Network data envelopment analysis with common weights: an application to the sustainability measurement of oecd countries

Wei-Chang Yeh1, Huang-Chu Huang2, Cheng-Feng Hu3

1 Department of Industrial Engineering and Engineering Management, National Tsing Hua University, Hsinchu, Taiwan
2 Department of Electronic Communication Engineering, National Kaohsiung University of Science and Technology, Kaohsiung, Taiwan
3 Department of Applied Mathematics, National Chiayi University, Chiayi, Taiwan

Abstract


This work considers a general common-weights network data envelopment analysis (DEA) model which is applicable to most network systems, except those with feedbacks and cycles. The principle of compromise, of the technique for order preference by similarity ideal solution (TOPSIS), is employed to find the common set of weights in the general network DEA model. The proposed method is applied to assess the environmental sustainability performance of the Organization for Economic Co-operation and Development (OECD) countries. Our results show that most countries have a large difference in the rank of efficiencies between the eco-efficiency and production efficiency stages, which reveals the source that causes the low environmental sustainability scores of the whole process.

Keywords


common weights; data envelopment analysis; decision making; sustainability

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