the use of parametric and non parametric frontier methods to measure the productive efficiency in the industrial sector a comparative study abstract parametric frontier models and non parametric methods have monopolised the recent literature on productive efficiency measurement empirical applications have usually dealt with either one or the other group of techniques this paper applies a range of both types of approaches to an industrial organisation setup the joint use can improve the accuracy of both although some methodological difficulties can arise the robustness of different methods in ranking productive units allows us to make a comparative analysis of them empirical results concern productive and market demand structure returns to scale and productive inefficiency sources the techniques are illustrated using data from the us electric power industry

environmental efficiency evaluation of industry in china based on a new fixed sum undesirable output data envelopment analysis national natural science funds of china for innovative research groups 70821001 national natural science funds of china 70901069 71222106 71203186 research fund for the doctoral program of higher education of china 20133402110028 fundamental research funds for the central universities wk 2040150007 china scholarship council

returns to scale damages to scale marginal rate of transformation and rate of substitution in dea environmental assessment abstract this study discusses a new use of dea data envelopment analysis environmental assessment to measure mrt marginal rate of transformation and rs rate of substitution between desirable and undesirable outputs to discuss mrt and rs this study first examines a concept of disposability from the perspective of corporate strategies to adapt a regulation change on undesirable outputs the concept of disposability is separated into natural and managerial disposability then this study explores the computational framework of rts returns to scale and dts damages to scale the type of rts is measured within the natural disposability while the type of dts is measured within the managerial disposability considering the two types of disposability this study discusses mrt and rs between desirable and undesirable outputs as an illustrative example this study applies the proposed approach to evaluate the performance of us coal fired power plants this study finds that the regulation policy on no x and so 2 has been effective on their emission controls under us clean air act caa the regulation on co 2 or a major source of the global warming and climate change is still insufficient in the united states therefore this study recommends that us federal and local governments should regulate the amount of co 2 emission under the caa

environmental efficiency with multiple environmentally detrimental variables estimated with sfa and dea abstract the objective of this paper is to estimate comprehensive environmental efficiency measures for dutch dairy farms the environmental efficiency scores are based on the nitrogen surplus phosphate surplus and the total direct and indirect energy use of an unbalanced panel of dairy farms we define environmental efficiency as the ratio of minimum feasible to observed use of multiple environmentally detrimental inputs conditional on observed levels of output and the conventional inputs we compare two methods for the calculation of efficiency namely stochastic frontier analysis sfa and data envelopment analysis dea this paper reveals the strengths and weaknesses for estimating environmental efficiency of the methods applied both sfa and dea can estimate environmental efficiency scores the mean technical efficiency scores output oriented sfa 89 dea 78 and the mean comprehensive environmental efficiency scores sfa 80 dea 52 differ between the two methods sfa allows hypothesis testing and the monotonicity hypothesis is rejected for the specification including phosphate surplus dea can calculate environmental efficiency scores for all specifications because regularity is imposed in this method

a fuzzy analytic hierarchy process ahp data envelopment analysis dea hybrid model for efficiently allocating energy r d resources in the case of energy technologies against high oil prices the low carbon green growth was declared as korean national agenda in 2008 korea has been enhancing the green growth for the sustainable economic development and fostering energy to improve korean national energy security and promote the low carbon green growth we established a long term strategic energy technology roadmap in this paper five criteria such as economical impact commercial potential inner capacity technical spin off and development cost were used to assess the strategic energy technologies against high oil prices we developed the integrated two stage multi criteria decision making mcdm approach which was used to evaluate the relative weights of criteria and measures the relative efficiency of energy technologies against high oil prices on the first stage the fuzzy analytic hierarchy process reflecting the vagueness of human thought with interval values instead of crisp numbers allocated the relative weights of criteria effectively instead of the ahp approach on the second stage the data envelopment analysis approach measured the relative efficiency of energy technologies against high oil prices with economic viewpoints the relative efficiency score of energy technologies against high oil prices can be the fundamental decision making data which help decision markers to effectively allocate the limited r d resources

japanese fuel mix strategy after disaster of fukushima daiichi nuclear power plant lessons from international comparison among industrial nations measured by dea environmental assessment in time horizon abstract on june 1 2015 the japanese government has announced that the fuel mix will consist of nuclear generation with a range between 20 and 22 and renewable generation with a range between 22 and 24 of the total electricity generation by 2030 a difficulty in understanding the governmental future energy plan is that it does not contain any scientific evidence concerning why japan needs to maintain the amount of nuclear generation and that of renewable at the level between 20 and 22 and between 22 and 24 respectively to investigate the future energy plan this study uses data envelopment analysis dea as a methodology the proposed dea approach incorporates the property of translation invariance the property indicates that an efficiency measure should not be influenced even if inputs and or outputs are shifted toward a same direction by adding or subtracting a specific real number the property makes it possible that we can evaluate the performance of organizations whose production factors i e inputs desirable and undesirable outputs contain many zeros and negative values in a data set such an occurrence of zero and negative in production factors is widely observed in many dea performance evaluations this study first uses the desirable property for dea environmental assessment in a time horizon the proposed dea environmental assessment identifies that the reasonable ranges for japanese future fuel mix are a combustible fuel generation within the range between 34 5 and 56 1 b hydro generation within the range between 22 4 and 40 5 c nuclear generation within the range between 10 4 and 13 7 d pumped hydro generation within the range between 3 9 and 6 9 and e renewable generation within the range between 3 7 and 8 4 all of which are measured by these generation capacities it is clearly identified that the future fuel mix proposed by the japanese government is inconsistent with the estimated one which we determine by relatively comparing it with the energy structures of 33 industrial nations the comparison indicates that the japanese future energy plan will be too ambitious to implement the future goal it is easily envisioned that the energy plan will have a considerable difficulty in future it is hoped that the electric power industry can access drastic technological advancements including eco technology innovation and then japan will be able to change the future direction on fuel mix as the government expects

some models for estimating technical and scale inefficiencies in data envelopment analysis in management contexts mathematical programming is usually used to evaluate a collection of possible alternative courses of action en route to selecting one which is best in this capacity mathematical programming serves as a planning aid to management data envelopment analysis reverses this role and employs mathematical programming to obtain ex post facto evaluations of the relative efficiency of management accomplishments however they may have been planned or executed mathematical programming is thereby extended for use as a tool for control and evaluation of past accomplishments as well as a tool to aid in planning future activities the ccr ratio form introduced by charnes cooper and rhodes as part of their data envelopment analysis approach comprehends both technical and scale inefficiencies via the optimal value of the ratio form as obtained directly from the data without requiring a priori specification of weights and or explicit delineation of assumed functional forms of relations between inputs and outputs a separation into technical and scale efficiencies is accomplished by the methods developed in this paper without altering the latter conditions for use of dea directly on observational data technical inefficiencies are identified with failures to achieve best possible output levels and or usage of excessive amounts of inputs methods for identifying and correcting the magnitudes of these inefficiencies as supplied in prior work are illustrated in the present paper a new separate variable is introduced which makes it possible to determine whether operations were conducted in regions of increasing constant or decreasing returns to scale in multiple input and multiple output situations the results are discussed and related not only to classical single output economics but also to more modern versions of economics which are identified with contestable market theories

