A modified distance friction minimization model with optimistic–pessimistic target orientation for OECD sustainable performance measurement

Abstract

Several countries have focused on achieving optimal economic growth in the past decades, which has caused diverse environmental concerns among policymakers and managers. The present study aims to introduce new metric using mathematical modeling to examine strategies to promote environmental performance in OECD countries. Thus, we propose a target-oriented Distance Friction Minimization (TO-DFM) model to design a practical improvement strategy for low-efficiency DMUs. In this regard, considering the efficient and inefficient frontiers, we present two models, IDMU and ADMU, respectively, based on TO-DFM and DFM models. Then, the distance scores yielded by the two models are combined to evaluate the efficiency of each DMU using the hybrid index of relative closeness (RC). The results reveal that the proposed model has a better distinctive potential compared to the standard TO-DFM model. Overall, implementing the proposed model on a set of sustainability data, for OECD countries, resulted in a more logical performance in classifying countries regarding their distance from the efficient and inefficient frontiers. Therefore, less developed countries should pay considerable attention to implementing environmental policies to improve their performance and control environmental pollution with a reliable and healthy economy. For instance, the implementation of such policies in countries such as Turkey, Estonia, and Hungary, with lower efficiency scores, can affect the sustainability of their development performance.