Regulatory impact of environmental standards on the eco-efficiency of firms

Bremberger, Christoph and Bremberger, Francisca and Luptacik, Mikulas and Schmitt, Stephan (2014) Regulatory impact of environmental standards on the eco-efficiency of firms. Journal of the Operational Research Society, 66 (3). pp. 421-433. ISSN 0160-5682


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In this paper we propose an approach to implement environmental standards into Data Envelopment Analysis (DEA) and in this way to measure their regulatory impact on eco-efficiency of firms. As one standard feature of basic DEA models (as e.g. CCR from Charnes et al. (1978)) lies in the exogeneity of inputs, desirable and undesirable outputs, it is not possible to introduce environmental constraints for these parameters directly into basic DEA models. Therefore, we use a bounded-variable way, which allows constraints on the efficiency frontier. The regulatory impact is assessed as difference in eco-efficiency scores before and after fictive introduction of an environmental standard. Furthermore, we distinguish between weak and strong disposability of undesirable outputs and develop corresponding models. Assessing the regulatory impact of environmental standards in advance provides support for environmental policy makers in choosing appropriate instruments and in adjusting the intensity of regulation.

Item Type: Article
Additional Information: This is a post-peer-review, pre-copyedit version of an article published in "Journal of the Operational Research Society". The definitive publisher-authenticated version is available online at:
Keywords: Data envelopment analysis / Environmental studies / Energy / Regulation
Divisions: Departments > Strategy and Innovation > Corporate Governance
Departments > Volkswirtschaft > Makroökonomie
Forschungsinstitute > Regulierungsökonomie
Version of the Document: Accepted for Publication
Variance from Published Version: Minor
Depositing User: Elena Simukovic
Date Deposited: 07 May 2015 13:23
Last Modified: 17 Jul 2020 15:10
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