Journal
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volume 132, Issue 2, Pages 312-325Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/S0377-2217(00)00154-5
Keywords
data envelopment analysis; ecological efficiency; value functions
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The measurement of ecological efficiency provides some important information for the companies' environmental management. Ecological efficiency is usually measured by comparing environmental performance indicators. Data envelopment analysis (DEA) shows a high potential to support such comparisons, as no explicit weights are needed to aggregate the indicators. In general, DEA assumes that inputs and outputs are 'goods', but from an ecological perspective also 'bads' have to be considered. In the literature, 'bads' are treated in different and sometimes arbitrarily chosen ways. This article aims at the systematic derivation of ecologically extended DEA models. Starting from the assumptions of DEA in production theory and activity analysis, a generalisation of basic DEA models is derived by incorporating a multi-dimensional value function f. Extended preference structures can be considered by different specifications of f, e.g. specifications for ecologically motivated applications of DEA. (C) 2001 Elsevier Science B.V. All rights reserved.
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