The joint use of life cycle assessment and data envelopment analysis methodologies for eco-efficiency assessment: A critical review, taxonomy and future research.

ABSTRACT

Eco-efficiency has become a cornerstone for any company that seeks to improve their environmental and economic aspects. In this context, the joint use of Life Cycle Assessment and Data Envelopment Analysis, known as LCA + DEA methodology, is an emerging and growing line of research. LCA estimates the environmental impacts of the products or services, while DEA evaluates their efficiency, providing targets and benchmarks for the inefficient ones. In this way, both the environmental and economic aspects are considered in the eco-efficiency assessment. Since LCA + DEA methodology is a novel research line, a literature review is necessary to depict its full scope and to support researchers and practitioners. This manuscript presents the first comprehensive and structured literature review of the joint use of LCA and DEA for eco-efficiency assessment. We propose a taxonomy for the reviewed articles based on the theoretical and practical issues of LCA + DEA methodology and classify them accordingly. This classification allows recognizing and discussing the main findings, which offer some managerial implications for professionals who want to start employing this methodology. In addition, a procedure for selecting a suitable method is proposed and the main limitations and research opportunities are identified. Finally, this review could be a starting point and a guide for systematically building knowledge about the in the joint use of LCA and DEA for eco-efficiency assessment.