Application of Data Envelopment Analysis for Assessment of Eco-Efficiency of Food Shops at Phuket Island, Thailand

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Hong Anh Thi Nguyen
Shabbir H. Gheewala
Chayanon Phucharoen
Viet Anh Le Nguyen
Kritana Prueksakorn

Abstract

Located in the southeast of Thailand, Phuket is an eminent tourist destination not only for its natural splendor but also for its culinary development. In 2015, the island was recognized as a “City of gastronomy” by the United Nations Educational, Scientific and Cultural Organization (UNESCO) proving the undeniable influence of food services on the prosperity of the tourism industry at this island. Together with the aim to increase revenue from the gastronomy, Phuket has also committed to developing responsible and sustainable production and consumption of local food resources. As a contribution to a more balanced development of food services, this study aims to investigate the performance efficiency of food service at Phuket Island in terms of environmental and economic aspects. Data Envelopment Analysis (DEA) had been adopted to study the comparative efficiency performances of 298 food shops at Phuket Island, based on the input and output of the food shops during the operational process. The results being interpreted for different aspects with different comparisons showed the relationship between input (i.e. utility consumption), undesirable output variables (i.e., greenhouse gas (GHG) emissions, and waste disposal), and desirable output (i.e., net profit) in the studied food shops. It was revealed that the electricity consumption accounted for the major share in terms of utility consumption and GHG emission, resulting in the most notable impact on the efficiency score, which was evaluated based on the input and output of the food shops during the operational process. Food shops with lower electricity consumption are clarified as the majority of food shops having a high efficiency score. The surrounding area also played an important role in the efficiency score of the food shops. Food shops in the areas with well-known tourist destinations, such as central Thalang District, southeastern Mueang District, and southwestern Kathu District were more efficient than the food shop in more remote locations such as eastern Thalang District and the northeastern part of Kathu District which are rural areas covered by a variety of mountains and forests with low population.

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