Performance Measurement for the Recycling Production System Using Cooperative Game Network Data Envelopment Analysis

Huang-Chu Huang and Cheng-Feng Hu
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Huang-Chu Huang: Department of Telecommunication Engineering, National Kaohsiung University of Science and Technology, Kaohsiung 82445, Taiwan
Cheng-Feng Hu: Department of Applied Mathematics, National Chiayi University, Chiayi 600355, Taiwan

Sustainability, 2021, vol. 13, issue 19, 1-13

Abstract: Resources scarcity and environmental degradation have made sustainable resource utilization and environmental protection necessary worldwide. The development of the circular economy is considered an approach for more appropriate economic and environmental management. This work introduces a cooperative game network data envelopment analysis model for evaluating the implementation effect of recycling production systems from a closed loop and centralized control perspective. The factor efficiency analysis of the involved inputs and outputs is presented to provide guidance for the factor dominance of subsystem efficiencies. An application for assessing the circular economy of EU countries is provided to illustrate the validation of the proposed method. Our results show that the average performance of the production subsystem is superior to that of the recycling subsystem in EU countries. Furthermore, factor efficiency analysis reveals that the inefficient environmental treatment input is the culprit in worse performance of the recycling subsystem. A comparison of the proposed method with recent studies for circular economy performance evaluation is also included.

Keywords: environmental efficiency measurement; circular economy; network data envelopment analysis; game theory (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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