measuring ecological efficiency with data envelopment analysis dea abstract the measurement of ecological efficiency provides some important information for the companies environmental management ecological efficiency is usually measured by comparing environmental performance indicators data envelopment analysis dea shows a high potential to support such comparisons as no explicit weights are needed to aggregate the indicators in general dea assumes that inputs and outputs are goods but from an ecological perspective also bads have to be considered in the literature bads are treated in different and sometimes arbitrarily chosen ways this article aims at the systematic derivation of ecologically extended dea models starting from the assumptions of dea in production theory and activity analysis a generalisation of basic dea models is derived by incorporating a multi dimensional value function f extended preference structures can be considered by different specifications of f e g specifications for ecologically motivated applications of dea

emissions trading and profitability the swedish pulp and paper industry the purpose of this paper is to develop models with and without potential emissions trading and to compare industry profits under the two regimes the model in which emissions trading is permitted is a nonparametric industry frontier model in the spirit of fare et al 1992 it is relative to this model that industry profit is computed this profit is compared to the profit without emissions trading to give an estimate of the potential gains that can be realised by allowing for emissions trading the model which is applied to data for the swedish pulp and paper industry suggests that this industry would have had up to 6 1 higher profits in 1989 1990 if emissions trading had been used instead of individual permits to achieve the same total emissions target currently there is no permit trading in this industry so our results only model the potential gains that can be made

efficiency and environmental regulation this paper proposes an extension of the enhancedefficiency indices of fare grosskopf lovell andpasurka 1989 that considers undesirable outputsasymmetrically by assuming that firms can freelydispose of some undesirable productions but areduction of other bad outputs generates a cost interms of desirable outputs this methodologicalapproach is used to analyse the relative efficiency ofa sample of spanish producers of wooden goods andfurnishings whose production process generates fourdifferent wastes we obtain efficiency indices thatserve to measure the impact on firm performance inseveral scenarios related to environmental regulationsaimed to reduce the production of wastes whenenvironmental regulations are assumed it is foundthat firms would have to sacrifice important amountsof potential desirable output in order to reallocateinputs into waste reduction secondly we find thatfirms associated with a technological institute aswell as firms located at a marshallian type industrialdistrict are likely to be less affected byregulations

efficiency analysis of hydroelectric generating plants a case study for portugal abstract this paper estimates changes in total productivity breaking this down into technically efficient change and technological change by means of data envelopment analysis dea applied to the hydroelectric energy generating plants of edp the portugal electricity company the aim of this procedure is to seek out those best practices that will lead to improved performance in the energy market we rank the plants according to their change in total productivity for the period 2001 2004 concluding that some plants experienced productivity growth while others experienced a decrease in productivity the implications arising from the study are that edp should adopt an internal benchmark management procedure in order to evaluate the relative position of each hydroelectric generating plant and to adopt managerial strategies designed to catch up with the frontier of best practices as the frontier is shifting along the time constant efforts are needed in this respect along the time

energy use efficiency in the indian manufacturing sector an interstate analysis abstract this paper approaches the measurement of energy efficiency from a production theoretic framework and uses data envelopment analysis to measure energy efficiency in the indian manufacturing sector using data from the annual survey of industries for the years 1998 99 through 2003 04 the study compares the energy efficiency in manufacturing across states based on several models the results show considerable variation in energy efficiency across states comparing the results across our models we find that the relative pricing of energy does not provide the appropriate incentives for energy conservation a second stage regression analysis reveals that states with a larger share of manufacturing output in energy intensive industries have lower energy efficiency also higher quality labor force associates with higher energy efficiency finally the power sector reforms have not yet had any significant impact on achieving energy efficiency

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 the result shows that countries efficiency ranking among their own region presents more implied volatility in view of the technology gap ratio europe is the most efficient of any region but during the same period asia has a lower efficiency than other regions finally regions with higher industry or gdp might not have higher efficiency from 2005 to 2007 and higher co2 emissions or population also might not mean lower efficiency for other regions in addition brazil is not oecd member but it is higher efficiency than other oecd members in emerging countries case oecd countries are better efficiency than non oecd countries and europe is higher than asia to control co2 emissions if non oecd countries or asia countries could reach the best efficiency score they should try to control co2 emissions

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

competitive experimentation with private information the survivor s curse we study a winner take all r d race between two firms that are privately informed about the arrival rate of an invention over time each firm only observes whether the opponent left the race or not the equilibrium displays a strong herding effect that we call a survivor s curse unlike in the case of symmetric information the two firms may quit the race nearly simultaneously even when their costs and benefits for research differ significantly

oil consumption and economic efficiency a comparative analysis of advanced developing and emerging economies abstract this paper investigates the economic efficiency oil consumption relationship in 42 countries during the period 1986 2006 in a first stage by using dea window analysis countries economic efficiencies are obtained in a second stage an econometric analysis based on robust gmm estimators reveals an inverted u shape relationship between oil consumption and economic efficiency in order to capture heterogeneities among countries development stages the analysis has been separated into two groups advanced economies and developing emerging economies the results show that advanced economies have much higher turning points compared to emerging and developing economies it appears that oil consumption increases countries economic efficiency in addition the consumption patterns of oil products and its derivatives have changed through years and among countries the different turning points from the econometric analysis indicate the dependence of oil consumption in advanced economies higher turning points is driven mainly by household purchasing activities and their standards of living transport housing and water food etc finally it appears that oil consumption is the main driver behind the progress of industrialization and urbanization regardless of the country s development stage

congestion measurement under different policy objectives an analysis of chinese industry abstract in recent years the economic performance of chinese industry has improved significantly however the congestion caused by excessive investment has plagued its sustainable development in order to make full use of resources it is necessary for the chinese government to measure industrial congestion from different perspectives however most studies for measuring congestion only consider desirable outputs even if in practice these are always accompanied by undesirable outputs in this paper three policy objectives are proposed for industrial development in china the economic priority the environmental priority and the economic and environmental win win three new data envelopment analysis dea models with undesirable outputs were built for measuring undesirable congestion desirable congestion and double congestion respectively for these policy objectives these approaches can not only identify congestion situation but also calculate the total amount of congestion and were applied to an analysis of the congestion of regional industries in china results show that most regions have some form of longstanding input congestion under different policy objectives with this resulting in serious waste of resources based on the results obtained some suggestions for sustainable industrial development in china are proposed

divergence in technical efficiency of electric utilities evidence from the sapp abstract this paper investigates the convergence pattern of technical efficiency of the south africa power pool sapp utilities over the period april 2003 march 2010 by means of parametric and non parametric techniques technical efficiency scores are computed via both stochastic frontier analysis and data envelopment analysis mixed results are obtained from the neoclassical convergence approaches in addition distribution dynamics methods reveal some evidence of club formation and this result is supported with the occurrence of divergence taken as a whole technical efficiency is found to diverge among the utilities operating in the power pool

