Alternative approaches to constructing composite indicators : an application to construct a Sustainable Energy Index for APEC economies

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

16 Scopus Citations
View graph of relations

Author(s)

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)747-759
Journal / PublicationOperational Research
Volume17
Issue number3
Online published5 Apr 2016
Publication statusPublished - Oct 2017

Abstract

Existing literature about constructing composite indicators (CIs) mainly depend on weighting sub-indicators. In this paper, we first use a state-of-the-art MCDM method with mild weights restrictions to aggregate sub-indicators, without determining exact values of weights. We take into consideration of all possible importance rankings of sub-indicators to construct CIs. Two alternative approaches, namely, minimizing the total deviation from the ideal point and minimizing the mean absolute deviation, are then proposed to develop weighting schemes with respect to all sub-indicators sequences. The proposed approaches are applied to construct a Sustainable Energy Index for eighteen APEC economies.

Research Area(s)

  • Composite indicators, Multiple criteria decision making, Common weights, Aggregation, DATA-ENVELOPMENT-ANALYSIS, DEA, WEIGHTS