468134 Environmental and Economic Efficiency Assessment of EU Manufacturing Sectors Via Input-Output Tables and Data Envelopment Analysis
In this article, the manufacturing EU sectors are assessed according to their impact in the global warming, acidification, and tropospheric ozone formation potential damage categories, and considering as well their contribution towards the EU’s gross domestic product. To integrate all these metrics into a single meaningful score and facilitate their benchmark, we follow an approach that combines environmentally-extended multi-regional input-output tables (EEMRIO) and data envelopment analysis (DEA). EEMRIO tables are used to determine the production-based and consumption-based impact of each sector, while DEA is employed to identify efficient and inefficient sectors and establish improvement targets for those found to be inefficient.
A preliminary analysis is first carried out to identify the most polluting sectors and determine net flows of different impacts exported and imported via trade. The DEA linear programming models are next run in order to identify efficient and inefficient sectors and define targets for the latter through projection onto the efficient frontier that, if achieved, would make them efficient. Numerical results show that the most inefficient sectors are those related with minerals, metals, chemicals and petroleum products. Our approach provides valuable insight for public policy makers that seek to reduce anthropogenic impacts without sacrificing the competitiveness of the economic sectors.