new network data envelopment analysis approaches an application in measuring sustainable operation of combined cycle power plants abstract nowadays organizations deal with numerous economic environmental and social problems to have sustainable operations they have begun to incorporate environmental and social concerns into conventional economic objectives a combined cycle power plant ccpp is a good instance of an open system with multistage processes and interconnected activities efficiency evaluation of ccpps is a complex task since there exist a variety of inputs outputs which enter into any stages of network additionally there might be intermediate products which are consumed by the same power plants we call such factors loop intermediate measures to measure efficiency of ccpps network data envelopment analysis ndea is used this paper proposes new ndea models to evaluate efficiency of ccpps the proposed models calculate the efficiency of power plants and their sub sectors under both crs constant returns to scale and vrs variable returns to scale assumptions this paper provides a comprehensive analysis for returns to scale we apply the new ndea models to measure relative efficiency of ccpps

a kuznets curve in environmental efficiency an application on oecd countries the role of the environment is an important issue in policy making andthe accurate assessment of the environmental conditions is vital inthis paper using nonparametric techniques an environmental efficiencyindex is developed for each of the oecd countries these indexes allowone both to do cross section comparisons on the state of each country sproduction process in its treatment of undesirable outputs and also totrace each country s modification of their production processesovertime furthermore in this study we investigate the factorsunderlying societies environmental concerns that eventually lead tochanges in the environmental efficiency the results provide furtherempirical evidence for the environmental kuznets curve hypothesis

simulating weights restrictions in data envelopment analysis by means of unobserved dmus data envelopment analysis dea is a method for assessing the comparative efficiencies of decision making units e g banks and schools by relating their output to their input levels restrictions are often imposed in these assessments to reflect prior judgments on the values of input and or output variables this paper introduces a new approach to capturing and using value judgments in dea based on unobserved decision making units in so doing it opens up a whole new approach for reflecting value judgments in dea assessments which can offer advantages in certain situations

undesirable outputs in efficiency valuations abstract efficiency measurement is usually based on the assumption that inputs have to be minimized and outputs have to be maximized in a growing number of applications however undesirable outputs are incorporated into the production model which have to be minimized in this paper various approaches for treating such outputs in the framework of data envelopment analysis dea are discussed and the resulting efficient frontiers are compared new radial measures are introduced which assume that any change of the output level will involve both undesirable and desirable outputs

measuring macroeconomic performance in the oecd a comparison of european and non european countries abstract we study the macroeconomic performance of 19 oecd countries over the period 1970 1990 performance is defined in terms of the ability of a country s macroeconomic managers to provide four services to their citizens a high level of real gdp per capita a low rate of inflation a low rate of unemployment and a favorable trade balance we use linear programming techniques to construct a best practice macroeconomic performance frontier and to measure the performance of each country in each year relative to the frontier we then add two environmental disamenities carbon and nitrogen emissions to the service list and repeat the analysis to see if the performance rankings change throughout the analysis emphasis is placed on a comparison of the performance of 14 european oecd countries with that of five non european oecd countries we find that performance rankings do change and that the relative performance of the european countries declines when the environmental disamenities are added to the service list

plant level productivity efficiency and environmental performance of the container glass industry this paper presents a methodology and empirical results based on themalmquist productivity index we measure productivity while treatingpollution as an undesirable output our estimates show that technicalchange has contributed to productivity and environmental performancegrowth in the container glass industry an energy and pollution intensivesector changes in inter plant efficiency over time have made thisproductivity growth more rapid than otherwise would have occurred withthe underlying technical change the efficiency estimates show that thereare both opportunities to improve productivity and reduce pollution in thisindustry as well as productivity losses associated with the emissionscontrol the shadow prices for nox the undesirable output we analyze is quite high compared to other regulated sectors

the efficiency of conventional fuel power plants in south korea a comparison of parametric and non parametric approaches abstract the efficiencies of the 64 conventional fuel power plants operating in south korea were determined by data envelopment analysis dea approaches as well as by a stochastic frontier method the banker charnes and cooper bcc dea efficiencies were introduced into an econometric estimate of a standard production function model leading to a corrected factors version of the model with significant improvement of the statistical explanation of our data a statistical analysis of the dea efficiencies was carried out and these were compared to efficiencies revealed by a stochastic frontier method

distinguishing operational performance in power production a new measure of effectiveness by dea measuring the efficiency of power plant systems requires capturing fluctuations in the level of sales to customers as well as accounting for the effects of regulatory caps on emissions this study proposes a novel effectiveness measure considering desirable outputs and undesirable outputs via data envelopment analysis dea the new measure complements typical efficiency measures we test the validity of the proposed measure with an empirical case study of the fifty u s states and the district of columbia we find that the current interregional electricity transmission plan increases 8 56 in effectiveness for the emissions control we suggest a 9 8 reduction in electricity generation towards an effective production frontier we conclude that the proposed effectiveness measure s ability to distinguish sales and regulation effects from typical productive efficiency eliminates the bias often found in currently used measures

comparison of energy consumption and ghg emissions of open field and greenhouse strawberry production abstract the greenhouse areas in iran have expanded rapidly and the greenhouse holders have shown a great tendency to cultivation of those crops that used to be cultivated in open fields although greenhouses are intensive in terms of yield and whole year production they are considered being one of the major contributors to greenhouse gases ghg emissions in the agricultural sector in the present study strawberry cultivation in greenhouses gh and open fields of was selected as a representative of those crops which can be grown in both systems initial data were randomly collected from 70 ofs and 33 ghs in province of gilan iran energy consumption and ghg emission of two different strawberry production systems were compared moreover energy use efficiency of gh producers due to more energy consumption was studied then degrees of technical efficiency te pure technical efficiency pte and scale efficiency se were determined using data envelopment analysis dea additionally the amount of energy inputs wasted in inefficient greenhouses was assessed and energy saving was computed furthermore the effect of energy optimization on ghg emission was investigated and the total amount of ghg emission was calculated the total average of energy input and output was estimated at 35 092 4 mj ha 1 and 10 405 9 mj ha 1 for of production and similarly 1 356 932 8 mj ha 1 and 137 772 4 mj ha 1 for gh strawberry production total ghg emission was calculated as 803 4 kg co2eq ha 1 and 35083 5 kg co2eq ha 1 for of and gh production respectively based on the evaluations 20 2 273 902 8 mj ha 1 of overall energy sources can be saved if the performance of inefficient farmers is enhanced optimizing energy in the greenhouse production can result in a significant reduction in total ghg emission and the present emission of ghg can be reduced to the value of 29309 1 kg co2eq ha 1

