Energy and environmental efficiency of OECD countries in the context of the circular economy: Common weight analysis for malmquist productivity index.

Circular economy (CE) aims at sustainable development (SD) by focusing more on renewable sources of energy and precise management of waste to i) guarantee the secure access to resources, ii) combat climate change and global warming. Environmental issues arising from energy use and lack of policies to monitor them challenge sustainable development. Circular economy emphasizes the economic development with the least amount of undesirable environmental impacts. To evaluate the environmental performance of decision-making units (DMUs) with data envelopment analysis (DEA), this paper develops a common set of weights (CSW) model using the ideal point method. Therefore, energy and environmental efficiency of the organization for economic cooperation and development (OECD) countries is analyzed using the Malmquist productivity index (MPI) during 2012-2015. Although Switzerland has the highest energy and environmental efficiency during 2012-2014, findings indicate that Ireland and the USA have continuously improved their energy and environmental efficiency.

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