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MRP-PCI: A Multiple Reference Point Based Partially Compensatory Composite Indicator for Sustainability Assessment

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  • Francisco Ruiz

    (Department of Applied Economics (Mathematics), University of Málaga, Calle Ejido, 6, 29071 Málaga, Spain)

  • José Manuel Cabello

    (Department of Applied Economics (Mathematics), University of Málaga, Calle Ejido, 6, 29071 Málaga, Spain)

Abstract

Assessing different types of sustainability is a complex procedure, which implies considering aspects of very different nature. One way to do this is using a system of single indicators measuring all these different aspects and aggregating them in an overall composite indicator. In line with the concepts of weak and strong sustainability, the compensability degree among the indicators allowed by the aggregation procedure is a crucial issue. There exist methods that allow for full compensability, zero compensability, or partial compensability. In most of them, the compensation degree is established in a global way, that is, it is the same for all the indicators. In this paper, we develop the Multiple Reference Point Partially Compensatory Indicator (MRP-PCI), where a different compensation index can be established for each indicator. The resulting method can be applied to any system of indicators, and successfully considers the compensation indices given. Some examples and comparisons are used to illustrate its behavior.

Suggested Citation

  • Francisco Ruiz & José Manuel Cabello, 2021. "MRP-PCI: A Multiple Reference Point Based Partially Compensatory Composite Indicator for Sustainability Assessment," Sustainability, MDPI, vol. 13(3), pages 1-19, January.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:3:p:1261-:d:486929
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    References listed on IDEAS

    as
    1. José M. Cabello & Enrique Navarro-Jurado & Beatriz Rodríguez & Daniela Thiel-Ellul & Francisco Ruiz, 2019. "Dual weak–strong sustainability synthetic indicators using a double reference point scheme: the case of Andalucía, Spain," Operational Research, Springer, vol. 19(3), pages 757-782, September.
    2. Zahra Nasrollahi & Mohadeseh-sadat Hashemi & Saeed Bameri & Vahid Mohamad Taghvaee, 2020. "Environmental pollution, economic growth, population, industrialization, and technology in weak and strong sustainability: using STIRPAT model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(2), pages 1105-1122, February.
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    7. Pingtao Yi & Lu Wang & Danning Zhang & Weiwei Li, 2019. "Sustainability Assessment of Provincial-Level Regions in China Using Composite Sustainable Indicator," Sustainability, MDPI, vol. 11(19), pages 1-20, September.
    8. Andrea De Montis & Vittorio Serra & Amedeo Ganciu & Antonio Ledda, 2020. "Assessing Landscape Fragmentation: A Composite Indicator," Sustainability, MDPI, vol. 12(22), pages 1-23, November.
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    11. Samira El Gibari & Trinidad Gómez & Francisco Ruiz, 2019. "Building composite indicators using multicriteria methods: a review," Journal of Business Economics, Springer, vol. 89(1), pages 1-24, February.
    12. Ivonne Acosta-Alba & Hayo M. G. Van der Werf, 2011. "The Use of Reference Values in Indicator-Based Methods for the Environmental Assessment of Agricultural Systems," Sustainability, MDPI, vol. 3(2), pages 1-19, February.
    13. Giuseppe Munda, 2008. "Social Multi-Criteria Evaluation for a Sustainable Economy," Springer Books, Springer, number 978-3-540-73703-2, December.
    14. F Ruiz & J M Cabello & M Luque, 2011. "An application of reference point techniques to the calculation of synthetic sustainability indicators," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(1), pages 189-197, January.
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    3. Denise Anselmi & Idiano D’Adamo & Massimo Gastaldi & Ginevra Virginia Lombardi, 2024. "A comparison of economic, environmental and social performance of European countries: a sustainable development goal index," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 20653-20677, August.
    4. Hana Ayadi & Nadia Hamani & Lyes Kermad & Mounir Benaissa, 2021. "Novel Fuzzy Composite Indicators for Locating a Logistics Platform under Sustainability Perspectives," Sustainability, MDPI, vol. 13(7), pages 1-37, April.
    5. Bénédicte Coestier & Mathieu Bernard & Fabienne Llense & Maxime Lucet, 2024. "Environmental and climate mandatory disclosure : a paper tiger ? Evidence from France," EconomiX Working Papers 2024-32, University of Paris Nanterre, EconomiX.
    6. de Castro-Pardo, Mónica & Cabello, José Manuel & Martín, José María & Ruiz, Francisco, 2023. "A multi reference point based index to assess and monitor European water policies from a sustainability approach," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    7. de Castro-Pardo, Mónica & Martín Martín, José María & Azevedo, João C., 2022. "A new composite indicator to assess and monitor performance and drawbacks of the implementation of Aichi Biodiversity Targets," Ecological Economics, Elsevier, vol. 201(C).
    8. E. Ricciolini & L. Rocchi & M. Cardinali & L. Paolotti & F. Ruiz & J. M. Cabello & A. Boggia, 2022. "Assessing Progress Towards SDGs Implementation Using Multiple Reference Point Based Multicriteria Methods: The Case Study of the European Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(3), pages 1233-1260, August.
    9. Ana B. Ruiz & Mariano Luque & Oscar D. Marcenaro-Gutierrez, 2022. "On the use of Synthetic Indexes Based on Multi-Criteria Decision Making to Study the Efficiency of Teachers," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(3), pages 1269-1300, October.

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