Environmental Technical Inefficiency Effects on Estero Real quality water: A Nicaragua Case

Abstract

At the present study was an empirical application in panel data for environmental stochastic frontier model to measure the Estero Real Nicaragua quality water [12]. The productive path of Bioeconomy where this approach was applied is the Biodiversity Resource Exploitation. The study aim was to measure the level of environmental technical inefficiency over the body water of the Estero Real. We used a frontier stochastic model that it considers the environmental condition with chemical and physic parameters and the planetary magnetic activity. The environmental inefficiency effects were assumption to be an independent distribution as truncations of normal distributions with constant variance, but means, which are a linear function of observable Sampling Point-specific variables. The results show that environmental inefficiency effects are understandable by inelasticity solar activity (-2.53) that reduce the quality water in 89 %, it imply according to Lynch y Poole (1979) a regular quality.