Analyzing the role of competition and cooperation in airline environmental efficiency through two dynamic environmental cross-efficiency models

Abstract

We build a dynamic structure for airline environmental efficiency and propose the Dynamic Benevolent Environmental DEA Cross-efficiency model and Dynamic Aggressive Environmental DEA Cross-efficiency model to explore whether cooperation or competition can reflect the airline dynamic environmental efficiency in the past few years. Then, the models are applied to evaluate the efficiencies of 29 international airlines from 2010 to 2016. The results demonstrate that cooperation is more likely to unfold the benchmarking airlines than the competition, but competition is more likely to embody the airline with the lowest environmental efficiency.