Remember Me
Or use your Academic/Social account:


Or use your Academic/Social account:


You have just completed your registration at OpenAire.

Before you can login to the site, you will need to activate your account. An e-mail will be sent to you with the proper instructions.


Please note that this site is currently undergoing Beta testing.
Any new content you create is not guaranteed to be present to the final version of the site upon release.

Thank you for your patience,
OpenAire Dev Team.

Close This Message


Verify Password:
Verify E-mail:
*All Fields Are Required.
Please Verify You Are Human:
fbtwitterlinkedinvimeoflicker grey 14rssslideshare1
Arabi, Behrouz; Doraisamy, Susila Munisamy; Emrouznejad, Ali; Khoshroo, Alireza (2016)
Languages: English
Types: Article
Incorporating Material Balance Principle (MBP) in industrial and agricultural performance measurement systems with pollutant factors has been on the rise in recent years. Many conventional methods of performance measurement have proven incompatible with the material flow conditions. This study will address the issue of eco-efficiency measurement adjusted for pollution, taking into account materials flow conditions and the MBP requirements, in order to provide ‘real’ measures of performance that can serve as guides when making policies. We develop a new approach by integrating slacks-based measure to enhance the Malmquist Luenberger Index by a material balance condition that reflects the conservation of matter. This model is compared with a similar model, which incorporates MBP using the trade-off approach to measure productivity and eco-efficiency trends of power plants. Results reveal similar findings for both models substantiating robustness and applicability of the proposed model in this paper.
  • The results below are discovered through our pilot algorithms. Let us know how we are doing!

