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Environment Performance Evaluation Under Emission Quota Constraint

Author

Listed:
  • Gongbing Bi

    (School of Management, University of Science and Technology of China, Hefei 230026, China)

  • Yan Luo

    (School of Management, Anhui University, Hefei 230601, China)

  • Shaofu Du

    (School of Management, University of Science and Technology of China, Hefei 230026, China)

Abstract

The primary purpose of our paper is to evaluate environmental performance as well as to model some nonseparable inputs and outputs using the data envelopment analysis (DEA) model. The efficiency analysis takes emission quota into consideration with the objectives of minimizing both total undesirable emissions and consumption of input resources. The value of emission quota that directly influences the environmental performance is obtained. The proposed model is applied to the data of power industries in 30 Chinese provinces. In addition, the sensitivity of the efficiency with respect to the value of emission quota is investigated. The results show the environmental protection in the power industry can be further improved. Our conclusion is that strict environmental regulations often enhance economic development rather than hinder it. This strongly suggests the government needs to pay more attention to pollution abatement because of its promoting effects on environmental performance.

Suggested Citation

  • Gongbing Bi & Yan Luo & Shaofu Du, 2014. "Environment Performance Evaluation Under Emission Quota Constraint," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 779-794.
    • Handle: RePEc:wsi:ijitdm:v:13:y:2014:i:04:n:s0219622014500230
    DOI: 10.1142/S0219622014500230
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