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A Study on the Sustainable Performance of the Steel Industry in Korea Based on SBM-DEA

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  • Yongrok Choi

    (Global E-Governance Program, Inha University, Inharo100, Nam-gu, Incheon 402-751, Korea)

  • Yanni Yu

    (Institute of Resource, Environment and Sustainable Development (IRESD), Jinan University, Guangzhou 510632, China)

  • Hyoung Seok Lee

    (Global E-Governance Program, Inha University, Inharo100, Nam-gu, Incheon 402-751, Korea)

Abstract

Since South Korea has implemented its emissions trading scheme (ETS) in 2015, several studies have explored the sustainable performance of ETS in terms of production efficiency. However, few studies focused on Korean company-level data in their model. Thus, this study focuses on data from firms in the steel industry, which is a representative greenhouse gas emitter. Based on the slack-based measure (SBM) approach, we find the following implications: First, this paper evaluates both environment energy efficiency (EEE) and traditional energy efficiency and discovers that the efficiency value, in general, is overestimated, when greenhouse gas emissions are ignored. EEE still shows a decreasing efficiency value over time, implying that strong regulation is needed to increase efficiency. Second, this paper provides the return to scale status of decision-making units in the steel industry, through decomposing EEE. Results show that many steel firms are in the state of increasing returns to scale, so they can enhance their efficiency by increasing their scale. Finally, this paper provides benchmark information with which an inefficient firm can enhance its performance.

Suggested Citation

  • Yongrok Choi & Yanni Yu & Hyoung Seok Lee, 2018. "A Study on the Sustainable Performance of the Steel Industry in Korea Based on SBM-DEA," Sustainability, MDPI, vol. 10(1), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:1:p:173-:d:126695
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    References listed on IDEAS

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    Cited by:

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    2. Huimin Zhou & Pei Wang & Chengxin Wang & Xiangzheng Deng & Kai Liu, 2019. "Investigation of a spatial coupling relationship between carbon emission performance and regional urbanization in China," PLOS ONE, Public Library of Science, vol. 14(9), pages 1-22, September.
    3. Thi-Ly Nguyen & Phi-Hung Nguyen & Hong-Anh Pham & Thi-Giang Nguyen & Duc-Thinh Nguyen & Thi-Hoai Tran & Hong-Cham Le & Huong-Thuy Phung, 2022. "A Novel Integrating Data Envelopment Analysis and Spherical Fuzzy MCDM Approach for Sustainable Supplier Selection in Steel Industry," Mathematics, MDPI, vol. 10(11), pages 1-28, June.
    4. Yanhong Liu & Xinjian Huang & Weiliang Chen, 2019. "Threshold Effect of High-Tech Industrial Scale on Green Development—Evidence from Yangtze River Economic Belt," Sustainability, MDPI, vol. 11(5), pages 1-21, March.
    5. Xiaoqing Wang & Qiuming Wu & Salman Majeed & Donghao Sun, 2018. "Fujian’s Industrial Eco-Efficiency: Evaluation Based on SBM and the Empirical Analysis of lnfluencing Factors," Sustainability, MDPI, vol. 10(9), pages 1-18, September.
    6. Yongrok Choi, 2018. "Regional Cooperation for the Sustainable Development and Management in Northeast Asia," Sustainability, MDPI, vol. 10(2), pages 1-8, February.
    7. Sungmin Park & Pansoo Kim, 2021. "Operational Performance Evaluation of Korean Ship Parts Manufacturing Industry Using Dynamic Network SBM Model," Sustainability, MDPI, vol. 13(23), pages 1-20, November.
    8. Hyoung Seok Lee & Yongrok Choi, 2019. "Environmental Performance Evaluation of the Korean Manufacturing Industry Based on Sequential DEA," Sustainability, MDPI, vol. 11(3), pages 1-14, February.
    9. Pei-Pei Jiang & Yuan Wang & Jin Luo & Lin Zhu & Rui Shi & Song Hu & Xiaodong Zhu, 2023. "Measuring static and dynamic industrial eco-efficiency in China based on the MinDS–Malmquist–Luenberger model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(6), pages 5241-5261, June.
    10. Lin, Boqiang & Xu, Mengmeng, 2018. "Regional differences on CO2 emission efficiency in metallurgical industry of China," Energy Policy, Elsevier, vol. 120(C), pages 302-311.
    11. Yongrok Choi & Hyoungsuk Lee & Jahira Debbarma, 2020. "Are Global Companies Better in Environmental Efficiency in India? Based on Metafrontier Malmquist CO 2 Performance," Sustainability, MDPI, vol. 12(20), pages 1-19, October.
    12. Wang, Jieyu & Wang, Shaojian & Li, Shijie & Feng, Kuishuang, 2019. "Coupling analysis of urbanization and energy-environment efficiency: Evidence from Guangdong province," Applied Energy, Elsevier, vol. 254(C).
    13. Yongrok Choi & Hua Wen & Hyoungsuk Lee & Hang Yang, 2020. "Measuring Operational Performance of Major Chinese Airports Based on SBM-DEA," Sustainability, MDPI, vol. 12(19), pages 1-17, October.
    14. Wang, Shuhong & Zhao, Danqing & Chen, Hanxue, 2020. "Government corruption, resource misallocation, and ecological efficiency," Energy Economics, Elsevier, vol. 85(C).
    15. Radosław Depczyński & Jim Secka & Katarzyna Cheba & Carlotta D’Alessandro & Katarzyna Szopik-Depczyńska, 2023. "Decision-Making Approach in Sustainability Assessment in Steel Manufacturing Companies—Systematic Literature Review," Sustainability, MDPI, vol. 15(15), pages 1-15, July.
    16. Yang Yang & Simo Li & Zhaoxian Su & Hao Fu & Wenbin Wang & Yun Wang, 2023. "Research on the Ecological Innovation Efficiency of the Zhongyuan Urban Agglomeration: Measurement, Evaluation and Optimization," Sustainability, MDPI, vol. 15(19), pages 1-24, September.
    17. Yongrok Choi & Fan Yang & Hyoungsuk Lee, 2020. "On the Unbalanced Atmospheric Environmental Performance of Major Cities in China," Sustainability, MDPI, vol. 12(13), pages 1-14, July.

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