Data envelopment analysis for measuring economic growth in terms of welfare beyond GDP
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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.
KeywordsEco-efficiency Data envelopment analysis Beyond GDP
JEL ClassificationC43 C61 O47
We are grateful for helpful comments and suggestions by the two anonymous referees and to Teresa Weiss for her careful proofreading of the manuscript, while stressing that the remaining errors and omissions are entirely the responsibility of the authors.
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