Closest targets in environmental efficiency evaluation based on enhanced Russell measure

Abstract

As environmental problems become more and more serious all over the world, environmental efficiency evaluation has drawn increasing interests of many scholars and governments’ decision makers. Data envelopment analysis (DEA) as a non-parametric approach for evaluating the relative efficiency of a group of decision making units (DMUs) has been widely extended and applied in many areas. Among various DEA models, enhanced Russell measure (ERM) model can measure the inefficiencies from input orientation and output orientation simultaneously. In this paper, we proposed a new non-orientation DEA approach based on enhanced Russell measure for measuring the environmental efficiency of a DMU and meanwhile, provided the closest target for the evaluated DMU to efficient with less effort. At last, our approach was applied to a practical example about thermal power enterprises. The results show that our model can provide a much easier way for the inefficient enterprises to improve their efficiencies than the enhanced Russell measure method. Moreover, the provided benchmarks for enterprises through our model can be used to further rank the efficient ones.