Arijit Banerjee

Assistant Professor, Shibpur Dinobundhoo Institution 

Email: arijitbanerjee1978@gmail.com

JEL Classification: Q5, Q58                                                                                                                                               https://doi.org/10.65176/IJLM.V2I1.20

Abstract

To achieve sustainable development goals, the world needs strong policies and actions to reduce environmental problems such as global warming and calamities resulting from elevated CO₂ and other harmful emissions, as well as their impacts on economic development. Environmental efficiency is identified in the first phase, whereas economic development efficiency is identified in the latter phase. Environmental and economic development efficiencies were measured using Data Envelopment Analysis (DEA). In economic development efficiency, there are desirable outputs, whereas when measuring environmental efficiency, the output is undesirable. Therefore, we used both radial and non-radial DEA technologies. For radial DEA technology, the BCC and CCR models are used under the assumption of CRS and VRS. For non-radial DEA Technology, the slack-based model is used under the assumption of CRS and VRS. This study compares the economic development and environmental efficiencies of the Asia-Pacific region of the Asia continent. The findings indicate that in the environmental efficiency, the Southeast region, with a scale efficiency score of 0.964, dominates the South region (scale efficiency score 0.833) and the East Region (scale efficiency 0.741), whereas in economic development efficiency, the East region dominates with an efficiency score of 0.52, the other two regions. In terms of environmental efficiency, Indonesia, Malaysia, Nepal, Sri Lanka, and South Korea are the most efficient countries in the Asia-Pacific region. In terms of economic development efficiency, Singapore and Macao are the most efficient countries, with an efficiency score of 1. However, using the super efficiency model, we found that Singapore is the most economically efficient country and South Korea is the most environmentally efficient country in this region. There is no significant association between the ranking according to economic development efficiency and environmental efficiency.

Keywords: Asia-Pacific region, Radial DEA and non-radial DEA, Slack-based model, Environmental index, Economic Development Index.

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