Abstract
Abstract To curb environmental deterioration, the Chinese government has placed a growing emphasis on the green economy and has enhanced their performance evaluation system by adding indices of environmental protection. Data envelopment analysis (DEA), which is a nonparametric method, has been increasingly used to evaluate relative efficiencies for entities with multiple inputs and desirable and undesirable outputs. In this study, we propose two new DEA-based approaches to estimate technical, environmental, and eco-efficiencies. One is a centralized method and the other is an idea point-based method. The centralized method estimates the aggregate eco-efficiencies first and then decomposes them into technical and environmental efficiencies. The idea point method first constructs a Pareto front for each decision-making unit (DMU) and then finds the optimal solution for technical and environmental efficiency by proportionally shrinking from the idea point. Finally, eco-efficiency is computed using the optimal multipliers from solving the models. We demonstrate that a DMU is eco-efficient if and only if it is technically and environmentally efficient. The application of the model to China's regional road transport system verifies the effectiveness and practicability of the proposed methods.
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