New environmental performance index for measuring sector-wise environmental performance: a case study of major economic
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RESEARCH ARTICLE
New environmental performance index for measuring sector-wise environmental performance: a case study of major economic sectors in Pakistan Syed Ahsan Ali Shah 1 & Cheng Longsheng 1 Received: 5 June 2020 / Accepted: 15 July 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract The study develops slack-based environmental performance index (SBEPI) to conduct the environmental performance of Pakistan’s major sectors of the economy, which include agriculture, manufacturing, transport, power, construction, and mining and quarrying (M&Q) sectors. The index computes environmental efficiency scores based on three critical indicators, total primary energy consumption (input indicator), gross domestic product (desirable output), and CO2 emission (undesirable output). The study undertakes analysis for a period of 10 years from 2008 to 2017. SBEPI score of 1 is set to indicate efficient performance, while score of 0 translates inefficient performance. The results of the studied period reveal that all the sectors underperform for considered indicators. For instance, the top-performing agriculture sector could only achieve an SBEPI score of 0.00008275. The analysis also does not reflect any signs of performance improvement for the studied sectors. To validate the results of this study and highlight the advantages of SBEPI, the study compared SBEPI results with conventional environmental index (EI). The comparison results reveal that SEBPI results are more realistic and the index holds higher discriminatory power than conventional EI. Based on this study’s results, some policy recommendations for the government and other sectoral leaders to improve sectoral environmental performance are provided. Keywords Environmental performance . Energy efficiency . Environmental efficiency . DEA . Pakistan
Introduction The 2018 Yale’s environmental performance index ranked Pakistan on 169 among 180 countries (Yale University 2018). The index conducts environmental analysis based on 24 indicators, covering broader aspects of the environment, energy, and ecosystem vitality. The low ranking signifies poor environmental performance and alerts the country to take adequate measures to mitigate environmental deterioration. The index is renowned as it releases environmental scorecards every year, which helps countries to identify their standing. Although this
Responsible editor: Nicholas Apergis * Syed Ahsan Ali Shah [email protected] * Cheng Longsheng [email protected] 1
School of Economics and Management, Nanjing University of Science and Technology, Nanjing 210094, China
index is useful, however, it only provides performance comparison at the national level and does not investigate the environmental performance of various sectors of the economy of a country. As such, more comprehensive analyses are required to identify performance gaps and understand the determinants of environmental progress that could provide useful insights for effective and deliverable environmental policymaking. Th
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