Data envelopment analysis for measuring economic growth in terms of welfare beyond GDP

Recent discussions about the definition of growth in terms of welfare beyond GDP suggest that it is of urgent need to develop new approaches for measuring the economic performance of firms and national economies. The new concepts should simultaneously take into account economic as well as social and environmental goals. First we present several approaches to productivity measures. Then we extend the data envelopment analysis models with environment indicators in order to measure the so called eco-efficiency and social indicators to take into consideration social performance. For illustration, we perform the analysis of 30 European countries for the year 2010. The last section concerns itself with the possibilities of inter-temporal analysis of the proposed models and their use in ex-ante evaluation of different policy scenarios.

[1]  Biresh K. Sahoo,et al.  Alternative measures of environmental technology structure in DEA: An application , 2011, Eur. J. Oper. Res..

[2]  R. Färe,et al.  An activity analysis model of the environmental performance of firms—application to fossil-fuel-fired electric utilities , 1996 .

[3]  S. Zionts,et al.  Programming with linear fractional functionals , 1968 .

[4]  William W. Cooper,et al.  SHORT COMMUNICATION: MEASURING EFFICIENCY OF DECISION MAKING UNITS , 1979 .

[5]  Jeong-Dong Lee,et al.  Estimation of the shadow prices of pollutants with production/environment inefficiency taken into account: a nonparametric directional distance function approach. , 2002, Journal of environmental management.

[6]  Harold O. Fried,et al.  The Measurement of Productive Efficiency and Productivity Growth , 2008 .

[7]  Daniel Tyteca,et al.  Linear Programming Models for the Measurement of Environmental Performance of Firms—Concepts and Empirical Results , 1997 .

[8]  F. Carmignani,et al.  Introduction to Modern Economic Growth. , 2012 .

[9]  Valentina Bosetti,et al.  Data Envelopment Analysis of different climate policy scenarios , 2009 .

[10]  A. Hailu,et al.  Non‐Parametric Productivity Analysis with Undesirable Outputs: An Application to the Canadian Pulp and Paper Industry , 2001 .

[11]  Daniel Tyteca,et al.  On the Measurement of the Environmental Performance of Firms— A Literature Review and a Productive Efficiency Perspective , 1996 .

[12]  Andreas Sturm,et al.  Ökologieinduzierte Entscheidungsprobleme des Managements: Ansatzpunkte zur Ausgestaltung von Instrumenten. , 1989 .

[13]  R. Solow.  TECHNICAL CHANGE AND THE AGGREGATE PRODUCTION FUNCTION , 1957 .

[14]  Hongliang Yang,et al.  Incorporating Both Undesirable Outputs and Uncontrollable Variables into Dea: the Performance of Chinese Coal-fired Power Plants Incorporating Both Undesirable Outputs and Uncontrollable Variables into Dea: the Performance of Chinese Coal-fired Power Plants , 2007 .

[15]  A. Charnes,et al.  Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis , 1984 .

[16]  Pierre Mohnen,et al.  Neoclassical Growth Accounting and Frontier Analysis: A Synthesis , 2000 .

[17]  A. U.S.,et al.  Measuring the efficiency of decision making units , 2003 .

[18]  Harald Dyckhoff,et al.  Measuring ecological efficiency with data envelopment analysis (DEA) , 2001, Eur. J. Oper. Res..

[19]  Daniel Dujava.  Príčiny zaostávania nových členských krajín EÚ: empirická analýza na základe Montgomeryho dekompozície , 2012 .

[20]  Zvi Griliches,et al.  The Discovery of the Residual: An Historical Note , 1995 .

[21]  Joseph Sarkis,et al.  An empirical evaluation of environmental efficiencies and firm performance: Pollution prevention versus end-of-pipe practice , 2001, Eur. J. Oper. Res..

[22]  Biresh K. Sahoo,et al.  Examining the drivers of total factor productivity change with an illustrative example of 14 EU countries , 2011 .

[23]  Pekka J. Korhonen,et al.  ECO-EFFICIENCY ANALYSIS OF POWER PLANTS: AN EXTENSION OF DATA ENVELOPMENT ANALYSIS , 2000 .

[24]  C.A.K. Lovell,et al.  Multilateral Productivity Comparisons When Some Outputs are Undesirable: A Nonparametric Approach , 1989 .