Opportunity Cost Based Analysis of Corporate Eco-Efficiency: A Methodology and its Application to the CO2-Efficiency of German Companies

Posted: 10 Aug 2013 Last revised: 31 Mar 2014

See all articles by Tobias Hahn

Tobias Hahn

KEDGE Business School

Frank Figge

KEDGE Business School

Andrea Liesen

Institute for Ecological Economy Research (IOEW)

Ralf Barkemeyer

Queen's University Belfast

Date Written: 2010

Abstract

In this paper, we propose the return-to-cost-ratio (RCR) as an alternative approach to the analysis of operational eco-efficiency of companies based on the notion of opportunity costs. RCR helps to overcome two fundamental deficits of existing approaches to eco-efficiency. (1) It translates eco-efficiency into managerial terms by applying the well-established notion of opportunity costs to eco-efficiency analysis. (2) RCR allows to identify and quantify the drivers behind changes in corporate eco-efficiency. RCR is applied to the analysis of the CO2-efficiency of German companies in order to illustrate its usefulness for a detailed analysis of changes in corporate eco-efficiency as well as for the development of effective environmental strategies.

Keywords: Eco-efficiency, Opportunity cost, CO2-efficiency, Environmental performance assessment, Corporate environmental strategy

Suggested Citation

Hahn, Tobias and Figge, Frank and Liesen, Andrea and Barkemeyer, Ralf, Opportunity Cost Based Analysis of Corporate Eco-Efficiency: A Methodology and its Application to the CO2-Efficiency of German Companies (2010). Journal of Environmental Management, 91(10), 1997-2007. Available at SSRN: https://ssrn.com/abstract=2307930

Tobias Hahn (Contact Author)

KEDGE Business School ( email )

Domaine de Luminy - BP 921
BP 921
Marseille, PACA 13288
France
+33491827313 (Phone)

HOME PAGE: http://www.kedgebs.com

Frank Figge

KEDGE Business School ( email )

Domaine de Luminy
BP 921 13288 Marseille Cedex 9, 13288
France

Andrea Liesen

Institute for Ecological Economy Research (IOEW) ( email )

Potsdamer Str. 105
Berlin, 10785
Germany

Ralf Barkemeyer

Queen's University Belfast ( email )

25 University Square
Belfast, BT7 1NN
Ireland

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