Modeling Environmental Efficiency Based on Greenhouse Gas Emissions from Petrochemical Industries (Case study: Assaluyeh industrial area, Zagros Petrochemical Complex)

Subject Areas : Environmental Economics

Elnaz Keivani ¹ , Madjid Abbaspour ² , Zahra Abedi ³ , Majid Ahmadian ⁴

1 - Ph.D. Student of Environmental Economics, Faculty of Natural Resources and Environment, Science and Research Branch, Islamic Azad University, Tehran, Iran.
2 - Professor, School of Mechanical Engineering, Sharif University of Technology, Tehran, Iran. * (Corresponding Author)
3 - Assistant Professor, Faculty of Natural Resources and Environment, Department of Environmental Management, Science and Research Branch, Islamic Azad University, Tehran, Iran.
4 - Professor, Faculty of Economics, Department of Interdisciplinary Economics, Tehran University, Tehran, Iran.

Received: 2020-09-28 Accepted : 2021-02-15 Published : 2024-09-22

Keywords: Environmental efficiency, Environmental allocative efficiency, Data envelopment analysis, Materials balance principle, Greenhouse gases.,

Abstract :

Background and Objective: A large proportion of human-related air pollution is produced by fossil-fuel-based oil, gas, and petrochemical industries. Hence, conducting knowledge-based studies can provide effective solutions to complex environmental problems, such as air pollution in industrial areas.

Material and Methodology:  The carbon dioxide equivalent emissions were calculated according to the petroleum ministry’s guidelines for calculating greenhouse gas emissions for Zagros petrochemical complex seasonal data, from 2011 to 2017, and Data Envelopment Analysis Program (DEAP) software was used to estimate efficiencies by applying data envelopment analysis (DEA), during the same period. Environmental efficiency was estimated based on the materials balance principle (MBP), using the carbon emissions data from fuel combustion.

Findings: The results indicate, in the first year of study, the mean seasonal scores of the technical, environmental, and environmental allocative efficiencies are about 0.98, 0.90, and 0.92, respectively, while the inefficiencies are about 2%, 10%, and 8%, respectively. In the last year of study, these scores are around 0.99, 0.94, and 0.94, respectively; besides, the inefficiencies have been estimated at about 1%, 6%, and 6%, respectively.

Discussion and Conclusion:  The mean ratio of outputs to inputs (mean technical efficiency) is 98% in 2011, which specifies that the petrochemical plant could produce its current output with 2% less input. The mean environmental efficiency and the mean environmental allocative efficiency manifest the petrochemical plant’s possible capability in reducing its pollutants by around 10% while producing the same and also the cleaner and allocative amount of output by 8%. In 2017, the reduction of 6% in carbon emissions to produce the cleaner and allocative amount of output by 6% was expected if the petrochemical unit could produce its current output with 1% less input.

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