed for the years 2007 and 2017, using an output-oriented DEA model with two undesirable outputs. Data are obtained from FAOSTAT for the years 2007 and 2017. 15 countries have an eco-effective agricultural sector in both years 2007 and 2017 and could be considered as sustainable efficient countries. On average the agricultural eco-efficiency is decreasing over time. Based on the eco-efficiency values, the biggest agricultural producers are divided into three eco-efficiency agricultural groups – eco-efficiency leaders, eco-efficiency followers, and eco-efficiency laggards. According to the results, the research hypothesis that all the biggest agriculture producers are eco-efficient is not confirmed. Likewise, in general, technology improvement during time does not lead to a positive development of agricultural eco-efficiency.

A Range Adjusted Measure of Super-Efficiency in Integer-Valued Data Envelopment Analysis with Undesirable Outputs

DEA (data envelopment analysis) models can be divided into two groups: Radial DEA and non-radial DEA, and the latter has higher discriminatory power than the former. The range adjusted measure (RAM) is an effective and widely used non-radial DEA approach. However, to the best of our knowledge, there is no literature on the integer-valued super-efficiency RAM-DEA model, especially when undesirable outputs are included. We first propose an integer-valued RAM-DEA model with undesirable outputs and then extend this model to an integer-valued super-efficiency RAM-DEA model with undesirable outputs. Compared with other DEA models, the two novel models have many advantages: 1) They are non-oriented and non-radial DEA models, which enable decision makers to simultaneously and non-proportionally improve inputs and outputs; 2) They can handle integer-valued variables and undesirable outputs, so the results obtained are more reliable; 3) The results can be easily obtained as it is based on linear programming; 4) The integer-valued super-efficiency RAM-DEA model with undesirable outputs can be used to accurately rank efficient DMUs. The proposed models are applied to evaluate the efficiency of China’s regional transportation systems (RTSs) considering the number of transport accidents (an undesirable output). The results help decision makers improve the performance of inefficient RTSs and analyze the strengths of efficient RTSs.