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Constructing the FEEM Sustainability Index: A Choquet-integral Application

Author

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  • Caterina Cruciani

    (Fondazione Eni Enrico Mattei, Ca’ Foscari University)

  • Silvio Giove

    (Fondazione Eni Enrico Mattei, Ca’ Foscari University)

  • Mehmet Pinar

    (Edge Hill University)

  • Matteo Sostero

    (Fondazione Eni Enrico Mattei, Ca’ Foscari University)

Abstract

This paper presents an application of a multi-attribute aggregation methodology to the construction of a sustainability index. Sustainability is a multi-faceted issue, in which synergies or conflicts may arise among the different components, thus making it a complex concept to which multi attribute methods can be employed. This paper addresses the development of the FEEM Sustainability Index (FEEM SI), a composite index including 19 different indicators grouped in the three classical pillars of sustainability ? economic, social and environmental. We present the relevance of multi-attribute aggregation methodologies when dealing with such complex concepts and provide an aggregation methodology used for this case study, the Choquet-integral aggregation. First, we normalize each sustainability indicator with the use of a benchmarking procedure with a smooth target of sustainability. Furthermore, an ad-hoc questionnaire implemented to assess the importance of each sustainability indicator and their interaction with other indicators through expert elicitation. After normalizing each sustainability indicator and computing consensus importance of each sustainability indicator and their interactions for the Choquet-integral aggregation procedure, the overall sustainability index, the FEEM SI is calculated. This paper also conducts robustness analysis and discusses the main implications of the aggregation methodology used.

Suggested Citation

  • Caterina Cruciani & Silvio Giove & Mehmet Pinar & Matteo Sostero, 2013. "Constructing the FEEM Sustainability Index: A Choquet-integral Application," Working Papers 2013.16, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2013.16
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    1. Bates, Samuel & Angeon, Valérie & Ainouche, Ahmed, 2014. "The pentagon of vulnerability and resilience: A methodological proposal in development economics by using graph theory," Economic Modelling, Elsevier, vol. 42(C), pages 445-453.
    2. Luca Farnia, 2019. "On the Use of Spectral Value Decomposition for the Construction of Composite Indices," Working Papers 2019.08, Fondazione Eni Enrico Mattei.
    3. Carlo Carraro & Lorenza Campagnolo & Fabio Eboli & Elisa Lanzi & Ramiro Parrado & Elisa Portale, 2012. "Quantifying Sustainability: A New Approach and World Ranking," Working Papers 2012.94, Fondazione Eni Enrico Mattei.
    4. Mehmet Pinar, 2019. "Multidimensional Well-Being and Inequality Across the European Regions with Alternative Interactions Between the Well-Being Dimensions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(1), pages 31-72, July.
    5. Giovanni Bertin & Ludovico Carrino & Silvio Giove, 2018. "The Italian Regional Well-Being in a Multi-expert Non-additive Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(1), pages 15-51, January.
    6. Lorenza Campagnolo & Carlo Carraro & Marinella Davide & Fabio Eboli & Elisa Lanzi & Ramiro Parrado, 2016. "Can climate policy enhance sustainability?," Climatic Change, Springer, vol. 137(3), pages 639-653, August.
    7. M. Ferrara & F. Lamperti & R. Mavilia, 2016. "Looking for best performers: a pilot study towards the evaluation of science parks," Scientometrics, Springer;Akadémiai Kiadó, vol. 106(2), pages 717-750, February.
    8. Elettra Agliardi & Mehmet Pinar & Thanasis Stengos, 2015. "An environmental degradation index based on stochastic dominance," Empirical Economics, Springer, vol. 48(1), pages 439-459, February.
    9. Roger Chapman Burk & Richard M. Nehring, 2023. "An Empirical Comparison of Rank-Based Surrogate Weights in Additive Multiattribute Decision Analysis," Decision Analysis, INFORMS, vol. 20(1), pages 55-72, March.
    10. Luca Anzilli & Silvio Giove, 2020. "Multi-criteria and medical diagnosis for application to health insurance systems: a general approach through non-additive measures," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 43(2), pages 559-582, December.
    11. Pollesch, N.L. & Dale, V.H., 2016. "Normalization in sustainability assessment: Methods and implications," Ecological Economics, Elsevier, vol. 130(C), pages 195-208.
    12. Campagnolo, Lorenza & Eboli, Fabio, 2015. "Implications of the 2030 EU Resource Efficiency Target on Sustainable Development," Climate Change and Sustainable Development 202760, Fondazione Eni Enrico Mattei (FEEM).
    13. Galdeano-Gómez, E. & Aznar-Sánchez, J.A. & Pérez-Mesa, J.C. & Piedra-Muñoz, L., 2017. "Exploring Synergies Among Agricultural Sustainability Dimensions: An Empirical Study on Farming System in Almería (Southeast Spain)," Ecological Economics, Elsevier, vol. 140(C), pages 99-109.
    14. Samuel BATES & Valérie ANGEON, 2015. "Promoting The Sustainable Development Of Small Island Developing States: Insights From Vulnerability And Resilience Analysis," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 42, pages 15-29.
    15. Ludovico Carrino, 2016. "Data Versus Survey-based Normalisation in a Multidimensional Analysis of Social Inclusion," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 2(3), pages 305-345, November.
    16. Giovanni Bernardo & Irene Brunetti & Mehmet Pinar & Thanasis Stengos, 2021. "Measuring the presence of organized crime across Italian provinces: a sensitivity analysis," European Journal of Law and Economics, Springer, vol. 51(1), pages 31-95, February.
    17. Miguel F. Salvado & Susana G. Azevedo & João C. O. Matias & Luís M. Ferreira, 2015. "Proposal of a Sustainability Index for the Automotive Industry," Sustainability, MDPI, vol. 7(2), pages 1-32, February.
    18. Marcella De Filippo & Delio Colangelo & Luca Farnia, 2017. "Innovation and new business models in tourism," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(1), pages 149-168.
    19. Rubén Raedo, 2021. "Urban Sustainability Deficits: The Urban Non-Sustainability Index (UNSI) as a Tool for Urban Policy," Sustainability, MDPI, vol. 13(22), pages 1-25, November.
    20. Ludovico Carrino, 2015. "The weighting role of normalisation in a multidimensional analysis of Social Inclusion," Working Papers 2015:32, Department of Economics, University of Venice "Ca' Foscari".
    21. Lorenza Campagnolo & Carlo Carraro & Fabio Eboli & Luca Farnia & Ramiro Parrado & Roberta Pierfederici, 2018. "The Ex-Ante Evaluation of Achieving Sustainable Development Goals," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(1), pages 73-116, February.
    22. E. Agliardi & M. Pinar & T. Stengos, 2014. "Assessing temporal trends and industry contributions to air and water pollution using stochastic dominance," Working Papers wp981, Dipartimento Scienze Economiche, Universita' di Bologna.

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    More about this item

    Keywords

    Sustainability Indices; Composite Indicators; Choquet Integral; Multiattribute Value Theory;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • 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

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