A Hybrid DEA Model for the Measurement of the Enviromental Performance

Authors: A. Hadi-Vencheh, N. Shayesteh Moghadam

Abstract:

Data envelopment analysis (DEA) has gained great popularity in environmental performance measurement because it can provide a synthetic standardized environmental performance index when pollutants are suitably incorporated into the traditional DEA framework. Since some of the environmental performance indicators cannot be controlled by companies managers, it is necessary to develop the model in a way that it could be applied when discretionary and/or non-discretionary factors were involved. In this paper, we present a semi-radial DEA approach to measuring environmental performance, which consists of non-discretionary factors. The model, then, has been applied on a real case.

Keywords: Environmental performance, efficiency, non-discretionary variables, data envelopment analysis.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1333158

References:

[1] Andersen, P. and Petersen, N. C. (1993). A Procedure for Ranking Efficient Units in Data Envelopment Analysis, Management Science, 39 (10), 1261-1264.
[2] Banker, R. D., Chames, A., and Cooper, W. W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science, 30 (9), 1078-1092.
[3] Banker, R. D. and Morey R. (1986). Efficiency analysis for exogenously fixed inputs and outputs. Operations Research, 34, 513-521.
[4] Chames, A., Cooper, W. W., and Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2 (6), 429-444.
[5] Chames, A. and Cooper, W. W. (1962). Programming with linear frac-tional functionals. Naval Research Logistics Quarterly, 9, 181-186.
[6] MacLean, R. (2003). Superior environmental, health and safety perfor-mance: What is it?, Environmental Quality Management, 13 (2), 13-20.
[7] May, P. H., Dabbs, A. W., Fernandez-Davila, P., Da Vinha, V., Zaidenwe¬ber, N. (2002). A corporate approach to social monitoring and assessment for development in a fragile environment. Environmental Monitoring and Assessment, 76, 125-134.
[8] Mufiiz, M. A. (2002). Separating managerial inefficiency and external conditions in data envelopment analysis. European Journal of Operational Research, 143, 625-643.
[9] Mufiiz, M. A., Paradi, J., Ruggiero, J., Yang, Z. (2006). Evaluating alternative DEA models used to control for non-discretionary inputs. Computers & Operations Research, 33, 1173-1183
[10] Murty, M.N., Kumar, S., Paul, M. (2006). Environmental regulation, productive efficiency and cost of pollution abatement: a case study of the sugar industry in India. Journal of Environmental Management, 79 (1), 1-9.
[11] Picazo-Tadeo, A.J. and Prior, D. (2009). Environmental externalities and efficiency measurement. Journal of Environmental Management, 90 (11), 3332-3339.
[12] Ruggiero J. (1996). On the measurement of technical efficiency in the public sector. European Journal of Operational Research, 90, 553-565.
[13] Ruggiero, J. (1998). Non-iscretionary inputs in data envelopment anal-ysis. European Journal of Operational Research, 111, 461-469.
[14] Tone, K. (2001). A slacks-based measure of efficiency in data envelop-ment analysis. European Journal of Operational Research, 130, 498-509.
[15] Tyteca, D. (1996). On the measurement of the environmental perfor¬mance of firms-a literature review and a productive efficiency perspective. Journal of Environmental Management, 46 (3), 281-308.
[16] Tyteca, D. (1997). Linear programming models for the measurement of environmental performance of firms-concepts and empirical results. Journal of Productivity Analysis, 8, 183-197.
[17] Yang, Z., Paradi, J. (2006). Cross firm bank branch benchmarking using "Handicapped" data envelopment analysis to adjust for corporate strategic effects. In: Proceedings of the 39th Hawaii international conference on systems sciences, 1-10.
[18] Yang, Y., MacLean, R. (2004). A template for assessing corporate performance: Benchmarking EHS organization. Environmental Quality Management, 13 (3), 11-23.
[19] Zaim, 0., Taskin, F. (2000). Environmental efficiency in carbon dioxide emissions in the OECD: A non-parametric approach. Journal of Environ-mental Management, 58 (2), 95-107.
[20] Zhou, P., Ang, B. W., Poh, K. L. (2008). A survey of data envelop¬ment analysis in energy and environmental studies. European Journal of Operational Research, 189 (1), 1-18.