economic impact of production bottlenecks caused by disasters impacting interdependent industry sectors abstract this paper provides a new linear programming model based on leontief s input output model to investigate the economic consequences of production capacity bottlenecks caused by disasters an important contribution of the paper is the incorporation of industry sectors preferences in allocating limited products services between final domestic demand foreign final demand and intermediate industries this provides support for estimating some of the indirect economic impacts of disasters the paper also considers recovery operations within disrupted sectors from the standpoint of evaluating the performance of the economy during the transition period after a disaster the models are implemented to investigate the economic consequences of electricity sector disruption in singapore and finally computational results are reported

measuring corporate sustainability management a data envelopment analysis approach despite the increased awareness of the conceptual and practical definition of corporate sustainability questions remain on how to measure performance the objective of this paper is to advance our understanding of the measurement of corporate sustainability management by introducing a data envelopment analysis dea technique and an empirical case of a korean electronics industry in particular we employ cross efficiency in the presence of dual role factors by reflecting some complexity of a real world case donations for tax benefits by employing the combined approach of cross efficiency and dual role factors we offer a new model to measure corporate sustainability management the new model and study findings contribute to the body of knowledge in corporate sustainability management and its performance measurement

financing renewable energy infrastructure formulation pricing and impact of a carbon revenue bond abstract renewable energy systems depend on large financial incentives to compete with conventional generation methods market based incentives including state level rec markets and international carbon markets have been proposed as solutions to increase renewable energy investment in this paper we introduce and formulate a carbon revenue bond a financing tool to complement environmental credit markets to encourage renewable energy investment to illustrate its use we value the bond by predicting future revenue using stochastic processes after analyzing historical price data three illustrative examples are presented for renewable energy development in three different markets europe australia and new jersey our findings reveal that the sale of a carbon revenue bond with a ten year maturity can finance a significant portion of a project s initial cost

measuring changes in international production from a disruption case study of the japanese earthquake and tsunami the earthquake and tsunami that struck japan on march 11 2011 caused a tremendous loss of life and property the disaster also disrupted global supply chains which was blamed for anemic growth in the global economy a multiregional input output model can quantify the international impacts on production due to changes in demand from companies reducing their orders because of a disruption by using the input output model to conceptualize a supply chain we present a unique method for calculating indirect production losses caused by disabled production facilities methods for calculating the possible transfer of demand to industries in other countries are also discussed we apply the multiregional input output model to the japanese earthquake and tsunami comparing results generated by japanese consumer sales with those generated by japanese production data reveals that japanese demand was satised by other countries and that inventory in the production pipeline likely allowed consumer sales to remain strong

interactions of factors impacting implementation and sustainability of renewable energy sourced electricity abstract two renewable energy sourced electricity res e technologies are at the forefront of the current energy transition away from fossil fuels wind and solar photovoltaic however res e must overcome implementation and sustainability challenges from factors identified in economic policy societal technological and environmental dimensions res e diffusion is also a complex problem and this critical review suggests that outcomes depend on interdependencies between factors within a single or across multiple dimensions four categories of interactivity have been identified higher capital costs or market inequalities associated with the economic dimension of res e drive supportive policies or incentives in the policy dimension in the policy policy category interactions between res e demand or supply side incentives influence electricity pricing energy market mixes or greenhouse gases emissions the society technology category examines societal technological interactions at both micro and macro scales the environment technology category details interactions between res e and the environment the technology technology category examines synergies between res e when collocated with conventional electricity generation technologies this review identified several knowledge gaps first research on res e implementation lacks system level analyses on the impact of interactions on project outcomes a well developed line of research examines interactions between multiple simultaneous supportive policies on res e implementation in developed nations however a second gap exists on the understanding of these interactions in developing nations a third gap exists on evaluating the impact of technological lock in this includes the impact on res e implementation rates when the complex economic policy governance and societal factors implicated in lock in are removed

the resource conservation effect of recycling in a dynamic leontief model the aim of the paper is to investigate the impact of recycling on the use of non renewable resources in the economy the paper tries to generalize the classical dynamic input output model in this regard we extend the standard leontief model with the balance equation of recycled products and we establish some properties of this augmented model we investigate how recycling extends the availability of non renewable natural resources for the next generations in an inter industry framework supposing a balanced growth both for production and consumption we examine the existence of the balanced growth path of this model and compare the results to the classical leontief model we try to answer the question whether recycling reuse increases the growth possibility of an economy finally we illustrate our results with a simple numerical example thus we analyze a possible sustainable development of the economy on the basis of the product recovery management of industries

