A Data Envelopment Analysis Approach to the Assessment of Natural Parks’ Economic Efficiency and Sustainability. The Case of Italian National Parks

Wilderness protection is a growing necessity for modern societies, and this is particularly true for areas where population density is extremely high, as for example Europe. Conservation, however, implies very high opportunity costs. It is thus crucial to create incentives to efficient management practices, to promote benchmarking and to improve conservation management. In the present paper we propose a methodology based on Data Envelopment Analysis, DEA, a non parametric benchmarking technique specifically developed to assess the relative efficiency of decision-making units. In particular, the objective of the discussed methodology is to assess the relative efficiency of the management units of the protected area and to indicate how it could be improved, by providing a set of guidelines. The main advantage of this methodology is that it allows to assess the efficiency of natural parks’ management not only internally (comparing the performance of the park to itself in time) but also by external benchmarking, thus providing new and different perspectives on potential improvements. Although the proposed methodology is fairly general, we have applied it to the context of Italian National Parks in order to produce a representative case study. Specifically, the choice of adequate cost and benefit indicators is a very important and delicate phase of any benchmark analysis. For this purpose, a questionnaire was used to investigate the opinions of Italian National Parks managers and stakeholders and to define the relevant indicators for the analysis. Finally, relevant policy implications for the case study are given.Data envelopment analysis, Natural park management

Assessing the Competitiveness of International Financial Services in Particular Locations: A Survey of Methods and Perspectives

The International Financial Services (IFS) industry is restructuring internally and by location. This paper outlines the economic forces and analytical methods that may be applied to examine the economic drivers of these processes as ever more cities, particularly in East Asia, are vying to attract IFS providers and their clients. The ICT revolution has made those IFS that can be commoditized footloose in search of cost efficiency. High value-added financial services, however, will continue to be developed and coordinated in a few major IFS centers that have invested in, or capitalized on, regional or global advantages for themselves and their clients. The resulting pattern of functional fragmentation and geographic dispersal may facilitate analyses of the competitiveness of different lines of the financial services business in a particular location by methods such as Data Envelopment and Stochastic Frontier Analysis. These forms of comparative efficiency analysis have recently been questioned and their results reinterpreted.offshore centers, international financial services, Data Envelopment Analysis, Stochastic Frontier Analysis

Assessing eco-efficiency of wastewater treatment plants: A cross-evaluation strategy

Producción CientíficaEvaluating the eco-efficiency of wastewater treatment plants (WWTPs) is crucial for enhancing environmental and economic performance in the water utility sector. Previous studies in this area estimated WWTP eco-efficiency through self-evaluation, which might have led to overestimation and biased policy recommendations. To address these issues, this study applies a cross-evaluation strategy, combining self-evaluation and peer-evaluation, to assess the eco-efficiency of WWTPs. The empirical application focuses on a sample of Spanish WWTPs, yielding the following key findings. Average eco-efficiency scores were 0.353 and 0.230, for self-evaluation and global peer-evaluation approaches, respectively, confirming the overestimation of eco-efficiency scores based on self-evaluation. If WWTPs were eco-efficient, they could potentially reduce greenhouse gas (GHG) emissions by up to 0.39 kg CO2eq/year. The application of reliable methods, such as peer-evaluation, for eco-efficiency assessment of WWTPs provides water regulators with a comprehensive understanding of the environmental and economic performance of WWTPs. This knowledge guides decision-making, policy development, and resource allocation, facilitating sustainable and efficient wastewater management practices.Junta de Castilla y León - UE-FEDER (CL-EI-2021-07

An Investment Analysis for China\u27s Sustainable Development Based on Inverse Data Envelopment Analysis

In the face of environmental degradation, sustainable development has become a common goal across the globe. Making a scientifically based investment scheme is of great significance to promote the sustainable development of China\u27s economy. However, there is scarce research related to such an investment scheme of sustainable development. This paper proposes a new inverse data envelopment analysis method with undesirable outputs to make several scientifically based investment schemes from different perspectives, namely, the natural, regulation, and optimal perspectives. By this method, decision makers can scientifically forecast the specific amount of investment based on their actual sustainable development objectives, which is conducive for reducing the blindness of investment in the future. In addition, a new ideal perspective is defined to guide a definite direction for improving the level of sustainable development. Combined with the gray forecasting model GM(1,1), the methods proposed by this paper were then applied to analyze the investment problem for China\u27s sustainable development during the 2015–2024 period. The results show that: the unbalanced distribution of labor investment and the excessive investment in capital and energy are serious barriers to China\u27s sustainable development in the short term; and in the long term, the demand for investment in labor and capital will continue to increase along with a lower demand for energy investment, and that appropriately strengthening environmental regulations will not affect the overall demand for investment. Meanwhile, improvement directions for improving China\u27s sustainable development are discussed, and the results show that most of developing and undeveloped regions in China have great potential for improvement. Finally, some suggestions are proposed in order to create better conditions for China\u27s sustainable development

