Inefficiency countervailed DEA (IC-DEA) method for assessing corporate environmental performance

Y. T. Huang, Jehng-Jung Kao*

*Corresponding author for this work

Research output: Contribution to journalArticle

5 Scopus citations

Abstract

Data envelopment analysis (DEA) is a method frequently used to evaluate relative firm performance. However, high values in a few indicators can lead to a company being regarded as 'efficient', despite valuing poorly in other essential indicators. The Inefficiency Countervailed DEA (IC-DEA) method is thus developed. The method first defines an inefficient frontier using the proposed Reverse DEA (RDEA) model. An IC-DEA value is then determined by summing both the DEA and RDEA values. The IC-DEA method was applied to assess the environmental performance of major opto-electronic companies in Taiwan, demonstrating its applicability.

Original languageEnglish
Pages (from-to)470-477
Number of pages8
JournalJournal of the Operational Research Society
Volume63
Issue number4
DOIs
StatePublished - 1 Apr 2012

Keywords

  • corporate planning
  • data envelopment analysis
  • decision analysis
  • environmental studies
  • linear programming
  • optimization

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