Measuring Sustainability Efficiency Using a Two-Stage Data Envelopment Analysis Approach

Summary In this article, we apply an additive two‐stage data envelopment analysis estimator on a panel of 20 countries with advanced economies for the time period 1990–2011 in order to create a composite sustainability efficiency index. We use a window‐based approach in order to study the countries...

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Bibliographic Details
Published in:Journal of industrial ecology 2016-10, Vol.20 (5), p.1159-1175
Main Authors: Halkos, George E., Tzeremes, Nickolaos G., Kourtzidis, Stavros A.
Format: Article
Language:English
Subjects:
additive two-stage data envelopment analysis (DEA)
advanced economies
Data envelopment analysis
Data processing
Ecology
Economic models
Efficiency
Efficiency index
environment and development
environmental metrics
Indexes
Indicators
industrial ecology
Inequalities
Inequality
International
Operations research
Studies
Sustainability
sustainability efficiency index
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Summary:Summary In this article, we apply an additive two‐stage data envelopment analysis estimator on a panel of 20 countries with advanced economies for the time period 1990–2011 in order to create a composite sustainability efficiency index. We use a window‐based approach in order to study the countries over the years. The sustainability efficiency index is decomposed into production efficiency and eco‐efficiency indicators. The results reveal inequalities among the examined countries between the two stages. The eco‐efficiency stage is characterized by large inequalities among countries and significantly lower efficiency scores than the overall sustainability efficiency and the production efficiency. Finally, it is reported that a country's high production efficiency level does not ensure a high eco‐efficiency performance.
ISSN:1088-1980
1530-9290
DOI:10.1111/jiec.12335