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Economic Efficiency of Ethanol Plants in the US North Central Region AgEcon
Sesmero, Juan P.; Perrin, Richard K.; Fulginiti, Lilyan E..
In this study we use data envelopment analysis to decompose the overall economic efficiency of a sample of ethanol plants into three subcomponents: technical efficiency, allocative efficiency and a new component we call marketing efficiency. The relative importance of these sources of efficiency is of particular interest given the recent history of bankruptcies, plant closings and ownership change in the industry. Results reveal that observed production units are very efficient from a technical point of view as suggested by a standard deviation of 1% in technical efficiency. However, our results also show that bigger plants tend to be more economically efficient than others. The conventional methodology would have identified this difference as coming from...
Tipo: Conference Paper or Presentation Palavras-chave: Ethanol; Data envelopment analysis; Efficiency decomposition; Marketing efficiency; Resource /Energy Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/61639
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