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Technical efficiency of automobiles – A nonparametric approach incorporating carbon dioxide emissions |
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| Institution: | 1. Gazi University, Department of Statistics, 06500, Ankara, Turkey;2. Gazi University, Department of Mathematics, 06500, Ankara, Turkey;1. Department of Industrial and Information Management, National Cheng Kung University, Tainan, Taiwan, Republic of China;2. Graduate School of Business and Management, Vanung University, Chung-Li, Taiwan, Republic of China;1. Center of Operations Research (CIO), University Miguel Hernandez of Elche, 03202 Elche, Alicante, Spain;2. Centre for Efficiency and Productivity Analysis (CEPA) in the School of Economics, University of Queensland, Brisbane, Qld 4072, Australia |
| Abstract: | We conduct an empirical analysis of the technical efficiency of cars sold 2010 in Germany. The analysis is performed using traditional data envelopment analysis (DEA) as well as directional distance functions (DDF). The approach of DDF allows incorporating the reduction of carbon dioxide emissions as an environmental goal in the efficiency analysis. A frontier separation approach is used to gain deeper insight for diesel and gasoline cars. Natural gas driven cars and sport utility vehicles are also treated as different groups. The results show that the efficiency measurement is statistically yet not economically significantly influenced by the incorporation of carbon dioxide emissions. Moreover, we find that natural gas driven cars are highly inefficient even if the reduction of emissions is accounted for in the analysis. |
| Keywords: | Nonparametric efficiency measurement Directional distance functions Automobiles Air pollution |
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