Determining the Optimal Carbon Tax Rate based on Data Envelopment Analysis

Carbon tax policy is widely used to control greenhouse gases and how to determine a suitable carbon tax rate is very important for policy makers considering the trade-off between environmental protection and economic development. In an industry regulated by carbon tax policy, we consider two competing firms who sell ordinary products and green products respectively. In order to promote the firm who sells ordinary product to reduce carbon emissions, the government of China imposes carbon tax on the ordinary products. For the government, three objectives are considered when it makes carbon tax policy. They are increasing the government revenue, reducing the government expenditure and decreasing the carbon emissions. For the firms, it is important to explore their pricing strategies taken into account of the government tax policy. To find an optimal carbon tax rate and to achieve the three objectives simultaneously, we consider this as a multiple criteria decision-making problem. Hence, we propose to use a centralized data envelopment analysis (DEA) approach to solve it. We find that when one firm produces ordinary products and the other produces green products, the government may set a high tax rate. While when both firms sell ordinary products, the optimal tax policy for each firm is different and the government may impose a higher tax rate for one firm and a lower tax rate for the other firm

Management characteristics, collaboration and innovative efficiency: evidence from UK survey data

This paper explores the impact of management characteristics and patterns of collaboration on a firmÕs innovation performance in transforming innovation resources into commercially successful outputs. These questions are investigated using a recent firm level survey database for 465 innovative British small and medium enterprises (SMEs) over the years 1998-2001. Both Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) are employed to benchmark a firmÕs innovative efficiency against best practice. Quality and the variety of innovations are taken into account by combining Principal Component Analysis (PCA) with DEA. We find evidence suggesting that the innovative efficiency of SMEs is significantly affected by their management characteristics and collaboration behaviour. Collaboration, organisational flexibility, formality in management systems and incentive schemes are found to contribute significantly to a firmÕs innovative efficiency. Managerial share-ownership also shows some positive effect. The importance of these effects, however, varies across different sectors. WE find that innovative efficiency in high-tech SMEs is significantly enhanced by collaboration, formal management structure and training; and that in medium- and low-tech SMEs is significantly associated with managerial ownership, incentive schemes and organisational flexibility.management characteristics, collaboration, innovative efficiency

Energy efficiency in wastewater treatment plants: A framework for benchmarking method selection and application

Utilities produce and store vast amount of data related to urban wastewater management. Not yet fully exploited, proper data analysis would provide relevant process information and represents a great opportunity to improve the process performance. In the last years, several statistical tools and benchmarking methods that can extract useful information from data have been described to analyse wastewater treatment plant (WWTP) energy efficiency. Improving energy efficiency at WWTPs is however a complex task which involves several actors (both internal and external to the water utility), requires an exchange of different types of information which can be analysed by a broad selection of methods. Benchmarking method therefore must not only be selected based on whether they provide a clear identification of inefficient processes; it must also match the available data and the skills of those performing the assessment and objectives of stakeholders interpreting the results. Here, we have identified the requirements of the most common benchmarking methods in terms of data, resources, complexity of use, and information provided. To do that, inefficiency is decomposed so that the analyst, considering the objective of the study and the available data, can link each element to the appropriate method for quantification and benchmarking, and relate inefficiency components with root-causes in wastewater treatment. Finally, a framework for selecting the most suitable benchmarking method to improve energy efficiency in WWTPs is proposed to assist water sector stakeholders. By offering guidelines on how integrates and links data, methods and actors in the water sector, the outcomes of this article are expected to move WWTPs towards increasing energy efficiencyThis work was financially supported by ENERWATER Coordination Support Action, as part of European Union's Horizon 2020research and innovation programme under grant agreement No 649819. A. Hospido and M. Mauricio-Iglesias belong to a Galician Competitive Research Group (GRC) under reference ED431C-2021/37, a programme co-funded by the FEDER (EU)S

The Human Development Index Adjusted for Efficient Resource Utilization

human development index, data envelopment analysis, efficiency, congestion and scale economics

Managerial ownership and urban water utilities efficiency in Uganda

This paper assesses the impact of the early 1980s neoliberalistic reform strategies in urban water distribution in developing countries. It examines in particular, the technical efficiency of two heterogeneous urban water utility-groups in Uganda. Performance is considered in light of the key urban water sector objectives that are to universally increase qualitative water coverage and enhance utility revenue. Using a two-staged bias-corrected metafrontier based on the data envelopment analysis estimators, the public-private (than the public-public) owned utilities are found less efficient. Efficiency differences between both groups are further linked to utilities scale of operation and market capture capabilities among other factors. The paper urges policy makers to strengthen public sector capabilities as a development policy solution for inclusive quality water services access among other basic public utility services in Uganda, Africa and the developing countries in general.Efficiency, managerial ownership, non-parametric, Uganda, urban water supply, water supply, water resource management, water utilities

Environmental Regulation and Productivity Growth: A Study of the APEC Economies

Environmental regulation has become more and more important in policy making among the world economies. How has it affected productivity growth and hence economic growth? The answer to this question is either controversial or yet to be explored in many cases. The objective of this paper is to present a case study of 17 Asian Pacific Economic Cooperation (APEC) economies. A directional distance function approach is employed to estimate output-oriented Malmquist-Luenberger productivity indices. The latter are in turn decomposed into efficiency changes and technological progress. Work in this paper differs from the existing literature by taking into consideration of the impact of environmental regulation on productivity growth. Three scenarios are modeled, ie. no control on CO2 emissions (unregulated), maintaining current emission level and a partial reduction of emissions. In general, it is found that the rates of productivity growth incorporating CO2 as an undesirable output are slightly higher than those estimated following the traditional method. Furthermore, the causes of productivity changes are also investigated in this paper.Technical efficiency, technological progress, total factor productivity, directional distance functions, Malmquist–Luenberger index, DEA