In this paper, we propose the return-to-cost-ratio (RCR) as an alternative approach to the analysis of operational eco-efficiency of companies based on the notion of opportunity costs. RCR helps to overcome two fundamental deficits of existing approaches to eco-efficiency. (1) It translates eco-efficiency into managerial terms by applying the well-established notion of opportunity costs to eco-efficiency analysis. (2) RCR allows to identify and quantify the drivers behind changes in corporate eco-efficiency. RCR is applied to the analysis of the CO2-efficiency of German companies in order to illustrate its usefulness for a detailed analysis of changes in corporate eco-efficiency as well as for the development of effective environmental strategies. (C) 2010 Elsevier Ltd. All rights reserved.
ASJC Scopus subject areas
- Environmental Engineering
- Waste Management and Disposal
- Management, Monitoring, Policy and Law
Hahn, T., Figge, F., Liesen, A., & Barkemeyer, R. (2010). Opportunity cost based analysis of corporate eco-efficiency: A methodology and its application to the CO2-efficiency of German companies. Journal of Environmental Management, 91(10), 1997-2007. https://doi.org/10.1016/j.jenvman.2010.05.004