An Extended-Directional Mix-Efficiency Measure: Performance Evaluation of OECD Countries Considering NetZero

Conventional data envelopment analysis (DEA) models make the assumption of controllable inputs and desirable outputs. However, in many real-world applications, there are two major issues facing the management of decision-making units. The first one is how to deal with uncontrollable inputs whose lev...

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Main Authors: Taleb, Mushtaq, Emrouznejad, Ali, Charles, Vincent, Khalid, Ruzelan, Ramli, Razamin
Format: Article
Language:English
Published: Elsevier Ltd. 2024
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Online Access:https://repo.uum.edu.my/id/eprint/30994/1/CIE%20189%20109967%202024%2001-19.pdf
https://doi.org/10.1016/j.cie.2024.109967
https://repo.uum.edu.my/id/eprint/30994/
https://www.sciencedirect.com/science/article/pii/S0360835224000883?via%3Dihub
https://doi.org/10.1016/j.cie.2024.109967
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spelling my.uum.repo.309942024-07-04T03:31:47Z https://repo.uum.edu.my/id/eprint/30994/ An Extended-Directional Mix-Efficiency Measure: Performance Evaluation of OECD Countries Considering NetZero Taleb, Mushtaq Emrouznejad, Ali Charles, Vincent Khalid, Ruzelan Ramli, Razamin QA Mathematics Conventional data envelopment analysis (DEA) models make the assumption of controllable inputs and desirable outputs. However, in many real-world applications, there are two major issues facing the management of decision-making units. The first one is how to deal with uncontrollable inputs whose levels are determined by exogenous fixed factors. The second is how to deal with undesirable outputs that are accompanied by desirable outputs. The effect of the operating environment is frequently captured by uncontrollable inputs and undesirable outputs. The modulation of these two factors into a directional DEA model is still in its infancy in the DEA literature. This paper proposes new directional mix-efficiency measure and slacks-based measure models. These two efficiency models are proposed in the context of uncontrollable inputs and undesirable outputs. The new metric looks at how well the input and/or output mix should change to achieve a fully efficient status by decreasing controllable inputs and undesirable outputs and/or increasing desirable outputs while keeping uncontrollable inputs constant. The new mix-efficiency measure is based on the directional distance function and the slacks-based measure. The usefulness and applicability of the proposed models are assessed by measuring the eco-efficiency of the Organization for Economic Co-Operation and Development (OECD) countries. The aim of the application is to measure efficiency in the context of NetZero, with a specific focus on reducing CO2 emissions. The findings reveal that six countries—France, Luxembourg, Germany, Norway, Sweden, and the UK—have achieved eco-efficiency; therefore, these countries function in the constant returns-to-scale (CRS) region Elsevier Ltd. 2024 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/30994/1/CIE%20189%20109967%202024%2001-19.pdf Taleb, Mushtaq and Emrouznejad, Ali and Charles, Vincent and Khalid, Ruzelan and Ramli, Razamin (2024) An Extended-Directional Mix-Efficiency Measure: Performance Evaluation of OECD Countries Considering NetZero. Computers & Industrial Engineering, 189 (109967). pp. 1-19. ISSN 0360-8352 https://www.sciencedirect.com/science/article/pii/S0360835224000883?via%3Dihub https://doi.org/10.1016/j.cie.2024.109967 https://doi.org/10.1016/j.cie.2024.109967
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic QA Mathematics
spellingShingle QA Mathematics
Taleb, Mushtaq
Emrouznejad, Ali
Charles, Vincent
Khalid, Ruzelan
Ramli, Razamin
An Extended-Directional Mix-Efficiency Measure: Performance Evaluation of OECD Countries Considering NetZero
description Conventional data envelopment analysis (DEA) models make the assumption of controllable inputs and desirable outputs. However, in many real-world applications, there are two major issues facing the management of decision-making units. The first one is how to deal with uncontrollable inputs whose levels are determined by exogenous fixed factors. The second is how to deal with undesirable outputs that are accompanied by desirable outputs. The effect of the operating environment is frequently captured by uncontrollable inputs and undesirable outputs. The modulation of these two factors into a directional DEA model is still in its infancy in the DEA literature. This paper proposes new directional mix-efficiency measure and slacks-based measure models. These two efficiency models are proposed in the context of uncontrollable inputs and undesirable outputs. The new metric looks at how well the input and/or output mix should change to achieve a fully efficient status by decreasing controllable inputs and undesirable outputs and/or increasing desirable outputs while keeping uncontrollable inputs constant. The new mix-efficiency measure is based on the directional distance function and the slacks-based measure. The usefulness and applicability of the proposed models are assessed by measuring the eco-efficiency of the Organization for Economic Co-Operation and Development (OECD) countries. The aim of the application is to measure efficiency in the context of NetZero, with a specific focus on reducing CO2 emissions. The findings reveal that six countries—France, Luxembourg, Germany, Norway, Sweden, and the UK—have achieved eco-efficiency; therefore, these countries function in the constant returns-to-scale (CRS) region
format Article
author Taleb, Mushtaq
Emrouznejad, Ali
Charles, Vincent
Khalid, Ruzelan
Ramli, Razamin
author_facet Taleb, Mushtaq
Emrouznejad, Ali
Charles, Vincent
Khalid, Ruzelan
Ramli, Razamin
author_sort Taleb, Mushtaq
title An Extended-Directional Mix-Efficiency Measure: Performance Evaluation of OECD Countries Considering NetZero
title_short An Extended-Directional Mix-Efficiency Measure: Performance Evaluation of OECD Countries Considering NetZero
title_full An Extended-Directional Mix-Efficiency Measure: Performance Evaluation of OECD Countries Considering NetZero
title_fullStr An Extended-Directional Mix-Efficiency Measure: Performance Evaluation of OECD Countries Considering NetZero
title_full_unstemmed An Extended-Directional Mix-Efficiency Measure: Performance Evaluation of OECD Countries Considering NetZero
title_sort extended-directional mix-efficiency measure: performance evaluation of oecd countries considering netzero
publisher Elsevier Ltd.
publishDate 2024
url https://repo.uum.edu.my/id/eprint/30994/1/CIE%20189%20109967%202024%2001-19.pdf
https://doi.org/10.1016/j.cie.2024.109967
https://repo.uum.edu.my/id/eprint/30994/
https://www.sciencedirect.com/science/article/pii/S0360835224000883?via%3Dihub
https://doi.org/10.1016/j.cie.2024.109967
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