a literature study for dea applied to energy and environment abstract this study systematically summarizes previous research efforts on data envelopment analysis dea applied to energy and environment in the past four decades including concepts and methodologies on dea environmental assessment industrial developments are very important for all nations in terms of their economic prosperities a problem is that the development produces various pollutions on air water and other types of contaminations all of which are usually associated with our health problems and climate changes thus it is necessary for us to consider how to make a balance between economic success and pollution mitigation to maintain a high level of social sustainability in the world it is widely considered that dea is one of the methodologies to examine the level of sustainability this study examines a recent research trend on dea applications from 1980s to 2010s nowadays many researchers have paid serious attention on how to combat various difficulties in the areas of energy and environment as a result the number of articles on dea applications on energy and environment has dramatically increased particularly after 2000s however it is true that dea has strengths and drawbacks in the applications therefore it is very important for us to carefully use dea for guiding large policy issues and business strategies such as the global warming and climate change an underlying premise of this study is that technology innovation in engineering and natural science may solve various problems by linking it with political and managerial efforts the use of dea provides a methodological linkage among them so enhancing the practicality in mitigating problems due to climate change and environmental pollutions this literature study along with a summary on conceptual and methodological developments provides us with guidelines for our future research works on dea on energy and environment issues

can deployment of renewable energy put downward pressure on natural gas prices abstract high and volatile natural gas prices have increasingly led to calls for investments in renewable energy one line of argument is that deployment of these resources may lead to reductions in the demand for and price of natural gas many recent us based modeling studies have demonstrated that this effect could provide significant consumer savings in this article we evaluate these studies and benchmark their findings against economic theory other modeling results and a limited empirical literature we find that many uncertainties remain regarding the absolute magnitude of this effect and that the reduction in natural gas prices may not represent an increase in aggregate economic wealth nonetheless we conclude that many of the studies of the impact of renewable energy on natural gas prices appear to have represented this effect within reason given current knowledge these studies specifically suggest that a 1 reduction in us natural gas demand could lead to long term average wellhead price reductions of 0 8 2 and that each megawatt hour of renewable energy may benefit natural gas consumers to the tune of at least 7 5 20

economic resilience of the firm a production theory approach abstract as a result of catastrophic events firms and other organizations are faced with input shortages and price shocks firms can respond to these events using a variety of resilience actions or tactics here we provide a microeconomic foundation for analyzing a comprehensive range of these tactics incorporating both inherent and adaptive concepts of resilience we classify these tactics and derive optimality conditions for production with the use of each class of resilience in the context of a nested constant elasticity of substitution ces function consisting of aggregated capital k labor l infrastructure i and materials m the framework has broad applicability including measurement and scoring of resilience cost effectiveness assessment of resilience tactics individually and as a group calculation of resilience indices and supply chain management

evaluating renewable portfolio standards and carbon cap scenarios in the u s electric sector this report examines the impact of renewable portfolio standards rps and cap and trade policy options on the u s electricity sector the analysis uses the national renewable energy laboratory s regional energy deployment system reeds model that simulates the least cost expansion of electricity generation capacity and transmission in the u s to examine the impact of a variety of emissions caps and rps scenarios both individually and combined the generation mix carbon emissions and electricity price are examined for various policy combinations simulated in the modeling

the development of commercial local area resource and emissions modelling navigating towards new perspectives and applications meeting near future uk greenhouse gas ghg emissions targets will require all parts of the uk economy to contribute and in particular significant changes in business practices are required at the local level from review it was found that there is a lack of detailed business accounting and reporting of ghg emissions at the local level especially concerning supply chain impacts and small and medium sized enterprises this paper presents a framework model to generate detailed benchmark estimates of ghgs both on site and supply chain related for individual businesses and all businesses of a sector within an area the model makes use of available economic and environmental data and with similar datasets existing in other parts of the world such models may be used elsewhere the framework model is applied to an empirical case study estimates from such a framework can be used in a step by step approach to move businesses and local areas towards improved accounting reporting and sustainability including procurement the model makes use of two different accounting perspectives the production perspective on site ghgs and the provision perspective supply chain ghgs attributable to purchased inputs of a business or sectors production the new provision perspective and its consequences are explored and explained

