Benefit Evaluation of Benchmarking Management: Case of Taiwan Semiconductor Industry



Author:Liou, Je-Liang




The main purpose of this study is to explore the carbon-reduction environmental benefits that can be achieved if benchmarking is used when Taiwanese semiconductor manufacturers are working to improve the technical efficiency of their carbon-reduction efforts. The evaluation method used is as follows. First, a technical efficiency measurement method capable of considering both desirable outputs and undesirable outputs is used to measure the technical efficiency of the carbon-reduction efforts, and to identify the benchmark firms with the best technical efficiency. Next, an attempt is made to estimate the greenhouse gas reduction that is realized by the sample if their carbon-reduction efforts are accompanied by the implementation of a benchmarking system. Finally, the monetary value of the greenhouse gas reduction is estimated, so as to develop a better understanding of the carbon-reduction benefits for the adoption of the process outlined above.

Keywords: technical efficiency, benchmarking, directional distance function, social cost of carbon