Measuring sustainability performance for China: A sequential generalized directional distance function approach

This paper aims to present certain composite sustainability efficiency indicators for China based on a sequential generalized directional distance function. This approach can measure the sustainability performance of a country with diverse outputs, nature of technologies, and non-radial slacks. First, we propose the concept of a generalized directional distance function under a sequential environmental production technology. Second, we develop several standardized composite indicators related to sustainability performance. We then estimate the sequential generalized directional distance function based on a series of sequential data envelopment analysis models. Finally, we empirically examine regions in China using the proposed model and present some implications based on the empirical results.