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Evaluation of National Environmental Efficiency Under Uncertainty Using Data Envelopment Analysis

In: Understanding Risks and Uncertainties in Energy and Climate Policy

Author

Listed:
  • Evangelos Grigoroudis

    (Technical University of Crete)

  • Konstantinos Petridis

    (Technical University of Crete)

Abstract

The evaluation of environmental practices of each country is a very interesting area which has recently gained significant attention. An analysis, which can provide results for comparisons among countries with different economies, is data envelopment analysis. In this chapter, countries’ environmental efficiency is estimated using data envelopment analysis. Applying a slack-based model under the consideration of constant returns to scale and variable returns to scale technologies, a composite index is calculated from the efficiency scores of each model. These models consider both desirable and undesirable outputs. However, especially for undesirable outputs, the data collected are not accurate and could potentially be subject to uncertainty. To handle the uncertainty in the undesirable data, a chance-constraint DEA model is applied. Results of the deterministic model show that Australia gathers high values of environmental efficiency. However, in the presence of noise in the undesirable data, the rankings of the countries change.

Suggested Citation

  • Evangelos Grigoroudis & Konstantinos Petridis, 2019. "Evaluation of National Environmental Efficiency Under Uncertainty Using Data Envelopment Analysis," Springer Books, in: Haris Doukas & Alexandros Flamos & Jenny Lieu (ed.), Understanding Risks and Uncertainties in Energy and Climate Policy, pages 161-181, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-03152-7_7
    DOI: 10.1007/978-3-030-03152-7_7
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