measuring eco efficiency based on green indicators and potentials in energy saving and undesirable output abatement abstract nowadays majority of organizations are seeking to achieve sustainable development with respect to green concept one of the main criteria for assessing green performance is eco efficiency to identify all aspects of the eco efficiency inputs should be divided into energy and non energy and outputs should be divided into good and bad outputs to deal with this issue a data envelopment analysis dea model is developed to divide inputs into both energy and non energy and outputs into both desirable good and undesirable bad outputs likewise variables are separated into both discretionary and non discretionary factors accordingly a bounded adjusted measure bam based on green indicators is developed to calculate the eco efficiency of decision making units dmus besides energy saving potentials and undesirable output abatement potentials are calculated to show correlation coefficient between energy consumption and undesirable output finally proposed model is validated by assessing the eco efficiency of some selected members of organization for economic cooperation and development oecd australia finland ireland new zealand and switzerland are recognized as eco efficient countries and the rest of countries are inefficient in terms of the eco efficiency high and positive spearman correlation coefficient between energy consumption and undesirable outputs addresses that the more use of energy inputs the more undesirable outputs

using data envelopment analysis for estimating energy saving and undesirable output abatement a case study in the organization for economic co operation and development oecd countries abstract environmental protection is one of the main concerns of the international community countries show meticulous attention to environmental issues by considering eco efficiency the eco efficiency evaluation of countries is a complex and multidisciplinary topic data envelopment analysis has widely been applied to measure the eco efficiency of organization for economic co operation and development countries in previous studies energy inputs have not been contemplated the subject becomes more important when there are non discretionary factors in this paper the eco efficiency of countries in the organization for economic co operation and development is assessed given energy inputs undesirable outputs and non discretionary factors to this end slack based and range adjusted measures are extended also new environmental indices are introduced the relationship between consumption of energy inputs and production of undesirable outputs can be addressed by two new environmental indices spearman correlation test indicates a direct and positive relationship between potential of energy saving and potential of undesirable output abatement france germany luxemburg norway sweden and the united kingdom are recognized as eco efficient countries south korea and italy have the highest and lowest potential for energy saving respectively poland and iceland are countries with the highest and lowest potential for undesirable output abatement respectively it can be concluded that countries producing high undesirable outputs may not operate eco efficiently and thus have an extreme potential to save the optimum energy moreover countries consuming low energy may operate eco efficiently and have a low potential to reduce undesirable outputs

factors affecting the efficiency of wind power in the european union countries abstract the study uses the two stage bias corrected dea approach of simar and wilson 2007 to assess the efficiency of the eu countries in terms of their wind power investment in 2015 the set of input variables includes installed wind power capacity and average wind power density while output variables include wind generated electricity and three additional aspects environmental economic and energy security next the study examines the effect of renewable energy policy regarding wind energy the energy mix and the offshore wind power utilisation on the wind power efficiency of the analysed countries the results obtained reveal that the united kingdom sweden denmark and ireland are the most efficient countries in terms of wind power investment the inclusion of additional aspects demonstrates the greatest improvement of efficiency in belgium cyprus the netherlands estonia and germany the results seem to indicate that economic instruments used within renewable energy policy have a positive effect on wind power efficiency while policy support and regulatory instruments might negatively impact moreover the results show that the energy mix explains the variation of the efficiency of the eu countries when their economic and environmental aspects are considered the analysis of the geographic location indicates that countries with a high share of offshore wind capacity are the most efficient

sensitivity based security constrained opf market clearing model this paper proposes a novel technique for representing system security constraints that properly include voltage stability limits in the operation of competitive electricity markets the market clearing algorithm is modeled as a voltage stability constrained optimal power flow opf problem while the distance to the closest critical power flow solution is represented by means of a loading parameter and evaluated using a continuation power flow cpf technique sensitivities obtained at the opf step are used to estimate power directions for the cpf method while the cpf analysis provides the loading parameter to be used in the opf problem based on an n 1 contingency criterion the opf and the cpf steps are repeated until the maximum loading parameter is found thus providing optimal solutions considering both proper market conditions and security margins two benchmark systems with both supply and demand bidding are used to illustrate and test the proposed technique

measuring the efficiency of the investment for renewable energy in korea using data envelopment analysis abstract new and renewable energy nre has been paid much attention as a core alternative energy that can respond to the depletion of fossil fuel the global movement to address climate change and recent high oil prices because it is more environment friendly and sustainable than fossil fuel as the scale of investment in nre has increased an intriguing issue of the efficiency of the investment has been raised since strategic selection and focused investment allows policy goals to be achieved with limited resources and budget particularly since there are various kinds of renewable energy sources the efficiency of each nre technology must be examined to find suitable technologies for the environments of each target country and to eventually realize efficient investments in nre the purpose of this paper is to evaluate the investment efficiency of three nre technologies wind power photovoltaic and fuel cells with the dea data envelopment analysis method considering the two policy objectives of public investment technological development and wider dissemination of nre in korea the results indicate that wind power is the most efficient renewable energy in korea from the perspective of government investment

dynamic environmental performance analysis a malmquist index approach abstract this article presents a general framework for dynamic environmental performance analysis by generalizing the approach proposed by kuosmanen and kortelainen kuosmanen t kortelainen m 2005 measuring eco efficiency of production with data envelopment analysis journal of industrial ecology 9 4 59 72 from a static to a dynamic setting for this purpose we construct an environmental performance index epi by applying frontier efficiency techniques and a malmquist index approach compared to other dynamic environmental productivity and efficiency analysis approaches based on these methods our approach builds on the standard definition of eco efficiency as it is presented in the ecological economics literature recognizing the importance to analyze the sources of environmental performance changes we show how changes in overall environmental performance can be decomposed into changes in relative eco efficiency and shifts in environmental technology respectively we apply the presented technique at the macro level to dynamic environmental performance analysis of 20 member states of the european union in 1990 2003 according to the results environmental technical change mostly explains the improvement in overall environmental performance while relative eco efficiency change has been minor for most countries during the sample period

impact of energy efficiency policy to productive efficiency of electricity distribution industry in the philippines abstract the study analyzes the productive efficiency and simulates the effect of the energy efficiency policy on the productive efficiency of the electricity distribution industry in the philippines using data envelopment analysis dea the study finds that the main source of technical inefficiency in the distribution utilities is scale inefficiency moreover the study finds that with dsm electricity savings targets the technical efficiency of the industry would slightly improve significant improvement of technical efficiency is furthermore found with system loss reduction targets the paper concludes that the energy efficiency policy which benefits the overall economy and whole electricity supply industry results also in productive efficiency improvement in the distribution sector of the industry

non parametric efficiency progress and regress measures for panel data methodological aspects this purely methodological paper deals with the role of time in non parametric efficiency analysis using both fdh and dea technologies it first shows how each observation in a panel can be characterized in efficiency terms vis a vis three different kinds of frontiers i contemporaneous ii sequential and iii intertemporal these are then compared with window analysis next frontier shifts outward and inward interpreted as progress or regress are considered for the two kinds of technologies and computational methods are described in detail for evaluating such shifts in either case these are also contrasted with what is measured by the malmquist productivity index finally an alternative way of identifying progress and regress independent of the frontier notion and referring instead to some benchmark notion is extended here to panel data

a generalized measure of technical efficiency with the growing interest in the theory of the frontier production function the central analysis is the measurement of technical efficiency however the methodology has not been tested vigorously as has that of the conventional production function with few exceptions studies to date have used cross section data to measure mean technical efficiency of sample firms through the frontier production function this study uses panel data to measure not only the mean technical efficiency but also the individual firm specific technical efficiencies of sample indian farms relative to the frontier production function further it identifies the factors causing variations in individual technical efficiencies

