A new method for measuring eco-efficiency

Current methods available to calculate eco-efficiency require a sample of products and are not applicable for one product only. Furthermore, the methods require a weighting process. Thus, they contain subjectivity, or it is possible that the weighting factors' values do not match stakeholders&#...

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Main Author: Feri Afrinaldi
Format: Article
Language:English
Published: Elsevier 2022-12-01
Series:Cleaner Environmental Systems
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666789422000289
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author Feri Afrinaldi
author_facet Feri Afrinaldi
author_sort Feri Afrinaldi
collection DOAJ
description Current methods available to calculate eco-efficiency require a sample of products and are not applicable for one product only. Furthermore, the methods require a weighting process. Thus, they contain subjectivity, or it is possible that the weighting factors' values do not match stakeholders' values. This paper proposes a new method of measuring the eco-efficiency ratio. The numerator is the contribution of a product's life cycle to the economy, and the denominator is the economic burden caused by a product's life cycle. The economic contribution is calculated using the input-output method. The economic burden is calculated by estimating the health damage caused by pollutant emissions over a product's life cycle. The damage is expressed in Disability Adjusted Life Years (DALY) and is valued using the human capital approach. The applicability of the proposed method is presented by calculating the eco-efficiency of electricity generations in Indonesia. The proposed method shows that the eco-efficiency ratio of a product depends on the income and tax multiplier, supply chain process efficiency, value of the product, GDP per capita, and the level of emissions. The proposed method enhances the decision-making process because it is more straightforward, free from subjectivity, and applicable for one product only.
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spelling doaj.art-211a145d967e4a5bbdfd2b4c91e0cdbb2022-12-22T02:48:57ZengElsevierCleaner Environmental Systems2666-78942022-12-017100097A new method for measuring eco-efficiencyFeri Afrinaldi0Department of Industrial Engineering, Universitas Andalas, Padang, 25163, IndonesiaCurrent methods available to calculate eco-efficiency require a sample of products and are not applicable for one product only. Furthermore, the methods require a weighting process. Thus, they contain subjectivity, or it is possible that the weighting factors' values do not match stakeholders' values. This paper proposes a new method of measuring the eco-efficiency ratio. The numerator is the contribution of a product's life cycle to the economy, and the denominator is the economic burden caused by a product's life cycle. The economic contribution is calculated using the input-output method. The economic burden is calculated by estimating the health damage caused by pollutant emissions over a product's life cycle. The damage is expressed in Disability Adjusted Life Years (DALY) and is valued using the human capital approach. The applicability of the proposed method is presented by calculating the eco-efficiency of electricity generations in Indonesia. The proposed method shows that the eco-efficiency ratio of a product depends on the income and tax multiplier, supply chain process efficiency, value of the product, GDP per capita, and the level of emissions. The proposed method enhances the decision-making process because it is more straightforward, free from subjectivity, and applicable for one product only.http://www.sciencedirect.com/science/article/pii/S2666789422000289Eco-efficiencyEconomic impactEnvironmental impactLife cycle
spellingShingle Feri Afrinaldi
A new method for measuring eco-efficiency
Cleaner Environmental Systems
Eco-efficiency
Economic impact
Environmental impact
Life cycle
title A new method for measuring eco-efficiency
title_full A new method for measuring eco-efficiency
title_fullStr A new method for measuring eco-efficiency
title_full_unstemmed A new method for measuring eco-efficiency
title_short A new method for measuring eco-efficiency
title_sort new method for measuring eco efficiency
topic Eco-efficiency
Economic impact
Environmental impact
Life cycle
url http://www.sciencedirect.com/science/article/pii/S2666789422000289
work_keys_str_mv AT feriafrinaldi anewmethodformeasuringecoefficiency
AT feriafrinaldi newmethodformeasuringecoefficiency