Environmental Efficiency Evaluation in the Top Asian Economies: An Application of DEA

Chia-Nan Wang, Hoang-Phu Nguyen and Cheng-Wen Chang
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Chia-Nan Wang: Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan
Hoang-Phu Nguyen: Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan
Cheng-Wen Chang: Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan

Mathematics, 2021, vol. 9, issue 8, 1-19

Abstract: Sustainable development has become a global catchphrase in the recent development age. This leads to the growth of various methodologies in evaluating environmental efficiency, such as the Data Envelopment Analysis (DEA) method. The purpose of this study is to propose an extended DEA model, i.e., the undesirable output model, in measuring the relative eco-efficiency scores across nations. The study collected the data of inputs, namely bad outputs and good outputs of the top 20 Asian economies in the period of 2005–2019, and then estimated the environmental efficiency of each country and classified them. The results have shown that there are four nations having higher average environmental efficiency than others. Japan is a good example of sustainable development that simultaneously balances economic development and environmental protection. The study has also discussed possible solutions for improvement to the group of nations with low environmental efficiency. Contributing to applying a novelty extended DEA model, this work recommends a more precise model, taking the weight of outputs into account for further studies.

Keywords: undesirable output model; DEA model; sustainable development; environmental efficiency; green growth; eco-efficiency (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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