Abstract
Sustainable development has become a global catchphrase in the recent development age. This leads to the growth of various methodologies in evaluating environmental efficiency, such as the Data Envelopment Analysis (DEA) method. The purpose of this study is to propose an extended DEA model, i.e., the undesirable output model, in measuring the relative eco-efficiency scores across nations. The study collected the data of inputs, namely bad outputs and good outputs of the top 20 Asian economies in the period of 2005–2019, and then estimated the environmental efficiency of each country and classified them. The results have shown that there are four nations having higher average environmental efficiency than others. Japan is a good example of sustainable development that simultaneously balances economic development and environmental protection. The study has also discussed possible solutions for improvement to the group of nations with low environmental efficiency. Contributing to applying a novelty extended DEA model, this work recommends a more precise model, taking the weight of outputs into account for further studies.
Highlights
In recent years, the concept of sustainable development has been attracting many concerns from different countries
The environmental efficiency is estimated for each nation in the years
With projection in the analysis of variance, the environmental efficiency of countries can be improved by deleting the excess in inputs and bad outputs and augmenting the shortfalls in good outputs
Summary
The concept of sustainable development has been attracting many concerns from different countries. The long-term sustainable economic development is defined by achieving the most economic benefits while making the least damage to the environment [2]. The natural capital depletion, the generation of waste, and the growth of the population have many impacts on the natural environment, such as pollution, natural disasters, and the loss of biodiversity. The sea level is predicted to rise to 2 m in 80 years, due to global warming and climate change [3]. Conrad and Cassar (2014) [4] argued that the sustainable economic growth keeping a balance between pollution and economic development is a concern for both small and large countries
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