Analysis of environmental efficiency and marginal rate of substitution in the presence of undesirable factors: A DEA-based approach

Iranian Journal of Optimization

دوره 14، شماره 2، شهریور 2022، صفحه 81-92   

نوع مقاله: Research Paper

نویسندگان

mansour soufi^{* 1}؛ Fatemeh Bozorgi Gerdvisheh²؛ mahdi homayounfar³؛ Alireza Amirteimoori⁴

¹Department of industrial management ,Rasht Branch,Islamic Azad University,Rasht,Iran

²Department of Industrial Management, Rasht Branch, Islamic Azad University, Rasht, Iran

³Department of Industrial Management, Rasht branch, Islamic Azad University, Rasht, Guilan, Iran

⁴Department of Applied Mathematics, Rasht Branch, Islamic Azad University, Rasht, Iran

چکیده

The balance between environmental regulations and economic issues has always been one of the main challenges of governments, because with the growth of industrialization, environmental pollution has also increased. Along with the desired outputs in the production process, may also produce undesirable outputs which have a great impact on organizations efficiency and environmental pollution. On the other hand, dealing with the impact of undesirable factors on the inputs and desirable outputs, valuable information for making strategies and organizational decisions could be achieved. Considering undesirable factors, this paper aims to calculate the relative efficiency and marginal ratios of environmental systems using weak and managerial disposability models of data envelopment analysis (DEA). This study is conducted in two phases. In the first one, the regions were classified into efficient and inefficient groups using a developed DEA model. In the second step, the marginal rate of undesirable outputs on the inputs and desirable outputs in efficient areas were calculated. The results showed that the change in the amount of undesirable outputs has a significant effect on other variables.

کلیدواژه‌ها

Eco-efficiency؛ Data envelopment analysis؛ undesirable outputs؛ Managerial disposability؛ marginal rate of substitution

مراجع

Alizadeh S, Zafari-koloukhi H, Rostami F, Rouhbakhsh M, Avami, A. (2020) The eco-efficiency assessment of wastewater treatment plants in the city of Mashhad using emergy and life cycle analyses. Journal of Clean Production. 249:119327.

Amirteimoori, A., Toloie-Eshlaghi, A, Homayoonfar, M., Efficiency measurement in Two-Stage network structures considering undesirable outputs. International Journal of Industrial Mathematics, 2014, 6 (1), 65-71.

An, Q., Tao, X., Dai, B., Li, J. (2019). Modified Distance Friction Minimization Model with Undesirable Output: An Application to the Environmental Efficiency of China’s Regional Industry. Computational Economics, Doi. 10.1007/s10614-019-09888-w.

Asmild, J., Paradi, D., Reese, R. (2006). Theoretical perspectives of trade-off analysis using DEA, Omega, Vol. 34, PP. 337-343.

Belucio, M., Rodrigues, C., Antunes, CH., Freire, F., Dias, LC. (2020). Ecoefficiency in early design decisions: a multimethodology approach. Journal of Clean Production .124630.

Charnes, A., Cooper, W.W., Rhodes, E. (1978). Measuring the efficiency of decision-making units, European Journal of Operational Research, Vol .2, pp.429–44.

Cooper, W.W., Park, K.S., Ciurana, J. (2000). Marginal rates and elasticities of substitution with additive models in DEA, Journal of Production. Anal. 13, 105–23.

Deng, X., Gibson, J. (2019). Improving eco-efficiency for the sustainable agricultural production: a case study in Shandong China. Technol Forecast Soc Chang. 144:394–400.

Fare, R., Shawna, G., Lovell, K.  (1989). Multilateral productivity comparisons when some outputs are undesirable: a nonparametric approach, Review of Economics and Statistics, 71, 90–98.

Fare, ¨ R., Grosskopf, S., Lovell, C. A. K., Pasurka, C. (1989). Multilateral productivity comparisons when some outputs are undesirable: A nonparametric approach. The Review of Economics and Statistics, 71(1), 90–98.

Huang, Z., Fan, H., Shen, L., Du, X., 2021. Policy instruments for addressing construction equipment emission—a research review from a global perspective. Environment. Impact Assess. Rev. 86, 106486.

Huang, Z., Li, S.X., Rousseau, J.J. (1997). Determining rates of change in data envelopment analysis, Journal of Operation. Res. Soc. 48, 591–593.

Kao, C., Nan Hwang, S., Measuring the effects of undesirable outputs on the efficiency of production units. European Journal of Operational Research, 2020, 292 (3), P. 996-1003. Doi: 10.1016/j.ejor. 2020.11.026.

Kuosmanen, T., & Kortelainen, M. (2012). Stochastic non-smooth envelopment of data: semi-parametric frontier estimation subject to shape constraints. Journal of Productivity Analysis, 38(1), 11–28.

