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Eco-efficiency analysis of industrial sectors in Bangladesh using data envelopment analysis and malmquist productivity index

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  • Shakila Aziz

    (United International University)

  • Sheikh Morshed Jahan

    (University of Dhaka)

Abstract

Bangladesh has committed to reducing its greenhouse gas (GHG) emissions in its Nationally Determined Contribution (NDC) submission, and has aimed at increasing the share of renewable energy to attain the SDG 7 target. The country, one of the fastest growing economies in Asia, is driven by fossil fuel energy, causing increasing levels of GHG emissions. It is, therefore, imperative that the eco-efficiencies of different industrial sectors are evaluated, the greatest sources of emissions are identified, and pollution control policies and strategies are devised. Using Data Envelopment Analysis and Malmquist efficiency index, this paper analyzes the environmental and energy efficiencies of twenty-five industrial sectors in Bangladesh covering the period of 2000 to 2014. It is found that manufacturing-based industries, utilities and agriculture have low eco-efficiency. Industries specifically mentioned in the NDC, the electricity, transport and agriculture sectors, have some of the highest emissions and are not improving in efficiency over time. The findings can guide climate policymakers regarding the levels of emission reduction necessary to meet climate commitments and sustainable development objectives. Graphical abstract

Suggested Citation

  • Shakila Aziz & Sheikh Morshed Jahan, 2023. "Eco-efficiency analysis of industrial sectors in Bangladesh using data envelopment analysis and malmquist productivity index," SN Business & Economics, Springer, vol. 3(2), pages 1-23, February.
    • Handle: RePEc:spr:snbeco:v:3:y:2023:i:2:d:10.1007_s43546-022-00416-x
    DOI: 10.1007/s43546-022-00416-x
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