LINEAR-PROGRAMMING MODELS FOR THE MEASUREMENT OF ENVIRONMENTAL PERFORMANCE OF FIRMS - CONCEPTS AND EMPIRICAL RESULTS

I use linear programming models to define standardised, aggregate envi ronmental performance indicators for firms, The best practice frontier obtained corresponds to decision making units showing the best enviro nmental behaviour, Results are obtained with data from U.S. fossil fue l-fired electric utilities, starting from four alternative models, amo ng which are three linear programming models that differ in the way th ey account for undesirable outputs (pollutants) and resources used as inputs. The results indicate important discrepancies in the rankings o btained by the four models. Rather than contradictory, these results a re interpreted as giving different, complementary kinds of information , that should all be taken into account by public decision-makers.