Measuring CO2 emission efficiency in OECD countries: Application of the Hybrid Efficiency model

This paper selects 32 countries in the Organization for Economic Cooperation and Development (OECD) from 2005 to 2007, using the input variables of industry and population and the output variances of gross domestic product (GDP) and the amount of fossil-fuel CO2 emissions. In recent years the study of environmental themes (e.g., carbon emissions) has more and more internalized negative externalities with DEA (data envelopment analysis), and therefore undesirable outputs are jointly produced with desirable outputs. Even though a few research studies look at the status of variables (e.g., undesirable variables), they neglect to consider some input/output variables that are non-proportional at the same time. The purpose of this research is to incorporate both undesirable and non-proportional variables in order to solve for the non-radial output variables that change non-proportionally and the radial input/output variables that could be exchanged proportionally.