1. Technology inequality, Marginal Rate of Transformation and Rate of Substitution measurement by DEA: The sustainability improvement of passenger cars.
- Author
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Zhang, Ruchuan, Li, Aijun, Dahoro, Davo Ayuba, and Chen, ShanShan
- Subjects
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DATA envelopment analysis , *CARBON emissions , *DIFFUSION of innovations , *DIFFUSION barriers , *GINI coefficient , *TECHNOLOGY transfer , *K-means clustering - Abstract
To the best of our knowledge, the previous Data Envelopment Analysis studies on passenger-car sustainability have neglected to measure technology-based measures, technology inequality, and technology diffusion barriers. To fill this research gap, this study proposes a new framework consisting of Data Envelopment Analysis, K-means clustering method, Gini coefficient, and the group-based decomposition method. Adopting these methods, this study examines the Marginal Rate of Transformation and the Rate of Substitution, identifies both desirable congestion (or eco-innovation) and undesirable congestion, evaluates technology inequality, and explores the main barriers to technology diffusion. Empirically, we assess new passenger cars released in the United States in 2020. The main conclusions are summarized as follows: First, under managerial disposability, the generally negative Marginal Rate of Transformation and Rate of Substitution across passenger cars suggest that the majority of car manufacturers are environmentally conscious. This outcome is partly the result of the minimum environmental standards set for car manufacturers. Second, the majority of passenger cars displayed the possibility of strong desirable congestion (clean-technology innovation) and no undesirable congestion simultaneously. The majority of passenger cars need to decrease carbon dioxide emissions along with an increase in fuel consumption efficiency (miles per gallon). This finding indicates that regulatory strategies have been mostly effective at directing eco-technological innovation toward mitigating a significant source of climate change. Finally, technology inequality was driven by both cross-group and within-group inequalities. Moreover, considerable heterogeneity existed in the within-group decomposition of the overall efficiency Gini coefficient result. • We measure marginal quantities and technology inequality of passenger cars. • We find that most passenger carlines are environmentally conscious. • An increase in desirable output could increase undesirable output. • Most passenger cars show possibilities of clean technology innovation. • Cross-group and within-group inequalities drive technology inequality. [ABSTRACT FROM AUTHOR]
- Published
- 2022
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