Dynamic pollution-adjusted inefficiency under the by-production of bad outputs

K.H. Dakpo*, Alfons Oude Lansink

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

3 Citations (Scopus)

Abstract

This article extends the by-production model to the dynamic context of adjustment costs associated with investment. The empirical application focuses on panel data of French suckler cow farms over the period 1978–2014, considering emissions of greenhouse gases as bad output. The paper estimates input and output-specific technical inefficiency scores in the dynamic context and compares them with efficiency measures from the conventional static context. Our results reveal significant differences between inefficiency scores derived from the static and the dynamic frameworks. For all variables except meat production (the good output), the inefficiency score is lower in the dynamic context than in the static context.

Original languageEnglish
Pages (from-to)202-211
JournalEuropean Journal of Operational Research
Volume276
Issue number1
Early online date1 Jan 2019
DOIs
Publication statusPublished - 1 Jul 2019

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Keywords

  • Adjustment costs
  • By-production
  • Data envelopment analysis
  • Dynamic inefficiency
  • French suckler cows

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