Comparing two CF+DEA methods for assessing eco-efficiency from theoretical and practical points of view

Abstract

Nowadays, sustainability has become of increasing concern in policy and the decision making of stakeholders. Companies have been increasing their attention to their environmental performance. In order to measure sustainability performance, different approaches have been proposed. The joint application of Life Cycle Assessment (LCA) and Data Envelopment Analysis (DEA), called LCA+DEA, is used to assess eco-efficiency, which is to produce more with less environmental impact and with fewer resources. In this manuscript, we compare two methods that implement the LCA+DEA approach, the five-step and four-step methods, focused on Carbon Footprint (CF), called CF+DEA. These methods have not been compared previously. This comparison will encompass the theoretical and practical points of view according to efficiency indices, best practices, and targets for the CF emissions. To perform this comparison, we use a case study of raspberry producers in Chile. From a practical point of view, we have observed that both methods have achieved the main objective of reducing CF. Moreover, results show similar eco-efficiency scores; the targets given by the five-step method are less demanding than those given by the four-step method. In this sense, the four-step method provides a higher average CF reduction. This is due to the inclusion of CF as an undesirable output in the DEA assessment and the use of an output-oriented DEA model. Additionally, in including the CF within the DEA assessment, the four-step method reflects better the definition of eco-efficiency. Following these results, it is advisable to implement the targets provided by the five-step method for a short term and then the targets provided by the four-step method for a mid-term or long term.