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Consistent Aggregation of Generalized Sustainable Values from the Firm Level to Sectoral, Regional or Industry Levels

Author

Listed:
  • Natalia Kuosmanen

    () (MTT Agrifood Research Finland, Economic Research, Latokartanonkaari 9, 00790 Helsinki, Finland)

  • Timo Kuosmanen

    () (Aalto University School of Business, P.O. Box 21220, 00076 Aalto, Helsinki, Finland)

  • Timo Sipiläinen

    () (University of Helsinki, P.O. Box 27, Latokartanonkaari 9, 00014 Helsinki, Finland)

Abstract

This study presents a systematic method for aggregating firm level sustainable value indicators to sector, region or industry levels. The proposed method applies the generalized sustainable value that is based on frontier production functions. The method is illustrated by an empirical application to the Finnish crop and dairy sectors, where the benchmark technology is estimated by data envelopment analysis. Our efficiency assessment shows that the representative crop farm achieves only about a half of its potential output. Efficiency of the representative dairy farm is somewhat higher.

Suggested Citation

  • Natalia Kuosmanen & Timo Kuosmanen & Timo Sipiläinen, 2013. "Consistent Aggregation of Generalized Sustainable Values from the Firm Level to Sectoral, Regional or Industry Levels," Sustainability, MDPI, Open Access Journal, vol. 5(4), pages 1-9, April.
  • Handle: RePEc:gam:jsusta:v:5:y:2013:i:4:p:1568-1576:d:24914
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    Citations

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    Cited by:

    1. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    2. Rødseth, Kenneth Løvold, 2013. "A note on input congestion," Economics Letters, Elsevier, vol. 120(3), pages 599-602.
    3. Riccardo Testa & Anna Maria di Trapani & Filippo Sgroi & Salvatore Tudisca, 2014. "Economic Sustainability of Italian Greenhouse Cherry Tomato," Sustainability, MDPI, Open Access Journal, vol. 6(11), pages 1-15, November.
    4. repec:gam:jsusta:v:9:y:2017:i:5:p:784-:d:97999 is not listed on IDEAS

    More about this item

    Keywords

    sustainability assessment; sustainable value; productive efficiency analysis;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • 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
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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