Evaluating the efficiency of heat and power systems by the data envelopment analysis method

The article describes the Data Envelopment Analysis (DEA) method and the main features of its application. The main problems of heat and power systems are described, which are addressed by the DEA method of efficiency assessment presented in the article. The approbation of this method is presented at the objects of the centralized municipal heat supply system of the fuel and energy complex: boiler houses and heat and power plants. 9 objects were analyzed according to four input indicators: available heat capacity, installed heat capacity, heat consumption for own needs, fuel consumption. Also, the efficiency of the system was evaluated according to two output indicators: the release of thermal energy to the grid and the mass of the emission. As a result of the analysis and calculations made, it was revealed that 5 objects have the maximum possible efficiency indicator equal to 1, that is, they function as efficiently as possible. 4 objects of the centralized municipal heat supply system have an efficiency indicator less than 1. Accordingly, improvements are required for the operation of the above Decision-Making Units (DMU)s. These objects have deviations in terms of the inputs and outputs of the actual data and those obtained using the DEA method. Based on the calculations obtained for these 4 objects, the article provides recommendations for changing the quantitative values of their input and output indicators. For example, for object number 2, it is recommended to reduce the installed heat capacity in the grid by 72.57%, without changing the available heat capacity and fuel consumption. Reduce the heat consumption for your own needs by 69.383%. In addition, it is recommended to increase the supply of thermal energy to the grid by 6,034%, and reduce the mass of emission by 11.5%. Specific measures have also been developed to modernize the studied objects in order to achieve the recommended indicators of inputs and outputs. The research results presented in the article are of scientific and practical interest and can be used to improve the efficiency of heat and power systems facilities. © 2021, World Scientific and Engineering Academy and Society. All rights reserve

Do agri-environment measures help improve environmental and economic efficiency? Evidence from Bavarian dairy farmers

This study presents an innovative empirical application to the assessment of agri-environment measures on environmental and economic efficiency. Using a multi-equation representation with desirable technology and its accompanying undesirable by-production technology, we investigate the effects of agri-environment measures on farm-level environmental and economic efficiency. A combination of propensity score matching and a difference-in-difference approach is used to estimate the policy effect. The application focuses on a balanced sample of Bavarian dairy farms surveyed between 2013 and 2018. Results suggest that agri-environment schemes do not alter farms’ economic efficiency, whereas environmental efficiency does not seem to be stimulated by schemes participation

Economic analysis of beef cattle farmers' technical efficiency and willingness to comply with disease free zones in Kenya

In Kenya, the cattle enterprise is an important source of livelihood for many farmers. However, lack of analytical evidence on efficiency levels of farmers in various production systems constrains policy making on optimal resource allocation. In addition, inability to control livestock diseases, such as Foot and Mouth Disease (FMD), has led to low beef supply in Kenya and loss of export markets. Although the government of Kenya plans to establish Disease Free Zones (DFZs) to address the disease challenge, there is no empirical evidence on farmers’ willingness to comply with DFZs. This study analyses farmers’ technical efficiency (TE) and willingness to comply with DFZs, across three main cattle production systems in Kenya. Primary data were gathered through household surveys using a structured questionnaire and a choice experiment (CE) based on a D-optimal design. The stochastic metafrontier model was applied to estimate TE and technology gaps across farms. Subsequently, possible determinants of TE were assessed using a Tobit model. In addition, farmers’ preferences for DFZ attributes and various possible policy scenarios were investigated using a random parameter logit (RPL) model. Results show that there is significant inefficiency in both the nomadic and agro-pastoral systems, but less in ranches. Further, in contrast with the other two systems, ranches are found to have higher meta-technology ratios (MTRs). The average pooled TE with respect to the metafrontier is estimated to be 0.69, which suggests that there is considerable scope to improve beef production in Kenya. The main factors that are found to have a positive influence on TE include: use of controlled cattle breeding method, access to market contract, presence of farm manager, off-farm income and larger herd size. The findings also show that farmers would be willing to pay to participate in a DFZ where: adequate training is provided on pasture development, record keeping and disease monitoring; market information is provided and sales contract opportunities are guaranteed; cattle are properly labelled for ease of identification; and some monetary compensation is provided in the event that cattle die due to severe disease outbreaks. In general, there is a higher preference for DFZ policy scenarios that incorporate training, and market information and contract. Further, farmers with relatively low TE, and typically limited access to disease control services, are shown to be more willing to participate in the DFZs. These insights should guide policies on beef cattle production and the design of DFZ programmes in Kenya and other countries that face similar challenges.EThOS - Electronic Theses Online ServiceGBUnited Kingdo

