Eco-efficiency and eco-productivity change over time in a multisectoral economic system. (English) Zbl 1304.91163
Summary: We measure eco-efficiency of an economy by means of an augmented Leontief input-output model extended by constraints for primary inputs. Using a multi-objective optimisation model the eco-efficiency frontier of the economy is generated. The results of these multi-objective optimisation problems define eco-efficient virtual decision making units (DMUs). The eco-efficiency is obtained as a solution of a data envelopment analysis (DEA) model with virtual DMUs defining the potential and a DMU describing the actual performance of the economy. This procedure is then extended to an intertemporal approach in the spirit of the Luenberger productivity indicator. This indicator permits decomposing eco-productivity change into eco-efficiency change and eco-technical change. The indicator is then further decompounded in a way that enables us to examine the contributions of individual production factors, undesirable as well as desirable outputs to eco-productivity change over time. For illustration purposes the proposed model is applied to investigate eco-productivity growth of the Austrian economy.
MSC:
| 91B76 | Environmental economics (natural resource models, harvesting, pollution, etc.) |
| 91B66 | Multisectoral models in economics |
| 90C08 | Special problems of linear programming (transportation, multi-index, data envelopment analysis, etc.) |
| 90C29 | Multi-objective and goal programming |
Keywords:
data envelopment analysis; Luenberger indicator; multi-objective optimisation; neoclassical growth accountingReferences:
| [1] | Aparicio, J.; Pastor, J. T.; Zofío, J. L., On the inconsistency of the Malmquist-Luenberger index, European Journal of Operational Research, 229, 3, 738-742 (2013) · Zbl 1317.90186 |
| [4] | Chambers, R. G.; Chung, Y.; Färe, R., Benefit and distance functions, Journal of Economic Theory, 70, 1, 407-419 (1996) · Zbl 0866.90027 |
| [5] | Chambers, R. G.; Chung, Y.; Färe, R., Profit, directional distance functions, and nerlovian efficiency, Journal of Optimization Theory and Applications, 98, 2, 51-364 (1998) · Zbl 0909.90040 |
| [6] | Chambers, R. G.; Färe, R.; Grosskopf, S., Productivity growth in APEC countries, Pacific Economic Review, 1, 3, 181-190 (1996) |
| [7] | Chung, Y. H.; Färe, R.; Grosskopf, S., Productivity and undesirable outputs: A directional distance function approach, Journal of Environmental Management, 51, 3, 229-240 (1997) |
| [8] | Coelli, T.; Lauwers, L.; van Huylenbroeck, G., Environmental efficiency measurement and the materials balance condition, Journal of Productivity Analysis, 28, 3-12 (2007) |
| [9] | Cropper, M. L.; Oates, W. E., Environmental economics: A survey, Journal of Economic Literature, 30, 2, 675-740 (1992) |
| [10] | Dietzenbacher, E.; Hoen, A., Deflation of input-output tables from the user’s point of view: A heuristic approach, Review of Income and Wealth, 44, 111-122 (1998) |
| [11] | Dyckhoff, H.; Allen, K., Measuring ecological efficiency with data envelopment analysis (DEA), European Journal of Operational Research, 132, 2, 312-325 (2001) · Zbl 0979.90069 |
| [12] | Ebert, U.; Welsch, H., Environmental emissions and production economics: Implications of the materials balance, American Journal of Agriculture Economics, 89, 287-293 (2007) |
| [14] | Färe, R.; Grosskopf, S., Intertemporal production frontiers (1996), Kluwer: Kluwer Boston |
| [15] | Färe, R.; Grosskopf, S.; Lovell, C. A.K.; Pasurka, C., Multilateral productivity comparisons when some outputs are undesirable: A nonparametric approach, Review of Economics and Statistics, 71, 90-98 (1989) |
| [16] | Färe, R.; Grosskopf, S.; Margaritis, D., Efficiency and productivity: Malmquist and more, (Fried, H. O.; Lovell, C. A.K.; Schmidt, S., The measurement of productive efficiency and productivity growth (2008), Oxford University Press: Oxford University Press Oxford), 522-621 |
| [17] | Førsund, F. R., Good modelling of bad outputs: Pollution and multiple-output production, International Review of Environmental and Resource Economics, 3, 1-38 (2009) |
| [18] | Hailu, A.; Veeman, T. S., Non-parametric productivity analysis with undesirable outputs: An application to the Canadian pulp and paper industry, American Journal of Agricultural Economics, 83, 3, 605-616 (2001) |
