Efficiency analysis of forest management units considering economics and carbon dynamic: A data envelopment analysis (DEA) approach

The aim of this paper is to measure the relative performance of forest management units considering economics and carbon dynamic in Caspian forests of Iran. Data Envelopment Analysis (DEA) as a well-known and robust technique for measuring the relative efficiency of Decision Making Units (DMUs) was used for measuring the efficiencies of 33 forest management units or DMUs. The relative efficiency of DMUs was calculated using global technical efficiency (CCR) model using three scenarios for undesirable output, like CO2 emission due to forest management activities. The main challenges that are considered in the modelling of the undesirable outputs were to consider the undesirable outputs in the modelling process along with the desirable outputs. The three scenarios were to ignore the undesirable output (scenario 1), to treat the undesirable outputs as inputs (scenario 2) and to apply a monotone decreasing transformation to the undesirable outputs and then to use the adapted variables as outputs (scenario 3). Results of input-oriented CCR model based on scenarios 1 and 2 showed that, 10 and 13 DMUs became efficient, respectively. Results of input-oriented and output-oriented CCR models based on scenario 3 indicated that 11 DMUs became efficient. By including the undesirable output in efficiency analysis of forest management units, this study shows how we can expand a new path in efficiency analysis of forest management units and provide important input to the forest organizations supervising the forestry sector.