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Performance analysis for three pillars of sustainability

Author

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  • Zhiyang Shen

    (IESEG School of Management (LEM 9221-CNRS))

  • Jean-Philippe Boussemart

    (University of Lille 3 and IESEG School of Management (LEM 9221-CNRS))

  • Hervé Leleu

    (CNRS-LEM 9221 and IESEG School of Management)

  • Vivian Valdmanis

    (Western Michigan University and IÉSEG School of Management)

Abstract

Gross domestic product (GDP) has come under criticism as the only objective countries’ should pursue for societal well-being. In this paper we apply an innovative Data Envelopment Analysis (DEA) approach for including two other pillars including an environmental dimension, reduction of carbon dioxide (CO2) emissions and a social dimension such as: increasing employment, and expanding healthcare and education expenditures. By linking together three DEA sub-technologies, we model a global technology which combines the objectives of the three pillars. Finally, by weighting each of them by different schemes, we demonstrate the practicality of our approach for policy tradeoffs governments can make among economic, environmental and social objectives.

Suggested Citation

  • Zhiyang Shen & Jean-Philippe Boussemart & Hervé Leleu & Vivian Valdmanis, 2017. "Performance analysis for three pillars of sustainability," Working Papers 2017-EQM-01, IESEG School of Management.
  • Handle: RePEc:ies:wpaper:e201701
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    Keywords

    Three Pillars; Economic Efficiency; Environmental Efficiency; Social Efficiency; Data Envelopment Analysis; Multiple Frontiers;
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