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Eco-efficiency analysis of paper mills along the Huai River: An extended DEA approach

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  • Hua, Zhongsheng
  • Bian, Yiwen
  • Liang, Liang
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    Abstract

    The objective of this paper is to estimate the ecological efficiency of paper mills along the Huai River in China. The main characteristic of the ecological efficiency evaluation problem is that an undesirable output of biochemical oxygen demand (BOD) and a non-discretionary input (BOD emission quota) should be considered simultaneously. By analyzing the impacts of the non-discretionary input on decision-making units' (DMUs) desirable and undesirable outputs, a non-radial output-oriented DEA model is proposed. In the proposed model, we describe a new approach of defining reference set that requires reference units operate in a similar environment on average. We employ the model to provide efficient inputs/outputs targets for DMU managers to improve DMUs' efficiencies. Based on the developed model, impacts of the non-discretionary input on DMUs' returns are also analyzed. We illustrate the proposed model, using real data, for 32 paper mills along the Huai River in China.

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    Bibliographic Info

    Article provided by Elsevier in its journal Omega.

    Volume (Year): 35 (2007)
    Issue (Month): 5 (October)
    Pages: 578-587

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    Handle: RePEc:eee:jomega:v:35:y:2007:i:5:p:578-587

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    Related research

    Keywords: Data envelopment analysis Non-radial model Undesirable output Non-discretionary input;

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    Cited by:
    1. Peroni, Chiara, 2012. "Environmental efficiency indices: towards a new approach to green-growth accounting," MPRA Paper 38671, University Library of Munich, Germany, revised 27 Apr 2012.
    2. Claassen, G.D.H., 2014. "Mixed integer (0–1) fractional programming for decision support in paper production industry," Omega, Elsevier, vol. 43(C), pages 21-29.
    3. Kuosmanen, Timo & Kazemi Matin, Reza, 2011. "Duality of weakly disposable technology," Omega, Elsevier, vol. 39(5), pages 504-512, October.
    4. Wang, Qunwei & Zhou, Peng & Zhou, Dequn, 2012. "Efficiency measurement with carbon dioxide emissions: The case of China," Applied Energy, Elsevier, vol. 90(1), pages 161-166.
    5. Wang, John & Yan, Ruiliang & Hollister, Kimberly & Zhu, Dan, 2008. "A historic review of management science research in China," Omega, Elsevier, vol. 36(6), pages 919-932, December.
    6. Cordero Ferrera, Jose Manuel & Alonso Morán, Edurne & Nuño Solís, Roberto & Orueta, Juan F. & Souto Arce, Regina, 2013. "Efficiency assessment of primary care providers: A conditional nonparametric approach," MPRA Paper 51926, University Library of Munich, Germany.
    7. Song, Malin & An, Qingxian & Zhang, Wei & Wang, Zeya & Wu, Jie, 2012. "Environmental efficiency evaluation based on data envelopment analysis: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4465-4469.
    8. Charles, Vincent & Kumar, Mukesh & Irene Kavitha, S., 2012. "Measuring the efficiency of assembled printed circuit boards with undesirable outputs using data envelopment analysis," International Journal of Production Economics, Elsevier, vol. 136(1), pages 194-206.
    9. Du, Kerui & Lu, Huang & Yu, Kun, 2014. "Sources of the potential CO2 emission reduction in China: A nonparametric metafrontier approach," Applied Energy, Elsevier, vol. 115(C), pages 491-501.
    10. Wang, Ke & Wei, Yi-Ming & Zhang, Xian, 2012. "A comparative analysis of China’s regional energy and emission performance: Which is the better way to deal with undesirable outputs?," Energy Policy, Elsevier, vol. 46(C), pages 574-584.

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