bad outputs
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2022 ◽  
Vol 3 (1) ◽  
Author(s):  
Tshepelayi Kabata ◽  
Lilyan E. Fulginiti ◽  
Richard K. Perrin

Abstract Background Most studies on the environmental impacts of agriculture have attempted to measure environmental impacts but have not assessed the ability of the sector to reduce or mitigate such impacts. Only a few studies have examined greenhouse gas emissions from the sector. This paper assesses the ability of states in the U.S. to reduce agricultural emissions of methane and nitrous oxide, two major greenhouse gases (GHGs) with important global warming potential. Methods The analysis evaluates Färe’s PAC (pollution abatement cost) for each state and year, a measure of the potential opportunity costs of subjecting the sector to GHG emissions regulation. We use both hyperbolic and directional distance functions to specify agricultural technology with good and bad outputs. Results and conclusions We find that such regulations might reduce output by an average of about 2%, although the results for individual states vary quite widely.


Water Policy ◽  
2021 ◽  
Author(s):  
Victor Ngobeni ◽  
Marthinus C. Breitenbach

Abstract South Africa is a water scarce country with deteriorating water resources. Faced with tight fiscal and water resource constraints, water utilities would have to adopt technically efficient water management technologies to meet developmental socio-economic objectives of universal coverage, aligned to the United Nation's Sustainable Development Goal 6. It is important to measure the technical efficiency of utilities as accurately as possible in order to inform policy. We do this by using a non-parametric method known as Data Envelopment Analysis to determine, measure, analyse and benchmark the technical efficiency of all water boards in South Africa. Our contribution to the literature is twofold: This is the first paper to model technical efficiency of water boards as utility suppliers and guardians of water services in South Africa, and second, we address the over- and underestimation issues of technical efficiency measurement in the water sector. We do this by modelling one of the most pronounced negative externalities from water provision (water losses) as an undesirable output using the approach developed by You & Yan. We find, on average, technical efficiency of water boards is 49%, with only three of the nine water boards technically efficient. Six of the smaller water boards showed high levels of inefficiency with an inefficiency rate of 51%, which is equivalent to wastage in expenditure of R3.7 billion. Six water boards operate at increasing returns to scale and two are scale efficient. Only Rand and Sedibeng water boards exhibited decreasing returns to scale. Therefore, redirecting potential efficiency savings to optimal uses could result in technical and scale efficiency for the sector. Scale efficiency results seem to support larger regional water boards as small- to medium-sized water boards are scale inefficient with low technical efficiency. For example, Amatola Water (small water board) with an efficiency score of only 16% has a total expenditure of 18% of that of Umgeni (large water board), but sells only 6.7% of the quantity sold by Umgeni. Amatola also has seven times the proportion of water losses compared with Umgeni and charges 1.6 times the tariff of Umgeni. The ratio model with an undesirable output outperforms previous methods to deal with undesirable (bad) outputs, which either provide an over- or underestimation of technical efficiency.


Mathematics ◽  
2021 ◽  
Vol 9 (8) ◽  
pp. 889
Author(s):  
Chia-Nan Wang ◽  
Hoang-Phu Nguyen ◽  
Cheng-Wen Chang

Sustainable development has become a global catchphrase in the recent development age. This leads to the growth of various methodologies in evaluating environmental efficiency, such as the Data Envelopment Analysis (DEA) method. The purpose of this study is to propose an extended DEA model, i.e., the undesirable output model, in measuring the relative eco-efficiency scores across nations. The study collected the data of inputs, namely bad outputs and good outputs of the top 20 Asian economies in the period of 2005–2019, and then estimated the environmental efficiency of each country and classified them. The results have shown that there are four nations having higher average environmental efficiency than others. Japan is a good example of sustainable development that simultaneously balances economic development and environmental protection. The study has also discussed possible solutions for improvement to the group of nations with low environmental efficiency. Contributing to applying a novelty extended DEA model, this work recommends a more precise model, taking the weight of outputs into account for further studies.


Energies ◽  
2020 ◽  
Vol 13 (22) ◽  
pp. 5962
Author(s):  
Jun-Der Leu ◽  
Wen-Hsien Tsai ◽  
Mei-Niang Fan ◽  
Sophia Chuang

In past decades, many manufacturing enterprises have followed the business model of productivity maximization, in which achieving maximum profit using limited resources is the business goal. Although this industrial strategy may make profit, it can be detrimental to the long-term social welfare. Industrial regulations require that enterprise should be responsible for the natural environment and the health of their employees while achieving their business goals. This presents a complex problem involving the trade-off between ecology and economy so that an efficient strategic decision support method is needed. Since the value-added process of a manufacturing company encompasses both desirable and undesirable outputs, in this study we use a data envelopment analysis-based model to measure performance sustainability. In it, energy, water, and manpower are considered as input resources, meanwhile CO2 emissions, wasted water, chemical compounds, and laborers’ injuries are considered as bad outputs. The proposed approach is applied to a global chemical manufacturing company to benchmark the sustainability of its production sites located in Asia. Based on the benchmarking results, the theoretical and practical implications are discussed.


2020 ◽  
Vol 80 ◽  
pp. 104107
Author(s):  
A. George Assaf ◽  
Mike G. Tsionas ◽  
David Gillen
Keyword(s):  

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fateme Seihani Parashkouh ◽  
Sohrab Kordrostami ◽  
Alireza Amirteimoori ◽  
Armin Ghane-Kanafi

Purpose The purpose of this paper is introducing an alternative model to measure the relative efficiency of observations with undesirable products. Describing the reference set and benchmarking. Design/methodology/approach In this paper, an alternative definition of weak disposability assumption is introduced to handle undesirable outputs. Actually, two types of undesirable outputs are addressed and a substitute definition of weak disposability is presented. Findings Using this assumption a linear production technology set along with a performance analysis model is constructed to assess the relative efficiency of the decision-making units. To illustrate the radial application of the proposed approach, a real case on transportation system of USA during 1992-2009 is given. Originality/value To date, data envelopment analysis studies have investigated undesirable outputs by the assumption of weak disposability, defined as the proportional contraction of good and bad products, which leads to the null-joint assumption between good and bad outputs. Therefore, the only way to produce no undesirable outputs is producing zero desirable outputs. So the production process should be stopped while it is not economically cost-effective. However, in some processes there are some undesirable outputs, which are decreased with non-same percentages. So these undesirable outputs can be stopped while the good outputs have a strictly positive value. In this situation, the good outputs are not null-joint with this type of bad outputs. In the current paper, a new definition of the weak disposability of outputs was represented while two groups of undesirable outputs were considered. Hence, desirable outputs and the first kind of undesirable outputs were decreased proportionally. However, the reduction value was different for the second kind of undesirable outputs. Hence, the null-joint assumption is removed from the production technology. Then, a new technology was proposed based on five postulates as inclusion of observations, free disposability of desirable outputs and inputs, new weak disposability, convexity and minimum extrapolation.


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