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Eco-efficiency and eco-productivity change over time in a multisectoral economic system

  • Mahlberg, Bernhard
  • Luptacik, Mikulas

We measure eco-efficiency of an economy by means of an augmented Leontief input–output model extended by constraints for primary inputs. Using a multi-objective optimisation model the eco-efficiency frontier of the economy is generated. The results of these multi-objective optimisation problems define eco-efficient virtual decision making units (DMUs). The eco-efficiency is obtained as a solution of a data envelopment analysis (DEA) model with virtual DMUs defining the potential and a DMU describing the actual performance of the economy. This procedure is then extended to an intertemporal approach in the spirit of the Luenberger productivity indicator. This indicator permits decomposing eco-productivity change into eco-efficiency change and eco-technical change. The indicator is then further decompounded in a way that enables us to examine the contributions of individual production factors, undesirable as well as desirable outputs to eco-productivity change over time. For illustration purposes the proposed model is applied to investigate eco-productivity growth of the Austrian economy.

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Article provided by Elsevier in its journal European Journal of Operational Research.

Volume (Year): 234 (2014)
Issue (Month): 3 ()
Pages: 885-897

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Handle: RePEc:eee:ejores:v:234:y:2014:i:3:p:885-897
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