IDEAS home Printed from https://ideas.repec.org/p/ags/aaea26/404706.html

AMultilateral Sustainability Index: Theory, Measurement, and Dynamics

Author

Listed:
  • Nakelse, Tebila
  • Dennis, Elliott
  • Perrin, Richard
  • Fulginiti, Lilyan

Abstract

This paper develops a multilateral sustainability index designed to compare heterogeneous production units across multiple sustainability dimensions. The index is grounded in ratio-scale measurement theory, frontier benchmarking, and multilateral index-number methods. We distinguish carefully between production-theoretic distance functions and normalized sustainability measures, and show how the latter can be aggregated consistently using geometric means. We clarify that two natural constructions of the index—one based on input- and contextadjusted ratios, and one based on direct comparison at a common reference technology— answer different questions and coincide only when inputs and contexts are homogeneous across units. The resulting index is scale-invariant, transitive, and interpretable as a measure of relative sustainability performance. We extend the static framework to strong sustainability aggregators imposing minimum thresholds on critical dimensions and to dynamic settings tracking sustainability trajectories over time. Numerical examples illustrate the axiomatic properties and aggregation mechanics of the approach; a full empirical implementation with estimated frontiers is left to future work.

Suggested Citation

  • Nakelse, Tebila & Dennis, Elliott & Perrin, Richard & Fulginiti, Lilyan, 2026. "AMultilateral Sustainability Index: Theory, Measurement, and Dynamics," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404706, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea26:404706
    DOI: 10.22004/ag.econ.404706
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/404706/files/177648_195468_115232_Sustainable_Index___AAEA.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.404706?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Eric Neumayer, 2013. "Weak versus Strong Sustainability," Books, Edward Elgar Publishing, number 14993.
    2. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, January.
    3. Florian Berg & Julian F Kölbel & Roberto Rigobon, 2022. "Aggregate Confusion: The Divergence of ESG Ratings [Corporate social responsibility and firm risk: theory and empirical evidence]," Review of Finance, European Finance Association, vol. 26(6), pages 1315-1344.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Veneranda Vedastus Lufano & Dr. Gabriel Kirori & Dr. Rose Mugiira, 2023. "Efficiency Analysis of the Food and Beverage Industry in Tanzania: A Comparative Analysis," International Journal of Economics, IPRJB, vol. 8(2), pages 19-32.
    2. M. D. Castro-Alvarez & C.A. Zuniga-Gonzalez & W. Mercado & R.S. Andrade, 2025. "Rice (Oryza sativa L.) Bioeconomy: A Comprehensive DEA Analysis," Advances in Decision Sciences, Asia University, Taiwan, vol. 29(2), pages 91-120, June.
    3. Ajayi, Victor & Anaya, Karim & Pollitt, Michael, 2022. "Incentive regulation, productivity growth and environmental effects: the case of electricity networks in Great Britain," Energy Economics, Elsevier, vol. 115(C).
    4. Luis Orea & Christian Growitsch & Tooraj Jamasb, 2012. "Using Supervised Environmental Composites in Production and Efficiency Analyses: An Application to Norwegian Electricity Networks," EWI Working Papers 2012-18, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    5. Lundgren, Tommy & Marklund, Per-Olov & Zhang, Shanshan, 2016. "Industrial energy demand and energy efficiency – Evidence from Sweden," Resource and Energy Economics, Elsevier, vol. 43(C), pages 130-152.
    6. Bazyli CZYZEWSKI & Adam MAJCHRZAK, 2017. "Economic size of farms and adjustments of the total factor productivity to the business cycle in Polish agriculture," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(2), pages 93-102.
    7. Zixuan Zhang & Zhenyu Ge, 2024. "Fishing in muddy water? Climate policy uncertainty and corporate greenwashing in environmental, social, and governance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(6), pages 4191-4207, September.
    8. Scheierling, Susanne M. & Treguer, David O. & Booker, James F., 2015. "Water Productivity in Agriculture: Looking for Water in the Agricultural Productivity and Efficiency Literature," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205677, Agricultural and Applied Economics Association.
    9. McGee, Paraic & Sheenan, Lisa & Egan, Tom & O'Donohoe, Sheila, 2025. "Risk factor disclosure in green bond prospectuses and investor compensation," International Review of Financial Analysis, Elsevier, vol. 105(C).
    10. Andrew S. J. Smith & Jan-Eric Nilsson & Ivan Ridderstedt & Oskar Johansson, 2023. "Efficiency measurement in the tendering of road surface renewal contracts," Journal of Productivity Analysis, Springer, vol. 60(2), pages 189-202, October.
    11. Costola, Michele & Vozian, Katia, 2025. "Pricing climate transition risk: Evidence from European corporate CDS," Energy Economics, Elsevier, vol. 143(C).
    12. Valentin Zelenyuk, 2023. "Productivity analysis: roots, foundations, trends and perspectives," Journal of Productivity Analysis, Springer, vol. 60(3), pages 229-247, December.
    13. Oehler, Andreas & Neuss, Charlotte, 2025. "ESG disclosure vs. ESG ratings: Consistent information value?," International Review of Financial Analysis, Elsevier, vol. 107(C).
    14. Ferriani, Fabrizio, 2023. "Issuing bonds during the Covid-19 pandemic: Was there an ESG premium?," International Review of Financial Analysis, Elsevier, vol. 88(C).
    15. Nsiri, Nour & Kleftodimos, Georgios & Drogué, Sophie, 2025. "Efficiency of agricultural systems in Morocco: A meta-frontier analysis of resource use and water management," Agricultural Water Management, Elsevier, vol. 321(C).
    16. Abdelghafar M. Elhady & Samaa Shohieb, 2025. "AI-driven sustainable finance: computational tools, ESG metrics, and global implementation," Future Business Journal, Springer, vol. 11(1), pages 1-30, December.
    17. Aldieri, Luigi & Gatto, Andrea & Vinci, Concetto Paolo, 2021. "Evaluation of energy resilience and adaptation policies: An energy efficiency analysis," Energy Policy, Elsevier, vol. 157(C).
    18. Helmi Hammami & Thanh Ngo & David Tripe & Dinh-Tri Vo, 2022. "Ranking with a Euclidean common set of weights in data envelopment analysis: with application to the Eurozone banking sector," Annals of Operations Research, Springer, vol. 311(2), pages 675-694, April.
    19. Silvia Simon, 2006. "Zukunftsfähige Wirtschaftsentwicklung von Kleinstaaten. Kleinheitsbedingte Optionen und Restriktionen am Beispiel Liechtenstein," Beitraege 37, Liechtenstein-Institut.
    20. Jiaqiang Sun & Anita Binti Rosli & Adrian Daud, 2025. "Efficiency analysis of listed pharmaceutical companies in China: A method combining three-stage DEA with undesirable output, PCA, and tobit regression," PLOS ONE, Public Library of Science, vol. 20(8), pages 1-33, August.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea26:404706. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.