Eco-efficiency evaluation based on a modified radial DEA model and its application

In this paper, we analyze the eco-efficiency by using the data envelopment analysis (DEA) method. Classical radial DEA model requires equal proportional reduction in each environmental pressure, and does no take slacks into account the evaluation of efficiency. In order to assess eco-efficiency more accurately, a modified radial DEA model is proposed, in which different environmental impacts are decreased to different proportions. Then, its properties are discussed. Based on the model, a modified radial DEA model with unequal weights is put forward. Finally, we use a real data set of Hubei province from 1995 to 2012, to illustrate the proposed models and properties. The results indicate the year is eco-effective for the modified radial DEA model if and only if the year is eco-effective to classical radial DEA model. And eco-efficiency of the modified radial DEA model is not greater than that of the classical radial DEA model. Moreover, the Pearson correlation exhibited between the two kinds of models is statistically significant. The weights of proportions have little impact on the rank of decision making units.