Thursday, March 24, 2011

Eco-efficiency of the world cement industry: A data envelopment analysis

http://dx.doi.org/10.1016/j.enpol.2011.02.057
Abstract: Chemical reactions and the combustion of dirty fuels, such as coal and petroleum coke (petcoke), that are used in cement production processes generate a significant amount of CO2 emissions. In this paper, we provide an eco-efficiency measure for 21 prototypes of cement industries operating in many countries by applying both a data envelopment analysis (DEA) and a directional distance function approach, which are particularly suitable for models where several production inputs and desirable and undesirable outputs are taken into account. To understand whether this eco-efficiency is due to a rational utilization of inputs or to a real carbon dioxide reduction as a consequence of environmental regulation, we analyze the cases where CO2 emissions can either be considered as an input or as an undesirable output. Empirical results show that countries where cement industries invest in technologically advanced kilns and adopt alternative fuels and raw materials in their production processes are eco-efficient. This gives a comparative advantage to emerging countries, such as India and China, which are incentivized to modernize their production processes.
by G. Oggionia, E-mail The Corresponding Author, R. Riccardia, Corresponding Author Contact Information, E-mail The Corresponding Author, E-mail The Corresponding Author and R. Toninellib, E-mail The Corresponding Author

a University of Brescia, Faculty of Economics, Department of Quantitative Methods, IT-25122 Brescia, Italy
b University of Pisa, Faculty of Economics, Department of Statistics and Applied Mathematics, IT-56124 Pisa, Italy
Energy Policy 
Article in Press, Corrected Proof,
Received 20 September 2010; accepted 14 February 2011. Available online 21 March 2011. 
Keywords: Data envelopment analysis; Undesirable output; Environmental regulation

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