measuring the efficacy of inventory with a dynamic input output model abstract this paper extends the recently developed dynamic inoperability input output model diim for assessing productivity degradations due to disasters inventory policies are formulated and incorporated within the diim to evaluate the impact of inventories on the resilience of disrupted interdependent systems the inventory diim can provide practical insights to preparedness decision making through explicit tradeoff analysis of multiple objectives including inventory costs and economic loss reductions the model is demonstrated in several illustrative examples to depict various nuances of inventory policies the paper then culminates in a case study that utilizes input output and inventory accounts from the bureau of economic analysis

modeling undesirable factors in efficiency evaluation abstract data envelopment analysis dea measures the relative efficiency of decision making units dmus with multiple performance factors which are grouped into outputs and inputs once the efficient frontier is determined inefficient dmus can improve their performance to reach the efficient frontier by either increasing their current output levels or decreasing their current input levels however both desirable good and undesirable bad factors may be present for example if inefficiency exists in production processes where final products are manufactured with a production of wastes and pollutants the outputs of wastes and pollutants are undesirable and should be reduced to improve the performance using the classification invariance property we show that the standard dea model can be used to improve the performance via increasing the desirable outputs and decreasing the undesirable outputs the method can also be applied to situations when some inputs need to be increased to improve the performance the linearity and convexity of dea are preserved through our proposal

a fuzzy linear programming enterprise input output model for optimal crisis operations in industrial complexes abstract industrial complexes may be subject to significant risk of cascading failure caused by various disruptions and emerging economies are potentially more susceptible to the impacts as less established policies are in place to deal with these issues in particular there is a need to develop adaptation strategies to ensure the resilience of industrial activities to various perturbations that may result from climate change the inherent complexity of such systems makes decision making for risk management a non trivial task that is best facilitated with the aid of mathematical models enterprise input output models have been used extensively to model production systems at different scales in this work a fuzzy linear programming enterprise input output model is developed to determine optimal adjustments in production levels of multi product systems when a crisis is induced by a loss of resource inputs the model allows for adjustments that are equitable for different decision makers that may comprise an industrial complex or a supply chain capabilities of the model are illustrated with a case study on the effect of water shortage on an aluminum production system

multilateral productivity comparisons when some outputs are undesirable a nonparametric approach multilateral productivity comparisons of firms producing multiple outputs some of which are undesirable are obtained by making two modifications to the standard farrell approach to efficiency measurement the restriction that production technology satisfy strong disposability of outputs is relaxed to allow for the fact that undesirable outputs may be freely disposable and the efficiency measures are modified to allow for an asymmetric treatment of desirable and undesirable outputs performance measures that satisfy these requirements are calculated as solutions to programming problems the methodology is applied to a sample of mills producing paper and pollutants

expanded eco efficiency assessment of large mining firms abstract assessing eco efficiency of companies is important to ensure the creation of wealth without compromising the needs of future generations this work aims to extend the eco efficiency concept by including in the assessment new features related to environmental benefits and environmental burdens this concept is implemented using an innovative directional distance function model which searches for improvements in the magnitude of the indicators and in the composition of the resources consumed this framework can help firms to become more sustainable by replacing non renewable inputs with greener alternatives we present an empirical application to large mining companies different scenarios regarding managerial priorities for adjustments to firms economic and environmental indicators are explored the results obtained and their managerial implications are discussed in the context of mining firms activity

ranking ranges in cross efficiency evaluations the existence of alternate optima for the dea weights may reduce the usefulness of the cross efficiency evaluation since the ranking provided depends on the choice of weights that the different dmus make in this paper we develop a procedure to carry out the cross efficiency evaluation without the need to make any specific choice of dea weights the proposed procedure takes into consideration all the possible choices of weights that all the dmus can make and yields for each unit a range for its possible rankings instead of a single ranking this range is determined by the best and the worst rankings that would result in the best and the worst scenarios of each unit across all the dea weights of all the dmus this approach might identify good bad performers as those that rank at the top bottom irrespective of the weights that are chosen or units that outperform others in all the scenarios in addition it may be used to analyze the stability of the ranking provided by the standard cross efficiency evaluation

how much co2 emissions do we reduce by saving electricity a focus on methods abstract in this paper we evaluate two approaches for estimating co2 emission reduction from electricity savings one based on average co2 intensities of electricity generation and another that relies on marginal co2 intensities it is found that the average co2 intensity approach has a significant shortcoming when it comes to scenario based approaches for co2 emission reduction this shortcoming lies in the chicken egg problem created where larger future electricity savings are actually big enough to change the co2 intensity in such a way that it cannot be used anymore to estimate the co2 emission reduction we show that in these cases the marginal approach is preferred to correctly apply this approach it is important to determine the co2 intensity of the future power mix which will not be built in order to avoid under or overestimation of the co2 savings calculated we propose a seven step approach which can be used in scenario based potential studies as guidance for estimating the co2 emission reductions from not only electricity savings but also renewable electricity and mitigation options that consume electricity such as electric cars and heat pumps using our approach would avoid a disconnection of the co2 reduction potential with the underlying reference scenario

