Performance Measurement for the Recycling Production System Using Cooperative Game Network Data Envelopment Analysis

Resources scarcity and environmental degradation have made sustainable resource utilization and environmental protection necessary worldwide. The development of the circular economy is considered an approach for more appropriate economic and environmental management. This work introduces a cooperative game network data envelopment analysis model for evaluating the implementation effect of recycling production systems from a closed loop and centralized control perspective. The factor efficiency analysis of the involved inputs and outputs is presented to provide guidance for the factor dominance of subsystem efficiencies. An application for assessing the circular economy of EU countries is provided to illustrate the validation of the proposed method. Our results show that the average performance of the production subsystem is superior to that of the recycling subsystem in EU countries. Furthermore, factor efficiency analysis reveals that the inefficient environmental treatment input is the culprit in worse performance of the recycling subsystem. A comparison of the proposed method with recent studies for circular economy performance evaluation is also included.