Project valuation methods tend to focus primarily on economic returns and ignore wider sustainable development concerns. Traditional project valuation methods attempt to monetize the benefit and cost impacts of environmental and social impacts. Monetizing costs and benefits of environmental and social goods and services however is challenging. To avoid the need to assign a priori dominance to any of these capital forms, we derive a composite index formed as an aggregate of sub-indices that represent financial returns, environmental impacts and social effects, index weights are obtained through solving a series of data envelopment analysis optimization models from a set of sub-indices over each project’s life. We assess the reliability and robustness of this approach using a portfolio of corporate projects. The sustainability of each project is benchmarked against the ‘best’ and ‘worst’ performing project within the portfolio so that weights of the component indices are derived using only the portfolio data. This approach ranks projects according to the optimal trade-off between sustainable outcomes without the need to arbitrarily prescribe weights to ensure environmental or social outcomes are met. The design of the model naturally favors projects that adequately address the full spectrum of economic, environmental, social, and any other desirable factors relative to the portfolio of projects under assessment. The results provide reliable and robust guidance for sustainable business decisions.
Review of Quantitative Finance and Accounting – Springer Journals
Published: Mar 16, 2014
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera