• Journal of Environmental Policy
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• v.14 no.2
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• pp.27-47
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• 2015

In this paper, we present a new empirical method to estimate the environmental efficiency of decision making units. We propose a model with a new approach that describes a network process consisting of two stages, production and wastewater abatement based on the data extracted from 51 Korean industrial complexes. Taking into account the inter-dependency of two stages, we show a process how to decompose the environmental efficiency into production efficiency and abatement efficiency. Moreover, our new proposed method can be used to explain the information on network relationship between economic growth and environmental protection.