Using Experiments to Foster Innovation and Improve the Effectiveness of Energy Efficiency Programs

This paper argues that the establishment of a process designed to manage innovation must be developed in California to foster the creation of needed program improvements and develop new and more effective energy efficiency delivery programs. This paper discusses several key institutional problems that must be overcome to achieve significant progress

Economic Efficiency and Factors Explaining Differences Between Minnesota Farm Households

Inter-firm differences in economic efficiency are major factors explaining differences in firm survival and growth and changes in industry structure. Thus, factors explaining differences in efficiency are of major interest to many involved in or affected by the industry. This study was undertaken to improve our understanding of the inter-farm differences in farm household efficiency in utilizing their land, labor, and capital resources to achieve household objectives. It estimated the technical, allocative, and scale efficiencies of farm households in southern Minnesota using a nonparametric, output-based data envelopment analysis (DEA) of a time series, panel dataset from 1993-2005. A bootstrap method was used to establish statistical properties of the technical efficiency estimates. Tobit analysis was conducted to identify significant factors explaining differences in efficiency scores. This study also expands the use of efficiency estimation and Tobit analysis of factors to identify educational needs for improving efficiencies. This study extends current research in several ways. It uses a true panel dataset versus the pseudo panel used by Morrison Paul et al (2004). To our knowledge, this study is the first estimating U.S. agricultural production efficiencies to use bootstrapping procedures to correct the bias generated by the deterministic DEA approach. It is the first to use a weighted Tobit procedure to correct for that same bias. The study is also the first to extend the results of estimating efficiencies and the Tobit identification of explanatory factors to identifying both potential policies and educational opportunities for improving efficiencies. While most previous studies did not consider nonfarm income and labor in their study, the fact that nonfarm activity now accounts for a large percentage of household income and resources means that they should be incorporated in the calculating of production frontier. As in Morrison Paul et al. (2004) and Chavas et al. (2005), this study incorporated nonfarm income as an output and nonfarm labor as an input in the production technology. Following Chavas et al. (2005), Morrison Paul et al. (2004), and others, we first used nonparametric (DEA) methods to estimate output-based technical, allocative, and scale efficiencies. Based on the smoothed bootstrap procedure for DEA estimators proposed by Simar and Wilson (1998, 2000), the study estimated the bias and the confidence interval of the DEA estimators for TE. Initial technical efficiency was estimated to be 0.90; scale efficiency to be 0.88, and allocative efficiency to be 0.77. These efficiencies improved over the period. Using the bootstrapping results, the average bias-corrected technical efficiency was 0.77 or 86% of the initial estimate. The bias-corrected technical efficiencies were similar for small farms and large farms even though the difference between the lower and upper bounds was larger for large farms. Tobit analysis showed that more specialized farms had higher levels of efficiency by all three measures. A higher proportion of rented land was associated with higher allocative and scale efficiency but lower technical efficiency. A lower debt-asset ratio and a higher percentage of current debt were associated with higher levels of all three measures of farm efficiency. A higher proportion of nonfarm household income and higher hired labor, capital-to-labor and land-to-labor ratios had positive effects on efficiency. Several conclusions and suggestions for improving farm efficiencies can be drawn from these results. First, since a lower debt-asset ratio and higher percentage of current debt were associated with higher efficiency levels, management skills that improve financial condition will likely improve efficiency. So improvement of management skills in general, through education of current and future farmers, appears to be needed (as we have always striven to do). Increasing the amount of rented land relative to owned land has a positive impact on allocative and scale efficiency so improved land markets and the ability to obtain and hold additional land is critical. Also, improvement in land market negotiation skills and intra-personal skills dealing with absentee landowners can lead to efficiency improvements. However, since a higher tenancy ratio was associated with lower technical efficiency, improvements in managing larger operations and rented properties appears to be needed. The positive impact of nonfarm income shows the need for farm households to take advantage of nonfarm opportunities as well as the need for rural communities to expand and develop those opportunities. Better access to both debt and nonfarm equity capital can improve efficiencies. This includes the identification and use of nonfarm capital (such as partnerships and investments by nonfarmers) and the identification and use of lower cost-debt capital for expansion and improvements as well as the increased management ability to manage higher debt loads. The positive impact of higher capital-to-labor and land-to-labor ratios indicates the need for more intensive use of available labor through increased mechanization and expansion of the land base. These steps can be seen as needing to accompany the ability to access more debt and equity capital. The positive hired labor ratio illustrates the impact of hiring labor and thus, presumably, freeing the farm household to spend more time on management following the highest and best use argument for the owner's time allocation. The need to increase the relative amount of hired labor points to the need to increase personnel management ability in farmers and thus personnel management educational opportunities for current and future farmers. The positive impact of the Herfindahl index shows the need to increase management skills, and risk management skills especially, to handle more specialized operations that will rely on off-farm tools for protection from uncertainty versus relying on on-farm diversification as a risk decreasing tool. For the AAEA meetings, the presentation will include an explanation of the estimation methods used including the smoothed bootstrapping methods (Simar and Wilson). Quantitative results will be presented including the initial TE estimates compared to the bias corrected TE estimates. The significant explanatory factors identified through in the Tobit analysis will be presented. We will expand our discussion of the educational needs identified for improving efficiencies. We anticipate discussion will occur on the use of the bootstrapping method and our identification of education needs for improving household efficiency. Chavas, J-P, Petrie, R., and Roth, M. (2005). �Farm Household Production Efficiency: Evidence from The Gambia.� American Journal of Agricultural Economics 87 (1): 160-179. Morrison Paul, C., Nehring, R., Banker D. and Somwaru A. (2004). �Scale Economics and Efficiency in U.S. Agriculture: Are Traditional Farms History?� Journal of Productivity Analysis, 22 (2004):185-205. Simar, L., and P., Wilson (1998), �Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models.� Management Science 44(1): 49-61. Simar, L., and P., Wilson (2000), A general methodology for bootstrapping in nonparametric frontier models, Journal of Applied Statistics, 27(6):779-802.Productivity Analysis,