Kuosmanen, T., Cherchye, L., Sipilainen, T., The law of one price in data envelopment analysis: Restricting weight flexibility across firms. European Journal of Operational Research, 2006, 170, P. 735–757.

Khoshandam, L., Amirteimoori, A., Kazemi Matin, R. (2014). Marginal rates of substitution in the presence of non-discretionary factors: A data envelopment analysis approach, Measurement, Vol. 58, PP.409-415.

Liu, X., Chu, J., Yin, P., & Sun, J. (2017). DEA cross-efficiency evaluation considering undesirable output and ranking priority: A case study of eco-efficiency analysis of coal-fired power plants. Journal of Cleaner Production, 142, 877–885.

Liu, W. B., Meng, W., Li, X. X., & Zhang, D. Q. (2010). DEA models with undesirable inputs and outputs. Annals of Operations Research, 173(1), 177–194

Maghbouli, M., Eini, M., Taher, F. (2020). Efficiency Evaluation in Presence of Undesirable and Negative Factors. Iranian Journal of Optimization, Volume 12, Issue 2, 2020, 241-248.

Lee, P. Ranking Decision Making for Eco-Efficiency Using Operational, Energy, and Environmental Efficiency. Sustainability. Doi:10.3390/ su14063489

Martinelli G, Vogel E, Decian M, Farinha MJUS (2020) Assessing the eco-efficiency of different poultry production systems: an approach using life cycle assessment and economic value added. Sustainable Production and Consumption. 24:181–193

Mavi, R.K., Saen, R.F., Goh, M., (2018). Joint analysis of eco-efficiency and eco-innovation with common weights in two-stage network DEA: a big data approach. Technology Forecast Society. 144, 553–562.

Nevo, S., Wade, M.R., Cook, W.D. (2007). An examination of the trade-off between internal and external IT capabilities, Journal of Strategic Information System. 16. 5–23.

Omrani, H., Shamsi, M., Emrouznejad, A. (2022). Evaluating sustainable efficiency of decision‑making units considering undesirable outputs: an application to airline using integrated multi‑objective DEA‑TOPSIS. Environment, Development and Sustainability. Doi: 10.1007/s10668-022-02285-8.

Roshdi, I., Hasannasab, M., Margaritis, D., Rouse, P. (2018). Generalised weak disposability and efficiency measurement in environmental technologies. European Journal of Operational Research, 266 (3), P. 1000–1012.

Prior, D., Surroca, J. (2006).  Strategic Groups Based on Marginal Rates: An application to the Spanish Banking Industry, European. Journal of Operational Research. 170 (5) (2006) 505-515

Rosen, D., Schaffnit, C., Paradi, J.C. (1998). Marginal rates and two-dimensional level curves in DEA, Journal of Production. Annal. 9, 205–32.

Seiford, L. M., & Zhu, J. (2002). Modeling undesirable factors in efficiency evaluation. European Journal of Operational Research, 142, 16–20

Sueyoshi, T., Ryu, Y., Goto, M. (2020). Operational Performance of Electric Power Firms: Comparison between Japan and South Korea by Non-Radial Measures. Energies 2020, 13, 3968; Doi:10.3390/en13153968.

Sun, Y., Wang, N. (2021). Eco-efficiency in China’s Loess Plateau Region and its influencing factors: a data envelopment analysis from both static and dynamic perspectives. Environmental Science and Pollution Research. Doi: 10.1007/s11356-021-15278-3.

Tavana, M, Toloo, M., Aghayi, N., Arabmaldarf, A. (2021). A robust cross-efficiency data envelopment analysis model with undesirable outputs. Expert Systems with Applications .167 (2021) 114117.

Toloo, M., Hanˇclov´ a, J. (2020). Multi-valued measures in DEA in the presence of undesirable outputs. Omega. 94, Article 102041.

Vásquez-Ibarra L, Rebolledo-Leiva R, Angulo-Meza L, González-Araya MC, Iriarte A (2020) The joint use of life cycle assessment and data envelopment analysis methodologies for eco-efficiency assessment: a critical review, taxonomy and future research. Science Total Environment. 738:139538.

Wang W, Jiang D, Chen D, Chen Z, Zhou W, Zhu B (2016) A material flow analysis (MFA)-based potential analysis of eco-efficiency indicators of China’s cement and cement-based materials industry. Journal of Clean Production .112:787–796.

Yang L, Yang Y (2019) Evaluation of eco-efficiency in China from 1978 to 2016: Based on a modified ecological footprint model. Science Total Environment. 662:581–590

Zhang a, Yu., Mao b, Yanying., Jiao a, Liudan, Shuai, Chenyang., Zhang, Heshan. (2021). Eco-efficiency, eco-technology innovation and eco-well-being performance to improve global sustainable development. Eco-efficiency, eco-technology innovation and eco-well-being performance to improve global sustainable development. Environmental Impact Assessment Review, 89 (2021) 106580.