This study proposes a new theoretical framework - modeling the joint production of good and bad outputs - to determine the association between pollution abatement activities and changes in traditional productivity growth. After using the joint production model to investigate the theoretical...

The introduction of a framework for optimal coalition formation using data envelopment analysis (DEA) methods is the focus of this paper. Simple examples illustrate how DEA is useful in formulating coalition models and deriving optimal solutions. In particular, the paper shows the relevance of...

The directional output distance function is used to measure the efficiency of 209 electric utilities in 1993 and 1997. Exploiting duality conditions, the directional output distance function is used to estimate the shadow price of sulfur dioxide and the Morishima elasticity of output substitution

This article proposes a trade restrictiveness quantity index (TRQI) to measure the welfare impact of trade restrictions based on a distance functions approach. The TRQI embodies two Farrell measures of efficiency - respectively for producers and consumers - that can be computed using standard...

Surveys have been the principal method used to estimate costs associated with environmental regulations in the United States. Although surveys have been widely used, there are concerns about their accuracy. In order to investigate the accuracy of survey estimates of pollution abatement costs,...

In his 2005 paper in this journal, Kuosmanen argues that Shephard's specification of weak disposability in activity analysis (DEA) models is not correct. We show that Shephard's specification does satisfy weak disposability and is the smallest technology to do so

In this paper, measures of capacity are developed following those suggested in 1968 by Leif Johansen. By taking advantage of Shephard?s duality, both primal and dual multi-output measures of capacity can be derived. Having generalized the capacity utilization measures, the authors show how these...

In this paper we study environmental efficiency within a pollution generating technology. Pollutants, or bads, are explicitly modeled by imposing technology properties of disposability and null-jointness. With data on firms from Swedish manufacturing, we investigate the potential to reduce...

The production of desirable (good) outputs is frequently accompanied by unintended production of undesirable (bad) outputs. If two or more of these undesirable outputs are produced as byproducts, one may ask: 'Which bad is worst?' By worst we mean which bad inhibits the production of desirable...

Production of desirable outputs such as Kwh of electricity are often accompanied by the production of undesirable or ‘bad' outputs such as SO2. These undesirable outputs are frequently regulated in the sense that their production is not allowed to exceed certain amounts. In this paper we...