HA579 : Economic–Environmental Efficiency Assessment of Iraq over the Last Two Decades Using Data Envelopment Analysis
Thesis > Central Library of Shahrood University > Industrial Engineering & Management > MSc > 2026
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Abstarct: This study was conducted with the aim of evaluating the economic–environmental efficiency of the Iraqi economy over the period 2005–2024, using Data Envelopment Analysis (DEA) models including CCR, BCC, and SBM, while treating energy consumption as an undesirable output. The CCR model results showed that the average overall technical efficiency was 0.876, and only four years (2012, 2013, 2018, and 2022) lay on the efficiency frontier. The BCC model further indicated that in most years pure technical efficiency was equal to one, and that the main source of inefficiency stemmed from scale inefficiency, with the Iraqi economy operating predominantly under increasing returns to scale.
The SBM model, with an average efficiency of 0.7464, provided a more detailed environmental perspective and revealed that in all inefficient years the GDP slack was zero, implying that the principal source of inefficiency was excessive energy consumption. Slack analysis for other inputs such as labor, capital, and government expenditure also confirmed the existence of surplus in several years. The time trend of efficiency indices showed that the performance of the Iraqi economy has been unstable and highly influenced by oil, political, and security shocks. The years 2012, 2013, 2018, and 2022 were identified as efficient periods and served as benchmarks.
Overall, the findings indicate that the main challenge facing the Iraqi economy in terms of efficiency is not a shortage of production capacity but rather the high intensity of energy use and the deviation from the optimal scale of operation. These results can serve as a foundation for deeper analysis of the production structure and for policy formulation aimed at improving economic–environmental productivity.
Keywords:
#Economic–Environmental Efficiency #Data Envelopment Analysis #SBM Model #Scale Inefficiency #Energy Consumption. Keeping place: Central Library of Shahrood University
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