Eco-Efficiency and Eco-Productivity Change Over Time in a Multisectoral Economic System

University of Economics in Bratislava, Department of Economic Policy, Working Paper No. 4

30 Pages Posted: 26 Aug 2013

See all articles by Mikuláš Luptáčik

Mikuláš Luptáčik

Vienna University of Economics and Business - Department of Economics

Bernhard Mahlberg

Institute for Industrial Research (IWI); Vienna University of Economics and Business - Institute for Production Management

Date Written: July 17, 2013

Abstract

We measure eco-efficiency of an economy by means of an augmented Leontief input-output model extended by constraints for primary inputs. Using a multi-objective optimization model, the eco-efficiency frontier of the economy is generated. The results of these multi-objective optimization problems define eco-efficient virtual decision making units (DMUs). The eco-efficiency is obtained as a solution of a data envelopment analysis (DEA) model with virtual DMUs defining the potential and a DMU describing the actual performance of the economy. In this paper the procedure is extended to an intertemporal approach in the spirit of the Luenberger productivity indicator. This indicator permits decomposing eco-productivity change into eco-efficiency change and eco-technical change. The indicator is then further decompounded in a way that enables us to examine the contributions of individual production factors, undesirable as well as desirable outputs to eco-productivity change over time. For illustration purposes the proposed model is applied to investigate eco-productivity growth of the Austrian economy.

Keywords: Data Envelopment Analysis, Luenberger Indicator, Multi-Objective Optimization, Neoclassical Growth Accounting

JEL Classification: C67, O47, Q53, Q57

Suggested Citation

Luptáčik, Mikuláš and Mahlberg, Bernhard, Eco-Efficiency and Eco-Productivity Change Over Time in a Multisectoral Economic System (July 17, 2013). University of Economics in Bratislava, Department of Economic Policy, Working Paper No. 4. Available at SSRN: https://ssrn.com/abstract=2316142 or http://dx.doi.org/10.2139/ssrn.2316142

Mikuláš Luptáčik

Vienna University of Economics and Business - Department of Economics ( email )

Augasse 2-6
A-1090 Wien
Austria

Bernhard Mahlberg (Contact Author)

Institute for Industrial Research (IWI) ( email )

Mittersteig 10/4
Vienna, 1050
Austria
+43 1 513 44 11 0 (Phone)
+43 1 513 44 11 2099 (Fax)

HOME PAGE: http://www.iwi.ac.at/

Vienna University of Economics and Business - Institute for Production Management ( email )

Welthandelsplatz 1
Building D2, Entrance C, 3rd floor
Vienna, 1020
Austria
+43 1 313 36 - 5615 (Phone)

HOME PAGE: http://https://www.wu.ac.at/en/prodmanengl/

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