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

  • 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)

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.

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Article provided by MDPI, Open Access Journal in its journal Sustainability.

Volume (Year): 5 (2013)
Issue (Month): 4 (April)
Pages: 1568-1576

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Handle: RePEc:gam:jsusta:v:5:y:2013:i:4:p:1568-1576:d:24914
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