Eco-innovation in transportation industry: A double frontier common weights analysis with ideal point method for Malmquist productivity index
Markets and Services Research Centre / School of Business and Law
Transportation industry is one of the major contributors to the environmental pollution. Analyzing efficiency of this industry helps people and societies to enhance their awareness of its performance and develop managerial strategies. The need for sustainable development in transportation industry requires efficiency analysis over time. Malmquist productivity index (MPI) is a popular approach for performance evaluation during consecutive periods. This study offers a novel analysis and contribution to the knowledge of efficiency evaluation with DEA by (i) proposing a novel common set of weights model for double frontier DEA, (ii) dealing with undesirable outputs for efficiency analysis, and (iii) deriving a common set of weights for Malmquist productivity index using ideal point method. This paper investigates freight transportation in Iran to illustrate the applicability of the proposed CSW model. Developing CSW for MPI analysis to decompose overall efficiency into efficiency change and technical change enables decision makers to accurately trace the eco-innovation and environmental efficiency in this industry. Results show that majority of DMUs (except 4 DMUs) have experienced a constant or declining trend in terms of eco-innovation and environmental efficiency during 2014–2017.