Slacks-based efficiency measures for modeling environmental performance

We develop two slacks-based efficiency measures for modeling environmental performance on the basis of environmental DEA technology. Of the two measures, one is a composite index with a higher discriminating power for modeling economic-environmental performance, and the other can be used to estimate the impacts of environmental regulations. We apply the proposed measures to model the CO2 emissions of 30 OECD countries from 1998 to 2002 and present the results obtained.