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    Rights statement: This is the author’s version of a work that was accepted for publication in European Journal of Operational Research. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in European Journal of Operational Research, 285, 3, 2020 DOI: 10.1016/j.ejor.2020.02.025

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On a model of environmental performance and technology gaps

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
<mark>Journal publication date</mark>16/09/2020
<mark>Journal</mark>European Journal of Operational Research
Issue number3
Volume285
Number of pages12
Pages (from-to)1141-1152
Publication StatusPublished
Early online date28/02/20
<mark>Original language</mark>English

Abstract

In this paper we consider a stochastic directional technology distance function to re-examine the results of recent research in which the authors estimate a generalized directional distance function using programming methods, derive technology gaps and, in a second stage, they fit a Markov process to the technology gaps. One problem is that in the second stage efficiencies and gaps are themselves estimated. Moreover, the authors consider two groups (Annex I and non-Annex I countries according to the Kyoto protocol). We allow for endogeneity of good and bad outputs and inputs, endogenously determined groups of countries, endogenous directions for each country and group, and a distribution of technological gaps (with respect to the meta-technology) which is
based on a Markov process. We use a semi-parametric directional technology distance function and we propose stochastic envelopment of different frontiers allowing for its own “meta-inefficiency”. All quantities of interest are estimated jointly using numerical Bayesian techniques.

Bibliographic note

This is the author’s version of a work that was accepted for publication in European Journal of Operational Research. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in European Journal of Operational Research, 285, 3, 2020 DOI: 10.1016/j.ejor.2020.02.025