multiobjective optimization for pricing system security in electricity markets this paper proposes a novel technique for representing system security in the operations of decentralized electricity markets with special emphasis on voltage stability an interior point method is used to solve the optimal power flow problem with a multiobjective function for maximizing both social benefit and the distance to maximum loading conditions a six bus system with both supply and demand side bidding is used to illustrate the proposed technique for both elastic and inelastic demand and a 129 bus test system that models the italian hv transmission network is used for testing the practical applicability of the proposed method the results obtained show that the proposed technique is able to improve system security while yielding better market conditions through increased transaction levels and improved locational marginal prices throughout the system

sustainability assessment of u s manufacturing sectors an economic input output based frontier approach abstract due to increasing concerns related to emerging environmental problems as a result of industrial activities sustainable manufacturing has become a topic of considerable interest worldwide in this study economic input output life cycle assessment eio lca and data envelopment analysis dea a linear programming based mathematical optimization model were integrated to analyze the eco efficiency of manufacturing sectors in the united states this integration was achieved by aggregating different environmental pressures into a single eco efficiency score first greenhouse gas emissions energy use water withdrawals hazardous waste generation and toxic releases of each manufacturing sector were quantified using the eio lca model second an input oriented dea multiplier model was developed third eco efficiency scores and rankings target and performance improvement values of each environmental category were determined finally the sensitivity of each environmental impact category was analyzed analysis results showed that five industrial sectors such as petroleum and coal products manufacturing food manufacturing printing and related support activities ordinance and accessories manufacturing and motor vehicle manufacturing were 100 eco efficient compared to other manufacturing sectors on the other hand approximately 90 of u s manufacturing sectors were found to be inefficient and require significant improvements in their life cycle performance among the environmental impact categories energy use had the highest sensitivity on the eco efficiency of u s manufacturing sectors and therefore improved energy efficiency in industrial processes and successful policy making toward increasing the share of renewable energy utilization were highly recommended

a comprehensive review of data envelopment analysis dea approach in energy efficiency the main aim of this review article is to review of dea models in regarding to energy efficiency this paper reviewed and summarized the different models of dea that have been applied around the world to development of energy efficiency problems consequently a review of 144 published scholarly papers appearing in 45 high ranking journals between 2006 and 2015 have been obtained to achieve a comprehensive review of dea application in energy efficiency accordingly the selected articles have been categorized based on year of publication author s nationalities scope of study time duration application area study purpose results and outcomes results of this review paper indicated that dea showed great promise to be a good evaluative tool for future analysis on energy efficiency issues where the production function between the inputs and outputs was virtually absent or extremely difficult to acquire

nodal uniform or zonal pricing distribution of economic surplus competitive markets for electricity determine either a uniform marginal price ump a set of nodal marginal prices nmps or a smaller set of zonal marginal prices zmps in theory the nmp system is best as it correctly accounts for transmission constraints and losses in some versions but critics allege that the large number of prices is confusing since the ump or zmp solution must be adjusted to account for transmission constraints and losses it is reasonable to consider a market design in which actual dispatch corresponds to an nmp model that accounts for losses and if a ump or zmp model is used at all it is only to compute prices for settlements and compensation for constrained on or off generation or load we prove that if used in this way the ump or zmp models a do not affect the total economic surplus b redistribute the surplus among generators and loads at the different nodes and c give perverse incentives for generation expansion we illustrate on a realistic system

dea environmental assessment in time horizon radial approach for malmquist index measurement on petroleum companies abstract the climate change and various pollutions have been influencing our societies and economies the environmental assessment to be discussed in this study is increasingly important because it serves as an initial step toward pollution prevention corporate leaders policy makers researchers and individuals who are interested in environmental protection have been paying attention to the assessment so that they can prepare policy suggestions on the global warming and climate change as a methodology for the assessment this study proposes a use of data environment analysis dea in a time horizon most of data sets on the climate change are sampled in a time series where the performance of organizations fluctuates every moment in applying the dea environmental assessment to such a data set it is necessary for us to classify outputs into desirable e g oil production and undesirable e g co 2 emission categories because all organizations usually produce not only desirable but also undesirable outputs as a result of their economic activities to unify the two different types of outputs this study incorporates the concept of natural and managerial disposability into the computational framework of dea and extends them into a time horizon for the research purpose this study incorporates malmquist index into the proposed dea environmental assessment to examine an occurrence of a frontier shift among multiple periods the frontier shift indicates a technology progress and or managerial innovation during an observed period the index is further separated into four subcomponents in a time horizon these subcomponents are differently expressed under the natural and managerial disposability thus eight different subcomponents on the malmquist index are proposed to measure the frontier shift as an application this study uses the proposed dea approach to examine whether the frontier shift due to technology progress occurs or not in the petroleum industry from 2005 to 2009 our empirical study finds that the industry has not exhibited any major frontier shift under natural disposability but showing a considerable frontier shift under managerial disposability in other words the petroleum firms have improved their environmental performance by eco technology to reduce an amount of co 2 emission during the observed annual periods

bidding for the future signaling in auctions with an aftermarket abstract this paper considers auctions where bidders compete for an advantage in future strategic interactions when bidders wish to exaggerate their private information equilibrium bidding functions are biased upwards as bidders attempt to signal via the winning bid signaling is most prominent in second price auctions where equilibrium bids are above value in english and first price auctions signaling is less extreme since the winner incurs the cost of her signaling choice the opportunity to signal lowers bidders payoffs and raises revenue when bidders understate their private information separating equilibria need not exist and the auction may not be efficient

improved cost benefit analysis for market based transmission planning a european perspective this paper addresses the problem of transmission planning in interconnected power systems under the uncertainty of future generation parks and fast varying marginal production costs the decision maker has to consider many different aspects during the denition of dierent transmission planning strategies that sometimes might even be contradicting major contributions are the incorporation of energy policy measurements in the evaluation process of candidate transmission plans and the inclusion of short and long term uncertainties the proposed methodology so called c trap is based on a semi dynamic heuristic approach that solves the social welfare maximization problem for several discrete steps considering different preferences for energy policy and transmission network reinforcements the flexibility provided through the heuristic analysis is very important for decision makers in the new uncertain environment in power systems

evaluating capital and operating cost efficiency of offshore wind farms a dea approach an actual growth rate greater than 30 indicates that offshore wind is a reasonable alternative to other energy sources the industry today is faced with the challenge of becoming competitive and thus significantly reduce the cost of electricity from offshore wind this situation implies that the evaluation of costs incurred during development installation and operation is one of the most pressing issues in this industry at the moment unfortunately actual cost analyses suffer from less resilient input data and the application of simple methodologies therefore the objective of this study was to elevate the discussion providing stakeholders with a sophisticated methodology and representative benchmark figures the use of data envelopment analysis dea allowed for plants to be modelled as entities and costs to be related to the main specifics such as distance to shore and water depth ensuring the necessary comparability moreover a particularly reliable database was established using cost data from annual reports offshore wind capacity of 3 6 gw was benchmarked regarding capital and operating cost efficiency best practice cost frontiers were determined and the effects of learning by doing and economies of scale were investigated ensuring that this article is of significant interest for the offshore wind industry

