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Ecoefficiency Measurement Using Data Envelopment Analysis: Research And Practitioner Issues

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  • JOSEPH SARKIS

    (Graduate School of Management, Clark University, 950 Main Street, Worcester, MA 01610, USA)

  • SRINIVAS TALLURI

    (Department of Marketing and Supply Chain Management, Eli Broad College of Business, Michigan State University, N370 North Business Complex, East Lansing, MI 48824, USA)

Abstract

Ecoefficiency is critical for organisations that seek to be both environmentally conscious and profitable. Ecoefficiency has implications for a "win-win" situation to arise. Studying and managing organisations from this perspective requires an evaluation of ecoefficiency. To aid researchers and managers develop measures for ecoefficiency we review the use of data envelopment analysis (DEA) for this purpose. DEA theory and application has increased greatly. Its use as a tool for environmental performance evaluation has been limited. In this paper we provide a number of DEA models and some extensions and how they can be utilised from both the practitioner and researcher perspective. An illustrative example from published data helps to gain insight into the various models, their capabilities and limitations.

Suggested Citation

  • Joseph Sarkis & Srinivas Talluri, 2004. "Ecoefficiency Measurement Using Data Envelopment Analysis: Research And Practitioner Issues," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 91-123.
    • Handle: RePEc:wsi:jeapmx:v:06:y:2004:i:01:n:s1464333204001602
    DOI: 10.1142/S1464333204001602
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    Citations

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    Cited by:

    1. Ramli, Noor Asiah & Munisamy, Susila, 2015. "Eco-efficiency in greenhouse emissions among manufacturing industries: A range adjusted measure," Economic Modelling, Elsevier, vol. 47(C), pages 219-227.
    2. Andrejić, Milan & Bojović, Nebojša & Kilibarda, Milorad, 2016. "A framework for measuring transport efficiency in distribution centers," Transport Policy, Elsevier, vol. 45(C), pages 99-106.
    3. Kortelainen, Mika, 2008. "Dynamic environmental performance analysis: A Malmquist index approach," Ecological Economics, Elsevier, vol. 64(4), pages 701-715, February.
    4. Noor Ramli & Susila Munisamy & Behrouz Arabi, 2013. "Scale directional distance function and its application to the measurement of eco-efficiency in the manufacturing sector," Annals of Operations Research, Springer, vol. 211(1), pages 381-398, December.
    5. Huang, Chin-wei & Chiu, Yung-ho & Fang, Wei-ta & Shen, Neng, 2014. "Assessing the performance of Taiwan’s environmental protection system with a non-radial network DEA approach," Energy Policy, Elsevier, vol. 74(C), pages 547-556.
    6. Lozano, Sebastián & Iribarren, Diego & Moreira, María Teresa & Feijoo, Gumersindo, 2010. "Environmental impact efficiency in mussel cultivation," Resources, Conservation & Recycling, Elsevier, vol. 54(12), pages 1269-1277.
    7. Ripoll-Zarraga, Ane Elixabete & Mar-Molinero, Cecilio, 2020. "Exploring the reasons for efficiency in Spanish airports," Transport Policy, Elsevier, vol. 99(C), pages 186-202.
    8. Hua, Zhongsheng & Bian, Yiwen & Liang, Liang, 2007. "Eco-efficiency analysis of paper mills along the Huai River: An extended DEA approach," Omega, Elsevier, vol. 35(5), pages 578-587, October.
    9. Mercedes Beltrán-Esteve & José Gómez-Limón & Andrés Picazo-Tadeo & Ernest Reig-Martínez, 2014. "A metafrontier directional distance function approach to assessing eco-efficiency," Journal of Productivity Analysis, Springer, vol. 41(1), pages 69-83, February.
    10. Song, Malin & An, Qingxian & Zhang, Wei & Wang, Zeya & Wu, Jie, 2012. "Environmental efficiency evaluation based on data envelopment analysis: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4465-4469.
    11. Sarkis, Joseph & Cordeiro, James J., 2012. "Ecological modernization in the electrical utility industry: An application of a bads–goods DEA model of ecological and technical efficiency," European Journal of Operational Research, Elsevier, vol. 219(2), pages 386-395.
    12. Adler, Nicole & Volta, Nicola, 2016. "Accounting for externalities and disposability: A directional economic environmental distance function," European Journal of Operational Research, Elsevier, vol. 250(1), pages 314-327.
    13. Alizadeh, Reza & Gharizadeh Beiragh, Ramin & Soltanisehat, Leili & Soltanzadeh, Elham & Lund, Peter D., 2020. "Performance evaluation of complex electricity generation systems: A dynamic network-based data envelopment analysis approach," Energy Economics, Elsevier, vol. 91(C).
    14. Mardani, Abbas & Zavadskas, Edmundas Kazimieras & Streimikiene, Dalia & Jusoh, Ahmad & Khoshnoudi, Masoumeh, 2017. "A comprehensive review of data envelopment analysis (DEA) approach in energy efficiency," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1298-1322.
    15. J Sarkis & J J Cordeiro, 2009. "Investigating technical and ecological efficiencies in the electricity generation industry: are there win-win opportunities?," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(9), pages 1160-1172, September.
    16. Yu, Xiaohong & Xu, Haiyan & Lou, Wengao & Xu, Xun & Shi, Victor, 2023. "Examining energy eco-efficiency in China's logistics industry," International Journal of Production Economics, Elsevier, vol. 258(C).

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