Management Theory and Studies for Rural Business and Infrastructure Development, Volume 38, Number 3

Energy-related carbon dioxide emissions and environmental efficiency in the European Union agriculture: comparison of different benchmarking techniques

Tomas Baležentis, Daiva Makutėnienė

Abstract

The literature suggests different approaches towards modelling of the environmental impact caused by the production processes. The present paper attempts to establish a framework for multicriteria comparison of agricultural sectors of the European Union Member States and identify the performance gaps in terms of energy-related carbon dioxide emission. The research relies on the two approaches, viz. the by-production approach and the multi-criteria decision making approach. The environmental performance indicators were evaluated in regards to the desirable output (gross value added), inputs, and the undesirable output (carbon dioxide emission). The results indicate that Slovakia, Estonia, Lithuania, and Hungary should attempt to improve their carbon factors by implementing cleaner energy technologies. The combinations of by-production sub-indices suggest that productivity gains are more important for Sweden, Belgium, Poland, and France. Czech Republic, Latvia, and Finland are specific with low performance in terms of both the intended production and the undesirable output. The MCDM approach identified similar trends in performance as suggested by country ranking and correlation analysis.

JEL Codes: C44, Q15.

Keyword(s): data envelopment analysis, environmental efficiency, technical efficiency, byproduction approach, multi-criteria decision making


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DOI: http://dx.doi.org/10.15544/mts.2016.15

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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

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