Work

An integrated pollution-generating technology and temperature alignment rating model for eco-efficiency estimation

Year: 2025

Type: article

Abstract: Measuring environmental efficiency or eco-efficiency has become critical as regulatory frameworks have tightened in developed countries, and companies here must actively mitigate climate change. Data envelopment analysis (DEA) is a well-established, non-parametric method for determining eco-efficiency in comparable decision-making units (DMUs). Eco-efficiency estimation using DEA can be accomplished under different technological assumptions, such as constant or variable returns to scale. For a long time, a single technology-based approach was the DEA credo. While a single approach applies to macro analyses in the presence of pollutants, it is incompatible with micro-level studies due to violating the material balance principle. To solve this problem, the intersection of two technologies – pollution-generating technologies – has recently been invented; one technology models the business perspective, and the other focuses on the environmental perspective. For the first time, we apply this emerging approach to determine the eco-efficiency of 25 food retailers and link these results to an up-and-coming metric in the sustainability assessment world – called temperature alignment score.

Source: Sustainable Operations and Computers

Authors: Andreas Dellnitz, Madjid Tavana, Salome Dellnitz, Andreas Kleine, Lukas Dalhoff

Institutions: Leibniz University of Applied Sciences, Paderborn University, La Salle University, FernUniversität in Hagen

Language: English

Topic: Efficiency Analysis Using DEA

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

SDGs: Responsible consumption and production, Climate action

Open Access status: gold

Estimated APC paid: $700

Funder: Deutsche Bundesstiftung Umwelt