TY - JOUR
T1 - Environmental externalities and efficiency measurement
AU - Picazo-Tadeo, Andrés J.
AU - Prior, Diego
N1 - Funding Information:
The authors gratefully acknowledge the conscientious comments and the suggestions from the referees. Andrés J. Picazo-Tadeo acknowledges the financial support from the Spanish Ministerio de Ciencia e Innovación and FEDER under projects ECO2008-05908-C02-02 and AGL2006-05587-C04-03/AGR. Diego Prior acknowledges the financial support from the Spanish Ministerio de Educación y Ciencia under project SEJ2007-60995/ECON. The usual disclaimer applies.
PY - 2009/8/1
Y1 - 2009/8/1
N2 - Production of desirable outputs often produces by-products that have harmful effects on the environment. This paper investigates technologies where the biggest good output producer is not the greatest polluter, i.e. technologies located on the downward-sloping segment of the frontier depicted in Färe et al. (1989). Directional distance functions and Data Envelopment Analysis techniques are used to define an algorithm that allows them to be identified empirically. Furthermore, we show that in such situations producers can contribute social goods, i.e. reducing polluting wastes, without limiting their capacity to maximise production of marketable output. Finally, we illustrate our methodology with an empirical application to a sample of Spanish ceramic tile producers. © 2009 Elsevier Ltd. All rights reserved.
AB - Production of desirable outputs often produces by-products that have harmful effects on the environment. This paper investigates technologies where the biggest good output producer is not the greatest polluter, i.e. technologies located on the downward-sloping segment of the frontier depicted in Färe et al. (1989). Directional distance functions and Data Envelopment Analysis techniques are used to define an algorithm that allows them to be identified empirically. Furthermore, we show that in such situations producers can contribute social goods, i.e. reducing polluting wastes, without limiting their capacity to maximise production of marketable output. Finally, we illustrate our methodology with an empirical application to a sample of Spanish ceramic tile producers. © 2009 Elsevier Ltd. All rights reserved.
KW - Efficiency measurement
KW - Environmental efficiency
KW - Environmental externalities
UR - http://www.scopus.com/inward/record.url?scp=68949209850&partnerID=8YFLogxK
U2 - 10.1016/j.jenvman.2009.05.015
DO - 10.1016/j.jenvman.2009.05.015
M3 - Article
C2 - 19524351
VL - 90
SP - 3332
EP - 3339
JO - Journal of Environmental Management
JF - Journal of Environmental Management
SN - 0301-4797
IS - 11
ER -