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Eco-efficiency analysis in generalized IO models: Methods and examples

Gurgul, Henryk and Lach, Łukasz (2019): Eco-efficiency analysis in generalized IO models: Methods and examples.

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Performance assessment in the presence of undesirable outputs, such as pollutant emissions, is usually modelled within the framework of data envelopment analysis (DEA). In this paper we propose a new approach to measuring eco-efficiency in generalized input-output (gIO) models which may be used as a supplementary method to traditional DEA. Unlike DEA this approach takes into account detailed data on intersectoral flows in supply- and demand-driven gIO models. We focus on cases of traditional and sector-size-adjusted measures of interindustry linkages in gIO models and in each case we suggest respective indices of eco-efficiency and prove their usefulness in policymaking. In order to illustrate possible applications of the new approach we conduct an empirical analysis aimed at identifying the eco-efficient sectors based on the 1995 and 2009 national input-output tables and environmental accounts for Poland which are provided by the World Input Output Data (WIOD) database.

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