Efficiency of Effectiveness? The Hungarian Practice of Using the EU Funds

Efficiency or effectiveness? It not just the matter of definition. Experts and researchers have to make a difference between the qualitative and quantitative approach. The efficiency of EU subsidies means the ratio of the committed and disposable amount of EU subsidies can be measured, which was used and paid out within the given timeframe and along the legal regulations. The effectiveness of EU subsidies needs a much more complicated and complex approach than efficiency. The effectiveness of usage on a project level can be measured by the ‘added value’ of the project; and on the programme level by the added GDP growth or employment rate. The following research essentially analyses the project level or micro-effectiveness, however, it discusses the results of some macro-analyses as well (qualitative approach)

Міжнародний порівняльний аналіз бюджетного дефіциту в Україні та Угорщині

Today government budget scarcity is a relevant problem both for advanced economies and developing countries. Investigation of problems of budget deficit and public debt has had a long history and nowadays it is covered both in modern Ukrainian and foreign scientific literature. The aim of the paper is to differ causes and factors of genesis of budget deficit, make statistical analysis of fiscal deficits in Ukraine and Hungary and develop recommendations for budget policy. Research methods are dialectical method, historical method, system approach, analysis and synthesis, comparison method, model building, statistical analysis. Detailed analysis of factors and reasons for formation of general government budget deficit has been given in the paper. Direct causes (such as periods of economic crises, fiscal stimulation, increase in public debt) and concomitant negative factors of deepening budget deficit (such as unfavorable structure of public debt, imbalances of regional development, disadvantages of organization of budget system, disproportionate growth of social expenditures, shadow economy) have been differentiated. A retrospective investigation of budget deficit in Ukraine and Hungary has been carried out. The study is based on indices of budget deficit (deficit coefficient, elasticity of deficit, growth rate of fiscal deficit etc.). Conclusions have been drawn about the depth of this problem in Ukraine and Hungary. The possibilities of implementation of Hungarian experience into Ukrainian economy have been substantiated. The concepts of government budget balancing have been revealed. The system of measures for public policy of budget deficit reduction has been developed, namely: use of acceptable concept of budget balancing, ensuring stable economic growth, ensuring relative decrease in government spending, improving its efficiency, easing impact of related negative factors.Сьогодні дефіцит державного бюджету є актуальною проблемою як для країн з розвиненою економікою, так і для країн, що розвиваються. Дослідження проблем бюджетного дефіциту та державного боргу має давню історію і в даний час висвітлюється як в сучасній українській, так і зарубіжній науковій літературі. Метою роботи є виявлення причин і факторів виникнення бюджетного дефіциту, проведення статистичного аналізу бюджетного дефіциту в Україні та Угорщині і розробка рекомендацій щодо бюджетної політики. Методи дослідження: діалектичний метод, історичний метод, системний підхід, аналіз і синтез, метод порівняння, моделювання, статистичний аналіз. У статті подано докладний аналіз факторів і причин формування дефіциту державного бюджету. Були диференційовані прямі причини (такі як періоди економічних криз, податково-бюджетне стимулювання, збільшення державного боргу) і супутні негативні чинники поглиблення дефіциту бюджету (такі як несприятлива структура державного боргу, дисбаланси регіонального розвитку, недоліки організації бюджетної системи, непропорційне зростання соціальних витрат, тіньова економіка). Проведено ретроспективне дослідження дефіциту бюджету в Україні і Угорщині. Дослідження засноване на показниках дефіциту бюджету (коефіцієнт дефіциту, еластичність дефіциту, темпи зростання дефіциту бюджету та ін.). Зроблено висновки про глибину цієї проблеми в Україні та Угорщині. Обґрунтовано можливості впровадження угорського досвіду в українську економіку. Розкрито концепції балансування державного бюджету. Розроблено систему заходів державної політики щодо скорочення бюджетного дефіциту, а саме: використання прийнятної концепції бюджетного балансування, забезпечення стабільного економічного зростання, забезпечення відносного зниження державних витрат, підвищення їх ефективності, пом'якшення впливу супутніх негативних чинників

