Two nonparametric methods for measuring eco-productivity change
The efficiency analysis of any entity (say, a country or a firm) without taking economics of ecological issues into account often yields wrong conclusion concerning the real health of the entity. This is precisely because there is no trade off between economy and ecology and an economy’s performance is not sustainable without efficient ecological system. Therefore, there is a need to have a measure of performance that aims at achieving more goods and services not only with fewer resources but also with less waste and emissions. Eco-efficiency is such a concept to capture this ideal measure of performance whose measurement has been operationalized in non-parametric data envelopment analysis (DEA) setting by Korhonnen and Luptacik (2004).