Title: A bounded adjusted measure of efficiency for evaluating environmental performance

Authors: Habibe Zare Haghighi; Mohsen Rostamy-Malkhalifeh

Addresses: Department of Mathematics, South Tehran Branch, Islamic Azad University, Tehran, Iran ' Department of Mathematics, Science and Research Branch, Islamic Azad University, Tehran, Iran

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.

Keywords: data envelopment analysis; DEA; environmental performance; efficiency; undesirable output; pollutants.

DOI: 10.1504/IJEWM.2017.083970

International Journal of Environment and Waste Management, 2017 Vol.19 No.2, pp.148 - 163

Accepted: 22 Dec 2016
Published online: 28 Apr 2017 *

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