Opportunity cost based analysis of corporate eco-efficiency: a methodology and its application to the CO2-efficiency of German companies

Tobias Hahn; Frank Figge; Andrea Liesen; Ralf Barkemeyer

doi:10.1016/j.jenvman.2010.05.004

Opportunity cost based analysis of corporate eco-efficiency: a methodology and its application to the CO2-efficiency of German companies

J Environ Manage. 2010 Oct;91(10):1997-2007. doi: 10.1016/j.jenvman.2010.05.004. Epub 2010 Jun 1.

Authors

Tobias Hahn¹, Frank Figge, Andrea Liesen, Ralf Barkemeyer

Affiliation

¹ Euromed Management School, Marseille, Domaine de Luminy, BP 921, 13006 Marseille Cedex 9, France. tobias.hahn@euromed-management.com

PMID: 20570034
DOI: 10.1016/j.jenvman.2010.05.004

Abstract

In this paper, we propose the return-to-cost-ratio (RCR) as an alternative approach to the analysis of operational eco-efficiency of companies based on the notion of opportunity costs. RCR helps to overcome two fundamental deficits of existing approaches to eco-efficiency. (1) It translates eco-efficiency into managerial terms by applying the well-established notion of opportunity costs to eco-efficiency analysis. (2) RCR allows to identify and quantify the drivers behind changes in corporate eco-efficiency. RCR is applied to the analysis of the CO(2)-efficiency of German companies in order to illustrate its usefulness for a detailed analysis of changes in corporate eco-efficiency as well as for the development of effective environmental strategies.

Publication types

Research Support, Non-U.S. Gov't

MeSH terms

Carbon Dioxide / analysis*
Carbon Dioxide / chemistry
Conservation of Natural Resources*
Costs and Cost Analysis
Environmental Pollution / prevention & control*
Germany

Substances

Carbon Dioxide