Environmental Economics and Policy Studies

, Volume 18, Issue 3, pp 395–416 | Cite as

Eco-efficiency analysis of French firms: a data envelopment analysis approach

Research Article

Abstract

This paper addresses the issue of assessing eco-efficiency when good and undesirable outputs are jointly produced. We propose that eco-efficiency can be decomposed into two parts: resource efficiency and ecological efficiency. We provide a conceptual framework based on data envelopment analysis (DEA) approach to measure and benchmark eco-efficiency. The study is conducted between 2011 and 2012 using real data from 17 French firms belonging to the services to consumers industry, by developing DEA-based models. The results indicate that only three firms in the sample of the study are relatively eco-efficient. We find that eco-efficiency is closely related to environmental efficiency. The results also show that company size, expressed in terms of turnover and number of employees, is inversely related to eco-efficiency scores.

Keywords

Eco-efficiency Environmental management Data envelopment analysis Efficiency scores Sustainability 

JEL Classification

M-Business Administration and Business Economics Marketing Accounting Q-Agricultural and Natural Resource Economics Environmental and Ecological Economics 

References

  1. Belu C (2009) Ranking corporations based on sustainable and socially responsible practices. a data envelopment analysis (DEA) approach. Sustain Dev 17:257–268CrossRefGoogle Scholar
  2. Boron S, Murray K (2004) Bridging the unsustainability gap: a framework for sustainable development. Sustain Dev 12:65–73CrossRefGoogle Scholar
  3. Branco MC, Rodriguez LL (2008) Factors influencing social responsibility disclosure by Portuguese Companies. J Bus Ethics 84:497–527Google Scholar
  4. Burnett RD, Hansen DR, Quintana O (2007) Eco-efficiency: achieving productivity improvements through environmental cost management. Account Public Interest 7:66–92CrossRefGoogle Scholar
  5. Caetano M, Bezerra de Araujo J, Capaldo Amaral D (2012) A Framework for the application of eco-efficiency to the technology development process. J Technol Manag Innov 7(2):28–37CrossRefGoogle Scholar
  6. Charles V, Kumar M, Kavitha SI (2012) Measuring the efficiency of assembled printed circuit boards with undesirable outputs using data envelopment analysis. Int J Prod Econ 136:194–206CrossRefGoogle Scholar
  7. Charnes A, Cooper WW, Rhodes E (1978) Measuring the efficiency of decision making units. Eur J Oper Res 2(6):429–444CrossRefGoogle Scholar
  8. Charnes A, Cooper WW, Lewin AY, Seiford LM (1994) Data envelopment analysis: theory, methodology, and applications. Springer, MassachusettsCrossRefGoogle Scholar
  9. Cormier D, Magnan M (2003) La communication d’information environnementale un enjeu stratégique pour les entreprises. Revue des Sciences de Gestion (Economie et Sociétés) 33(1)Google Scholar
  10. Cormier D, Ledoux MJ, Magnan M (2009) The use of web sites as a disclosure platform for corporate performance. Int J Account Inf Syst 10(1):1–24CrossRefGoogle Scholar
  11. De Simone LD, Popoff F (2000) Eco-efficiency: the business link to sustainable development. First MIT Press paperback Edition, MassachusettsGoogle Scholar
  12. Derwall J, Guenster N, Bauer R, Koedijk K (2005) The eco-efficiency premium puzzle. Financ Anal J 61(2):51–63CrossRefGoogle Scholar
  13. Dyckhoff H, Allen K (2001) Measuring ecological efficiency with data envelopment analysis (DEA). Eur J Oper Res 132:312–325CrossRefGoogle Scholar
  14. Farrel MJ (1957) The measurement of productive efficiency. J R Stat Soc Ser A 120:253–281CrossRefGoogle Scholar
  15. Fukuyama H, Yoshida Y, Managi S (2011) Modal choice between air and rail: a social efficiency benchmarking analysis that considers CO2 emissions. Environ Econ Pol Stud 13:89–102CrossRefGoogle Scholar
  16. Helminen R (1998) Eco-efficiency in the Finnish and Swedish pulp and paper industry. Acta Polytechnica Scandinavica Mathematics, Computing and Management in Engineering Series 90, EspooGoogle Scholar
  17. Hoffren J, Apajalahti EL (2009) Emergent eco-efficiency paradigm in corporate environment management. Sustain Dev 17:233–243CrossRefGoogle Scholar
  18. Hua Z, Bian Y, Liang L (2007) Eco-efficiency analysis of paper mills along the Huai River: an extended DEA approach. Omega 37:578–587CrossRefGoogle Scholar
  19. Korhonen P, Luptacik M (2004) Eco-efficiency analysis of power plants: an extension of data envelopment analysis. Eur J Oper Res 154:437–446CrossRefGoogle Scholar
  20. Koskela M, Vehmas J (2012) Defining eco-efficiency: a case study on the Finnish forest industry. Bus Strateg Environ 21(8):546–566CrossRefGoogle Scholar
  21. Kuosmanen T, Kortelainen M (2005) Measuring eco-efficiency of production with data envelopment analysis. J Ind Ecol 9(4):59–72CrossRefGoogle Scholar
  22. Managi S, Opaluch JJ, Jin D, Grigalunas TA (2004) Technological change and depletion in offshore oil and gas industry. Land Econ 81(2):303–319CrossRefGoogle Scholar
  23. Managi S, Opaluch JJ, Jin D, Grigalunas TA (2005) Environmental regulations and technological change and depletion in offshore oil and gas. J Environ Econ Manag 47(2):388–409CrossRefGoogle Scholar
  24. Nakano M, Managi S (2012) Waste generations and efficiency measures in Japan. Environ Econ Pol Stud 14:327–339CrossRefGoogle Scholar
  25. Oggioni G, Riccardi R, Toninelli R (2011) Eco-efficiency of the world cement industry: a data envelopment analysis. Energy Policy 39:2842–2854CrossRefGoogle Scholar
  26. Olsthoorn X, Tyteca D, Wehrmeyer W, Wagner M (2001) Environmental indicators for business: a review of the literature and standardization method. J Clean Prod 9:453–463CrossRefGoogle Scholar
  27. Perotto E, Canziani R, Marchesi R, Butelli P (2008) Environmental performance, indicators and measurement uncertainty in EMS context: a case study. J Clean Prod 16:517–530CrossRefGoogle Scholar
  28. Picazo-Tadeo AJ, Reig-Martínez E, Gómez-Limón JA (2011) Assessing farming eco-efficiency: a data envelopment analysis approach. J Environ Manage 92(4):1154–1164CrossRefGoogle Scholar
  29. Picazo-Tadeo AJ, Beltrán-Esteve M, Gómez-Limón JA (2012) Assessing eco-efficiency with directional distance functions. Eur J Oper Res 220:798–809CrossRefGoogle Scholar
  30. Porter ME (1991) America’s green strategy. Sci Am 246(4):168 (April) Google Scholar
  31. Porter ME, Van Der Linde C (1995a) Toward a new conception of the environment-competitiveness relationship. J Econ Perspect 9(Fall):97–118CrossRefGoogle Scholar
  32. Porter ME, Van Der Linde C (1995b) Green and competitive: ending the stalemate. Harv Business Rev:120–134 (September–October) Google Scholar
  33. Riccardi R, Oggioni G, Toninelli R (2012) Efficiency analysis of world cement industry in presence of undesirable output: application of data envelopment analysis and directional distance function. Energy Policy 44:140–152CrossRefGoogle Scholar
  34. Schaltegger S, Synnestvedt T (2002) The link between ‘green’ and economic success: environmental management as the crucial trigger between environmental and economic performance. J Environ Manage 65:339–346Google Scholar
  35. Scheel H (2001) Undesirable outputs in efficiency valuations. Eur J Oper Res 132:400–410CrossRefGoogle Scholar
  36. Seppälä J, Melanen M, Mäenpää I, Koskela S, Tenhunen J, Hiltunen MR (2005) How can the eco-efficiency of a region be measured and monitored. J Ind Ecol 9:117–130CrossRefGoogle Scholar
  37. Sinkin C, Wright CJ, Burnett RD (2008) Eco-efficiency and firm value. J Account Public Policy 27:167–176CrossRefGoogle Scholar
  38. Tyteca D (1996) On the measurement of the environmental performance of firms—a literature review and a productive efficiency perspective. J Environ Manage 46:281–308CrossRefGoogle Scholar
  39. Vîrjan D (2011) The rethinking of the economic activity based on principles of eco-efficiency. Theoretical and applied economics XVIII(7):143–154Google Scholar
  40. Wang K, MingWei Y, Zhang X (2012) A comparative analysis of China’s regional energy and emission performance: which is the better way to deal with undesirable outputs? Energy Policy 46:574–584CrossRefGoogle Scholar
  41. World Business Council for Sustainable Development (WBCSD) (2000) Measuring Ecoefficiency. A Guide to Reporting Company Performance, WBCSD, GenevaGoogle Scholar
  42. Yu Y, Wen Z (2010) Evaluating China’s urban environmental sustainability with Data Envelopment Analysis. Ecol Econ 69:1748–1755CrossRefGoogle Scholar
  43. Zhang B, Bi J, Fan Z, Yuan Z, Ge J (2008) Eco-efficiency analysis of industrial system in China: a data envelopment analysis approach. Ecol Econ 68:306–316CrossRefGoogle Scholar

Copyright information

© Society for Environmental Economics and Policy Studies and Springer Japan 2015

Authors and Affiliations

  1. 1.Université de Cergy-PontoiseCergy-PontoiseFrance
  2. 2.ESSEC Chair of Change, ESSEC Business SchoolCergy-PontoiseFrance

Personalised recommendations