Evolving the latent variable model as an environmental DEA technology

Abraham Bretholt, Jeh Nan Pan

Research output: Contribution to journalArticlepeer-review

13 Citations (Scopus)


This article tests several nonparametric DEA models for their ability to accurately decompose CO 2 emissions change using a Malmquist styled decomposition framework. This production oriented activity analysis involves panel data and two data sets from the literature for comparison. A new Latent Variable radial input-oriented technology is introduced that is closely associated with a Koopmans Efficient Slacks Based Model. The Latent Variable technology simultaneously reduces inputs and undesirable outputs in a single Multiple Objective Linear Program. This production theoretic methodology is adapted to preserve both scale efficiency and causality within the envelopment framework. Finally, the application studies demonstrate the internal consistency of the Latent Variable reduction coefficients, which overturns previous results and paves the way for further research into undesirable externalities.

Original languageEnglish
Pages (from-to)315-325
Number of pages11
JournalOmega (United Kingdom)
Issue number2
Publication statusPublished - 2013 Apr

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research
  • Information Systems and Management


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