Using data envelopment analysis for ecoefficiency evaluation

Ecoefficiency is the evaluation of an organization's ecological (or environmental) efficiency. This topic has come under increasing scrutiny by a variety of stakeholders, of which the organization itself is one. Eco efficiency is meant to determine how well an organization uses its resources. This is not only important from an economic basis, but also from an environmental and social basis. Sustainability measures for organizational eco efficiency measurement are currently under investigation and development. To help evaluate these measures, data envelopment analysis (DEA) can be used. DEA is a quantitative multifactor productivity measurement tool that has gained much attention in the operations research and application literature. DEA has proven quite useful for a number of managerial decision problems and research questions, but it has been rarely applied within the realm of corporate environmental management. The limited application of DEA for environmental issues provides fertile ground for its use as both a research and a practical tool.