Human Capital Externalities in Western Germany

The paper sheds light on the impact of spatial agglomeration of human capital on individual wages in Western Germany. Using panel data it shows that regional wage differentials are to a large extent attributable to localized human capital externalities arising from the regional share of highly qualified workers. Employing the regional number of public schools and of students as instrumental variables the paper shows that human capital externalities are underestimated in ordinary panel regressions for wages of highly qualified and non-highly qualified workers alike due to supply shifts of highly qualified workers. An analysis by sector reveals that human capital externalities are more pronounced in manufacturing than in the service sector. We find indication that highly qualified workers benefit from intra-industry knowledge spillovers, while non-highly qualified workers profit from pecuniary externalities between industries. Our findings are stable among a variety of indicators of regional human capital and robust to the inclusion of other sources of increasing returns, as well as wage curve, price level, and amenity effects.Human Capital Externalities, Agglomeration, Urban Wage Premium

Microfinance paradigm : institutional performance and outreach

Microfinance research concerns addressed in this thesis relate to: (1) targeting of clients vis-à-vis financial sustainability; (2) loan size effect of interest rate and clients’ well-being status; (3) economic governance and the dual objectives of microfinance institutions; and (4) patterns, trends and drivers of microfinance institution’s efficiency. The thesis emphasises operational issues that affect institutional performance and outreach of microfinance institutions rather than impact of microfinance intervention on poverty reduction. The thesis revolves around four empirical chapters that seek to address the above research concerns. Both micro and macro-level analyses have been explored with the aim of identifying institutional and public policies that drive the success of microfinance interventions. Micro level data from households in Ghana and cross country data mainly from the Microfinance Information Exchange (MIX) market are used. Varied microeconometric techniques (ordinary least squares, instrumental variable estimation, quantile regression, pooled regression, fixed and random effects estimations, Hausman-Taylor, Fixed Effects Vector Decomposition, stochastic frontier analysis and non-parametric efficiency estimations) are used depending on the hypotheses being considered in each of the empirical chapters. The main findings are: observed trade-off between financial sustainability and reaching poorer clients; formal institutions dispensing their own funds target poorer clients; pronounced variations in responsiveness of loan size to interest rate changes; semi-elasticity of loan amount responsiveness to a unit change in interest rate is more than proportionate and very significant for the poorest group; lesser time in securing property and availability of credit information show positive effects in targeting poorer clients; both type (pure technical and scale) and scope (narrow and broad) of financial efficiency show varying trends; and lastly, negative effects of bureaucracies in property registration and lack of credit information on social efficiency are also observed. This thesis suggests the following recommendations both for management of microfinance institutions and other stakeholders including international microfinance investors and government: harmonizing microfinance programmes irrespective of the source of funds; segmenting microfinance outreach markets based on socio-economic well-being; curtailing bureaucracies in property registration; and providing credit related information. These are paramount to the success of the microfinance paradigm, especially in achieving its social objective.EThOS - Electronic Theses Online ServiceGhana Government : University of Cape Coast, GhanaGBUnited Kingdo

Identification of Options and Policy Instruments for the Internalisation of External Costs of Electricity Generation. Dissemination of External Costs of Electricity Supply Making Electricity External Costs Known to Policy-Makers MAXIMA

