SHIN Youngchul Daejin University

In this study, DEA(data envelopment analysis) is applied to analyze the production efficiency of steel industry with an assigned target of GHG(green house gas) reduction. Both a DEA model and a directional distance function approach are particulary suitable for models where several production inputs and desirable and undesirable outputs are taken into account. GHG emissions of steel industry can be considered as an undesirable output of steel industry. Emprical results show how much some companies of steel industry have to increase desirable outputs and reduce GHG in order to acheive efficiency of steel industry with a target of GHG reduction. This analytic method and implication of results could be used to analyze the efficiencies of steel or metal industry in the other country.