Eco-efficiency Assessment of Chinese Petrochemical Enterprises: A Data Envelopment Analysis Approach

Abstract

This study uses the Charnes, Cooper and Rhodes (CCR) and Banker, Charnes and Cooper (BBC) models of Data Envelopment Analysis (DEA) to evaluate the relative eco-efficiency and operating efficiency of the ten petrochemical enterprises. A random sample of ten petrochemical enterprises were selected from the Northeastern area of China. The data collected from the ten petrochemical enterprises were run on the DEA models and the evaluated results were input for the difference analysis for the scale efficiency and technical efficiency. Then the estimates the petrochemical enterprise's operating efficiency and ecological efficiency along with the influencing factors were run by regression analysis in order to verify the evaluation model and the rationality of influencing factors. After the projection analysis of the DEA, the firms that did not reach the values of effectiveness were identified and provided the suggestions for the targeted improvement values of eco-efficiency. Thus, this application procedure can be viewed as an example of the application development of the new DEA model and provides the reference for related industry making sustainable development strategy.