Journals / Ankara Hacı Bayram Veli Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi / 2022 / Cilt: 24 - Sayı: 2

The Circular Economy Approach to Production Inefficiency: A Stochastic Frontier Analysis

Üretim Etkinsizliğine Döngüsel Ekonomi Yaklaşımı: Stokastik Sınır Analizi

Pages
582–597
Publication Date
2022-08-27
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Therefore, policies should be developed by taking into account the capacities and scales of the municipalities for the financing of these expenditures.

📌 3 Key Takeaways

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Objective & Hypothesis:The Circular Economy concept, which is based on the 3R principle, has led to the emergence of different ideas on waste management.
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Key Findings & Data:On the one hand, waste management is expanded with the recommendations of the 5R and 10R hierarchies, on the other hand, it is defined to cover a significant part of the R stages of the recovery process.
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Conclusion & Impact:Therefore, policies should be developed by taking into account the capacities and scales of the municipalities for the financing of these expenditures.
🔬Design:Research Article
📍Scope:2000-2017 Verileri
⚙️Variables:Döngüsel Ekonomi · Atık Yönetimi · Atık Hiyerarşisi

Abstract

The Circular Economy concept, which is based on the 3R principle, has led to the emergence of different ideas on waste management. On the one hand, waste management is expanded with the recommendations of the 5R and 10R hierarchies, on the other hand, it is defined to cover a significant part of the R stages of the recovery process. CE discussions are the efficiency analysis and use different indicators in performance measurements for which DEA is widely preferred. The stochastic frontier analysis (SFA) consists of assumptions about the functional relationship between inputs and outputs variables. Additionally, compared with non-parametric (SFA) considers the effects of random factors on outputs which strengthen the used estimation procedure. In this study, it is thought that one of the important variables of reducing inefficiency in the production function is the recovery in which the recycling of losses in the production process creates an important economic value while reducing the use of inputs or substituting them. Therefore, recovery is directly designed as an additional input using the Cobb-Douglas functional form. In the study, the 2000-2017 period data of OECD countries were used to analyze the effects of waste management, focusing on the recovery process, on economic growth. As a result, it was seen that the efficiency value calculated for OECD countries was 0,84 and the inefficiency in the production process decreased as the recovery rate increased. Even though the economic contribution of the recovery process is accepted by local governments, the initial costs of carrying out this process may require significant expenditures. Therefore, policies should be developed by taking into account the capacities and scales of the municipalities for the financing of these expenditures.

Özet

3R prensibine dayalı döngüsel ekonomi kavramı, atık yönetimi konusunda farklı fikirlerin ortaya çıkmasına neden olmuştur. Atık yönetimi bir yandan 5R ve 10R hiyerarşilerinin önerileriyle genişlerken, diğer yandan geri kazanım sürecinin R aşamalarının önemli bir bölümünü kapsayacak şekilde tanımlanmaktadır. Verimlilik analizi olan CE tartışmaları, VZA'nın yaygın olarak tercih edildiği performans ölçümlerinde farklı göstergeler kullanmaktadır. Stokastik sınır analizi (SFA) ise, girdi ve çıktı değişkenleri arasındaki işlevsel ilişki varsayımlarından oluşmaktadır. Parametrik olmayan yöntemlerle karşılaştırıldığında da, (SFA), kullanılan tahmin prosedürünü güçlendiren çıktılar üzerindeki rassal faktörlerin etkilerini dikkate almaktadır. Bu çalışmada, üretim fonksiyonundaki verimsizliği azaltan önemli değişkenlerinden birinin, girdi azaltımı ya da ikamesi üzerinden üretim sürecindeki kayıpları geri dönüştürerek ekonomik değer yaratan, geri kazanım olduğu düşünülmektedir. Bu nedenle geri kazanım, Cobb-Douglas fonksiyonu doğrudan ek bir girdi olarak eklenmiştir Çalışmada, geri kazanım sürecine odaklanan atık yönetiminin ekonomik büyüme üzerindeki etkilerini analiz etmek için OECD ülkelerinin 2000-2017 dönemi verileri kullanılmıştır. Sonuç olarak OECD ülkeleri için hesaplanan etkinlik değerinin 0,84 olduğu ve geri kazanım oranı arttıkça üretim sürecindeki verimsizliğin azaldığı görülmüştür. İyileşme sürecinin ekonomik katkısı yerel yönetimlere olumlu katkı sağlamakla birlikte sürecin maliyetleri önemli harcamalar gerektirebilmektedir. Bu nedenle bu harcamaların finansmanı için yerel yinetimlerin kapasiteleri ve ölçekleri dikkate alınarak politikalar geliştirilmelidir.

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Cite This Article

TAŞDOĞAN, B. (2022). The Circular Economy Approach to Production Inefficiency: A Stochastic Frontier Analysis. Ankara Hacı Bayram Veli Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, Cilt: 24 - Sayı: 2, 582–597. https://ajindex.com/articles/463012

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