Environmentally adjusted technical efficiency and the impact of energy and transport taxes on the eco-efficiency index of Greek industry

This study aims to investigate the ecological efficiency of industry in Greece through a sector-wise framework using data envelopment analysis and considering three different types of environmental emissions. Through this quantification, it is possible to determine the degree of internalization of the environmental impact for each sector of the Greek economy. This fact supports the administrative decision-making process for the planning of sustainable industrial development. Subsequently, the effect of energy and transportation taxes on the eco-efficiency index is examined. It is shown that the revenues from the collection of environmental taxes in Greece have not been sufficiently used to improve eco-efficiency. This fact underlines the need to achieve long-term economic development that is compatible with environmental goals and social needs through appropriate strategic decisions and measures. It also highlights the need to create a well-designed tax system in order to reduce environmental pollution and improve environmental quality.