Measuring of environment efficiency of pharmaceutical companies: Robust game cross‐efficiency data envelope analysis model

Abstract

With people's increasing attention to public health issues, biomedical enterprises have ushered in a good development opportunity. However, the rapid expansion of industrial scale makes the contradiction between enterprise development and environmental governance gradually emerge. This requires us to form a set of perfect environmental efficiency evaluation framework to make the evaluation of environmental development efficiency of pharmaceutical companies more objective and accurate. At present, many literatures on environmental efficiency assessment in the fields of green finance ignore the bias in comparison between different companies due to factors such as competition or resource allocation. At the same time, the existing studies lack the influence of disturbance factors on the output of efficiency evaluation data. Based on the sustainable development report of Shanghai Pharmaceutical as the research background, this study establishes an efficiency evaluation framework, which mainly includes three parts: (1) data preprocessing. Establish efficiency evaluation standard framework according to research background, collect relevant data, and process the data. (2) Calculate the game cross‐efficiency DEA model. We calculate the efficiency considering the game situation and compared with the efficiency calculated by the traditional DEA model. (3) Three different scenarios in robust optimization are introduced to reduce the uncertainty in efficiency evaluation. This paper uses the efficiency evaluation framework to evaluate the environmental efficiency of 13 pharmaceutical companies and finally gives policy recommendations.