Measuring supply chain efficiency from a green perspective

Purpose – This paper aims to examine whether some countries achieve logistics efficiency at the cost of undermining environmental quality. In so doing, a hybrid index, the green logistics performance index (GLPI) combining both the LPI and the environmental performance index (EPI), is constructed. Design/methodology/approach – Being a macro analysis measuring the green supply chain efficiency of a country, this paper utilizes the secondary data compiled by the World Bank and the World Economic Forum. A series of simple regression analyses were conducted in order to find out the varying degrees of association between the LPI, the EPI, the GLPI and the national income level. Findings – As active logistics activities can have an impact on carbon footprints such as greenhouse gas emissions, it was found that some countries chose to increase their income level at the expense of the environment degradation. Consequently, the GLPI is suggested as a good indicator of a country's green logistics efficiency, showing what impact the country's logistics competitiveness has on its environment. Originality/value – This paper is the first attempt to measure the efficiency of the supply chain of a country from a green perspective by proposing the GLPI combining the LPI and the EPI. It is also the first literature in the supply chain management academia to utilize both the LPI and the EPI.