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Justifying the incorporation of the materials balance principle into frontier-based eco-efficiency models

Ludwig Lauwers (UGent)
(2009) ECOLOGICAL ECONOMICS. 68(6). p.1605-1614
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Abstract
Frontier-based models are an alternative to traditional eco-efficiency ratio indicators. This paper considers two different types, environmentally adjusted production efficiency models and frontier eco-efficiency models, and tries to find justification for incorporating the materials balance principle (MBP) in them. Similar importance is attached to the economic and environmental outcomes of a production process. Like economic outcomes can be derived from inputs and outputs and respective prices, some cases allow for deriving environmental outcomes from the production function with the MBP. After an overview of attempts to incorporate environmental issues in production efficiency models and some reflections why MBP has been neglected in environmental economics and production efficiency analysis, the paper gives basic principles to incorporate the MBP in conventional production efficiency methods and shows how this adjustment leads to a more diversified diagnosis of eco-efficiency. Finally, potentialities and bottlenecks are discussed. Exploiting the MBP in production efficiency and eco-efficiency analysis will facilitate more pro-active eco-efficiency research.
Keywords
ECOLOGICAL ECONOMICS, UNDESIRABLE OUTPUTS, PRODUCTIVE EFFICIENCY, ENVIRONMENTAL PERFORMANCE, DISTANCE FUNCTION-APPROACH, Mass flow, Trade-offs analysis, Production efficiency, SUSTAINABLE VALUE, POLLUTION, NITROGEN, FIRMS, COST

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Please use this url to cite or link to this publication:

MLA
Lauwers, Ludwig. “Justifying the Incorporation of the Materials Balance Principle into Frontier-based Eco-efficiency Models.” ECOLOGICAL ECONOMICS 68.6 (2009): 1605–1614. Print.
APA
Lauwers, L. (2009). Justifying the incorporation of the materials balance principle into frontier-based eco-efficiency models. ECOLOGICAL ECONOMICS, 68(6), 1605–1614.
Chicago author-date
Lauwers, Ludwig. 2009. “Justifying the Incorporation of the Materials Balance Principle into Frontier-based Eco-efficiency Models.” Ecological Economics 68 (6): 1605–1614.
Chicago author-date (all authors)
Lauwers, Ludwig. 2009. “Justifying the Incorporation of the Materials Balance Principle into Frontier-based Eco-efficiency Models.” Ecological Economics 68 (6): 1605–1614.
Vancouver
1.
Lauwers L. Justifying the incorporation of the materials balance principle into frontier-based eco-efficiency models. ECOLOGICAL ECONOMICS. 2009;68(6):1605–14.
IEEE
[1]
L. Lauwers, “Justifying the incorporation of the materials balance principle into frontier-based eco-efficiency models,” ECOLOGICAL ECONOMICS, vol. 68, no. 6, pp. 1605–1614, 2009.
@article{604329,
  abstract     = {Frontier-based models are an alternative to traditional eco-efficiency ratio indicators. This paper considers two different types, environmentally adjusted production efficiency models and frontier eco-efficiency models, and tries to find justification for incorporating the materials balance principle (MBP) in them. Similar importance is attached to the economic and environmental outcomes of a production process. Like economic outcomes can be derived from inputs and outputs and respective prices, some cases allow for deriving environmental outcomes from the production function with the MBP. After an overview of attempts to incorporate environmental issues in production efficiency models and some reflections why MBP has been neglected in environmental economics and production efficiency analysis, the paper gives basic principles to incorporate the MBP in conventional production efficiency methods and shows how this adjustment leads to a more diversified diagnosis of eco-efficiency. Finally, potentialities and bottlenecks are discussed. Exploiting the MBP in production efficiency and eco-efficiency analysis will facilitate more pro-active eco-efficiency research.},
  author       = {Lauwers, Ludwig},
  issn         = {0921-8009},
  journal      = {ECOLOGICAL ECONOMICS},
  keywords     = {ECOLOGICAL ECONOMICS,UNDESIRABLE OUTPUTS,PRODUCTIVE EFFICIENCY,ENVIRONMENTAL PERFORMANCE,DISTANCE FUNCTION-APPROACH,Mass flow,Trade-offs analysis,Production efficiency,SUSTAINABLE VALUE,POLLUTION,NITROGEN,FIRMS,COST},
  language     = {eng},
  number       = {6},
  pages        = {1605--1614},
  title        = {Justifying the incorporation of the materials balance principle into frontier-based eco-efficiency models},
  url          = {http://dx.doi.org/10.1016/j.ecolecon.2008.08.022},
  volume       = {68},
  year         = {2009},
}

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