Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/322382 
Year of Publication: 
2025
Series/Report no.: 
Working Papers No. 2025-10
Publisher: 
Banco de México, Ciudad de México
Abstract: 
This study examines the energy efficiency and environmental performance of Mexico's manufacturing sector across regions. We employ a Data Envelopment Analysis model that optimizes the weighted output-input ratio for each decision-making unit. Specifically, a non-radial directional distance function model is used to account for both desirable outputs and undesirable outputs, represented by greenhouse gas emissions. The findings show that including undesirable outputs reduces the estimated economic efficiency. Over the analysis period, the production frontier shifted only modestly. Regionally, northern states perform best, while southern states lag behind, revealing considerable potential for national energy and emission savings.
Subjects: 
Undesirable output
Energy efficiency improvements
GHG emission performance
Directional distance function
JEL: 
C61
D24
Q43
Document Type: 
Working Paper
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