Abstract: DEA model in traditional three-stage methods is limited to radial or non-radial measurement methods. This model is only based on technique, scale, and pure technical efficiency, and without considering undesirable output. In this study, a modified EBM-DEA three-stage model is proposed based on the considerations of environmental, economic and technical efficiency, and the environment DEA technology is also used to take undesirable outputs into account in this model. It turns out that the new proposed model can effectively overcome the shortcomings of the traditional method which only considers radial or non-radial. The performance of Chinese provincial logistics industry is evaluated using the proposed model. The results indicate that the environmental efficiency of the logistics industry is low in general and the economic efficiency presents decreasing trend from the east coast to the west inland. The economic efficiency can be improved by strengthening the environmental regulation. The technical efficiencies of the eastern, central and western regions still vary noticeably even external environmental factors and random errors are amended.

Key words: EBM(epsilon-based measure) model, three-stage DEA, efficiency of logistics industry, undesirable output