Studies in Modelling and Decision Support
Edited by M. A. Quaddus and M. A.B. Siddique
Chapter 6: Using Data Envelopment Analysis for Ecoefficiency Evaluation
6 Using data envelopment analysis for ecoefﬁciency evaluation Joseph Sarkis and Srinivas Talluri Introduction Ecoefficiency is the evaluation of an organization’s ecological (or environmental) efﬁciency. This topic has come under increasing scrutiny by a variety of stakeholders, of which the organization itself is one. Ecoefﬁciency is meant to determine how well an organization uses its resources. Not only is this important from an economic basis, but also from an environmental and social basis. Sustainability measures for organizational ecoefﬁciency measurement are currently under investigation and development. To help evaluate these measures data envelopment analysis (DEA) can be used. DEA is a quantitative multifactor productivity measurement tool that has gained much attention in the operations research and application literature. DEA has proven quite useful for a number of managerial decision problems and research questions, but it has been rarely applied within the realm of corporate environmental management. The limited application of DEA for environmental issues provides fertile ground for its use as both a research and practical tool. In this chapter, we shall identify the various applications from both a practical and research perspective. We illustrate DEA’s suitability as a tool to help evaluate the ecoefﬁciency of organizations, address research questions pertaining to environment ecoperformance of organizations, and help managers make decisions. The DEA models, and extensions, that are evaluated in this chapter are from a family of deterministic (rather than stochastic) models. DEA and the environment: a literature review DEA has been applied to a number...
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