Technical Efficiency Analysis Using Ecological Footprint and Biological Capacity

Ecological footprint is used as an indicator to assess the use of natural resources or natural capital; The higher the amount, the greater the utilization of resources to meet human needs and the disposal of waste produced by them. The purpose of this study is to estimate the technical efficiency of Iran economy using ecological footprint.

For this purpose, data related to inputs (ecological footprint and population) and output (GDP) for the period 1961-2017 were collected and analyzed using data envelopment analysis.

The results show that there is an ecological deficit in the years before 1980 and an ecological surplus in the years after 1980. The average technical efficiency in the period of ecological deficit and surplus and for the whole period were 0.97, 0.65 and 0.75, respectively. There is also a statistically significant difference between technical efficiency in the period of ecological deficit and surplus. Suggestions: It is recommended that appropriate policies be adopted and implemented to reduce the ecological footprint and increase the biological capacity so that the ratio of the ecological footprint to the biocapacity decreases over time and the economy becomes sustainable. It is also suggested that either the population be reduced or that the knowledge and awareness of population about the consumption and use of natural capital be increased, in order to reduce the consumption of natural capital. Also,, it is suggested that the use of renewable sources replace non-renewable sources and that renewable sources be used efficiently.