federal policies for renewable electricity impacts and interactions abstract three types of policies that are prominent in the federal debate over addressing greenhouse gas emissions in the united states are a cap and trade program ctp on emissions a renewable portfolio standard rps for electricity production and tax credits for renewable electricity producers each of these policies would have different consequences and combinations of these policies could induce interactions yielding a whole that is not the sum of its parts this paper utilizes the haiku electricity market model to evaluate the economic and technology outcomes climate benefits and cost effectiveness of three such policies and all possible combinations of the policies a central finding is that the carbon dioxide co2 emissions reductions from ctp can be significantly greater than those from the other policies even for similar levels of renewable electricity production since of the three policies ctp is the only one that distinguishes electricity generated by coal and natural gas it follows that ctp is the most cost effective among these approaches at reducing co2 emissions an alternative compliance payment mechanism in an rps program could substantially affect renewables penetration and the electricity price effects of the policies hinge partly on the regulatory structure of electricity markets which varies across the country

assessing the strength and effectiveness of renewable electricity feed in tariffs in european union countries in the last two decades feed in tariffs fit have emerged as one of the most popular policies for supporting renewable electricity res e generation a few studies have assessed the effectiveness of res e policies but most ignore policy design features and market characteristics e g electricity price and production cost that influence policy strength we employ 1992 2008 panel data to conduct the first econometric analysis of the effectiveness of fit policies in promoting solar photovoltaic pv and onshore wind power development in 26 european union countries we develop a new indicator for fit strength that captures variability in tariff size contract duration digression rate and electricity price and production cost to estimate the resulting return on investment we regress this indicator on added res e capacity using a fixed effects specification and find that fit policies have driven solar pv development in the eu however this effect is overstated without controlling for country characteristics and is concealed without accounting for policy design we do not find robust evidence that fit policies have driven wind power development overall we show that the interaction of policy design electricity price and electricity production cost is a more important determinant of res e development than policy enactment alone

short run cost based pricing model for a supply chain network abstract we have studied a short run cost based pricing model of a supply chain network with multiple production and operation units first we discussed the cost based pricing model of a production unit and explained the distinguishing feature of the cost function an average cost decreases as the output increases second we extended the model to include multiple production and operation units and then presented a short run cost based pricing model of a supply chain network with multiple production and operation units the cost function is considered as a monotonic multi dimensional mapping third we discussed the existence and uniqueness of the solution of the above model we found if the system is profitable there is at least a meaningful solution and the solution usually is not unique that is to say the low cost price solution can be found by an iterative method according to the kantorovich theorem and it is possible that there is another high cost price solution finally we illustrated the model with an example

p graph approach for gdp optimal allocation of resources commodities and capital in economic systems under climate change induced crisis conditions abstract climate change impacts may manifest via multiple pathways often leading to a shortage of resources reduction in production capacities or reduction in available labor inputs that are vital for economic activities effective climate change adaptation strategies are needed to determine the optimal allocation of scarce resources commodities or capital under crisis conditions to minimize the economic consequences in such cases it is necessary to account for structural properties of economic systems to ensure that rational distribution policies are implemented input output models are used to illustrate interdependencies among economic sectors and to assess both direct and indirect effects of disruptive events alternatively these interdependencies may be exploited for developing effective recovery efforts to minimize the ripple effects of a crisis in this paper a process graph representation of the input output model is developed to generate a rational procedure for the allocation of scarce resources commodities or capital during crisis conditions the process graph model is a graph theoretic approach originally developed for chemical process design applications the analogous problem structure allows it to be used for the input output system the method is demonstrated through several case studies to identify allocation policies geared towards reducing the impact of disruptions attributed to critical resources commodities or capital results show that depending on the economic structure the optimal allocation of scarce resources commodities or capital will satisfy the final demands of some economic sectors and reduce the production capacity of others in order to minimize the reduction of total gross domestic product though similar results can be obtained through traditional mathematical programming models the process graph platform has the advantage to visually present the distribution of scarce resources commodities or capital within the system this work is a first attempt to implement the process graph approach in the fields of economics and climate change adaptation in conclusion the process graph based approach developed in this work can be used to provide policymakers with insights in developing appropriate risk mitigation plans associated with climate change induced crisis conditions potential applications include both the development of disaster preparedness measures for anticipated disruptions as well as the implementation of real time emergency response in the midst of a crisis

