Input-Output Analysis for Sustainability by Using DEA Method: A Comparison Study between European and Asian Countries

Wen-Hsien Tsai, Hsiu-Li Lee, Chih-Hao Yang and Chung-Chen Huang
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Wen-Hsien Tsai: Department of Business Administration, National Central University, 300, Jhongda Rd., Jhongli, Taoyuan 32001, Taiwan
Hsiu-Li Lee: Department of Accounting Information, Chihlee University of Technology, 313, Sec. 1, Wunhua Rd., Banciao District, New Taipei City 22050, Taiwan
Chih-Hao Yang: Department of Financial Management, National Defense University, 70, Sec. 2, Jhongyang N. Rd., Beitou, Taipei 11258, Taiwan
Chung-Chen Huang: Department of Business Administration, National Central University, 300, Jhongda Rd., Jhongli, Taoyuan 32001, Taiwan

Sustainability, 2016, vol. 8, issue 12, 1-17

Abstract: Policymakers around the world are confronted with the challenge of balancing between economic development and environmental friendliness, which entails a robust set of measures in energy efficiency and environmental protection. The increasing complexity of these issues has imposed pressure on the Asian countries that have been acting as global factories. This paper proposes a meta-frontier slacks-based measure (SBM) data envelopment analysis (DEA) model, with the hope that policymakers clarify the relationship between labor force, energy consumption, government expenditures, GDP, and CO 2 emissions. Clarification of the causal relationship can serve as a template for policy decisions and ease concerns regarding the potential adverse effects of carbon reduction and energy efficiency on the economy. The results show: (1) Developing countries should establish their own climate change governance and policy frameworks; (2) Developed economies should seek to lower carbon emissions; (3) Energy policies play a pivotal role in energy efficiency improvement; (4) Top-down efforts are critical for the success of carbon reduction policies; (5) Learning from the success of developed countries helps to improve the effectiveness of energy policies; (6) Environmental policies should be formulated, and new production technologies, pollution prevention measures, and treatment methods should be introduced; (7) Governments are suggested to build long-term independent management institutions to promote energy cooperation and exchange.

Keywords: meta-frontier; economic growth; energy policy; undesirable output; sustainability; input-output analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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