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Measuring eco-efficiency based on green indicators and potentials in energy saving and undesirable output abatement

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  • Rashidi, Kamran
  • Farzipoor Saen, Reza

Abstract

Nowadays, majority of organizations are seeking to achieve sustainable development with respect to “green” concept. One of the main criteria for assessing green performance is eco-efficiency. To identify all aspects of the eco-efficiency, inputs should be divided into energy and non-energy and outputs should be divided into good and bad outputs. To deal with this issue, a data envelopment analysis (DEA) model is developed to divide inputs into both energy and non-energy and outputs into both desirable (good) and undesirable (bad) outputs. Likewise, variables are separated into both discretionary and non-discretionary factors. Accordingly, a bounded adjusted measure (BAM) based on green indicators is developed to calculate the eco-efficiency of decision making units (DMUs). Besides, energy saving potentials and undesirable output abatement potentials are calculated to show correlation coefficient between energy consumption and undesirable output. Finally, proposed model is validated by assessing the eco-efficiency of some selected members of organization for economic cooperation and development (OECD). Australia, Finland, Ireland, New Zealand, and Switzerland are recognized as eco-efficient countries and the rest of countries are inefficient in terms of the eco-efficiency. High and positive Spearman correlation coefficient between energy consumption and undesirable outputs addresses that the more use of energy inputs, the more undesirable outputs.

Suggested Citation

  • Rashidi, Kamran & Farzipoor Saen, Reza, 2015. "Measuring eco-efficiency based on green indicators and potentials in energy saving and undesirable output abatement," Energy Economics, Elsevier, vol. 50(C), pages 18-26.
    • Handle: RePEc:eee:eneeco:v:50:y:2015:i:c:p:18-26
    DOI: 10.1016/j.eneco.2015.04.018
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    More about this item

    Keywords

    Eco-efficiency; Data envelopment analysis; Energy saving; Undesirable output; Pure eco-performance; Green index;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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