Constructing the FEEM Sustainability Index: A Choquet-integral Application
AbstractThis 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2013.16.
Date of creation: Feb 2013
Date of revision:
Sustainability Indices; Composite Indicators; Choquet Integral; Multiattribute Value Theory;
Other versions of this item:
- Caterina Cruciani & Silvio Giove & Mehmet Pinar & Matteo Sostero, 2012. "Constructing the FEEM Sustainability Index: A Choquet-Integral Application," Working Papers 2012.50, Fondazione Eni Enrico Mattei.
- 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
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kenneth J. Arrow & Partha Dasgupta & Lawrence H. Goulder & Kevin J. Mumford & Kirsten Oleson, 2010.
"Sustainability and the Measurement of Wealth,"
NBER Working Papers
16599, National Bureau of Economic Research, Inc.
- Grabisch, Michel, 1996. "The application of fuzzy integrals in multicriteria decision making," European Journal of Operational Research, Elsevier, vol. 89(3), pages 445-456, March.
- Jean-Charles Billaut & Denis Bouyssou & Philippe Vincke, 2010. "Should you believe in the Shanghai ranking?," Post-Print hal-00388319, HAL.
- Elettra Agliardi, 2011. "Sustainability in Uncertain Economies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 48(1), pages 71-82, January.
- Ulengin, Fusun & Ilker Topcu, Y. & Sahin, Sule Onsel, 2001. "An integrated decision aid system for Bosphorus water-crossing problem," European Journal of Operational Research, Elsevier, vol. 134(1), pages 179-192, October.
- 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.
- Giuseppe Munda, 1997. "Environmental Economics, Ecological Economics, and the Concept of Sustainable Development," Environmental Values, White Horse Press, vol. 6(2), pages 213-233, May.
- Marichal, Jean-Luc & Roubens, Marc, 2000. "Determination of weights of interacting criteria from a reference set," European Journal of Operational Research, Elsevier, vol. 124(3), pages 641-650, August.
- Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
- Fabio Eboli & Ramiro Parrado & Roberto Roson, 2009.
"Climate Change Feedback on Economic Growth: Explorations with a Dynamic General Equilibrium Model,"
2009.43, Fondazione Eni Enrico Mattei.
- Eboli, Fabio & Parrado, Ramiro & Roson, Roberto, 2010. "Climate-change feedback on economic growth: explorations with a dynamic general equilibrium model," Environment and Development Economics, Cambridge University Press, vol. 15(05), pages 515-533, October.
- Michel Grabisch & Christophe Labreuche & Jean-Claude Vansnick, 2003.
"On the Extension of Pseudo-Boolean Functions for the Aggregation of Interacting Criteria,"
- Grabisch, Michel & Labreuche, Christophe & Vansnick, Jean-Claude, 2003. "On the extension of pseudo-Boolean functions for the aggregation of interacting criteria," European Journal of Operational Research, Elsevier, vol. 148(1), pages 28-47, July.
- Giuseppe Munda, 2005. "“Measuring Sustainability”: A Multi-Criterion Framework," Environment, Development and Sustainability, Springer, vol. 7(1), pages 117-134, 01.
- Patrick Meyer & Grégory Ponthière, 2011.
"Eliciting Preferences on Multiattribute Societies with a Choquet Integral,"
Society for Computational Economics, vol. 37(2), pages 133-168, February.
- Patrick Meyer & Grégory Ponthière, 2008. "Eliciting preferences on multiattribute societies with a Choquet integral," PSE Working Papers halshs-00586244, HAL.
- Kenneth Arrow & Partha Dasgupta & Lawrence Goulder & Gretchen Daily & Paul Ehrlich & Geoffrey Heal & Simon Levin & Karl-Göran Mäler & Stephen Schneider & David Starrett & Brian Walker, 2004. "Are We Consuming Too Much?," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 147-172, Summer.
- Bohringer, Christoph & Loschel, Andreas, 2006. "Computable general equilibrium models for sustainability impact assessment: Status quo and prospects," Ecological Economics, Elsevier, vol. 60(1), pages 49-64, November.
- Ness, Barry & Urbel-Piirsalu, Evelin & Anderberg, Stefan & Olsson, Lennart, 2007. "Categorising tools for sustainability assessment," Ecological Economics, Elsevier, vol. 60(3), pages 498-508, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (barbara racah).
If references are entirely missing, you can add them using this form.