scholarly journals The Cost of Reducing Municipal Unsorted Solid Waste: Evidence from Municipalities in Chile

2021 ◽  
Vol 13 (12) ◽  
pp. 6607
Author(s):  
Maria Molinos-Senante ◽  
Alexandros Maziotis
Keyword(s):  
Municipal Solid Waste ◽  
Solid Waste ◽  
Marginal Cost ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Economic Cost ◽  
Well Being ◽  
Efficiency Score ◽  
Frontier Analysis ◽  
Waste Sector

The management of municipal solid waste sector is crucial for a sustainable circular economy. Waste utilities are expected to provide high quality solid waste services at an affordable price. The efficient management of solid waste requires its assessment from an economic and environmental perspective, i.e., eco-efficiency assessment. Although the reduction of unsorted waste incurs an economic cost, its positive externalities are huge for the well-being of society, the environment, and people. Our study quantifies the marginal cost of reducing any unsorted waste using stochastic frontier analysis techniques which allow us to estimate the eco-efficiency of the waste sector. Our empirical approach focuses on the municipal solid waste collection and recycling services provided by several waste utilities in Chile. The results indicate that substantial eco-inefficiency in the sector exists, since the average eco-efficiency score is roughly 0.5 which means that the municipalities could approximately halve their operational costs and unsorted waste to produce the same level of output. The average marginal cost of reducing unsorted waste is 32.28 Chilean pesos per ton, although notable differences are revealed among the waste utilities evaluated. The results provided by this study are of great interest to stakeholders to promote sustainable management solutions and resource efficient solid waste services.

scholarly journals Factors Affecting Technical Efficiency of Rubber Smallholders in Negeri Sembilan, Malaysia

2017 ◽  
Vol 9 (5) ◽  
pp. 226
Author(s):  
A. Aliyu ◽  
Ismail Abd Latif ◽  
Mad Nasir Shamsudin ◽  
Nolila Mohd Nawi
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Likelihood Function ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Farm Size ◽  
Cross Sectional ◽  
Frontier Analysis ◽  
The Mean ◽  
Size Task

The main objective of the study was to figure out, identify and analyse the technical efficiency of rubber smallholders’ production in Negeri Sembilan, Malaysia. Multi-stage data collection procedures, comprising both purposive and random sampling techniques, were used. Using structured questionnaires, farm-level information with cross sectional data from five districts of Negeri Sembilan, were employed in the study. A parametric Stochastic Frontier Analysis (SFA), with a transcendental logarithmic (Translog) functional form, was used in the study. The descriptive statistics results revealed that, the mean rubber yield was 5465 kg while that of the seven inputs used include 1.2 ha, 602.7, 2.33, 363.6 kg, 13.0 lit, 13.2 man days and 2.47 respectively for farm size, task, farm tools, fertilizer, herbicides, labour and rubber clones.The inferential statistics showed that, the mean technical efficiency was found to be 0.73 with a standard deviation of 0.089. Thus, this translates that 27% accounted for technical inefficiency. Both the sigma square and gamma coefficients were found to be statistically significant at 1% level. The Log Likelihood Function (LLF) and the Log Rati (LR) test were found to be respectively 167.7 and 34.07. The results further revealed that, although none of the farms were found to be on the frontier, however, 9 farms were very near the frontier with efficiency score range between 0.90-0.99. And twenty (20) firms have range 0.80-0.90. Race, Tapping experience, household number and extension agent’s visits were found to be technically significant and are thus critical in determining technical efficiency of rubber smallholders in Negeri Sembilan, Malaysia.

scholarly journals Profit efficiency of shariah banks in Indonesia and the determining factors: Using Stochastic Frontier Analysis Method

2016 ◽  
Vol 19 (2) ◽  
pp. 271 ◽  
Author(s):  
Sri Wahyuni ◽  
Pujiharto Pujiharto
Keyword(s):  
Stochastic Frontier Analysis ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Capital Adequacy ◽  
Profit Efficiency ◽  
Global Crisis ◽  
Frontier Analysis ◽  
Business Units ◽  
Determining Factors

This study aims to measure the efficiency of profit and examine the factors that affect the efficiency of shariah banks profit in Indonesia such as the size of banks, risk financing, and capital adequacy. This study used the Shariah banks in Indonesia, during the period of 2010-2014. These shariah banks were selected as the sample Commercial shariah banks and Shariah Business Units. This study uses three stages of research. First, it measures the efficiency of profit using a parametric approach that is Stochastic Frontier Approach (SFA). Secondly, its uses regression profit efficiency scores with various determinants of profit efficiency. The third phase is testing the efficiency score during the global crisis (2008-2009) and after the global crisis period (2010-2014). It shows that in overall there occurred profit efficiency in the shariah banks in Indonesia as it was indicated by the score of profit efficiency that is less than one. The inefficiency occurred in both Shariah banks and shariah business units. Bank size has a positive impact on profit efficiency. The bigger the bank, the better profit efficiency is. It can be implied that this research provides the managers the clues that shariah banks should improve their profit efficiency management. For Bank Indonesia, they can use this evidence to design policies that can encourage profit efficiency in shariah banks.

