Application of the three-stage DEA in measuring efficiency – an empirical evidence

Abstract

This article investigates the effects of the environmental factors and statistical noise on the efficiency of 89 global forest and paper companies in 2001 using the three-stage DEA method. Empirical evidences indicate the existence of environmental effects on the variation in the efficiency scores measurement. Furthermore, the final adjusted efficiency scores are lower than those scores measured in the traditional first-stage DEA.