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Aggregate eco-efficiency indices for New Zealand – a Principal Components Analysis


  • Jollands, Nigel
  • Lermit, Jonathan
  • Patterson, Murray


Eco-efficiency has emerged as a management response to waste issues associated with current production processes. Despite the popularity of the term in both business and government circles, limited attention has been paid to measuring and reporting eco-efficiency to government policy makers. Aggregate measures of eco-efficiency are needed, to complement existing measures and to help highlight important patterns in eco-efficiency data. This paper aims to develop aggregate measures of eco-efficiency for use by policy makers. Specifically, this paper provides a unique analysis by applying principal components analysis (PCA) to eco-efficiency indicators in New Zealand. This study reveals that New Zealand's overall eco-efficiency improved for two out of the five aggregate measures over the period 1994/95 to 1997/98. The worsening of the other aggregate measures reflects, among other things, the relatively poor performance of the primary production and related processing sectors. These results show PCA is an effective approach for aggregating eco-efficiency indicators and assisting decision makers by reducing redundancy in an eco-efficiency indicators matrix.

Suggested Citation

  • Jollands, Nigel & Lermit, Jonathan & Patterson, Murray, 2004. "Aggregate eco-efficiency indices for New Zealand – a Principal Components Analysis," 2004 Conference, June 25-26, 2004, Blenheim, New Zealand 97773, New Zealand Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:nzar04:97773

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    References listed on IDEAS

    1. Martinez-Alier, Joan & Munda, Giuseppe & O'Neill, John, 1998. "Weak comparability of values as a foundation for ecological economics," Ecological Economics, Elsevier, vol. 26(3), pages 277-286, September.
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    Cited by:

    1. Cheryl Joy J. Fernandez & Kim Hang Pham Do, 2010. "Logit and Principal Component Analyses on the Management of Marine Protected Area (MPA) in North-Eastern Iloilo, Philippines," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 17(1), pages 97-122, June.
    2. Mamouni Limnios, Elena Alexandra & Ghadouani, Anas & Schilizzi, Steven G.M. & Mazzarol, Tim, 2009. "Giving the consumer the choice: A methodology for Product Ecological Footprint calculation," Ecological Economics, Elsevier, vol. 68(10), pages 2525-2534, August.
    3. Thierry Bréchet & Sylvette Ly, 2013. "The many traps of green technology promotion," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 15(1), pages 73-91, January.
    4. Kortelainen, Mika, 2008. "Dynamic environmental performance analysis: A Malmquist index approach," Ecological Economics, Elsevier, vol. 64(4), pages 701-715, February.
    5. Hasanbeigi, Ali & de la Rue du Can, Stephane & Sathaye, Jayant, 2012. "Analysis and decomposition of the energy intensity of California industries," Energy Policy, Elsevier, vol. 46(C), pages 234-245.
    6. Patterson, Murray G., 2006. "Development of ecological economics in Australia and New Zealand," Ecological Economics, Elsevier, vol. 56(3), pages 312-331, March.
    7. Dong, Fengxia & Mitchell, Paul D. & Hurley, Terrance M. & Frisvold, George B., 2016. "Quantifying Adoption Intensity for Weed-Resistance Management Practices and Its Determinants among U.S. Soybean, Corn, and Cotton Farmers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(1), January.
    8. repec:kap:jbioec:v:19:y:2017:i:2:d:10.1007_s10818-016-9242-7 is not listed on IDEAS
    9. Yiridoe, Emmanuel K. & Amon-Armah, Frederick & Hebb, Dale & Jamieson, Rob, 2013. "Eco-efficiency of Alternative Cropping Systems Managed in an Agricultural Watershed," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150357, Agricultural and Applied Economics Association.
    10. Van Passel, Steven & Nevens, Frank & Mathijs, Erik & Van Huylenbroeck, Guido, 2007. "Measuring farm sustainability and explaining differences in sustainable efficiency," Ecological Economics, Elsevier, vol. 62(1), pages 149-161, April.
    11. Hou, Lingling & Hoag, Dana & Keske, Catherine M.H. & Lu, Changhe, 2014. "Sustainable value of degraded soils in China's Loess Plateau: An updated approach," Ecological Economics, Elsevier, vol. 97(C), pages 20-27.
    12. Jollands, Nigel & Harmsworth, Garth, 2007. "Participation of indigenous groups in sustainable development monitoring: Rationale and examples from New Zealand," Ecological Economics, Elsevier, vol. 62(3-4), pages 716-726, May.
    13. Panse, Riddhi & Kathuria, Vinish, 2016. "Role of policy in deployment of wind energy: evidence across states of India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 422-432.


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