Dynamic environmental performance analysis: A Malmquist index approach

Mika Kortelainen

Research output: Contribution to journalArticlepeer-review


This article presents a general framework for dynamic environmental performance analysis by generalizing the approach proposed by Kuosmanen and Kortelainen [Kuosmanen, T., Kortelainen, M., 2005. Measuring Eco-Efficiency of Production with Data Envelopment Analysis. Journal of Industrial Ecology 9(4), 59-72.] from a static to a dynamic setting. For this purpose we construct an environmental performance index (EPI) by applying frontier efficiency techniques and a Malmquist index approach. Compared to other dynamic environmental productivity and efficiency analysis approaches based on these methods, our approach builds on the standard definition of eco-efficiency as it is presented in the ecological economics literature. Recognizing the importance to analyze the sources of environmental performance changes, we show how changes in overall environmental performance can be decomposed into changes in relative eco-efficiency and shifts in environmental technology, respectively. We apply the presented technique at the macro level to dynamic environmental performance analysis of 20 member states of the European Union in 1990-2003. According to the results, environmental technical change mostly explains the improvement in overall environmental performance, while relative eco-efficiency change has been minor for most countries during the sample period. © 2007 Elsevier B.V. All rights reserved.
Original languageEnglish
Pages (from-to)701-715
Number of pages14
JournalEcological Economics
Issue number4
Publication statusPublished - 1 Feb 2008


  • Benefit of the doubt weighting
  • Data envelopment analysis
  • Decompositions
  • Eco-efficiency
  • Environmental productivity
  • Environmental technical change


Dive into the research topics of 'Dynamic environmental performance analysis: A Malmquist index approach'. Together they form a unique fingerprint.

Cite this