THE ENVIRONMENTAL EFFICIENCY OF CHINESE PAPER MILLS ALONG HUAI RIVER: A DEA STUDY

WU Jie; ZHOU Zhixiang; KONG Yunlin

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THE ENVIRONMENTAL EFFICIENCY OF CHINESE PAPER MILLS ALONG HUAI RIVER: A DEA STUDY

WU Jie *,ZHOU Zhixiang,KONG Yunlin

School of Business, University of Science and Technology of China, Hefei 230026

*Correspondence author

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Funding: Research Fund for the Doctoral Program of Higher Education of China for New Teachers （No.No.200934021120013）, The Fundamental Research Funds for the Central Universities （No.No.WK2040150007）, National Nature Science Funds of China （No.No.70901069）, National Nature Science Funds of China for Innovative Research Groups （No.No.71121061）

Opened online:27 December 2012

Accepted by: none

Citation: WU Jie,ZHOU Zhixiang,KONG Yunlin.THE ENVIRONMENTAL EFFICIENCY OF CHINESE PAPER MILLS ALONG HUAI RIVER: A DEA STUDY[OL]. [27 December 2012] http://en.paper.edu.cn/en_releasepaper/content/4507604

To deal with the undesirable (bad) factors in Data Envelopment Analysis (DEA), F?re et al. (1989) develop a non-linear DEA model to a paper production system where the desirable outputs are increased and the undesirable outputs are decreased. To convert the proposed non-linear model into a linear one, a linear approximation to the non-linear constraint is used and an approximate efficiency score result is obtained. In this paper, we propose a new method to solve the non-linear programming problem and calculate the efficiency scores accurately, in which a second-order cone programming (SOCP) is defined and applied to transfer the non-linear programming model of F?re et al. into a linear model. We apply the proposed model to measure the environmental performance of 30 paper mills along the Huai river in China. And find that the efficiency scores obtained by our model is obvious different with the ones by approximate models.

Keywords:data envelopment analysis (DEA);undesirable factor;second-order cone programming (SOCP);paper mills

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