    • [1] Lauwers L. Justifying the incorporation of the materials balance principle into frontier-based eco-efficiency models. Ecological Economics. 2009;68(6):1605-14.
    • [2] Baumgärtner S, Dyckhoff H, Faber M, Proops J, Schiller J. The concept of joint production and ecological economics. Ecological Economics. 2001;36(3):365-72.
    • [3] Coelli T, Lauwers L, Huylenbroeck G. Environmental efficiency measurement and the materials balance condition. Journal of Productivity Analysis. 2007;28(1-2):3-12.
    • [4] Tyteca D. Linear Programming Models for the Measurement of Environmental Performance of Firms-Concepts and Empirical Results. Journal of Productivity Analysis. 1997;8(2):183-97.
    • [5] Fare R, Grosskopf S, Lovell CAK, Pasurka C. Multilateral Productivity Comparisons When Some Outputs are Undesirable: A Nonparametric Approach. The Review of Economics and Statistics. 1989;71(1):90-8.
    • [6] Färe R, Grosskopf S, Tyteca D. An activity analysis model of the environmental performance of firms-application to fossil-fuel-fired electric utilities. Ecological Economics. 1996;18(2):161-75.
    • [7] Reinhard S, Knox Lovell CA, Thijssen GJ. Environmental efficiency with multiple environmentally detrimental variables; estimated with SFA and DEA. European Journal of Operational Research. 2000;121(2):287-303.
    • [8] Chung YH, Färe R, Grosskopf S. Productivity and Undesirable Outputs: A Directional Distance Function Approach. Journal of Environmental Management. 1997;51(3):229-40.
    • [9] Shephard RW, Gale D, Kuhn HW. Theory of cost and production functions: Princeton University Press Princeton, NJ, 1970.
    • [10] Färe R, Grosskopf S, Pasurka JCA. Environmental production functions and environmental directional distance functions. Energy. 2007;32(7):1055-66.
    • [11] Färe R, Grosskopf S. Directional distance functions and slacks-based measures of efficiency. European journal of operational research. 2010a;200(1):320-2.
    • [12] Picazo-Tadeo AJ, Reig-Martínez E, Hernández-Sancho F. Directional distance functions and environmental regulation. Resource and Energy Economics. 2005;27(2):131-42.
    • [16] Van der Hamsvoort CPCM, Latacz-Lohmann U. Sustainability: a review of the debate and an extension. International Journal of Sustainable Development and World Ecology. 1998;5:99-110.
    • [17] Field BC. ″Environmental Economics. An Introduction ″. Economics Series, Mc Graw Hill. 1994.
    • [18] Field B, Olewiler N. Environmental Economics (Updated second Canadian edition). McGraw-Hill Ryerson Limited. Canada; 2005.
    • [19] Tyteca D. Linear programming models for the measurement of environmental performance of firms-concepts and empirical results. Journal of Productivity Analysis. 1997a;8(2):183-97.
    • [20] Lauwers L, Van Huylenbroeck G, Rogiers G. Technical, economic and environmental efficiency analysis of pig fattening farms, Poster presentation at the 9th European Congress of Agricultural Economists, Warschau. Polen, August 24th-28th. 1999.
    • [21] Murty S, Robert Russell R, Levkoff SB. On modeling pollution-generating technologies. Journal of Environmental Economics and Management. 2012.
    • [22] Pethig R. Non-linear production, abatement, pollution and materials balance reconsidered. Journal of Environmental Economics and Management. 2006;51(2):185-204.
    • [23] Färe R, Grosskopf S, Pasurka Jr C. Joint Production of Good and Bad Outputs with a Network Application. Encyclopedia of Energy, Natural Resources and Environmental Economics. 2011.
    • [24] Kuosmanen N, Kuosmanen T. Modeling Cumulative Effects of Nutrient Surpluses in Agriculture: A Dynamic Approach to Material Balance Accounting. Ecological Economics. 2013;90:159-67.
    • [25] Utlu Z, Kincay O. An assessment of a pulp and paper mill through energy and exergy analyses. Energy. 2013;57:565-73.
    • [26] Thanh Nguyen T, Hoang VN, Seo B. Cost and environmental efficiency of rice farms in South Korea. Agricultural Economics. 2012;43(4):369-78.
    • [27] Farrell MJ. The measurement of productive efficiency. Journal of the Royal Statistical Society Series A (General). 1957;120(3):253-90.
    • [28] Charnes A, Cooper W, Rhodes E. Measuring the efficiency of decision making units. European journal of operational research. 1978;2(6):429-44.
    • [29] Banker RD, Charnes A, Cooper WW. Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science. 1984;30(9):1078-92.
    • [30] Zhou G, Chung W, Zhang X. A study of carbon dioxide emissions performance of China's transport sector. Energy. 2013.
    • [31] Khoshroo A, Mulwa R, Emrouznejad A, Arabi B. A non-parametric Data Envelopment Analysis approach for improving energy efficiency of grape production. Energy. 2013;63:189-94.
    • [32] Arabi B, Munisamy S, Emrouznejad A, Shadman F. Power industry restructuring and eco-efficiency changes: A new slacks-based model in Malmquist-Luenberger Index measurement. Energy Policy. 2014;68:132-45.
    • [33] Wei Y-M, Liao H, Fan Y. An empirical analysis of energy efficiency in China's iron and steel sector. Energy. 2007;32(12):2262-70.
    • [34] Emrouznejad A, Parker BR, Tavares G. Evaluation of research in efficiency and productivity: A survey and analysis of the first 30 years of scholarly literature in DEA. Socio-Economic Planning Sciences. 2008;42(3):151-7.
    • [35] Seiford LM. Data envelopment analysis: The evolution of the state of the art (1978-1995). Journal of Productivity Analysis. 1996;7(2):99-137.
    • [36] Emrouznejad A. Advances in data envelopment analysis. Annals of operations research. 2014;214(1):1-4.
    • [37] Berg SA, Førsund FR, Jansen ES. Malmquist indices of productivity growth during the deregulation of Norwegian banking, 1980-89. The Scandinavian Journal of Economics. 1992;94:211-28.
    • [38] Hadi Vencheh A, Kazemi Matin R, Tavassoli Kajani M. Undesirable factors in efficiency measurement. Applied Mathematics and Computation. 2005;163(2):547-52.
    • [39] Huang X, Hu D, Zhou Z. Measuring efficiency in Chinese commercial banks using a DEA model with undesirable output. International Journal of Information and Decision Sciences. 2013;5(2):140-53.
    • [40] Jahanshahloo GR, Lotfi FH, Shoja N, Tohidi G, Razavyan S. Undesirable inputs and outputs in DEA models. Applied Mathematics and Computation. 2005;169(2):917-25.
    • [41] Tone K. A slacks-based measure of efficiency in data envelopment analysis. European journal of operational research. 2001;130(3):498-509.
    • [42] Zhou P, Poh KL, Ang BW. A non-radial DEA approach to measuring environmental performance. European journal of operational research. 2007;178(1):1-9.
    • [43] Lozano S, Gutiérrez E, Moreno P. Network DEA approach to airports performance assessment considering undesirable outputs. Applied Mathematical Modelling. 2013;37(4):1665-76.
    • [44] Bilsel M, Davutyan N. Hospital efficiency with risk adjusted mortality as undesirable output: the Turkish case. Annals of Operations Research. 2014;221(1):73-88.
    • [45] Munisamy S, Arabi B. Eco-efficiency Change in Power Plants: Using A Slacks-Based Measure for the MetaFrontier Malmquist Luenberger Productivity Index. Journal of Cleaner Production. 2015.
    • [46] Welch E, Barnum D. Joint environmental and cost efficiency analysis of electricity generation. Ecological Economics. 2009;68(8-9):2336-43.
    • [47] Färe R, Grosskopf S. Directional distance functions and slacks-based measures of efficiency: Some clarifications. European journal of operational research. 2010b;206(3):702.
    • [49] Briec W. A graph-type extension of Farrell technical efficiency measure. Journal of Productivity Analysis. 1997;8(1):95-110.
    • [50] Arabi B, Munisamy S, Emrouznejad A. A new slacks-based measure of Malmquist-Luenberger index in the presence of undesirable outputs. Omega. 2015;51(0):29-37.
    • [51] Golany B, Roll Y, Rybak D. Measuring efficiency of power plants in Israel by data envelopment analysis. Engineering Management, IEEE Transactions on. 1994;41(3):291-301.
    • [52] Korhonen PJ, Luptacik M. Eco-efficiency analysis of power plants: an extension of data envelopment analysis. European Journal of Operational Research. 2004;154(2):437-46.
    • [53] Färe R, Grosskopf S, Noh D-W, Weber W. Characteristics of a polluting technology: theory and practice. journal of Econometrics. 2005;126(2):469-92.
    • [54] Burnett RD, Hansen DR. Ecoefficiency: Defining a role for environmental cost management. Accounting, Organizations and Society. 2008;33(6):551-81.
    • [55] Podinovski V. Production trade-offs and weight restrictions in data envelopment analysis. Journal of the operational Research Society. 2004;55(12):1311-22.
  • No related research data.
  • No similar publications.

Share - Bookmark

Cite this article