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Environmental Assessment on Energy and Sustainability by Data Envelopment Analysis

Book Description

Introduces a bold, new model for energy industry pollution prevention and sustainable growth

Balancing industrial pollution prevention with economic growth is one of the knottiest problems faced by industry today. This book introduces a novel approach to using data envelopment analysis (DEA) as a powerful tool for achieving that balance in the energy industries—the world’s largest producers of greenhouse gases. It describes a rigorous framework that integrates elements of the social sciences, corporate strategy, regional economics, energy economics, and environmental policy, and delivers a methodology and a set of strategies for promoting green innovation while solving key managerial challenges to greenhouse gas reduction and business growth.

In writing this book the authors have drawn upon their pioneering work and considerable experience in the field to develop an unconventional, holistic approach to using DEA to assess key aspects of sustainability development. The book is divided into two sections, the first of which lays out a conventional framework of DEA as the basis for new research directions. In the second section, the authors delve into conceptual and methodological extensions of conventional DEA for solving problems of environmental assessment in all contemporary energy industry sectors. 

  • Introduces a powerful new approach to using DEA to achieve pollution prevention, sustainability, and business growth
  • Covers the fundamentals of DEA, including theory, statistical models, and practical issues of conventional applications of DEA
  • Explores new statistical modeling strategies and explores their economic and business implications
  • Examines applications of DEA to environmental analysis across the complete range of energy industries, including coal, petroleum, shale gas, nuclear energy, renewables, and more
  • Summarizes important studies and nearly 800 peer reviewed articles on energy, the environment, and sustainability

Environmental Assessment on Energy and Sustainability by Data Envelopment Analysis is must-reading for researchers, academics, graduate students, and practitioners in the energy industries, as well as government officials and policymakers tasked with regulating the environmental impacts of industrial pollution. 