scholarly journals Efficiency of European Airports: Parametric Versus Non-parametric Approach

2021 ◽  
Vol 12 (1) ◽  
pp. 1-14
Author(s):  
Marketa Matulova ◽  
Jana Rejentova
Keyword(s):  
Normal Distribution ◽  
Stochastic Frontier Analysis ◽  
Parametric Method ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Evaluation Procedure ◽  
Frontier Analysis ◽  
Single Output ◽  
Dea Models ◽  
Non Parametric

This paper presents a performance evaluation of European airports, based on the application of both parametric and non-parametric approaches. We have evaluated the 115 busiest airports in Europe according to the number of passengers checked-in in 2018. The four inputs we used were the number of Terminals, Runways, Boarding gates, and Aircraft stands. Three variables were used to describe the outputs, namely, Passengers, Movements, and Cargo. The parametric method we chose to apply was the Stochastic Frontier Analysis (SFA) with the Cobb-Douglas production function, the Half-Normal distribution of inefficiency component, and the Normal distribution of an error term. As a basic SFA model only allows for a single output, we employed different methods to get a single efficiency score for each and every airport. Next, we evaluated the airport performance non-parametrically using several Data Envelope Analysis (DEA) models including the super-efficiency model. We compared the results obtained by individual approaches and discussed their pros and cons. Finally, we applied the program evaluation procedure to explore the effect of the different forms of airports ownership on their performance.

scholarly journals Efisiensi Perbankan Daerah Di Indonesia

Media Trend ◽  
2021 ◽  
Vol 16 (2) ◽  
pp. 182-188
Author(s):  
Chitra Laksmi Rithmaya ◽  
- Anggraeni
Keyword(s):  
Regional Development ◽  
Financial Reporting ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Bank Capital ◽  
Frontier Analysis ◽  
Efficiency Performance ◽  
Development Banks ◽  
Regional Development Banks

The development of banking industry in Indonesia could bring impact on the economic growth, especially in the face of the financial crisis. This study aims to examine scientifically the efficiency score of regional development banks. Furthermore, it also aims to understand further what factors influence the efficiency performance of regional development banks in Indonesia using the SFA (Stochastic Frontier Analysis) approach. The data used is from 25 Regional Development Banks (BPD) in Indonesia with the financial reporting period of 2011 to 2017. The results obtained are the level of efficiency of BPD in Indonesia does not reach 100%. The highest level of efficiency was at 97.80% in 2016. Then, the variable that affects bank efficiency is liquidity as measured by LDR, and credit risk as measured by NPL. Meanwhile, the variables of bank capital and profitability as well as the size of the bank and board of commissioners do not affect the efficiency of banks, especially Regional Development Banks in Indonesia in the period of 2011-2017.

scholarly journals Assessing Banking Profit Efficiency Using Stochastic Frontier Analysis

2018 ◽  
Vol 3 (4) ◽  
pp. 67-76
Author(s):  
Riko Hendrawan ◽  
Azhar A. Nasution
Keyword(s):  
Capital Market ◽  
Banking Sector ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Banking System ◽  
Efficiency Score ◽  
Maximum Efficiency ◽  
Good Efficiency ◽  
Frontier Analysis ◽  
Input Variables

Objective - The banking sector plays an important role in the Indonesian economy. The sustainability of the Indonesian banking sector will depend on the ability of every banking institution to maintain their competitiveness. Banking competitiveness is reflected in the level of efficiency of the banking system itself. Methodology/Technique - The purpose of this research is to assess the efficiency of 21 banks on the IDX between 2008-2017 using Stochastic Frontier Analysis. Findings - The findings of this research show a maximum efficiency score of 0.69 and the bank's average score among the research sample with the input and output allocation which can generate profits is 0.69 - 0.43 = 0.26. Overall, the banking sector in the Indonesian capital market between 2008 - 2017 recorded an efficiency score of 0.43. With this score, the banking system in the Indonesian capital market is still considered to be inefficient (0.43 <0.5). The results also demonstrate that the distribution of efficiency scores polarized in two poles. In the first pole, there were 11 banks that had a relatively good efficiency score (> = 0,5) and in the second pole, there were 10 banks with low efficiency scores (less than 0.5). Novelty – From the results, it can be concluded that several output variables, such as total loans (Y1) and securities (Y3), and input variables such as prices of labor (W2) and inflation (Z), have a significant effect on banking profits. Meanwhile, input variables such as the price of fund variables or the total funds (W1) and the price of physical capital were reflected in the depreciation of fixed assets (W3), and the output variables of income and interest (Y2) had an insignificant effect on bank profits. Type of Paper - Keywords: Bank Efficiency; IDX, Stochastic Frontier Analysis, Indonesia. JEL Classification: G10, G14, G19.

