Skip to main content

Advertisement

SpringerLink
Log in

Alternative approaches to constructing composite indicators: an application to construct a Sustainable Energy Index for APEC economies

  • Original Paper
  • Published:
Operational Research Aims and scope Submit manuscript

Abstract

Existing literature about constructing composite indicators (CIs) mainly depend on weighting sub-indicators. In this paper, we first use a state-of-the-art MCDM method with mild weights restrictions to aggregate sub-indicators, without determining exact values of weights. We take into consideration of all possible importance rankings of sub-indicators to construct CIs. Two alternative approaches, namely, minimizing the total deviation from the ideal point and minimizing the mean absolute deviation, are then proposed to develop weighting schemes with respect to all sub-indicators sequences. The proposed approaches are applied to construct a Sustainable Energy Index for eighteen APEC economies.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Bandura R (2008) A survey of composite indices measuring country performance: 2008 update. A UNDP/ODS working paper, office of development studies, United Nations Development Programme, New York

  • Booysen F (2002) An overview and evaluation of composite indices of development. Soc Indic Res 59(2):115–151

    Article  Google Scholar 

  • Chercheye L, Moesen W, Rogge N, Van Puyenbroeck T, Saltelli A, Liska R, Tarantola S (2008) Creating composite indictors with DEA and robustness analysis: the case of the Technology Achievement Index. J Oper Res Soc 59:239–251

    Article  Google Scholar 

  • Esty DC, Levy MA, Srebotnjak T, De Sherbinin A, Kim CH, Anderson B (2006) Pilot environment performance index. Yale Center for Environmental Law & Policy, New Haven

    Google Scholar 

  • Freudenberg M (2003) Composite indicators of country performance. OECD science, technology and industry working papers

  • Fu Y, Lai KK, Miao Y, Leung JWK (2015) A distance-based decision-making method to improve multiple criteria ABC inventory classification. Int Trans Oper Res. doi:10.1111/itor.12193

    Google Scholar 

  • Gomez-Limon JA, Riesgo L (2009) Alternative approaches to the construction of a composite indicator of agricultural sustainability: an application to irrigated agriculture in the Duero basin in Spain. J Environ Manage 90(11):3345–3362

    Article  Google Scholar 

  • Guardiola J, Picazo-Tadeo AJ (2014) Building weighted-domain composite indices of life satisfaction with data envelopment analysis. Soc Indic Res 117(1):257–274

    Article  Google Scholar 

  • Hatefi SM, Torabi SA (2010) A common weight MCDA–DEA approach to construct composite indicators. Ecol Econ 70(1):114–120

    Article  Google Scholar 

  • Hoskins BL, Mascherini M (2009) Measuring active citizenship through the development of a composite indicator. Soc Indic Res 90(3):459–488

    Article  Google Scholar 

  • Jefferson M (2006) Sustainable energy development: performance and prospects. Renew Energy 31(5):571–582

    Article  Google Scholar 

  • Liang L, Wu J, Cook WD, Zhu J (2008) Alternative secondary goals in DEA cross-efficiency evaluation. Int J Prod Econ 113(2):1025–1030

    Article  Google Scholar 

  • Luzzati T, Gucciardi G (2015) A non-simplistic approach to composite indicators and rankings: an illustration by comparing the sustainability of the EU countries. Ecol Econ 113:25–38

    Article  Google Scholar 

  • Ma J, Fan ZP, Huang LH (1999) A subjective and objective integrated approach to determine attribute weights. Eur J Oper Res 112(2):397–404

    Article  Google Scholar 

  • Nardo M, Saisana M, Saltelli A, Tarantola S, Hoffmann A, Giovannini E (2008) Handbook on constructing composite indicators: methodology and user guide. Organization for Economic Co-operation and Development, Paris

    Google Scholar 

  • Ng WL (2007) A simple classifier for multiple criteria ABC analysis. Eur J Oper Res 177(1):344–353

    Article  Google Scholar 

  • Ng WL (2008) An efficient and simple model for multiple criteria supplier selection problem. Eur J Oper Res 186(3):1059–1067

    Article  Google Scholar 

  • OECD (2008) Handbook on constructing composite indicators: methodology and user guide. OECD Publishing, Paris

    Google Scholar 

  • Soylu B, Akyol B (2014) Multi-criteria inventory classification with reference items. Comput Ind Eng 69:12–20

    Article  Google Scholar 

  • Wang YM, Wang S (2013) Approaches to determining the relative importance weights for cross-efficiency aggregation in data envelopment analysis. J Oper Res Soc 64:60–69

    Article  Google Scholar 

  • Zanella A, Camanho AS, Dias TG (2015) Undesirable outputs and weighting schemes in composite indicators based on data envelopment analysis. Eur J Oper Res 245(2):517–530

    Article  Google Scholar 

  • Zhou P, Ang BW, Poh KL (2006) Comparing aggregating methods for constructing the composite environment index: an objective measure. Ecol Econ 59(3):305–311

    Article  Google Scholar 

  • Zhou P, Ang BW, Poh KL (2007) A mathematical programming approach to constructing composite indicators. Ecol Econ 62(2):291–297

    Article  Google Scholar 

  • Zhou P, Fan LW, Zhou DQ (2010a) Weighting and aggregation in composite indicator construction: a multiplicative optimization approach. Soc Indic Res 96(1):169–181

    Article  Google Scholar 

  • Zhou P, Fan LW, Zhou DQ (2010b) Data aggregation in constructing composite indicators: a perspective of information loss. Expert Syst Appl 37(1):360–365

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. School of Economics and Management, Southwest University of Science and Technology, Mianyang, China

    Cheng Peng

  2. School of Management, University of Science and Technology of China, Hefei, China

    Xunbo Wu

  3. Department of Management Sciences, City University of Hong Kong, Kowloon Tong, Hong Kong

    Yelin Fu & Kin Keung Lai

  4. School of Management, Guangdong University of Technology, Guangzhou, China

    Kin Keung Lai

Authors
  1. Cheng Peng
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Xunbo Wu
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Yelin Fu
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Kin Keung Lai
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Yelin Fu.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Peng, C., Wu, X., Fu, Y. et al. Alternative approaches to constructing composite indicators: an application to construct a Sustainable Energy Index for APEC economies. Oper Res Int J 17, 747–759 (2017). https://doi.org/10.1007/s12351-016-0235-z

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s12351-016-0235-z

Keywords

Search

Navigation