Abstract
In this article, eco-efficiency – ‘sustainable development at the company level’ or ‘value added per environmental impact’ – is operationalized at the production unit level. An eco-efficiency index is developed and tested with 31 Finnish and 37 Swedish pulp, paper and board mills in 1993–1996. In essence, gross value added without a change in inventories is divided by environmental impact aggregated with seven valuation methods. The definition of eco-efficiency as sustainable development at the company level appears to be problematic. [Eco]2-efficiency does not include the third, ethical dimension sustainable development, but only ecology and economy. Value added is a limited indicator of economic performance and very sensitive to changes in market prices, while environmental impact changes with valuation assumptions. The Swedish mills were generally more eco-efficient, while the Finnish mills were more eco-efficient in integrated woodfree paper, solid bleached sulphate board and liquid packaging board. Copyright © 2000 John Wiley & Sons, Ltd and ERP Environment
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