Application of principle component analysis to build provincial eco-Efficiency index for Binh Duong province from 2001-2012 - Doan Ngoc Nhu Tam

Journal of Science and Technology 54 (2A) (2016) 251-258 APPLICATION OF PRINCIPLE COMPONENT ANALYSIS TO BUILD PROVINCIAL ECO-EFFICIENCY INDEX FOR BINH DUONG PROVINCE FROM 2001-2012 Doan Ngoc Nhu Tam 1, * , Che Dinh Ly 2 1 Institute for Computational Science and Technology, Ho Chi Minh City, Vietnam 2 Faculty of Environment, University of Science, Vietnam National University Ho Chi Minh City, 227 Nguyen Van Cu, District 5, Ho Chi Minh City, Vietnam 3 Center of Water Management and Climate Change, Ho Chi Minh City, Vietnam * Email: tamdnn@tdmu.edu.vn Received: 5 May 2016; Accepted for publication: 26 June 2016 ABSTRACT Based on a proposed concept of Regional Eco-Efficiency of Zhou Zhenfeng, a set of indicators for assessing, eco-efficiency of provincial level has been conducted. Set of indicators included 26 indicators, and was divided into 3 groups: Socio-Economic Development Index (SDI) (9 indicators); Resources Consumption Index (RCI) (7 indicators) and Environmental Pressure index (EPrI) (10 indicators). Principle component analysis (PCA) was used to assess Eco-efficiency Synthetic Index (ESI) of Binh Duong province in the 2001-2012. Results shown that the ESI of Binh Duong province has been clearly improving from 2001-2012. RCI and EPrI respectively had a significant correlation with SDI. Results also have been shown that the industrialization generated waste and if the pollution control solution is not effectively so environmental pressure is continuously increase and degrade the environment. Keywords: Regional Eco-Efficiency, Eco-efficiency Synthetic Index, Socioeconomic development index (SDI), Resource consumption index (RCI), Environmental Pressure index (EprI), Principle component analysis (PCA). 1. INTRODUCTION “Eco-efficiency” is built by the World Business Council for Sustainable Development (WBSCD) in the early 1990s. Eco-efficiency is a useful tool for managing and evaluating the effectiveness between economic income and resource consumption and environmental pollution. Although the concept of eco-efficiency is quite common in business, the concept of eco- efficiency to not be noticed Provincial research to help policy makers know: How effective when we compared the provincial process of industrialization to the costs of resource use and environmental remediation. Therefore, since many countries around the world have carried out research projects to calculate and assess the eco-efficiency for different regions. Zhou Zhenfeng [1] - studied the ecological performance for Chengyang District; Thailand, 2007 - Conference to Doan Ngoc Nhu Tam, Che Dinh Ly 252 build eco-efficiency to assess economic growth in Bangkok, Thailand; Per Mickwitz; Matti Melanen [2] - in Finland has done quite a program for regional research Kymenlaasko to develop indicators and eco-efficiency calculations for the area. Francois Schneider, 2001 [3] - aims at setting out: opportunities and limits of eco-efficiency strategies for regions. We can say in Vietnam, eco-efficiency studies in policy evaluation are generally still limited. Binh Duong is a newly re-established province; the southeastern zone is located in the southern key economic. Through the development process re-established after 12 years, Binh Duong is one of the local rapid economic growth and has high competitiveness. However, along with the achievements in the development process, Binh Duong also suffered the environmental consequences of economic development is not consistent with the trend of sustainable development such as water pollution, more polluted air, increasingly impaired resources.... Therefore, Binh Duong needs to evaluate the economic performance and environmental quality in the last stages of development. An effective approach to quantitative evaluation system is based on Eco-efficiency indicators to calculate and evaluate the Eco-efficiency Synthetic Index of Binh Duong. The goal of the project is to calculate and assess the ecological performance of economic activity Binh Duong period 2001-2012 and to propose measurement to improve the ecological performance of Binh Duong area. 2. METHODS This article presents only limited calculation and assess the ecological performance. Primary and secondary data, economical data, social and environmental situation of Binh Duong period 2001-2012 were collected from Statistical Yearbooks and reports of departments and agencies. Applied computational methodology Regional Eco-efficiency, evaluated, selected and adjusted to fit the conditions of Binh Duong from the calculation methodology ecological performance of Chinese authors and Finland. To integrate the directive into component indicators of ecological efficiency, applied weights output from the main component analysis (PCA). 