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Benchmarking and Performance Evaluation Towards the Sustainable Development of Regions in Taiwan: A Minimum Distance-Based Measure with Undesirable Outputs in Additive DEA

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  • Shih-Heng Yu

    (Nanjing University of Information Science & Technology)

Abstract

Sustainable development (SD) governance for a better society has received considerable attention. The development of a robust benchmarking and performance evaluation approach is a matter of growing concern to accelerate the progress in achieving SD. In this study, a minimum distance-based additive data envelopment analysis model with window analysis is proposed to attain the closest benchmarking target in the presence of undesirable outputs. This novel extension not only focuses on the construction of a composite indicator to shed light on the efficiency of each decision-making unit but also provides convincing and realizable suggestions for improving efficiency. This study benchmarks the SD efficiency across 19 administrative regions of Taiwan covering the period from 2011 to 2016. The empirical results reveal that the average SD efficiency of Taiwan has experienced a gradual deterioration over the last 3 years, and the primary sources of regional SD inefficiency may vary with industrial structure. Potential directions of improvement for reinforcing sustainable practices in Taiwan are also discussed. The findings can provide local governments with holistic insights into the sources that degrade SD performance and further contribute to improving SD solutions by recommending appropriate policies to achieve a more sustainable society.

Suggested Citation

  • Shih-Heng Yu, 2019. "Benchmarking and Performance Evaluation Towards the Sustainable Development of Regions in Taiwan: A Minimum Distance-Based Measure with Undesirable Outputs in Additive DEA," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(3), pages 1323-1348, August.
    • Handle: RePEc:spr:soinre:v:144:y:2019:i:3:d:10.1007_s11205-019-02087-y
    DOI: 10.1007/s11205-019-02087-y
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