Developing a network Data Envelopment Analysis approach to compare the environmental efficiency of active industries in Tehran

Since the resources are limited in each industrial region, it is logical to allocate resources to the most efficient industries. Recently, based on the environmental conditions and geographical position of Tehran, the capital of Iran, this city is in critical environmental situation. Therefore, assessing both environmental and industrial efficiency of Tehran’s production industries is essential. In this regard, network Data Envelopment Analysis is used in order to compare total efficiency of the industries including environmental and operational efficiencies. Network Data Envelopment Analysis is a developed form of standard DEA and looks inside the black-box in order to assess the partial efficiency in addition to the total efficiency which will results to a multi-objective problem. The contribution of this research is introducing a technique for assessing the efficiency of a network structure by means of the developed form of network DEA technique which minimizes the distance from the individuals’ independent efficiency with a linear optimization approach. Results show the advantages of the proposed model.