A Novel Stochastic Two-Stage DEA Model for Evaluating Industrial Production and Waste Gas Treatment Systems

Abstract

In recent decades, the high-speed development in China has caused serious air pollution in China. The present paper proposes a stochastic data envelopment analysis (DEA) model based on a general two-stage structure with comprehensively considering the randomness in both desirable and undesirable outputs to calculate the environmental efficiency of the industry system. The new proposed model is more applicable to practical system, and is applied to evaluate the performance of production and waste gas treatment in the industrial sector for China's regions along the "One Belt and One Road" in 2015. The results show that about half of the regions along "One Belt and One Road" in China are inefficient, where the performance on waste gas treatment is significantly worse than that of industrial production. Further, the managers should take different strategies for efficiency improvement in different areas because of the obvious differences in efficiency scores, in which the regions in the southeast area should pay more attention to improving waste gas treatment efficiency while that in the northwest area need to focus on industrial production efficiency.

A stochastic approach for evaluating production planning efficiency under uncertainty

“…According to the findings presented in the paper, a comparison of the CCR and BCC models' efficiency values with scale efficiency was carried out. Wang et al [36] utilized a stochastic DEA model to evaluate the effectiveness of production and waste gas treatment within the industrial sector in China. They use "=0.5" and "=0.05" in the SDEA model and in that paper to indicate that the performance on waste gas treatment is significantly worse or inefficient.…”

Comprehensive performance evaluation of coordinated development of industrial economy and its air pollution control

“…Some examples of common methods of performance evaluation include the analytic hierarchy process [ 14 ], the entropy method [ 15 ], and fuzzy comprehensive evaluation [ 16 ]. Data envelopment analysis (DEA) is one of the performance evaluations most extensively used in industry [ 17 , 18 ], agriculture [ 19 , 20 ], transportation [ 21 , 22 ], energy [ 23 , 24 ], and environment [ 25 , 26 ]. According to the search results in the core collection database of the Web of Science ( Fig.…”