A bounded adjusted measure of efficiency for evaluating environmental performance
by Habibe Zare Haghighi; Mohsen Rostamy-Malkhalifeh
International Journal of Environment and Waste Management (IJEWM), Vol. 19, No. 2, 2017

Abstract: In accordance with the universal environmental conservation awareness, undesirable outputs of productions and social activities, e.g., air pollutants and dangerous wastes, are being increasingly identified as hazardous and undesirable. Therefore, development of technologies which produce fewer pollutants is an important topic of concern in every area of production. This paper employs data envelopment analysis (DEA) as a management tool for evaluating the environmental performance of organisations. Then, we attempt to present a non-radial efficiency measure that incorporates both desirable and undesirable outputs in a unified model. For this purpose, bounded adjusted measure (BAM) as a DEA slacks-based model is used. Based on the proposed model, an environmental performance index (EPI) is then provided. This index estimates the firm's violation of environmental protection regulations. Finally, the offered models are applied to study the pollutants (waste gas emission and waste water discharge) of 31 administrative regions of China. From this application, it is deduced that some industries attain a low level of EPI. As a result, these industries should be seriously concerned about their pollutants and wastes.

Online publication date: Fri, 28-Apr-2017

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