METAFRONTIER ANALYSIS OF THE HIGH-TECH INDUSTRYʼS ENVIRONMENTAL EFFCIENCY IN JAPAN AND TAIWAN

Abstract

This study reflects on environmental conservation and sustainable development via environmental efficiency by utilizing a one-stage model to measure the performances of decision-making units. Fare et al. (1989) propose the concept of undesirable output, distinguishing between output that is good and bad. OʼDonnell et al.(2008) use metafrontier frameworks to compare the technical efficiency of firms and to distinguish different groups. Therefore, this study utilizes the concept of undesirable output and environmental efficiency and also combines metafrontier frameworks to evaluate and compare Japanʼs and Taiwanʼs high-tech industries. Findings show that Japanʼs performance is better than Taiwanʼs.