scholarly journals In competency Aspects of Microfinance Industry: Via SFA approach

2015 ◽  
Vol 7 (1(J)) ◽  
pp. 1-12 ◽  
Author(s):  
Madiha Riaz
Keyword(s):  
Social Services ◽  
Financial Services ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Negative Relationship ◽  
Efficiency Score ◽  
Microfinance Institutions ◽  
Frontier Analysis ◽  
Mission Drift ◽  
Social Mission

Microfinance is a well known terminology used for microcredit and financial services for financially deprived community. Through informal, semi-formal and formal ways different institutions has been providing these services. Expenditure of the industry is considered to be high because of its inherent structure, dealing with small loans and having high risk of recovery. Therefore, expected inefficiency is greater than its profit. There are several factors and reason. Through this study, we analyzed few factors which have a positive or negative relation with the inefficiency of Microfinance in Pakistan. Stochastic frontier analysis (SFA) is used for weighing up a relationship between inefficiency and its determinants. It is seen that the average efficiency of this sector is low, on average the highest technical efficiency score is 87 only. Age and number of clients have a negative relationship with inefficiency whereas for other variable's relationship is conditional on Microfinance Institutions (MFIs) working status. The number of women borrowers and average loan balance has been incorporated in the study to analyze the focus of MFIs, either on mission drift or achievement. We found that microfinance banks (MFBs) are drifting away, however, Non Government Organizations (NGOs) and Rural Support Programs (RSPs) are fulfilling their social mission efficiently. We did not find a strong evidence of mission drift in the industry because microfinance banks considered their social mission on second priority. Hence, if MFBs are drifting away from their social services, it is not unexpected.

What Drives Efficiency Of Islamic Banks Among Regions?

2013 ◽  
Vol 29 (5) ◽  
pp. 1411
Author(s):  
Sandrine Kablan ◽  
Ouidad Yousfi
Keyword(s):  
Stochastic Frontier Analysis ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Frontier Analysis ◽  
Explanatory Variables ◽  
One Step ◽  
Government Legislation

<p>Our study tries to determine what drives the efficiency of Islamic banks. To this purpose, we use the stochastic frontier analysis in one step. This allows us to take into account in the frontier function, explanatory variables which influence efficiency. We find that market power and profitability have a positive impact on Islamic banks efficiency, while it is the contrary for their size. Besides, Islamic banks display an average efficiency score of 92%, with Islamic banks settled down in Asia displaying the highest score (96%). Indeed, countries like Malaysia and Pakistan undertake reforms in order to allow banks to better cope with the existing financial system. On the contrary, Islamic banks operating in countries with Islamic banking as government legislation are not the most efficient ones.</p>

scholarly journals Evaluation of Environmental Efficiency of Edible Canna Production in Vietnam

Agriculture ◽  
2019 ◽  
Vol 9 (11) ◽  
pp. 242 ◽  
Author(s):  
Thi-Hien Vu ◽  
Ke-Chung Peng ◽  
Rebecca H. Chung
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Environmental Efficiency ◽  
Primary Concern ◽  
Truncated Regression ◽  
Frontier Analysis ◽  
Extension System ◽  
The Government

Increasing yield while minimizing environmental pollution in agricultural production is nowadays the primary concern in agriculture-based countries, including Vietnam. This study aims to assess the environmental efficiency and technical efficiency, as well as to determine the factors influencing efficiency of edible canna farms in Backan province, by using the stochastic frontier analysis and truncated regression, respectively. Data were collected from a face-to-face interview of 346 farmers in 2017/2018 production year. The findings revealed that the average environmental efficiency score was low, of 0.57 and 0.58 for Nari and Babe districts, respectively; while the technical efficiency was found to be higher than the environmental efficiency with 0.74 for Nari district and 0.72 for Babe district. In addition, the results of the inefficient effects and truncated regression model indicated that education, extension contact, and experience individually had a significant and positive effect on efficiency scores. Hence, the government should designate policies focused on the extension system to provide training and facilitate technology transfer for farmers.

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