Evaluating Greenhouse Gas Emission Reduction Efficiency of OECD Countries Using Two-Stage Data Envelopment Analysis

Ai-Chi Hsu¹, Po-Yuan Shih¹ and Ting-Wei Wu^2,

¹Department of Finance, National Yunlin University of Science & Technology, Douliu, Yunlin 64002, Taiwan

²Department of Information Management, National Yunlin University of Science & Technology, Douliu, Yunlin 64002, Taiwan

Cite this paper:
Ai-Chi Hsu, Po-Yuan Shih and Ting-Wei Wu. Evaluating Greenhouse Gas Emission Reduction Efficiency of OECD Countries Using Two-Stage Data Envelopment Analysis. Journal of Business and Management Sciences. 2023; 11(4):218-228. doi: 10.12691/jbms-11-4-1

Abstract

In recent years, the degree of air pollution and climate change caused by greenhouse gases has become more and more serious, and the greenhouse gases emitted by various countries have continuously aggravated the global greenhouse effect. As a result, the United Nations and governments have drawn up plans and laws to control greenhouse gas emissions strictly. Many international organizations are also investing in greenhouse gas reduction programs, and many countries will have to consider greenhouse gas emissions data if they want to receive subsidies from the United Nations or investments from financial unions in the future. This study intends to analyze the economic and greenhouse gas emission reduction efficiency of OECD member states through the two-stage data envelopment analysis method. The results show that only four countries have a total efficiency score of more than 0.5, Estonia, Iceland, Latvia, and Luxembourg. Among the four countries, only Estonia and Latvia have national economic efficiency and greenhouse gas emission reduction efficiency above average. In contrast, Iceland and Luxembourg have national economic efficiency far above greenhouse gas emission reduction efficiency. Conversely, Latvia is the most efficient of the four countries in reducing greenhouse gases. The results of this study will provide a reference for the United Nations and international organizations to promote global greenhouse gas emission reduction.

Keywords:
greenhouse gas reduction air pollution data envelopment analysis efficiency analysis

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