Assessing Environmental Performance and Economic Efficiency: Policy, Investment, and Optimization Approaches

Editorial Notice: To ensure a focused collection aligned with curated contributions, this Research Topic operates on an invitation-only basis. Uninvited submissions will be redirected to Frontiers in Environmental Science for standalone peer review in the section.

The growing urgency of climate change and resource depletion has necessitated a paradigm shift from traditional profit-maximization to sustainable development. In this context, evaluating the trade-off between economic growth and environmental protection is crucial for both policymakers and business leaders. Environmental economics seeks to understand how economic activities impact the environment and how policy interventions can correct market failures. However, measuring the true "efficiency" of these activities requires sophisticated methodologies that account for undesirable outputs, such as carbon emissions and pollutants, alongside desirable economic outputs. This Research Topic focuses on the intersection of environmental management and economics, emphasizing the need for robust quantitative frameworks to assess environmental performance.

The primary goal of this Research Topic is to explore how environmental investments and regulatory frameworks influence economic efficiency and environmental performance. Specifically, we aim to bridge the gap between theoretical environmental economics and practical management strategies by utilizing optimization techniques such as Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA).

We seek to address how economic incentives—such as carbon taxes, emissions trading systems (ETS), and green subsidies—drive firm-level and industry-level decisions. This collection will investigate whether environmental regulations act as a constraint on productivity or a catalyst for innovation (Porter Hypothesis). By analyzing the efficiency of energy consumption, resource utilization, and pollution abatement, this topic aims to provide evidence-based insights for designing effective environmental policies and sustainable corporate strategies.

We welcome original research articles, reviews, and policy analyses that employ quantitative methods to evaluate environmental and economic efficiency. While methodology-focused papers using DEA are highly encouraged, contributions discussing broader implications of environmental policy are also welcome.

Potential themes include, but are not limited to:
• Measuring eco-efficiency and environmental productivity using DEA or parametric approaches.
• Impact of environmental regulations (e.g., ETS, carbon tax) on industrial efficiency.
• Evaluation of green supply chain management and circular economy practices.
• The relationship between ESG performance and financial outcomes.
• Optimization of energy structures and renewable energy investments.
• Regional or cross-country comparisons of environmental performance.