Linear Programming Models for the Measurement of Environmental Performance of Firms—Concepts and Empirical Results

I use linear programming models to define standardised, aggregate environmental performance indicators for firms. The best practice frontier obtained corresponds to decision making units showing the best environmental behaviour. Results are obtained with data from U.S. fossil fuel-fired electric utilities, starting from four alternative models, among which are three linear programming models that differ in the way they account for undesirable outputs (pollutants) and resources used as inputs. The results indicate important discrepancies in the rankings obtained by the four models. Rather than contradictory, these results are interpreted as giving different, complementary kinds of information, that should all be taken into account by public decision-makers.     

Corporate environmental performance evaluation: evidence from the MEPI project

In recent years research has been rapidly and actively emerging on indicators of environmental performance in industry. Crucial issues are the kind of information that must be taken into account, is available and is relevant, as well as standardization and aggregation of such information. This paper reports on the experience gained in these matters, in the scope of a European Commission funded project involving seven research partners across Europe. Practical applications of the project cover six industrial sectors within six European countries. Exploiting the adopted indicators allows us to draw conclusions about the influence of various factors, including the national context, on environmental performance, and to provide both managers and decision makers with information that is useful for the overall improvement of environmental strategies and environmental regulation. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment