Assessment of Green Productivity and Efficiency Changes in Iranian Industries Using a Slacks-Based Data Envelopment Analysis Approach and the Malmquist Index

Document Type : applicative

Authors

1 Department of Economics, Faculty of Economics, Firouzkooh Azad University, Firouzkooh, Iran

2 Department of Management, Islamic Azad University, West Tehran Branch, Tehran, Iran

3 Department of Mathematics, Firouzkooh Branch, Islamic Azad University of Firouzkooh, Firouzkooh A, Iran

10.30473/jier.2026.76602.1527

Abstract

This study was conducted to assess changes in green productivity and efficiency in Iranian industries during the period 1394–1398 (2015–2019). A slack-based output-oriented Data Envelopment Analysis (DEA) model under variable returns to scale was employed. Inputs included number of employees, value of raw materials, gross fixed capital formation, and total energy consumption; the desirable output was industrial value added; and undesirable outputs were waste and wastewater. Results indicated an average green efficiency of 0.683 (95% confidence interval: [0.652, 0.714]), with energy slack (41.8%) and waste slack (33.1%) being the primary sources of inefficiency. The Malmquist index averaged 0.958, reflecting a 4.2% annual decline in green productivity; 64.3% of this decline stemmed from technological regress (TC=0.973) and 35.7% from efficiency change (EC=0.985). The food and textile industries exhibited the best performance, while basic metals and coke and petroleum refining industries showed the worst. Based on the findings, it is recommended that policymakers prioritize reducing energy and waste slacks through financial incentives and mandatory audits, and address technological regress via green technology transfer to high-consuming industries, thereby enhancing green efficiency and productivity

Keywords

Main Subjects

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Journal of Industrial Economics researches
Volume 9, Autumn & Winter , vol. 33
October 2025
Pages 57-74

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History

  • Receive Date: 24 November 2025
  • Revise Date: 08 January 2026
  • Accept Date: 14 April 2026

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