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

European Journal of Operational Research 234(3), 885–897, 2014

Posted: 8 Feb 2014

See all articles by Bernhard Mahlberg

Bernhard Mahlberg

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

Mikuláš Luptáčik

Vienna University of Economics and Business - Department of Economics

Date Written: May 1, 2014

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 optimisation model the eco-efficiency frontier of the economy is generated. The results of these multi-objective optimisation 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. This procedure is then 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 optimisation, Neoclassical growth accounting

JEL Classification: C67, O47, Q53, Q57

Suggested Citation

Mahlberg, Bernhard and Luptáčik, Mikuláš, Eco-Efficiency and Eco-Productivity Change Over Time in a Multisectoral Economic System (May 1, 2014). European Journal of Operational Research 234(3), 885–897, 2014. Available at SSRN: https://ssrn.com/abstract=2391827

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/

Mikuláš Luptáčik

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

Augasse 2-6
A-1090 Wien
Austria

Register to save articles to
your library

Register

Paper statistics

Abstract Views
262
PlumX Metrics