The technology gap and efficiency measure in WEC countries: Application of the hybrid meta frontier model

This study develops the hybrid meta frontier DEA model for which inputs are distinguished into radial inputs that change proportionally and non-radial inputs that change non-proportionally, in order to measure the technical efficiency and technology gap ratios (TGR) of four different regions: Asia, Africa, America, and Europe. This paper selects 87 countries that are members of the World Energy Council from 2005 to 2007. The input variables are industry and population, while the output variances are gross domestic product (GDP) and the amount of fossil-fuel CO2 emissions.

[1]  M. Mazumdar,et al.  Comparing the Efficiency and Productivity of the Indian Pharmaceutical Firms: A Malmquist-Meta-Frontier Approach , 2009 .

[2]  Yujiro Hayami,et al.  Sources of Agricultural Productivity Gap Among Selected Countries , 1969 .

[3]  Allen N. Berger.  “Distribution-free” estimates of efficiency in the U.S. banking industry and tests of the standard distributional assumptions , 1993 .

[4]  Qunwei Wang,et al.  Efficiency measurement with carbon dioxide emissions: The case of China , 2012 .

[5]  Henry Tulkens,et al.  On FDH efficiency analysis: Some methodological issues and applications to retail banking, courts, and urban transit , 1993 .

[6]  George E. Battese,et al.  Technology Gap, Efficiency, and a Stochastic Metafrontier Function , 2002 .

[7]  W. Liu,et al.  A modified slacks-based measure model for data envelopment analysis with ‘natural’ negative outputs and inputs , 2007, J. Oper. Res. Soc..

[8]  Zhu Qiao,et al.  Assessing Textile Factory Performance , 1993 .

[9]  Peng Zhou,et al.  A survey of data envelopment analysis in energy and environmental studies , 2008, Eur. J. Oper. Res..

[10]  Kui-wai Li,et al.  An Analysis on Technical Efficiency in Post-Reform China , 2011 .

[11]  Hongliang Yang,et al.  Incorporating Both Undesirable Outputs and Uncontrollable Variables into Dea: the Performance of Chinese Coal-fired Power Plants Incorporating Both Undesirable Outputs and Uncontrollable Variables into Dea: the Performance of Chinese Coal-fired Power Plants , 2007 .

[12]  Allen N. Berger,et al.  The dominance of inefficiencies over scale and product mix economies in banking , 1991 .

[13]  C. A. Knox Lovell,et al.  Environmental efficiency with multiple environmentally detrimental variables; estimated with SFA and DEA , 2000, Eur. J. Oper. Res..

[14]  Dominique Deprins,et al.  Measuring Labor-Efficiency in Post Offices , 2006 .

[15]  Lawrence M. Seiford,et al.  A response to comments on modeling undesirable factors in efficiency evaluation , 2005, Eur. J. Oper. Res..

[16]  A. Hailu,et al.  Non‐Parametric Productivity Analysis with Undesirable Outputs: An Application to the Canadian Pulp and Paper Industry , 2001 .

[17]  G. Battese,et al.  A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies , 2004 .

[18]  Safar Fazli,et al.  A Hybrid Measure of Efficiency in Performance Measurement: An Application to Concrete Industries , 2009 .

[19]  Vernon W. Ruttan,et al.  Agricultural productivity differences among countries. , 1970 .

[20]  R. Ramanathan,et al.  Estimating energy consumption of transport modes in India using DEA and application to energy and environmental policy , 2005, J. Oper. Res. Soc..

[21]  K. Tsekouras,et al.  Are cooperatives the weakest link in European banking? A non-parametric metafrontier approach , 2010 .

[22]  Kenan M Matawie,et al.  A metafrontier model to assess regional efficiency differences , 2008 .

[23]  C.A.K. Lovell,et al.  Multilateral Productivity Comparisons When Some Outputs are Undesirable: A Nonparametric Approach , 1989 .

[24]  G. Battese,et al.  Metafrontier frameworks for the study of firm-level efficiencies and technology ratios , 2008 .

[25]  Rolf Färe,et al.  Productivity and Undesirable Outputs: A Directional Distance Function Approach , 1995 .

[26]  Allen N. Berger.  International Comparisons of Banking Efficiency , 2007 .

[27]  Boris E. Bravo-Ureta,et al.  Technical efficiency and metatechnology ratios for dairy farms in three southern cone countries: a stochastic meta-frontier model , 2010 .

[28]  Ku‐Hsieh Chen,et al.  Analysis of regional productivity growth in China: A generalized metafrontier MPI approach , 2009, China Economic Review.

[29]  E. Wang.  R&D efficiency and economic performance: A cross-country analysis using the stochastic frontier approach , 2007 .

[30]  Toshiyuki Sueyoshi,et al.  DEA approach for unified efficiency measurement: Assessment of Japanese fossil fuel power generation , 2011 .

[31]  Kaoru Tone,et al.  A slacks-based measure of super-efficiency in data envelopment analysis , 2001, Eur. J. Oper. Res..

[32]  A. Charnes,et al.  Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis , 1984 .

[33]  Zhuo Chen,et al.  Efficiency and technology gap in China's agriculture: A regional meta-frontier analysis , 2008 .

[34]  Peng Zhou,et al.  A non-radial DEA approach to measuring environmental performance , 2007, Eur. J. Oper. Res..

[35]  Kaoru Tone,et al.  A Hybrid Measure of Efficiency in DEA , 2004 .

[36]  F. J. Arcelus,et al.  Productivity differences across OECD countries in the presence of environmental constraints , 2005, J. Oper. Res. Soc..

[37]  Jeong-Dong Lee,et al.  A metafrontier approach for measuring Malmquist productivity index , 2010 .

[38]  Joe Zhu,et al.  Quantitative Models for Performance Evaluation and Benchmarking: Data Envelopment Analysis with Spreadsheets and DEA Excel Solver , 2002 .

[39]  Lawrence M. Seiford,et al.  Modeling undesirable factors in efficiency evaluation , 2002, Eur. J. Oper. Res..

[40]  Holger Scheel,et al.  Undesirable outputs in efficiency valuations , 2001, Eur. J. Oper. Res..

[41]  Ali Emrouznejad,et al.  A semi-oriented radial measure for measuring the efficiency of decision making units with negative data, using DEA , 2010, Eur. J. Oper. Res..

[42]  Abraham Charnes,et al.  Measuring the efficiency of decision making units , 1978 .

[43]  Rolf Färe,et al.  Modeling undesirable factors in efficiency evaluation: Comment , 2004, Eur. J. Oper. Res..

[44]  William W. Cooper,et al.  Introduction to Data Envelopment Analysis and Its Uses: With Dea-Solver Software and References , 2005 .

[45]  Y. Hayami,et al.  Agricultural Development: An International Perspective. , 1972 .

[46]  Kaoru Tone,et al.  Bridging radial and non-radial measures of efficiency in DEA , 2007, Ann. Oper. Res..