Assessing the effects of technological progress on energy efficiency in the construction industry: A case of China

Energy-saving technologies in buildings have received great attention from energy efficiency researchers in the construction sector. Traditional research tends to focus on the energy used during building operation and in construction materials production, but it usually neglects the energy consumed in the building construction process. Very few studies have explored the impacts of technological progress on energy efficiency in the construction industry. This paper presents a model of the building construction process based on Cobb-Douglas production function. The model estimates the effects of technological progress on energy efficiency with the objective to examine the role that technological progress plays in energy savings in China's construction industry. The modeling results indicated that technological progress improved energy efficiency by an average of 7.1% per year from 1997 to 2014. Furthermore, three main technological progress factors (the efficiency of machinery and equipment, the proportion change of the energy structure, and research and development investment) were selected to analyze their effects on energy efficiency improvement. These positive effects were verified, and results show the effects of first two factors are significant. Finally, recommendations for promoting energy efficiency in the construction industry are proposed

TQM-ing OMB: Or Why Regulatory Review Under Executive Order 12,291 Works Poorly and What President Clinton Should Do About It

Reflections are presented on how Pres Clinton should improve the deeply troubled relationship between the OMB and other government agencies. No president would dream of abolishing review of agency actions by the OMB

An investigation into current production challenges facing the Libyan cement industry and the need for innovative Total Productive Maintenance (TPM) strategy

Purpose - The purpose of this paper is to investigate maintenance and production problems in the cement industry in Libya with particular emphasis on future implementation of Total Productive Maintenance (TPM). Methodology/ Approach - The paper presents the use of case study approach of production data and history, field visits, a survey methodology using a detailed questionnaire with employees and interviews with top and middle managers in four cement factories. Findings - It has been found that the four factories under investigation have low productivity and production levels when compared with the design values. There is no clear TPM strategy and it has been also found that the lack of training and personal development is the main cause of this problem. In addition, employees are found not to be motivated as a result of the lack of poor management strategy and reward structure. Implications - Based on the findings, a new framework for TPM has been developed. This TPM strategy could be implemented in other Libyan factories as a result of the potential similarities in the cultural and environmental aspects. Practical implications - The current challenges have been identified and comparative analysis is developed into a model for the implementation of TPM. Originality/Value of pape r- The paper highlights limitation is the cement factories in Libya in relation to TPM and production strategies. The importance of adopting a realistic strategy and framework by managers is discussed. This work is developed as collaboration between Academia and Libyan Cement industry for solving productivity problems and develop a strategic framework of TPM for improving the Libyan industry