Table of Contents

  1. COVER
  2. TITLE PAGE
  3. PREFACE
  4. SECTION I: DATA ENVELOPMENT ANALYSIS (DEA)
    1. 1 GENERAL DESCRIPTION
      1. 1.1 INTRODUCTION
      2. 1.2 STRUCTURE
      3. 1.3 CONTRIBUTIONS IN SECTIONS I AND II
      4. 1.4 ABBREVIATIONS AND NOMENCLATURE
      5. 1.5 SUMMARY
    2. 2 OVERVIEW
      1. 2.1 INTRODUCTION
      2. 2.2 WHAT IS DEA?
      3. 2.3 REMARKS
      4. 2.4 REFORMULATION FROM FRACTIONAL PROGRAMMING TO LINEAR PROGRAMMING
      5. 2.5 REFERENCE SET
      6. 2.6 EXAMPLE FOR COMPUTATIONAL DESCRIPTION
      7. 2.7 SUMMARY
    3. 3 HISTORY
      1. 3.1 INTRODUCTION
      2. 3.2 ORIGIN OF L1 REGRESSION
      3. 3.3 ORIGIN OF GOAL PROGRAMMING
      4. 3.4 ANALYTICAL PROPERTIES OF L1 REGRESSION
      5. 3.5 FROM L1 REGRESSION TO L2 REGRESSION AND FRONTIER ANALYSIS
      6. 3.6 ORIGIN OF DEA
      7. 3.7 RELATIONSHIPS BETWEEN GP AND DEA
      8. 3.8 HISTORICAL PROGRESS FROM L1 REGRESSION TO DEA
      9. 3.9 SUMMARY
    4. 4 RADIAL MEASUREMENT
      1. 4.1 INTRODUCTION
      2. 4.2 RADIAL MODELS: INPUT‐ORIENTED
      3. 4.3 RADIAL MODELS: DESIRABLE OUTPUT‐ORIENTED
      4. 4.4 COMPARISON BETWEEN RADIAL MODELS
      5. 4.5 MULTIPLIER RESTRICTION AND CROSS‐REFERENCE APPROACHES
      6. 4.6 COST ANALYSIS
      7. 4.7 SUMMARY
    5. 5 NON‐RADIAL MEASUREMENT
      1. 5.1 INTRODUCTION
      2. 5.2 CHARACTERIZATION AND CLASSIFICATION ON DMUs
      3. 5.3 RUSSELL MEASURE
      4. 5.4 ADDITIVE MODEL
      5. 5.5 RANGE‐ADJUSTED MEASURE
      6. 5.6 SLACK‐ADJUSTED RADIAL MEASURE
      7. 5.7 SLACK‐BASED MEASURE
      8. 5.8 METHODOLOGICAL COMPARISON: AN ILLUSTRATIVE EXAMPLE
      9. 5.9 SUMMARY
    6. 6 DESIRABLE PROPERTIES
      1. 6.1 INTRODUCTION
      2. 6.2 CRITERIA FOR OE
      3. 6.3 SUPPLEMENTARY DISCUSSION
      4. 6.4 PREVIOUS STUDIES ON DESIRABLE PROPERTIES
      5. 6.5 STANDARD FORMULATION FOR RADIAL AND NON‐RADIAL MODELS
      6. 6.6 DESIRABLE PROPERTIES FOR DEA MODELS
      7. 6.7 SUMMARY
      8. APPENDIX
    7. 7 STRONG COMPLEMENTARY SLACKNESS CONDITIONS
      1. 7.1 INTRODUCTION
      2. 7.2 COMBINATION BETWEEN PRIMAL AND DUAL MODELS FOR SCSCs
      3. 7.3 THREE ILLUSTRATIVE EXAMPLES
      4. 7.4 THEORETICAL IMPLICATIONS OF SCSCs
      5. 7.5 GUIDELINE FOR NON‐RADIAL MODELS
      6. 7.6 SUMMARY
      7. APPENDIX
    8. 8 RETURNS TO SCALE
      1. 8.1 INTRODUCTION
      2. 8.2 UNDERLYING CONCEPTS
      3. 8.3 PRODUCTION‐BASED RTS MEASUREMENT
      4. 8.4 COST‐BASED RTS MEASUREMENT
      5. 8.5 SCALE EFFICIENCIES AND SCALE ECONOMIES
      6. 8.6 SUMMARY
    9. 9 CONGESTION
      1. 9.1 INTRODUCTION
      2. 9.2 AN ILLUSTRATIVE EXAMPLE
      3. 9.3 FUNDAMENTAL DISCUSSIONS
      4. 9.4 SUPPORTING HYPERPLANE
      5. 9.5 CONGESTION IDENTIFICATION
      6. 9.6 THEORETICAL LINKAGE BETWEEN CONGESTION AND RTS
      7. 9.7 DEGREE OF CONGESTION
      8. 9.8 ECONOMIC IMPLICATIONS
      9. 9.9 SUMMARY
    10. 10 NETWORK COMPUTING
      1. 10.1 INTRODUCTION
      2. 10.2 NETWORK COMPUTING ARCHITECTURE
