Assistant professor in the Environmental Economics and Natural Resources Group at Wageningen University, The Netherlands.
Measuring Eco-efficiency of Production with Data Envelopment Analysis
Article first published online: 8 FEB 2008
Journal of Industrial Ecology
Volume 9, Issue 4, pages 59–72, October 2005
How to Cite
Kuosmanen, T. and Kortelainen, M. (2005), Measuring Eco-efficiency of Production with Data Envelopment Analysis. Journal of Industrial Ecology, 9: 59–72. doi: 10.1162/108819805775247846
- Issue published online: 8 FEB 2008
- Article first published online: 8 FEB 2008
- activity analysis;
- environmental performance;
- environmental pressures;
- road transportation;
- weight restrictions
Aggregation of environmental pressures into a single environmental damage index is a major challenge of eco-efficiency measurement. This article examines how the data envelopment analysis (DEA) method can be adapted for this purpose. DEA accounts for substitution possibilities between different natural resources and emissions and does not require subjective judgment about the weights. Although DEA does not require subjective or normative judgment, soft weight restrictions can be incorporated into the framework. The proposed approach is illustrated by an application to assessing ecoefficiency of road transportation in the three largest towns of eastern Finland.