analytical assumptions and causal ordering in interindustry modeling since the publication of leontief s path breaking work the overwhelming majority of applications of inter industry models have relied on the standard model of demand driven production functions even when the exogenous perturbation originated on the supply side 13 for some time now in fact some economists have been suggesting an alternative to the standard model in situations of supply constraints 8 58 64 9 1 249 69 10 5 447 54 6 281 89 however this alternative model relying on supply constrained allocation functions is not based on the precepts of standard microeconomic theory rather than assuming that input shares are constant as in the standard model the alternative model assumes that output shares are constant an assumption which is not tied to any demonstrated optimizing behavior on the part of firms both models would seem to be somewhat limited the standard model due to its demand only orientation the alternative model due to its untested analytical underpinnings 1 in fact as this paper demonstrates there is an inherent symmetry underlying interindustry analysis the standard leontief interindustry model can be formulated to directly analyze supply constrained perturbations just as the ghoshian allocation model can be formulated to directly handle demand induced perturbations that is there actually exist four frameworks for employing interindustry models that are differentiated by the analytical assumptions i e production or allocation function and the causal ordering i e demand driven or supply contrained employed this paper demonstrates the four frameworks discusses the rationales for their use and provides illustrative results based on their application to the 1967 u s interindustry table section ii of this paper develops the four theoretical frameworks and demonstrates their symmetry simple empirical results are presented in section iii together with some recommended potential applications conclusions are offered in the final section

cost effectiveness of renewable electricity policies we analyze policies to promote renewable sources of electricity a portfolio standard rps raises electricity prices and primarily reduces gas fired generation a knee of the cost curve exists between 15 and 20 goals for 2020 in our central case and higher natural gas prices lower the cost of greater reliance on renewables a renewable energy production tax credit lowers electricity price at the expense of taxpayers which limits its effectiveness in reducing carbon emissions and it is less cost effective at increasing renewables than a portfolio standard neither policy is as cost effective as a cap and trade policy for achieving carbon emission reductions

myths and facts about electricity in the u s south this paper identifies six myths about clean electricity in the southern u s these myths are either propagated by the public at large shared within the environmental advocacy culture or spread imperceptibly between policymakers using a widely accepted energy economic modeling tool we expose these myths as half truths and the kind of conventional wisdom that constrains productive debate in so doing we identify new starting points for energy policy development climate change activists may be surprised to learn that it will take more than a national renewable electricity standard or supportive energy efficiency policies to retire coal plants low cost fossil generation enthusiasts may be surprised to learn that clean generation can save consumers money even while meeting most demand growth over the next 20 years this work surfaces the myths concealed in public perceptions and illustrates the positions of various stakeholders in this large u s region

developing an input output activity matrix ioam for environmental and economic analysis of manufacturing systems and logistics chains abstract an activity matrix am shows the activities that transform an organization s inputs into outputs the inputs are the system targets and the materials energy and other resources that are used to achieve these the outputs are the system performance expressed in terms of production quality profit environmental performance waste etc performance may be measured against the financial environmental technical social or other system targets a concurrent enterprise view is used to represent the manufacturing system activities and the paper examines how an am may be used to represent and design systems two kinds of am are examined an unconstrained activity matrix and an input output activity matrix ioam with an unconstrained am the system designer chooses system outputs attributes or requirements intuitively this provides great flexibility and allows e g the social and organisational implications of proposed changes to be investigated the inputs are not formally stated although a systems designer normally focuses on identifying the stages of a product life cycle and analysing their impact on the system s outputs the main emphasis of the paper is on the ioam and its use to represent the transformation of an organization s inputs into outputs the input output representation developed in the paper is used to examine manufacturing and logistics systems first the ioam is used to represent a manufacturing system as one tier of a logistics chain and its performance secondly the ioam representations may be derived for a multi tier system to represent its production economic and environmental performance

