Distance‐based weighting methods for composite indicators, with applications related to energy sustainability

Author:

Karagiannis Roxani1,Karagiannis Giannis2

Affiliation:

1. Center of Planning and Economic Research 11 Amerikis str. Athens 10672 Greece

2. Department of Economics University of Macedonia 156 Egnatia str. Thessaloniki 54006 Greece

Abstract

AbstractIn this paper, we propose a novel use of four distance‐based methods for constructing composite indicators: namely, the maximizing deviations method, the weighted least‐square (WLD) deviation from the mean method, the WLD deviation from the ideal method, and the WLD dissimilarity method. The main advantages of these methods are that they have analytical solutions. Thus, there is no need to solve the underlying programming problem for each application. They also result in common (but not necessarily equal) weights that allow complete comparison and ranking. We explore the potential of the suggested weighting method by using it to re‐estimate the Sustainable Energy Index and the Sustainable Development Goal 7 composite indicator.

Publisher

Wiley

Subject

Management of Technology and Innovation,Management Science and Operations Research,Strategy and Management,Computer Science Applications,Business and International Management

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