Efficiency Analysis with Environmental Factors

Scales Economies and Business Strategy

Abstract

Since increased momentum of public environmental consciousness, firms are required to achieve not only economic efficiency but also environmental efficiency. In the past, productive efficiency analysis focused on the degree of economic efficiency of entities for the evaluation. However, such evaluation concept has not been enough under the current circumstances with higher public interest in environmental issues. This paper develops and indicates applied DEA models that assess productive efficiency from a perspective of environmental efficiency.