In the present paper, after reviewing the results of the ExternE project and its follow-up stages in the estimation of the external costs of electricity production, we look at the policy instruments for the internalisation of such costs. Emphasis is given to subsidies, such as feed-in tariffs, competitive bidding processes and tradable green certificates to stimulate the use of renewables in the production of electricity. When policy-makers are asked to choose the instrument(s) to internalise the externalities in the electricity production, they have to find a solution that gives the best outcome in terms of efficiency, cost minimisation, impact on the job market, security of energy supply, equity of the instrument, technological innovation, certainty of the level of the internalisation, and feasibility. The choice of the instrument will require some trade-offs among these criteria. Conjoint choice analysis can help in investigating how stakeholders and policy makers trade off the criteria when choosing a policy for the internalisation of the externalities. In this paper we present the first results of a questionnaire that employs conjoint choice questions to find out how policy makers and stakeholders of the electricity market trade off some socio-economic aspects in the selection of the policy instruments for the internalisation of the externalities. The results of this first set of interviews will be useful for further research.Policy instruments, ExternE, External costs, Electricity, Conjoint choice analysis

Essays on the Comparison of Production Technologies: Applications to Maryland Dairy Farms

This dissertation proposes three new methodologies in empirical production economics for assessing technical change, production risks, and technological frontiers. Each methodology is demonstrated with an application to Maryland dairy operations, with an emphasis on comparing production technologies between confinement and management-intensive grazing (MIG) dairy systems. The rapid decline of small to medium scale dairies has made the study of alternative dairy production like MIG politically and socially important. The first essay develops a regression-based approach to the Malmquist productivity index (MPI) decomposition that attributes production heterogeneity to technical change (i.e., shifts of technological frontiers) and technical efficiency change (i.e., shifts of technical efficiency). Unlike the conventional, producer-level decomposition measures, the proposed method obtains sample-level decomposition measures, for which the researcher can fully utilize unbalanced panel data and control for the influence of potentially-confounding non-production factors. The results find 1.3% and 0.6% annual technical change during 1995-2009 for confinement and grazers respectively. For both dairy systems, farm ownership and off-farm income are positively and negatively associated with technical efficiency respectively. The second essay considers an empirical application of the state-contingent (SC) approach to production risks. In the context of agricultural production, uncertainty in the SC framework is defined over distinct weather events or market conditions, for which the producer is assumed to prepare a portfolio of SC production outcomes. This study shows how production data over multiple years can be regarded as multiple draws from the contingent states of nature, by which SC technologies can be approximated by Data Envelopment Analysis (DEA). The results suggest that optimal production decisions for a moderate-to-maximally risk-averse producer have become riskier for the confinement system and less risky for the grazing system. The third essay proposes a refinement of the DEA frontier approximation by integrating the concepts of technical, allocative, and scale inefficiencies. Technology is estimated in the form of a weighted-average of the benchmarking-frontiers that are associated with these inefficiency concepts. In the current dataset, the proposed method finds 7.5% to 9.2% higher mean-technical efficiency than the standard practice, indicating the increased discriminatory power in efficiency analysis

Spatial dependence in hospitals efficiency : spatial econometric approach for Ecuadorian public hospitals

This collection includes a selection of research by students of the PhD Program in Applied Economics (UAB) and the Master of Applied Research in Economics and Business (MAREB) - specialization in Applied EconomicsThis study aims to analyze whether the efficiency of Ecuadorian public hospitals experiences spatial dependence. The paper explores the question of whether demand variations are affecting the public hospitals' efficiency performance through direct and spillover effects, especially after the adoption of the new constitution in 2008. We exploit a two-stage approach, wherein the first stage we use an innovative panel-data DEA to estimate the hospital efficiency; a spatial econometric framework is then applied to disentangle direct and spillover effects. The results confirm positive spatial interactions among public hospitals' efficiency, and positive direct and spillover effects coming from demand increases, that got reinforced after 200