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Aggregate eco-efficiency indices for New Zealand – a Principal Components Analysis

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  • Jollands, Nigel
  • Lermit, Jonathan
  • Patterson, Murray

Abstract

Eco-efficiency has emerged as a management response to waste issues associated with current production processes. Despite the popularity of the term in both business and government circles, limited attention has been paid to measuring and reporting eco-efficiency to government policy makers. Aggregate measures of eco-efficiency are needed, to complement existing measures and to help highlight important patterns in eco-efficiency data. This paper aims to develop aggregate measures of eco-efficiency for use by policy makers. Specifically, this paper provides a unique analysis by applying principal components analysis (PCA) to eco-efficiency indicators in New Zealand. This study reveals that New Zealand's overall eco-efficiency improved for two out of the five aggregate measures over the period 1994/95 to 1997/98. The worsening of the other aggregate measures reflects, among other things, the relatively poor performance of the primary production and related processing sectors. These results show PCA is an effective approach for aggregating eco-efficiency indicators and assisting decision makers by reducing redundancy in an eco-efficiency indicators matrix.

Suggested Citation

  • Jollands, Nigel & Lermit, Jonathan & Patterson, Murray, 2004. "Aggregate eco-efficiency indices for New Zealand – a Principal Components Analysis," 2004 Conference, June 25-26, 2004, Blenheim, New Zealand 97773, New Zealand Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:nzar04:97773
    DOI: 10.22004/ag.econ.97773
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    1. Martinez-Alier, Joan & Munda, Giuseppe & O'Neill, John, 1998. "Weak comparability of values as a foundation for ecological economics," Ecological Economics, Elsevier, vol. 26(3), pages 277-286, September.
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    7. Yiridoe, Emmanuel K. & Amon-Armah, Frederick & Hebb, Dale & Jamieson, Rob, 2013. "Eco-efficiency of Alternative Cropping Systems Managed in an Agricultural Watershed," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150357, Agricultural and Applied Economics Association.
    8. Van Passel, Steven & Nevens, Frank & Mathijs, Erik & Van Huylenbroeck, Guido, 2007. "Measuring farm sustainability and explaining differences in sustainable efficiency," Ecological Economics, Elsevier, vol. 62(1), pages 149-161, April.
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    14. Patterson, Murray G., 2006. "Development of ecological economics in Australia and New Zealand," Ecological Economics, Elsevier, vol. 56(3), pages 312-331, March.
    15. Emmanuel K. Yiridoe & Frederick Amon-Armah & Dale Hebb & Rob Jamieson, 2017. "Eco-efficient choice of cropping system for reducing nitrate-N leaching in an agricultural watershed," Journal of Bioeconomics, Springer, vol. 19(2), pages 201-221, July.
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    19. Kortelainen, Mika, 2008. "Dynamic environmental performance analysis: A Malmquist index approach," Ecological Economics, Elsevier, vol. 64(4), pages 701-715, February.
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    21. A. Majeed Nadeem & Roland Cheo & Huang Shaoan, 2018. "Multidimensional Analysis of Water Poverty and Subjective Well-Being: A Case Study on Local Household Variation in Faisalabad, Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(1), pages 207-224, July.
    22. Hou, Lingling & Hoag, Dana & Keske, Catherine M.H. & Lu, Changhe, 2014. "Sustainable value of degraded soils in China's Loess Plateau: An updated approach," Ecological Economics, Elsevier, vol. 97(C), pages 20-27.
    23. Jollands, Nigel & Harmsworth, Garth, 2007. "Participation of indigenous groups in sustainable development monitoring: Rationale and examples from New Zealand," Ecological Economics, Elsevier, vol. 62(3-4), pages 716-726, May.
    24. Brint, Andrew & Genovese, Andrea & Piccolo, Carmela & Taboada-Perez, Gerardo J., 2021. "Reducing data requirements when selecting key performance indicators for supply chain management: The case of a multinational automotive component manufacturer," International Journal of Production Economics, Elsevier, vol. 233(C).

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