Evaluating and Ranking of Environmental Efficiency of Oil-Rich Countries

Today, environmental protection is one of the most important concerns throughout the world. In this regard, the measurement of environmental efficiency has emerged as an important issue. The main objective of this paper is to measure environmental efficiency for Iran and developing oil-rich countries using the Data Envelopment Analysis in 2014. This paper considers undesirable outputs and the Shapley value for cooperative game theory. Since the classical Data Envelopment Analysis is not able to distinguish between efficient units, environmental efficiency is ranked based on combination of Data Envelopment Analysis with cross efficiency model and cooperative game theory. The results show that Iran’s efficiency score is 0.42. Thus, Iran ranks the eighth among the nine selected countries. In addition, the results show that the difference between optimal and actual consumption levels of inputs varies from 37% to 51%, so that, the greatest difference is relevant to labor and renewable energy, respectively. The study suggests a modification in the structure of important inputs