scholarly journals Measuring Carbon Emissions Performance in 123 Countries: Application of Minimum Distance to the Strong Efficiency Frontier Analysis

2013 ◽  
Vol 5 (12) ◽  
pp. 5319-5332 ◽  
Author(s):  
Ling Wang ◽  
Zhongchang Chen ◽  
Dalai Ma ◽  
Pei Zhao
Author(s):  
Alfred Bimha

In this study, a BCC/CCR Data Envelopment Analysis (DEA) Input-Oriented model is employed to measure the carbon reduction efficiency of the four major banks in South Africa (ABSA, Standard Bank, First National Bank, and Nedbank). Specifically, the Banxia Frontier Analysis DEA software is utilized to make two runs on publicly available data. In the first run, number of employees and operating costs are treated as inputs and carbon emissions as the output. In the second run, again, the number of employees and operating costs are treated as inputs, but electricity usage, paper usage, and business travel are treated as outputs. Results are opposite to those generated by the DEA input-oriented model; firms distant from the efficiency frontier are deemed efficient in terms of reducing carbon emissions and firms lying on the efficiency frontier are deemed inefficient. The first run reveals one bank (ABSA) to be inefficient and the second run demonstrates two banks (ABSA and Standard Bank) to be inefficient. Taken in sum, the current research study seeks to facilitate the measurement of carbon reduction efficiency within the banking sector.


2020 ◽  
Vol 22 (2) ◽  
pp. 209-227
Author(s):  
Phong Hoang Nguyen ◽  
Duyen Thi Bich Pham

PurposeThe paper aims to enrich previous findings for an emerging banking industry such as Vietnam, reporting the difference between the parametric and nonparametric methods when measuring cost efficiency. The purpose of the study is to assess the consistency in issuing policies to improve the cost efficiency of Vietnamese commercial banks.Design/methodology/approachThe cost efficiency of banks is assessed through the data envelopment analysis (DEA) and the stochastic frontier analysis (SFA). Next, five tests are conducted in succession to analyze the differences in cost efficiency measured by these two methods, including the distribution, the rankings, the identification of the best and worst banks, the time consistency and the determinants of efficiency frontier. The data are collected from the annual financial statements of Vietnamese banks during 2005–2017.FindingsThe results show that the cost efficiency obtained under the SFA models is more consistent than under the DEA models. However, the DEA-based efficiency scores are more similar in ranking order and stability over time. The inconsistency in efficiency characteristics under two different methods reminds policy makers and bank administrators to compare and select the appropriate efficiency frontier measure for each stage and specific economic conditions.Originality/valueThis paper shows the need to control for heterogeneity over banking groups and time as well as for random noise and outliers when measuring the cost efficiency.


2009 ◽  
Vol 41 (18) ◽  
pp. 2299-2307 ◽  
Author(s):  
Marcelo Resende ◽  
Henrique César Tupper

Author(s):  
Lise Aaboen ◽  
Peter Lindelof ◽  
Hans Lofsten

2019 ◽  
Vol 37 (3) ◽  
pp. 186
Author(s):  
Leonardo Andrade Rocha ◽  
Leonardo Querido Cardenas ◽  
Ubiratã Tortato ◽  
Angela Cristiane Santos Póvoa ◽  
Napiê Galvê Araújo Silva

This study analyses the influence of innovative efforts, measured by R&D investments, on the financial performance of firms, considering its position in relation to the technological frontier. Recent researches, especially Aghion & Howitt, 2009; Aghion, Akcigit, & Howitt, 2013, have demonstrated that the firm's technological position has a strong impact on the results of the applied investment, since the structure of incentives and potential opportunity costs influence the relation between the variables. For this purpose, the present study uses the frontier analysis with order-α partial frontiers, aiming to capture fluctuations of proximity to the border and its influence on the relation "R & D investment versus performance". Such approach allows different frontiers to be estimated for different quantiles, which provides a more consistent estimate of efficiency scores, which become more robust in relation to traditional problems of outliers and dimensionality. The sample of this article was made up of 2.000 firms and the data needed for the survey was extracted from the European Commission, a database covering 40 sectors in 46 countries. The results of the model suggest that the more efficient firms or the ones situated on the efficiency frontier achieve more profits from the same level of R&D investment compared with less efficient firms. This influence of proximity to the frontier emphasizes that the most efficient firms use the investments in R&D in order to obtain greater returns, what can explain that innovation is not shown uniform among firms.


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