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Eco-efficiency and eco-productivity change over time in a multisectoral economic system

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  • Mahlberg, Bernhard
  • Luptacik, Mikulas

Abstract

We measure eco-efficiency of an economy by means of an augmented Leontief input–output model extended by constraints for primary inputs. Using a multi-objective optimisation model the eco-efficiency frontier of the economy is generated. The results of these multi-objective optimisation problems define eco-efficient virtual decision making units (DMUs). The eco-efficiency is obtained as a solution of a data envelopment analysis (DEA) model with virtual DMUs defining the potential and a DMU describing the actual performance of the economy. This procedure is then extended to an intertemporal approach in the spirit of the Luenberger productivity indicator. This indicator permits decomposing eco-productivity change into eco-efficiency change and eco-technical change. The indicator is then further decompounded in a way that enables us to examine the contributions of individual production factors, undesirable as well as desirable outputs to eco-productivity change over time. For illustration purposes the proposed model is applied to investigate eco-productivity growth of the Austrian economy.

Suggested Citation

  • Mahlberg, Bernhard & Luptacik, Mikulas, 2014. "Eco-efficiency and eco-productivity change over time in a multisectoral economic system," European Journal of Operational Research, Elsevier, vol. 234(3), pages 885-897.
    • Handle: RePEc:eee:ejores:v:234:y:2014:i:3:p:885-897
    DOI: 10.1016/j.ejor.2013.11.017
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    More about this item

    Keywords

    Data envelopment analysis; Luenberger indicator; Multi-objective optimisation; Neoclassical growth accounting;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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