      3. 10.3 NETWORK COMPUTING FOR MULTI‐STAGE PARALLEL PROCESSES
      4. 10.4 SIMULATION STUDY
      5. 10.5 SUMMARY
    11. 11 DEA‐DISCRIMINANT ANALYSIS
      1. 11.1 INTRODUCTION
      2. 11.2 TWO MIP APPROACHES FOR DEA‐DA
      3. 11.3 CLASSIFYING MULTIPLE GROUPS
      4. 11.4 ILLUSTRATIVE EXAMPLES
      5. 11.5 FRONTIER ANALYSIS
      6. 11.6 SUMMARY
    12. 12 LITERATURE STUDY FOR SECTION I
      1. 12.1 INTRODUCTION
      2. 12.2 COMPUTER CODES
      3. 12.3 PEDAGOGICAL LINKAGE FROM CONVENTIONAL USE TO ENVIRONMENTAL ASSESSMENT
      4. REFERENCES FOR SECTION I
  5. SECTION II: DEA ENVIRONMENTAL ASSESSMENT
    1. 13 WORLD ENERGY
      1. 13.1 INTRODUCTION
      2. 13.2 GENERAL TREND
      3. 13.3 PRIMARY ENERGY
      4. 13.4 SECONDARY ENERGY (ELECTRICITY)
      5. 13.5 PETROLEUM PRICE AND WORLD TRADE
      6. 13.6 ENERGY ECONOMICS
      7. 13.7 SUMMARY
    2. 14 ENVIRONMENTAL PROTECTION
      1. 14.1 INTRODUCTION
      2. 14.2 EUROPEAN UNION
      3. 14.3 JAPAN
      4. 14.4 CHINA
      5. 14.5 THE UNITED STATES OF AMERICA
      6. 14.6 SUMMARY
    3. 15 CONCEPTS
      1. 15.1 INTRODUCTION
      2. 15.2 ROLE OF DEA IN MEASURING UNIFIED PERFORMANCE
      3. 15.3 SOCIAL SUSTAINABILITY VERSUS CORPORATE SUSTAINABILITY
      4. 15.4 STRATEGIC ADAPTATION
      5. 15.5 TWO DISPOSABILITY CONCEPTS
      6. 15.6 UNIFIED EFFICIENCY UNDER NATURAL AND MANAGERIAL DISPOSABILITY
      7. 15.7 DIFFICULTY IN DEA ENVIRONMENTAL ASSESSMENT
      8. 15.8 UNDESIRABLE CONGESTION AND DESIRABLE CONGESTION
      9. 15.9 COMPARISON WITH PREVIOUS DISPOSABILITY CONCEPTS
      10. 15.10 SUMMARY
    4. 16 NON‐RADIAL APPROACH FOR UNIFIED EFFICIENCY MEASURES
      1. 16.1 INTRODUCTION
      2. 16.2 UNIFIED EFFICIENCY
      3. 16.3 UNIFIED EFFICIENCY UNDER NATURAL DISPOSABILITY
      4. 16.4 UNIFIED EFFICIENCY UNDER MANAGERIAL DISPOSABILITY
      5. 16.5 PROPERTIES OF NON‐RADIAL APPROACH
      6. 16.6 NATIONAL AND INTERNATIONAL FIRMS IN PETROLEUM INDUSTRY
      7. 16.7 SUMMARY
    5. 17 RADIAL APPROACH FOR UNIFIED EFFICIENCY MEASURES
      1. 17.1 INTRODUCTION
      2. 17.2 UNIFIED EFFICIENCY
      3. 17.3 RADIAL UNIFICATION BETWEEN DESIRABLE AND UNDESIRABLE OUTPUTS
      4. 17.4 UNIFIED EFFICIENCY UNDER NATURAL DISPOSABILITY
      5. 17.5 UNIFIED EFFICIENCY UNDER MANAGERIAL DISPOSABILITY
      6. 17.6 COAL‐FIRED POWER PLANTS IN THE UNITED STATES
      7. 17.7 SUMMARY
      8. APPENDIX
    6. 18 SCALE EFFICIENCY
      1. 18.1 INTRODUCTION
      2. 18.2 SCALE EFFICIENCY UNDER NATURAL DISPOSABILITY: NON‐RADIAL APPROACH
      3. 18.3 SCALE EFFICIENCY UNDER MANAGERIAL DISPOSABILITY: NON‐RADIAL APPROACH
      4. 18.4 SCALE EFFICIENCY UNDER NATURAL DISPOSABILITY: RADIAL APPROACH
      5. 18.5 SCALE EFFICIENCY UNDER MANAGERIAL DISPOSABILITY: RADIAL APPROACH
      6. 18.6 UNITED STATES COAL‐FIRED POWER PLANTS
      7. 18.7 SUMMARY
    7. 19 MEASUREMENT IN TIME HORIZON
      1. 19.1 INTRODUCTION
      2. 19.2 MALMQUIST INDEX
      3. 19.3 FRONTIER SHIFT IN TIME HORIZON