decomposition model and interior point methods for optimal spot pricing of electricity in deregulation environments in this paper an integrated optimal spot pricing model is presented first the proposed model includes the detailed derivation of optimal nodal specific real time prices for active and reactive powers and the method to decompose them into different components corresponding to generation loss and many selected ancillary services such as spinning reserve voltage control and security control the features of the proposed model are discussed in relationship to existing pricing models and classical economic dispatch the model is then implemented by modifying existing newton opf methods through interior point algorithms which can effectively avoid go no go gauge i e highly volatile in the calculation of spot prices case studies on 5 bus and ieee 30 bus systems are reported to illustrate the proposed method

performance assessment of alternative energy resources in brazilian power sector using data envelopment analysis abstract the brazilian power sector is known for the strong participation of renewable sources this characteristic is maintained thanks to government incentives for alternative sources with particular emphasis on wind generation small hydroelectric and sugar cane bagasse fired power plants because these are more costly than conventional plants they are nevertheless less costly than other alternative sources such as residue based generation the government s policy is based however on a purely economic analysis if socio environmental variables were to be taken into account the government s orientation in favor of renewable sources might be different the present article uses the data envelopment analysis dea method to incorporate such variables in the government s energy policies the results demonstrate the advantage of promoting residue based generation above that from other sources

what is the best practice for benchmark regulation of electricity distribution comparison of dea sfa and stoned methods electricity distribution is a natural local monopoly in many countries the regulators of this sector apply frontier methods such as data envelopment analysis dea or stochastic frontier analysis sfa to estimate the efficient cost of operation in finland a new stoned method was adopted in 2012 this paper compares dea sfa and stoned in the context of regulating electricity distribution using data from finland we compare the impacts of methodological choices on cost efficiency estimates and acceptable cost while the efficiency estimates are highly correlated the cost targets reveal major differences in addition we examine performance of the methods by monte carlo simulations we calibrate the data generation process dgp to closely match the empirical data and the model specification of the regulator we find that the stoned estimator yields a root mean squared error rmse of 4 with the sample size 100 precision improves as the sample size increases the dea estimator yields an rmse of approximately 10 but performance deteriorates as the sample size increases the sfa estimator has an rmse of 144 the poor performance of sfa is due to the wrong functional form and multicollinearity

counterfactual comparisons of investment options for wind power and agricultural production in the united states lessons from northern ohio abstract we analyze potential efficiency gains in wind power projects by comparing counterfactual investment decisions in two different scenarios under a real options framework the first scenario is a standard wind power investment where the investor rents the land from local farms in the second scenario the wind power investor buys the land and commercializes both electricity and crop production thus reducing the revenue risk through the diversification both scenarios have a waiting option with the wholesale prices leading the installation decision we model the electricity price as a mean reverting process with jumps and with different jumping probabilities for the different seasons of the year corn prices follow a mean reverting process the waiting flexibility was modeled as a bundle of european options the results indicate that the waiting option is exercised in 100 of our simulations in both scenarios suggesting the still important role of government policies to stimulate wind power more importantly in more than 90 of the simulations the second scenario brought value to the investment furthermore net present values are more sensitive to reductions in capital costs than electricity prices these results can form the basis for more effective policies for the wind power sector

charging for network security based on long run incremental cost pricing pricing for the use of the networks is essential in the way that it should be able to reflect the costs benefits imposed on a network when connecting a new generator or demand and to provide forward looking message to influence the site and size of future network customers studies have been extensively carried out over the years to achieve this pricing goal few methodologies can directly link nodal generation demand increment to network long run marginal incremental costs even fewer consider network security in their pricing methodologies considering it is one of the most important cost drivers all networks are designed to be able to withstand credible contingencies but this comes at a significant cost to network development this paper proposes a new approach that can establish the direct link between nodal generation demand increment and changes in investment cost while ensuring network security the investment cost is reflected by the change in the spare capacity of a network asset from a nodal injection which is in turn translated into an investment horizon leading to the change in the present value of a future investment cost the security is reflected in the pricing through a full n 1 contingency analysis to define the maximum allowed power flow along each circuit from which the time horizon of future investment is determined this paper illustrates the implementation of the proposed pricing model for a system whose demand grows either at a uniform rate or at variable growth rates the benefits of introducing security into the long run pricing model are demonstrated on the ieee 14 busbar system and a practical 87 busbar distribution network

probabilistic optimal power flow in electricity markets based on a two point estimate method this paper presents an application of a two point estimate method 2pem to account for uncertainties in the optimal power flow opf problem in the context of competitive electricity markets these uncertainties can be seen as a by product of the economic pressure that forces market participants to behave in an unpredictable manner hence probability distributions of locational marginal prices are calculated as a result instead of using computationally demanding methods the proposed approach needs 2n runs of the deterministic opf for n uncertain variables to get the result in terms of the first three moments of the corresponding probability density functions another advantage of the 2pem is that it does not require derivatives of the nonlinear function used in the computation of the probability distributions the proposed method is tested on a simple three bus test system and on a more realistic 129 bus test system results are compared against more accurate results obtained from mcs the proposed method demonstrates a high level of accuracy for mean values when compared to the mcs for standard deviations the results are better in those cases when the number of uncertain variables is relatively low or when their dispersion is not large

sustainable energy systems role of optimization modeling techniques in power generation and supply a review electricity is conceivably the most multipurpose energy carrier in modern global economy and therefore primarily linked to human and economic development energy sector reform is critical to sustainable energy development and includes reviewing and reforming subsidies establishing credible regulatory frameworks developing policy environments through regulatory interventions and creating market based approaches energy security has recently become an important policy driver and privatization of the electricity sector has secured energy supply and provided cheaper energy services in some countries in the short term but has led to contrary effects elsewhere due to increasing competition resulting in deferred investments in plant and infrastructure due to longer term uncertainties on the other hand global dependence on fossil fuels has led to the release of over 1100 gtco2 into the atmosphere since the mid 19th century currently energy related ghg emissions mainly from fossil fuel combustion for heat supply electricity generation and transport account for around 70 of total emissions including carbon dioxide methane and some traces of nitrous oxide this multitude of aspects play a role in societal debate in comparing electricity generating and supply options such as cost ghg emissions radiological and toxicological exposure occupational health and safety employment domestic energy security and social impressions energy systems engineering provides a methodological scientific framework to arrive at realistic integrated solutions to complex energy problems by adopting a holistic systems based approach especially at decision making and planning stage modeling and optimization found widespread applications in the study of physical and chemical systems production planning and scheduling systems location and transportation problems resource allocation in financial systems and engineering design this article reviews the literature on power and supply sector developments and analyzes the role of modeling and optimization in this sector as well as the future prospective of optimization modeling as a tool for sustainable energy systems

