Environmental efficiency measurement and the materials balance condition

Coelli, T., Lauwers, L. and Van Huylenbroeck, G. (2007) Environmental efficiency measurement and the materials balance condition. Journal of Productivity Analysis, 28 1-2: 3-12. doi:10.1007/s11123-007-0052-8

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Author Coelli, T.
Lauwers, L.
Van Huylenbroeck, G.
Title Environmental efficiency measurement and the materials balance condition
Journal name Journal of Productivity Analysis   Check publisher's open access policy
ISSN 0895-562X
Publication date 2007-01-01
Sub-type Article (original research)
DOI 10.1007/s11123-007-0052-8
Open Access Status Not yet assessed
Volume 28
Issue 1-2
Start page 3
End page 12
Total pages 10
Editor Sickles, R.C.
Place of publication Dordrecht
Publisher Springer
Language eng
Subject C1
Abstract The materials balance condition is a fundamental adding up condition, which essentially says that: "what goes in must come out". In this paper we argue that a number of the recently developed methods of incorporating pollution measures into standard productive efficiency models may be inconsistent with this fundamental condition. We propose an alternative method that involves the incorporation of the materials balance concept into the production model in a similar manner to which price information is normally incorporated. This produces a new environmental efficiency measure that can be decomposed into technical and allocative components, in a similar manner to the conventional cost efficiency decomposition. The approach is illustrated with the case of phosphorus emission on Belgian pig-finishing farms, using data envelopment analysis (DEA) methods. Our results indicate that a substantial proportion of nutrient pollution on these farms can be abated in a cost reducing manner.
Keyword Business
Economics
Social Sciences, Mathematical Methods
environmental efficiency
materials balance condition
nutrient pollution
pig-finishing farms
Multilateral Productivity Comparisons
Distance Function-approach
Undesirable Outputs
Electric Utilities
Pollution
Regulations
Performance
Nitrogen
Firms
Growth
Q-Index Code C1
Q-Index Status Confirmed Code

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
2008 Higher Education Research Data Collection
School of Economics Publications
 
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Citation counts: TR Web of Science Citation Count  Cited 95 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 112 times in Scopus Article | Citations
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Created: Tue, 19 Feb 2008, 01:04:12 EST