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Dynamic eco-efficiency evaluation of the semiconductor industry: a sustainable development perspective

Environmental Monitoring and Assessment volume 191, Article number: 435 (2019) Cite this article

Abstract

Serious environmental problems have accompanied remarkable global economic growth for decades. To assist managers in the semiconductor industry with economic and environmental management, this study executes DuPont analysis to examine economic impacts from the effective implementation of sustainability initiatives. We propose a two-stage process including economic development efficiency and environmental protection efficiency through the dynamic data envelopment analysis (DDEA) to reflect the characteristics of eco-efficiency. Through DuPont analysis, the main finding shows the potential improvement in firms’ return on equity (ROE) by efficiently utilizing assets to generate sales quickly.

Relative to economic development efficiency, the firms show lower scores and higher standard deviations in the environmental protection ability, thus denoting a large gap in the level of environmental protection production technology. The findings in this study reveal that the financial foundations and sustainable development of industries should be improved simultaneously even though specific levels of semiconductor industrial eco-efficiency improvement vary among companies in Taiwan.

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Affiliations

  1. Department of Business Management, National Taipei University of Technology, No. 1, Sec. 3, Chung-hsiao E. Road, Taipei, 106, Taiwan

    Fengyi Lin

  2. College of Management, National Taipei University of Technology, No. 1, Sec. 3, Chung-hsiao E. Road, Taipei, 106, Taiwan

    Sheng-Wei Lin

  3. Department of Financial Management, National Defense University, No. 70, Section 2, Zhongyang North Road, Beitou, Taipei, 112, Taiwan

    Wen-Min Lu

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  1. Fengyi Lin
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  2. Sheng-Wei Lin
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Correspondence to Sheng-Wei Lin.

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Lin, F., Lin, SW. & Lu, WM. Dynamic eco-efficiency evaluation of the semiconductor industry: a sustainable development perspective. Environ Monit Assess 191, 435 (2019). https://doi.org/10.1007/s10661-019-7598-6

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  • DOI: https://doi.org/10.1007/s10661-019-7598-6

Keywords

  • Eco-efficiency
  • Dynamic network data envelopment analysis
  • DuPont analysis