economic efficiency and frontier techniques abstract most of the literature related to the measurement of economic efficiency has based its analysis either on parametric or on non parametric frontier methods the choice of estimation method has been an issue of debate with some researchers preferring the parametric and others the non parametric approach the aim of this paper is to provide a critical and detailed review of both core frontier methods in our opinion no approach is strictly preferable to any other moreover a careful consideration of their main advantages and disadvantages of the data set utilized and of the intrinsic characteristics of the framework under analysis will help us in the correct implementation of these techniques recent developments in frontier techniques and economic efficiency measurement such as bayesian techniques bootstrapping duality theory and the analysis of sampling asymptotic properties are also considered in this paper

assessing the performance of dutch local energy companies according to binding european union agreements the netherlands has to cover at least 14 of its total energy use with renewable energy sources by 2020 however the share of renewable energy in the netherlands is small and hardly increasing in 2010 renewable energy in the netherlands accounted for only 3 8 of the national energy use and has decreased with 0 4 compared to 2009 a cause of the stagnating renewable energy generation in the netherlands is the absence of a nation wide clear and consistent long term policy on the introduction of renewable energy in order to overcome the current standstill in renewable energy adoption several dutch municipalities take the initiative and establish local energy companies lecs however to date it is unclear which lec type performs best this research aims to compare the performance of existing lecs on three aspects technology finance and organization furthermore the performance of existing lecs is compared with theoretical reference lecs in order to estimate efficiencies and opportunities for improvements finally the influence of the recent changes in the dutch subsidy scheme on lec performance is examined in order to achieve these aims the benchmark method data envelopment analysis is employed

assessing eco efficiency through the dea analysis and decoupling index in the latin america countries abstract this study was developed according to a two step approach in the first step we provide an investigation of the changes in eco efficiency under constant and variable return to scale while on a second step the evaluation of the decoupling elasticity will be given the impacts of energy economic and environmental determinants inputs on the performance indicators of eco efficiency were calculated as the inverse of the carbon intensity ratio of the gdp over the co2 emissions both from the world development indicators database the changes in eco efficiency and the decoupling elasticity between co2 emissions and economic growth changes data was used for 16 latin america countries according to five year periods from 1994 to 2013 for all the five time span considered it is worth noting that the degree of technical efficiency for the latin america countries is lower than the degree of technological efficiency thus indicating that a portion of the overall inefficiency is due to the fact that these countries are producing below the production frontier rather than to an inefficient use of technology on average the results have confirmed that the technological scale change in energy production is the dominant factor influencing the optimal production frontier in the sample of countries under analysis complementarily according to the mixed results from the decoupling analysis we may conclude that the increase decrease of the co2 per capita emissions was due to other economic and environmental factors rather than to a negative positive effect of the gdp growth rate

a comparative analysis of business structures suitable for farmer owned wind power projects in the united states abstract for years farmers in the united states have looked with envy on their european counterparts ability to profitably farm the wind through ownership of distributed utility scale wind projects only within the past few years however has farmer or community owned wind power development become a reality in the united states the primary hurdle to this type of development in the united states has been devising and implementing suitable business and legal structures that enable such projects to take advantage of tax based federal incentives for wind power this article discusses the limitations of such incentives in supporting farmer or community owned wind projects describes four ownership structures that potentially overcome such limitations and finally conducts comparative financial analysis on those four structures using as an example a hypothetical 1 5 mw farmer owned project located in the state of oregon we find that material differences in the competitiveness of each structure do exist but that choosing the best structure for a given project will largely depend on the conditions at hand e g the ability of the farmer s to utilize tax credits preference for individual versus cooperative ownership and the state and utility service territory in which the project will be located

analysis on china s eco innovations regulation context intertemporal change and regional differences abstract eco innovation is recognized as a determinant of success or failure of environmental protection efforts in the long run this paper attempts to examine china s eco innovation gains in response to the energy saving and emissions reduction eser policy enforced during 2006 2010 we first construct an integrated analysis framework to evaluate the changes of energy and environmental performance used as the proxy of eco innovation and then the intertemporal change of china s eco innovation gains as well as the regional differences is investigated the results indicate that china had accelerated its process of eco innovations during 2006 2010 when a series of eser policies were enforced the developments and wide adoptions of advanced energy saving and environmentally friendly technologies serve as the primary driving forces while upgrading management skills and organizational designs contribute relatively little furthermore the realizing paths of cross region eco innovations in china are obviously discrepant

environment adjusted total factor energy efficiency of taiwan s service sectors this study computes the pure technical efficiency pte and energy saving target of taiwan s service sectors during 2001 2008 by using the input oriented data envelopment analysis dea approach with the assumption of a variable returns to scale vrs situation this paper further investigates the effects of industry characteristics on the energy saving target by applying the four stage dea proposed by fried et al 1999 we also calculate the pre adjusted and environment adjusted total factor energy efficiency tfee scores in these service sectors there are three inputs labor capital stock and energy consumption and a single output real gdp in the dea model the most energy efficient service sector is finance insurance and real estate which has an average tfee of 0 994 and an environment adjusted tfee eatfee of 0 807 the study utilizes the panel data random effects tobit regression model with the energy saving target est as the dependent variable those service industries with a larger gdp output have greater excess use of energy the capital labor ratio has a significantly positive effect while the time trend variable has a significantly negative impact on the est suggesting that future new capital investment should also be accompanied with energy saving technology in the service sectors

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

stochastic multiobjective market clearing of joint energy and reserves auctions ensuring power system security in this paper a stochastic multiobjective framework is proposed for day ahead joint market clearing the proposed multiobjective framework can concurrently optimize competing objective functions including augmented generation offer cost and security indices overload index voltage drop index and voltage stability margin besides system uncertainties including generating units and branches contingencies and load uncertainty are explicitly considered in the stochastic market clearing scheme the solution methodology consists of two stages which firstly employs roulette wheel mechanism and monte carlo simulation mcs for random adaptive 24 h scenario generation wherein the stochastic multiobjective market clearing procedure is converted into its respective deterministic equivalents scenarios in the second stage for each deterministic scenario a multiobjective mathematical programming mmp formulation based on the epsiv constrained approach is implemented for provision of spinning reserve sr and nonspinning reserve nsr as well as energy the mmp formulation of the market clearing process is optimized while meeting ac power flow constraints and expected interruption cost eic the ieee 24 bus reliability test system rts 24 bus is used to demonstrate the performance of the proposed method

total factor carbon emission performance of fossil fuel power plants in china a metafrontier non radial malmquist index analysis article i nfo this paper proposes the metafrontier non radial malmquist co2 emission performance index mnmcpi for measuring dynamic changes in total factor co2 emission performance over time the mnmcpi method allows for the incorporation of group heterogeneity and non radial slack into the previously introduced malmquist co2 emission performance index mcpi we derive the mnmcpi by solving several non radial data envelop ment analysis dea models we decompose the mnmcpi into an efficiency change ec index a best practice gap change bpc index and a technology gap change tgc index and based on the proposed indices we examine the dynamic changes in co2 emission performance and its decomposition of fossil fuel power plants in china for the 2005 2010 period the empirical results show a 0 38 increase in total factor co2 emission performance as a whole and a u shaped mnmcpi curve for the sample period because companies owned by the central government lack innovation and technological leadership the results suggest a missing link in the role of the central government in promoting co2 emission performance

