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

Research output: Indexed journal article Articlepeer-review

60 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)1997-2007
Number of pages11
JournalJournal of Environmental Management
Volume91
Issue number10
DOIs
Publication statusPublished - Oct 2010
Externally publishedYes

Keywords

  • CO2-efficiency
  • Corporate environmental strategy
  • Eco-efficiency
  • Environmental performance assessment
  • Opportunity cost

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