      4. 19.4 FORMULATIONS FOR NATURAL DISPOSABILITY
      5. 19.5 FORMULATIONS UNDER MANAGERIAL DISPOSABILITY
      6. 19.6 ENERGY MIX OF INDUSTRIAL NATIONS
      7. 19.7 SUMMARY
      8. APPENDIX
    8. 20 RETURNS TO SCALE AND DAMAGES TO SCALE
      1. 20.1 INTRODUCTION
      2. 20.2 UNDERLYING CONCEPTS
      3. 20.3 NON‐RADIAL APPROACH
      4. 20.4 RADIAL APPROACH
      5. 20.5 JAPANESE CHEMICAL AND PHARMACEUTICAL FIRMS
      6. 20.6 SUMMARY
    9. 21 DESIRABLE AND UNDESIRABLE CONGESTIONS
      1. 21.1 INTRODUCTION
      2. 21.2 UC AND DC
      3. 21.3 UNIFIED EFFICIENCY AND UC UNDER NATURAL DISPOSABILITY
      4. 21.4 UNIFIED EFFICIENCY AND DC UNDER MANAGERIAL DISPOSABILITY
      5. 21.5 COAL‐FIRED POWER PLANTS IN UNITED STATES
      6. 21.6 SUMMARY
    10. 22 MARGINAL RATE OF TRANSFORMATION AND RATE OF SUBSTITUTION
      1. 22.1 INTRODUCTION
      2. 22.2 CONCEPTS
      3. 22.3 A POSSIBLE OCCURRENCE OF DESIRABLE COnGESTION (DC)
      4. 22.4 MEASUREMENT OF MRT AND RSU UNDER DC
      5. 22.5 MULTIPLIER RESTRICTION
      6. 22.6 EXPLORATIVE ANALYSIS
      7. 22.7 INTERNATIONAL COMPARISON
      8. 22.8 SUMMARY
    11. 23 RETURNS TO DAMAGE AND DAMAGES TO RETURN
      1. 23.1 INTRODUCTION
      2. 23.2 CONGESTION, RETURNS TO DAMAGE AND DAMAGES TO RETURN
      3. 23.3 CONGESTION IDENTIFICATION UNDER NATURAL DISPOSABILITY
      4. 23.4 CONGESTION IDENTIFICATION UNDER MANAGERIAL DISPOSABILITY
      5. 23.5 ENERGY AND SOCIAL SUSTAINABILITY IN CHINA
      6. 23.6 SUMMARY
    12. 24 DISPOSABILITY UNIFICATION
      1. 24.1 INTRODUCTION
      2. 24.2 UNIFICATION BETWEEN DISPOSABILITY CONCEPTS
      3. 24.3 NON‐RADIAL APPROACH FOR DISPOSABILITY UNIFICATION
      4. 24.4 RADIAL APPROACH FOR DISPOSABILITY UNIFICATION
      5. 24.5 COMPUTATIONAL FLOW FOR DISPOSABILITY UNIFICATION
      6. 24.6 US PETROLEUM INDUSTRY
      7. 24.7 SUMMARY
    13. 25 COMMON MULTIPLIERS
      1. 25.1 INTRODUCTION
      2. 25.2 COMPUTATIONAL FRAMEWORK
      3. 25.3 COMPUTATIONAL PROCESS
      4. 25.4 RANK SUM TEST
      5. 25.5 JAPANESE ELECTRIC POWER INDUSTRY
      6. 25.6 SUMMARY
    14. 26 PROPERTY OF TRANSLATION INVARIANCE TO HANDLE ZERO AND NEGATIVE VALUES
      1. 26.1 INTRODUCTION
      2. 26.2 TRANSLATION INVARIANCE
      3. 26.3 ASSESSMENT IN TIME HORIZON
      4. 26.4 EFFICIENCY MEASUREMENT FOR FUEL MIX STRATEGY
      5. 26.5 SUMMARY
    15. 27 HANDLING ZERO AND NEGATIVE VALUES IN RADIAL MEASUREMENT
      1. 27.1 INTRODUCTION
      2. 27.2 DISAGGREGATION
      3. 27.3 UNIFIED EFFICIENCY MEASUREMENT
      4. 27.4 POSSIBLE OCCURRENCE OF DESIRABLE CONGESTION
      5. 27.5 US INDUSTRIAL SECTORS
      6. 27.6 SUMMARY
    16. 28 LITERATURE STUDY FOR DEA ENVIRONMENTAL ASSESSMENT
      1. 28.1 INTRODUCTION
      2. 28.2 APPLICATIONS IN ENERGY AND ENVIRONMENT
      3. 28.3 ENERGY
      4. 28.4 ENERGY EFFICIENCY
      5. 28.5 ENVIRONMENT
      6. 28.6 OTHER APPLICATIONS
      7. 28.7 SUMMARY
      8. REFERENCES IN SECTION II
  6. INDEX
  7. END USER LICENSE AGREEMENT