Eco-innovation analysis: A data envelopment analysis methodology

Abstract

The examination of financial development and environmental effect has driven inquiry into creating assessment models on environmental and economic changes, particularly on eco-innovation goods. Here, a new approach is proposed to find the common set of weights (CSWs) in data envelopment analysis (DEA) to examine the eco-innovation in the presence of undesirable factors. For this purpose, first, the current models are reviewed and criticized, and their shortcomings are clarified. Then, a simple way is proposed to find CSWs in DEA. We show the proposed approach leads to a better solution compared to current methods in the literature. Finally, the proposed model is applied to the eco-innovation analysis of OECD countries. Our findings show that the Czech Republic has the highest rank in eco-innovation. • A novel common weights model in DEA is developed. • Eco-innovation of OECD countries is assessed. • Undesirable outputs are modeled in the proposed method.