• Title/Summary/Keyword: Directional Distance Function (DDF)

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Measuring Environmental Efficiency of International Airports: DEA and DDF Approach (세계 주요 공항의 환경 효율성 분석에 관한 연구)

  • Lee, Seung-Eun;Choi, Jeong-Won;Kim, Sung-Ryong;Seo, Young-Joon
    • Journal of Korea Port Economic Association
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    • v.37 no.4
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    • pp.51-70
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    • 2021
  • This study measured the environmental efficiency of 21 international airports based on sustainability reports issued by each airport for 2018. As many sectors in the industry paid attention to social and environmental responsibilities, airport operators comprise one of the leading sectors that streamlined their facilities to become increasingly sustainable and environmental. Nevertheless, studies on the environmental operations of airports are insufficient compared with studies on economic or operational efficiency. Therefore, the current study aims to determine any possible improvement in the environmental inefficiency of airports with the utilization of directional distance function (DDF) and to examine operational efficiency with the application of the data envelopment analysis (DEA). The majority of airports have operated their facilities efficiently, but not all have effectively managed pollutants generated by airports. Furthermore, many airports can still potentially reduce CO2 and water consumption. This study suggests several implementable environmental improvements to the aviation sector. Moreover, other industrial sectors may use the research as a benchmark for enhancing environmental efficiency.

Measure the Productivity of Airports in Korea Considering Environment Factor : An Application of DEA (환경요소를 고려한 국내공항 생산성 측정 : DEA모형의 적용)

  • Jeon, Seung-Jin;Lee, Chul-Ung
    • Journal of Korean Institute of Industrial Engineers
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    • v.37 no.4
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    • pp.350-357
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    • 2011
  • In the recent, it is gradually important for airport to consider environmental aspects as sustainable development is emerged. ICAO, FAA and individual countries has tried to reduce airport noise and pollution. Thus, the effort is needed to incorporate environmental factor into productivity indicator of airport. Our paper use DEA method with the non-parametric directional output distance function(DDF) to assess productivity of 14 airports in Korea during 2008~2010. In addition to three inputs, two conventional outputs, two undesirable outputs have been considered : noise and air pollution. Results are compared from models that do not include undesirable outputs. Inclusion in the analysis of the undesirable effects of airport operations leads to greater and closer airport's efficiency scores.

A Directional Distance Function Approach on the Efficiency of Chinese Commercial Banks (방향성거리함수를 이용한 중국의 상업은행 효율성 분석)

  • Hwang, Ryeon-Hee;Kim, Seong-Ho;Lee, Dong-Won;Nam, Doo-Woo
    • Journal of Korea Society of Industrial Information Systems
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    • v.17 no.2
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    • pp.81-94
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    • 2012
  • On December 11, 2001, China joined the WTO and became one of the member countries and the Chinese financial markets had to be open in 5 years. So, the Chinese government transformed national commercial banks into joint-stock banks. The purpose of this paper is to investigate the validity of this decision by the Chinese government. In order to measure the efficiency of banks, the directional distance function (DDF) methodology is used, which analyzes whether a bad output exists in the outputs. In the empirical analysis, the number of staffs, the fixed assets, and the equity capital are used as inputs, while the loans and the non-performing loans ratio are used as a good output and a bad output, respectively. The non-performing loans ratio is included in output since it could affect the efficiency of banks. If it isn't considered in the analysis, a distortion might occur in analyzing the efficiency of banks. The results show that the efficiency of the major commercial banks was improved, and that the efficiency of joint-stocks banks was higher for 2002-2003 while the efficiency of national commercial banks was higher for 2004-2006. It was due mainly to the foreign exchanges reserve funds injected into national commercial banks by the Chinese Ministry of Finance, and as a result bad assets were eliminated.

A Methodological Approaches on the Global Green Growth (글로벌 녹색성장의 연구방법론적 고찰)

  • Choi, Yong-Rok
    • International Commerce and Information Review
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    • v.14 no.2
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    • pp.349-367
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    • 2012
  • Recently, the global paradigm on the economic structure has been changed from the price-oriented borderless competition toward the sustainable quality movement due to the ever-increasing global warming and environmental issues. Since Korea hosted the global 20 summit in 2010, it has promoted the green growth policies and asked for the other countries to participate in. Unfortunately, it is not easy to figure out the green growth or green productivity because the economic performance has a side effect of environmental pollution such as CO2 emission. This paper aims to analyzes the methodological comparison for all the related issues with green productivity and suggests the new paradigm of global Malmquist-Lundberger index (GML) as the most flexible field and performance-oriented criteria to measure the green productivity.

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Green Productivity Analysis of the Logistics Industry for the Global Competitiveness (물류산업의 녹색생산성 평가와 국제경쟁력 강화방안)

  • Choi, Yong-Rok
    • International Commerce and Information Review
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    • v.14 no.4
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    • pp.89-107
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    • 2012
  • Recently, the successful appointment of the general directorate of GCF (Green Climate Fund) in Songdo of Korea made a great history for the golden triangle with GGGI (global Green Growth Institute) and GTC (Green Technology Center). Now, Korea became the Mecca for the global green growth and it gave a great opportunity foe the Korea to lead the global economy in the future. However, to successfully manage the GCF, the Korean government should show their willingness as well as the readiness for the green prowth and green productivity. It is really hard for the Korea, since it takes the second rank for the growth rate of carbon dioxide emission in the world. To overcome this shameful status, it should make the best effort to promote the green productivity, especially in a field of logistics industry, because it takes 21% of global CO2 emission, the second largest portion. The research aims to systematically introduce the Global Malmquist-Luenberger Index (GML) and to evaluate the logistics industry of Korea based on the GML approach. It concludes the innovative technology is utmost important to improve the green productivity of the logistics industry and thus the Korean government should make more aggressive role to fill this missing link in the innovation network.

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Productivity Changes by Public Transport Reforms in the Seoul's Urban Bus Industry (Using Data Envelopment Analysis with Consideration of Accident Costs) (서울의 대중교통체계 개편에 따른 시내버스업체의 생산성 변화 (사고비용을 고려한 자료포락분석기법을 이용하여))

  • Oh, Mi-Young;Kim, Sung-Soo
    • Journal of Korean Society of Transportation
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    • v.26 no.4
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    • pp.77-86
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    • 2008
  • Firstly, this study is to compare two types of productivity changes in Seoul's urban bus industry by public transport reforms: one with considering accident costs (ML), the other without considering accident costs (M). The directional distance function (DDF), which is a form of data envelopment analysis, and the Malmquist (Luenberger) productivity index (ML, M) are used for the analysis. The results show that productivity increased regardless of accident costs over time, and the ML index is a little higher than the M index, which means that most firms experienced more of a reduction ratio of accident costs than a reduction ratio of inputs. Secondly, this paper is to analyze how reforms affect productivity changes. The results show that operational speed improvements or passenger increases most affect productivity increases, which means that the installment of median bus lanes or introduction of free transfers among public transport modes were effective in reducing both inputs and accident costs. However, operational system reforms including mid-public management were related with productivity changes but they were not as effective.