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Separating environmental efficiency into production and abatement efficiency: A nonparametric model with application to U.S. power plants

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  • Hampf, Benjamin

Abstract

In this paper we present a new approach to evaluate the environmental efficiency of decision making units. We propose a model that describes a two-stage process consisting of a production and an end-of-pipe abatement stage with the environmental efficiency being determined by the efficiency of both stages. Taking the dependencies between the two stages into account, we show how nonparametric methods can be used to measure environmental efficiency and to decompose it into production and abatement efficiency. For an empirical illustration we apply our model to an analysis of U.S. power plants.

Suggested Citation

  • Hampf, Benjamin, 2011. "Separating environmental efficiency into production and abatement efficiency: A nonparametric model with application to U.S. power plants," Darmstadt Discussion Papers in Economics 204, Darmstadt University of Technology, Department of Law and Economics.
    • Handle: RePEc:zbw:darddp:dar_53901
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    References listed on IDEAS

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    More about this item

    Keywords

    nonparametric efficiency analysis; pollution abatement; network DEA; materials balance condition; fosil-fueled power plants;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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