The Environmental Efficiency Analysis Based on the Three-Step Method for Two-Stage Data Envelopment Analysis

This paper suggests that the efficiency of a system (decision-making unit) and its subsystem cannot be properly measured using a two-stage data envelopment analysis (DEA) model either in cooperative or non-cooperative evaluation. Indeed, the existing methods subjectively determine the status of the...

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Autores principales:	Qingyou Yan, Fei Zhao, Xu Wang, Tomas Balezentis
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	two-stage DEA model cooperative game non-cooperative game environmental efficiency three-step method Technology T
Acceso en línea:	https://doaj.org/article/45064cf5ef46435ab899ef1629c98523
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spelling	oai:doaj.org-article:45064cf5ef46435ab899ef1629c985232021-11-11T15:50:45ZThe Environmental Efficiency Analysis Based on the Three-Step Method for Two-Stage Data Envelopment Analysis10.3390/en142170281996-1073https://doaj.org/article/45064cf5ef46435ab899ef1629c985232021-10-01T00:00:00Zhttps://www.mdpi.com/1996-1073/14/21/7028https://doaj.org/toc/1996-1073This paper suggests that the efficiency of a system (decision-making unit) and its subsystem cannot be properly measured using a two-stage data envelopment analysis (DEA) model either in cooperative or non-cooperative evaluation. Indeed, the existing methods subjectively determine the status of the subsystems in the whole system. The two-stage DEA models, either cooperative game or non-cooperative game, are used to analyze the environmental efficiency. However, when the actual relationship between the two subsystems is inconsistent with the subjective relationship assumptions, the overall efficiency of the system and the efficiency of each subsystem will be biased. The conventional two-stage DEA models require predetermining the relationship between the subsystems within the system based on the subjective judgment of the decision-maker. Based on this, this paper proposes a three-step method to solve the two-stage DEA. First, the position relation among subsystems is determined according to the optimal weights through the model. According to the status relationship among subsystems, the decision units are grouped, and the two-stage DEA model of cooperative game or non-cooperative game is used to analyze the efficiency in each group. This method reduces the subjectivity of decision making and analyzes the efficiency of each decision unit applying the most appropriate two-stage DEA model to find the source of inefficiency. Finally, this paper verifies the rationality and validity of the method by analyzing the water use efficiency of industrial systems in China. It is found that most regions in China value economic development more than environmental protection (as evidenced by the DEA weights). What is more, the method proposed by the paper can be generalized for any two-stage DEA problem.Qingyou YanFei ZhaoXu WangTomas BalezentisMDPI AGarticletwo-stage DEA modelcooperative gamenon-cooperative gameenvironmental efficiencythree-step methodTechnologyTENEnergies, Vol 14, Iss 7028, p 7028 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	two-stage DEA model cooperative game non-cooperative game environmental efficiency three-step method Technology T
spellingShingle	two-stage DEA model cooperative game non-cooperative game environmental efficiency three-step method Technology T Qingyou Yan Fei Zhao Xu Wang Tomas Balezentis The Environmental Efficiency Analysis Based on the Three-Step Method for Two-Stage Data Envelopment Analysis
description	This paper suggests that the efficiency of a system (decision-making unit) and its subsystem cannot be properly measured using a two-stage data envelopment analysis (DEA) model either in cooperative or non-cooperative evaluation. Indeed, the existing methods subjectively determine the status of the subsystems in the whole system. The two-stage DEA models, either cooperative game or non-cooperative game, are used to analyze the environmental efficiency. However, when the actual relationship between the two subsystems is inconsistent with the subjective relationship assumptions, the overall efficiency of the system and the efficiency of each subsystem will be biased. The conventional two-stage DEA models require predetermining the relationship between the subsystems within the system based on the subjective judgment of the decision-maker. Based on this, this paper proposes a three-step method to solve the two-stage DEA. First, the position relation among subsystems is determined according to the optimal weights through the model. According to the status relationship among subsystems, the decision units are grouped, and the two-stage DEA model of cooperative game or non-cooperative game is used to analyze the efficiency in each group. This method reduces the subjectivity of decision making and analyzes the efficiency of each decision unit applying the most appropriate two-stage DEA model to find the source of inefficiency. Finally, this paper verifies the rationality and validity of the method by analyzing the water use efficiency of industrial systems in China. It is found that most regions in China value economic development more than environmental protection (as evidenced by the DEA weights). What is more, the method proposed by the paper can be generalized for any two-stage DEA problem.
format	article
author	Qingyou Yan Fei Zhao Xu Wang Tomas Balezentis
author_facet	Qingyou Yan Fei Zhao Xu Wang Tomas Balezentis
author_sort	Qingyou Yan
title	The Environmental Efficiency Analysis Based on the Three-Step Method for Two-Stage Data Envelopment Analysis
title_short	The Environmental Efficiency Analysis Based on the Three-Step Method for Two-Stage Data Envelopment Analysis
title_full	The Environmental Efficiency Analysis Based on the Three-Step Method for Two-Stage Data Envelopment Analysis
title_fullStr	The Environmental Efficiency Analysis Based on the Three-Step Method for Two-Stage Data Envelopment Analysis
title_full_unstemmed	The Environmental Efficiency Analysis Based on the Three-Step Method for Two-Stage Data Envelopment Analysis
title_sort	environmental efficiency analysis based on the three-step method for two-stage data envelopment analysis
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/45064cf5ef46435ab899ef1629c98523
work_keys_str_mv	AT qingyouyan theenvironmentalefficiencyanalysisbasedonthethreestepmethodfortwostagedataenvelopmentanalysis AT feizhao theenvironmentalefficiencyanalysisbasedonthethreestepmethodfortwostagedataenvelopmentanalysis AT xuwang theenvironmentalefficiencyanalysisbasedonthethreestepmethodfortwostagedataenvelopmentanalysis AT tomasbalezentis theenvironmentalefficiencyanalysisbasedonthethreestepmethodfortwostagedataenvelopmentanalysis AT qingyouyan environmentalefficiencyanalysisbasedonthethreestepmethodfortwostagedataenvelopmentanalysis AT feizhao environmentalefficiencyanalysisbasedonthethreestepmethodfortwostagedataenvelopmentanalysis AT xuwang environmentalefficiencyanalysisbasedonthethreestepmethodfortwostagedataenvelopmentanalysis AT tomasbalezentis environmentalefficiencyanalysisbasedonthethreestepmethodfortwostagedataenvelopmentanalysis
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The Environmental Efficiency Analysis Based on the Three-Step Method for Two-Stage Data Envelopment Analysis

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