| [19] | Koller, W.; Stehrer, R., Trade Integration, outsourcing and employment in Austria: A decomposition approach, Economic Systems Research, 22, 237-261 (2010) |
| [20] | Koopmanns, T. C., An analysis of production as an efficient combination of activities, (Koopmanns, T. C., Activity analysis of production and allocation. Activity analysis of production and allocation, Cowles commission for research in economics monograph No. 13 (1951), John Wiley and Sons: John Wiley and Sons New York) · Zbl 0045.09503 |
| [21] | Korhonen, P.; Luptacik, M., Eco-efficiency analysis of power plants: An extension of data envelopment analysis, European Journal of Operational Research, 154, 437-446 (2004) · Zbl 1146.91327 |
| [22] | Kymn, K. O., Aggregation in input-output models: A comprehensive review 1946-1971, Economic Systems Research, 2, 65-93 (1990) |
| [23] | Kymn, K. O.; Norsworthy, J. R., A review of industry aggregation in input-output models, The American Economist, 20, 5-10 (1976) |
| [24] | Lee, J. D.; Park, J. B.; Kim, T. Y., Estimation of shadow prices of pollutants with production/environment inefficiency taken into account: A nonparametric directional distance function approach, Journal of Environmental Management, 64, 4, 365-375 (2002) |
| [25] | Leontief, W. W., Environmental repercussions and the economic structure: An input-output approach, The Review of Economics and Statistics, 52, 262-271 (1970) |
| [26] | Lowe, P. D., Pricing problems in an input output approach to environmental protection, The Review of Economics and Statistics, 61, 110-117 (1979) |
| [27] | Luptacik, M.; Böhm, B., A consistent formulation of the Leontief pollution model, Economic Systems Research, 11, 263-276 (1999) |
| [28] | Luptacik, M.; Böhm, B., Efficiency analysis of a multisectoral economic system, Central European Journal of Operations Research, 18, 609-619 (2010) · Zbl 1206.90059 |
| [29] | Mahlberg, B.; Luptacik, M.; Sahoo, B. K., Examining the drivers of total factor productivity change with an illustrative example of 14 EU countries, Ecological Economics, 72, 60-69 (2011) |
| [30] | Miller, R. E.; Blair, P. D., Input-output analysis: Foundations and extensions (2009), Cambridge University Press: Cambridge University Press Cambridge · Zbl 1184.93002 |
| [31] | Nikaido, H., Convex structure and economic theory (1968), Academic Press: Academic Press London · Zbl 0172.44502 |
| [32] | Olsen, J. A., Aggregation in macroeconomic models: An empirical input-output approach, Economic Modelling, 17, 545-558 (2000) |
| [33] | Olsen, J. A., Perfect aggregation of industries in input-output models, (Lahr, M. L.; Dietzenbacher, E., Input-output analysis: frontiers and extensions (2001), Palgrave: Palgrave Basingstoke) |
| [34] | Ortner, W.; Ortner, H., Personalverrechnung in der Praxis (2012), Verlag Linde: Verlag Linde Vienna |
| [35] | Pethig, R., Non-linear production, abatement, pollution and materials balance reconsidered, Journal of Environmental Economics and Management, 51, 185-204 (2006) · Zbl 1136.91554 |
| [36] | Sahoo, B. K.; Luptacik, M.; Mahlberg, B., Alternative measures of environmental technology structure in DEA: An application, European Journal of Operational Research, 215, 750-762 (2011) · Zbl 1238.91116 |
| [37] | Sarkis, J.; Cordeiro, J. J., An empirical evaluation of environmental efficiencies and firm performance: Pollution prevention versus end-of-pipe practice, European Journal of Operational Research, 135, 1, 102-113 (2001) · Zbl 1077.90550 |
| [44] | ten Raa, Th., Linear analysis of competitive economics (1995), Harvester Wheatsheaf: Harvester Wheatsheaf New York |
| [45] | ten Raa, Th., The economics of input-output analysis (2005), Cambridge University Press: Cambridge University Press Cambridge |
| [46] | Tyteca, D., On the measurement of the environmental performance of firms—A literature review and a productive efficiency perspective, Journal of Environmental Management, 46, 281-308 (1996) |
| [47] | Tyteca, D., Linear programming models for the measurement of environmental performance of firms—Concepts and empirical results, Journal of Productivity Analysis, 8, 182-197 (1997) |
| [49] | Yang, H.; Pollitt, M., Incorporating both undesirable outputs and uncontrollable variables into DEA: The performance of Chinese coal-fired power plants, European Journal of Operational Research, 197, 3, 1095-1105 (2009) |
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.
