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Productivity and Undesirable Outputs: A Directional Distance Function Approach
Yangho Chung,Rolf Färe +1 more
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A directional distance function is introduced and used as a component in a new productivity index that readily models joint production of goods and bads, credits firms for reductions in bads and increases in goods, and does not require shadow prices of bad outputs.Abstract:
Undesirable outputs are often produced together with desirable outputs. This joint production of good and bad outputs brings about a difficulty for productivity measurement. Here we introduce a directional distance function and use it as a component in a new productivity index. This index, as an empirical example shows, seems to solve the problem caused by the joint production of good and bad outputs.read more
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A survey of data envelopment analysis in energy and environmental studies
Peng Zhou,B.W. Ang,Kim-Leng Poh +2 more
TL;DR: A literature survey on the application of data envelopment analysis (DEA) to E&E studies is presented and an introduction to the most widely used DEA techniques is introduced.
Journal ArticleDOI
Characteristics of a polluting technology: theory and practice
TL;DR: In this article, the authors use a quadratic directional output distance function to measure the technical efficiency of 209 electric utilities that produce electricity and a polluting byproduct, SO 2 before (1993) and after (1997) implementation of Phase I regulations of the acid rain program.
Journal ArticleDOI
Environmental production functions and environmental directional distance functions
TL;DR: In this paper, the relationship between environmental production functions and environmental directional distance functions was derived for estimating technical efficiency and pollution abatement costs using data from coal-fired power plants.
Journal ArticleDOI
A global Malmquist-Luenberger productivity index
Dong-hyun Oh,Dong-hyun Oh +1 more
TL;DR: In this paper, an alternative environmentally sensitive productivity growth index, which is circular and free from the infeasibility problem, is proposed. But it can also be decomposed into sources of productivity growth, and the suggested index is employed in analyzing 26 OECD countries for the period 1990-2003.
Journal ArticleDOI
Modeling undesirable factors in efficiency evaluation: Comment
Rolf Färe,Shawna Grosskopf +1 more
TL;DR: This work suggests an alternative approach which allows us to explicitly model a joint environmental technology and gauge performance in terms of increased good output and decreased undesirable output by adopting a directional distance function which may be estimated using the usual linear programming techniques employed in DEA.
References
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Journal ArticleDOI
The economic theory of index numbers and the measurement of input, output, and productivity
Journal ArticleDOI
Multilateral Productivity Comparisons When Some Outputs are Undesirable: A Nonparametric Approach
TL;DR: Multilateral productivity comparisons of firms producing multiple outputs, some of which are undesirable, are obtained by making two modifications to the standard Farrell approach to efficiency measurement.
Book
Multi-Output Production and Duality: Theory and Applications
Rolf Färe,Daniel Primont +1 more
TL;DR: Theories of the Firm through duality as mentioned in this paper have been used in many applications, e.g. towards empirical applications, such as profit functions, cost functions, distance functions, and profit functions.
Book ChapterDOI
Productivity Developments in Swedish Hospitals: A Malmquist Output Index Approach
TL;DR: The purpose of this chapter is to study productivity change in Swedish hospitals during the time period from 1970 to 1985 to identify individual hospitals exhibiting patterns of change in productivity that differ from the rest of the industry.
Journal ArticleDOI
Derivation of shadow prices for undesirable outputs: A distance function approach
Rolf Färe,Shawna Grosskopf +1 more
TL;DR: Grosskopf et al. as discussed by the authors showed how to estimate output distance functions as frontiers in order to generate shadow values of the undesirable outputs that are required to make both types of adjustment.