technical environmental and eco efficiency measurement for supplier selection an extension and application of data envelopment analysis with increased global awareness of environmental sustainability green supply chain management gscm has received considerable attention in the literature over the decade green supplier selection and assessment in gscm is one of the most significant and complex challenges for supply chain managers this paper provides a new model and approach for green supplier selections by decomposing their efficiency indicators into technical environmental and eco efficiency scores we show that the models in the literature are computationally intensive and are not able to measure eco efficiency properly instead of running three different models linear goal programming is used to integrate technical environmental and eco efficiency objectives into a multiple objective linear programming molp data envelopment analysis dea model therefore the model proposed in this paper is less computationally intensive than the models in the literature the new model provides a more valid eco efficiency indicator of decision making units dmus by utilizing a better combination of the technical and environmental efficiency objectives compared to the conventional models unlike the conventional models the new model identifies dmus as being eco efficient if and only if they are both technically and environmentally efficient we also discuss the non dominated weights as the solutions of the molp model and use them to construct technical environmental and eco cross efficiency matrices of the dmus in order to illustrate the effectiveness and applicability of the proposed model we present the real world business case of the hyundai steel company and its suppliers

input output models for the analysis of a local global supply chain abstract a supply chain can be analysed as a network of production processes which can be localised within and outside a given geographic area each process can be defined as a system that produces output flows in consequence of input flows in this paper an input output approach based on production processes is used to develop specific models that investigate flows among production processes either of a whole global supply chain or of a part of the supply chain localised within a given area local by product and waste outputs are also considered the developed models can help improve design and management of supply chains also in terms of sustainable development of a local area in fact this use of the input output analysis entails a deeper understanding of the relationships among the processes and the environment

the environmental and cost implications of solar energy preferences in renewable portfolio standards abstract many state level renewable portfolio standards rps include preferences for solar generation with goals of increasing the generation diversity reducing solar costs and encouraging local solar industries depending on their policy design these preferences can impact the rps program costs and emissions reduction this study evaluates the impact of these policies on costs and emissions coupling an economic dispatch model with optimized renewable site selection three policy designs of an increased rps in michigan are investigated 1 20 solar carve out 2 5 distributed generation solar carve out and 3 3 solar multiplier the 20 solar carve out scenario was found to increase rps costs 28 while the 5 distributed generation solar carve out increased costs by 34 both of these solar preferences had minimal impact on total emissions the 3 solar multiplier decreases total rps program costs by 39 but adds less than half of the total renewable generation of the other cases significantly increasing emissions of co 2 no x and so 2 relative to an rps without the solar credit multiplier sensitivity analysis of the installed cost of solar and the natural gas price finds small changes in the results of the carve out cases with a larger impact on the 3 solar multiplier

location matters the impact of renewable power on transmission congestion and emissions abstract many governments offer subsidies for renewable power to reduce greenhouse gas emissions in the power sector however most support schemes for renewable power do not take into account that emissions depend on the location of renewable and conventional power plants within an electricity grid i simulate optimal power flow in a test grid when 4 renewable power plants connect to the grid across 24 potential sites amounting to over 10 000 configurations each configuration is associated with different levels of emissions and renewable power output i find that emission reductions vary by a factor of 7 and that curtailment due to transmission congestion is more likely when renewable power plants are concentrated in an area of the grid with low demand large cost savings could be obtained by allowing subsidies for renewable power to vary across locations according to abatement potential or by replacing subsidies with a price on emissions

eco efficiency analysis of power plants an extension of data envelopment analysis abstract in public discussion on environmental policy the notion of eco efficiency is often used the joint production of goods and undesirable outputs such as pollutants which may not be freely disposable without costs causes difficulties to measure the overall performance of the firm because of the absence of market prices for the undesirable outputs we are not able to estimate the environmental costs some of the measurement and evaluation difficulties can be overcome by employing data envelopment analysis dea as the efficiency measurement vehicle we propose the use of two different approaches in the first approach we start by decomposing the problem into two parts 1 the problem of measuring technical efficiency as the relation of the desirable outputs to the inputs and 2 the problem of measuring so called ecological efficiency as the relation of the desirable outputs to the undesirable outputs separately those two efficiency indicators are then combined in the second approach we treat pollutants as the inputs in the sense that we wish to increase desirable outputs and decrease pollutants and inputs the approaches are applied to the problem of measuring the efficiency of 24 power plants in a european country

estimating the economic impacts of power supply interruptions abstract the cost of power system rationing which is a crucial parameter for determining optimal resilience investments is usually estimated using reduced form linear models or ordinary input output analysis however such methods do not properly address either consumers rational reactions to rationing policy or policy design nonlinearities to solve this problem this paper estimates the effects of power system rationing using a general equilibrium model the model solution shows that the power cut distribution among industries is a critical variable for quantifying policy effects and provides insights into optimal policy design