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Eco-efficiency analysis in generalized IO models: Methods and examples

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  • Gurgul, Henryk
  • Lach, Łukasz

Abstract

Performance assessment in the presence of undesirable outputs, such as pollutant emissions, is usually modelled within the framework of data envelopment analysis (DEA). In this paper we propose a new approach to measuring eco-efficiency in generalized input-output (gIO) models which may be used as a supplementary method to traditional DEA. Unlike DEA this approach takes into account detailed data on intersectoral flows in supply- and demand-driven gIO models. We focus on cases of traditional and sector-size-adjusted measures of interindustry linkages in gIO models and in each case we suggest respective indices of eco-efficiency and prove their usefulness in policymaking. In order to illustrate possible applications of the new approach we conduct an empirical analysis aimed at identifying the eco-efficient sectors based on the 1995 and 2009 national input-output tables and environmental accounts for Poland which are provided by the World Input Output Data (WIOD) database.

Suggested Citation

  • Gurgul, Henryk & Lach, Łukasz, 2019. "Eco-efficiency analysis in generalized IO models: Methods and examples," MPRA Paper 96604, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:96604
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    More about this item

    Keywords

    generalized input-output models; intersectoral linkages; eco-efficiency; nonlinear optimization;

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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