dynamic r d competition the authors study a simple two stage stochastic patent race involving two firms they examine the behavior of the participants as they gain the lead or fall behind in the race the authors find that the leader engages in rd 2 a policy of issuing patents for intermediate research results and 3 the effects of research joint ventures whereby the firms coordinate their initial research efforts and share their results copyright 1987 by royal economic society

a comprehensive analysis of china s regional energy saving and emission reduction efficiency from production and treatment perspectives abstract energy and environmental issues have recently aroused increasing interest in china and many approaches are used to evaluate energy and environmental performance in this paper a two stage network dea framework is applied to evaluate the efficiency of energy saving and emission reduction in china during the period of the eleventh five year plan from 2006 to 2010 in this study economic activities are divided into production and treatment processes this is different from previous research which generally focused on either environmental efficiency or energy efficiency omitting the integration of energy and environmental measures today energy saving and emission reduction are both parts of the basic state policy of china and are equally important the empirical results in this study show that i eastern china has the best energy saving and emission reduction efficiency performing is better than western and central china ii the efficiency of the production process in central china is better than that in western china while the western area performs better than the central area in term of treatment efficiency iii integrated efficiency of energy saving and emission reduction of china was relatively stable in the five years and the pollution treatment efficiency maintained a rising trend

measurement of productive efficiency with frontier methods a case study for wind farms abstract in this paper we measure the productive efficiency of a group of wind farms during the period 2001 2004 using the frontier methods data envelopment analysis dea and stochastic frontier analysis sfa taking an extensive definition of the productive process of wind electricity as our starting point we obtain results which allow us to identify on the one hand an essentially ex ante efficiency measure and on the other hand aspects of relevance for wind farm development companies developers technology suppliers and operators in terms of their economic impact these results may also be of interest for regulators and other stakeholders in the sector furthermore we discuss the implications of the simultaneous use of dea and sfa methodologies

a dynamic game of r and d patent protection and competitive behavior a theory of dynamic optimal resource allocation to r and d in an n firm industry is developed using differential games this technique represents a synthesis of the analytic methods previously applied to the problem static game theory and optimal control the use of particular functional forms allows the computation and detailed discussion of the nash equilibrium in investment rules this paper addresses the problem of resource allocation to research and development among the important issues that a firm engaging in r and d must evaluate are uncertainty regarding the feasibility and profitability of a particular innovation the possibility of a protracted development period the possibility that a rival firm may innovate first capturing either a patent or a significant share of the new market the possibility that a rival firm may imitate the innovation and appropriate some of the profits in the new market in what follows we will develop a theory of optimal resource allocation to research and development which incorporates the aspects of r and d enumerated above we will use a dynamic game theoretic analysis determining the nash equilibrium strategies for n identical firms the availability of perfect patent protection is shown to accelerate development of the innovation and the effect of increasing rivalry is addressed the impact of increasing rivalry on nash equilibrium investment in r and d depends upon the degree of appropriability of rewards if patent protection is perfect then increasing the number of nash rivals results in increased r and d effort however when imitation is rewarded the opposite may be true finally some notions of competitive and perfectly competitive equilibrium are examined in the context of the model developed below

simultaneous signaling through investment in an r d game with private information abstract we analyze an r d game of two sided incomplete information in which firms can invest in cost reducing technology before engaging in cournot competition investment is observable but r d outcomes are not we focus on partial pooling equilibria in which high cost firms mimic the strategy of low cost firms resulting in under investment in equilibrium these equilibria generally involve mixed strategies with the novel feature that players are not indifferent among their mixed strategies due to the beliefs and subsequent actions they induce further results suggest that firms may be willing to pay to keep their r d outcomes concealed

dea approach for unified efficiency measurement assessment of japanese fossil fuel power generation this study discusses a new dea data envelopment analysis approach to measure the unified operational and environmental efficiency of energy firms it is widely known that they produce not only desirable good outputs e g electricity but also undesirable bad outputs e g co2 as a result of their plant operations the proposed approach incorporates an output separation desirable and undesirable outputs for the performance evaluation of energy firms in addition to the output separation this study separates inputs into energy and non energy inputs consequently the proposed approach incorporates not only the output separation but also the input separation within a computational framework of dea non radial measurement this study compares the proposed approach with other previous dea approaches used for the performance evaluation of energy firms after the methodological comparison this study applies the proposed approach for measuring the unified efficiency of japanese fossil fuel power generation this empirical study confirms that the implementation of kyoto protocol 2005 has not been effective on the unified efficiency of japanese fossil fuel power generation during the observed period 2004 2008 although the empirical result is inconsistent with the current japanese environmental policy under kyoto protocol it contains policy implications for guiding the future direction of japanese environmental policy on the electric power industry

who invests in renewable electricity production empirical evidence and suggestions for further research transforming energy systems to fulfill the needs of a low carbon economy requires large investments in renewable electricity production res e recent literature underlines the need to take a closer look at the composition of the res e investor group in order to understand the motives and investment processes of different types of investors however existing energy policies generally consider res e investments made on a regional or national level and target investors who evaluate their res e investments according to least cost high profit criteria we present empirical evidence to show that res e investments are made by a heterogeneous group of investors that a variety of investors exist and that their formation varies among the different types of renewable sources this has direct implications for our understanding of the investment process in res e and for the study of motives and driving forces of res e investors we introduce a multi dimensional framework for analyzing differences between categories of investors which not only considers to the standard economic dimension which is predominant in the contemporary energy literature but also considers the entrepreneurship innovation adoption and institutional dimensions the framework emphasizes the influence of four main investor related factors on the investment process which should be studied in future research motives background resources and personal characteristics

towards indicators of sustainable development for firms a productive efficiency perspective sustainable development can be reflected by various economic social and environmental factors that are closely interconnected with each other and with the additional dimension of time which stresses the long term perspective of several factors due to their central role in human activities and development firms should play an important part in the attainment of sustainability goals the purpose of this paper is to contribute to the methodology of indicators that allow for the assessment of business participation into sustainable development a fundamental standpoint adopted is to view economic social and environmental efficiency as a necessary but not sufficient step towards sustainability to work out indicators we build on both the concepts of cost benefit analysis and the principles of productive efficiency we assume that we have observations on economic social and environmental factors for a set of decision making units dmus e g firms in an industrial sub sector the efficiency of each dmu is computed from a set of observed data using mathematical programming techniques resulting in dmus that are efficient and define the efficiency frontier among the set of dmus and dmus that are inefficient to cope with the multidimensionality of sustainable development it is important not to base decisions on one unique aggregate sustainability indicator instead it is suggested to develop two or three partial indicators that stress different aspects of the problem the proposed indicators could be used as an aid to detect so called factors of unsustainability and hence to provide for recommendations as to the regulations and incentives or managerial practices that will contribute to overall sustainability c 1999 elsevier science b v all rights reserved