3. RESULTS AND DISCUSSION 3.1. Set the indicators to calculate Regional Eco-efficiency Provincial The indicators in the performance index calculation Regional Eco-efficiency is very diverse and rich. The selection of indicators calculated, assessed Regional Eco-efficiency in Binh Duong province was based on the following basic principles: 1. Simple, easy to understand and represent the trends over time. 2. Fit in linking with information systems and forecasting, the indicators should ensure openness, facilitates regular updates over time. 3. Compatible with the national index. 4. The selected indicators to ensure the viability and quantify the database of existing statistical systems in Binh Duong Province. Accordingly, the directive applies to calculating Regional Eco-efficiency Binh Duong includes 25 indicators, divided into 3 groups of indicators used to calculate the index components: 1. Indicators of Socioeconomic Development Index (SDI) include 9 indicators. Application of Principle Component Analysis to build Provincial Eco-Efficiency Index 253 2. Indicators of Resources Consumption Index (RCI) include 7 indicators. 3. Indicators of Environmental Pressure Index (EPrI) include 10 indicators. Selected indicators were used to calculate Regional Eco-efficiency Provincial. Table 1. Synthesis indicators which used in calculating Regional Eco-efficiency in Binh Duong Province. Group indicators Indicator Sign Unit Socio- Economic Developme nt Index (SDI) 1. Average population SDI1 People 2. Population density SDI2 People/km2 3. The rate of natural population growth SDI3 0/00 4. GDP SDI4 Billion dong 5. GDP per capita SDI5 Million dong/person 6. Rate workers were trained in economics SDI6 % 7. Local Income SDI7 Billion dong 8. The percentage of hospital beds per 10,000 people SDI8 Beds / people 9. Unemployment rate SDI9 % Resources Consumpti on Index (RCI) 10. Water consumption RCI1 Million m3 11. Power Consumption RCI2 Million Kwh 12. Consumption of fertilizers RCI3 Ton 13. Mining of Minerals RCI4 thousand tons 14. Forest exploitation RCI5 thousand m3 15. The total area of agricultural land RCI6 ha 16. The total area of non-agricultural land RCI7 ha Environme ntal Pressure Index (EPrI) 17. Waste amounts of industrial dust EPrI1 Ton 18. Waste amounts of industrial SO2 EPrI2 Ton 19. Waste amounts of industrial CO EPrI3 Ton 20. Waste amounts of BOD EprI4 Ton 21. Waste amounts of TSS EprI5 Ton 22. Total flow of domestic wastewater EprI6 m3/day 23. Total flow of industrial wastewater EprI7 m3/day 24. The volume of industrial solid waste EprI8 Ton 25. The volume of domestic solid waste EprI9 Ton 26. The area of damaged forests EPrI10 Hectares Doan Ngoc Nhu Tam, Che Dinh Ly 254 Applying the component analysis methods for establishing the weights to the indicators. 3.2. Method of Principle Components Analysis_ PCA Method of Principle Components Analysis_ PCA is used to build weights for the indicators participate to calculate through the use of computational software Minitab 16 (Minitab Inc - United States). The Method of Principle Components Analysis_ PCA uses statistical analysis of correlation among variables and these variables are explained about the general connotation (factors). It provides a method of condensing the information contained in the original variables (Xi) into a smaller set of connotations (elements) (principle components) with i = 1, 2, 3.,n. In there Y: are the principle components; ei are eigen vectors; Xi are the original variables (indicators). Using software was used to render principle components. The annual standardized indicators be included in the equation principle components, and calculations. Use eigenvalues (% variable volume) results from factor analysis, linear weights applied Yi assigned to all, and this value will be the sum of the sustainability indicators. 3.3. The model calculates the index components of the provincial-level Regional Eco- efficiency To build Regional Eco-efficiency Index for Binh Duong province, authors evaluated two basic methodologies of the calculation for an area is Regional Eco-efficiency of Finland and China. The calculation method of Finland requires a large volume of data related to the socio- economic activities as well as the environmental impact throughout the region. Besides the annual statistics, this method requires the calculation details and stream flows into the region through a combination of methods of assessment of product life cycle (Life Cycle Assessment, LCA) and material flow analysis (material flow analysis, MFA). In Vietnam conditions, the implementation of the above calculation is very difficult, not only requires a lot of time, funding but also needs the cooperation of the various agencies to perform. Meanwhile, the calculation methodology by Zhou Zhenfeng et al. [1] performed much simplified. The authors have also set up a system to calculate basic indicators of Eco-efficiency for a region. In the data condition existing, the authors have adopted the methodology of Zhou Zhenfeng et al. [1] to calculate Regional Eco-efficiency in Binh Duong province. Regional Eco-efficiency in Binh Duong province is calculated based on three indices: Socioeconomic Development Index (SDI), Resources Consumption Index (RCI) and Environmental Pressure Index (EPrI). The calculation steps of ESI in Binh Duong: • Step 1: Collect, calculate and aggregate progress indicator value of the index components from 2001 to 2012. • Step 2: Standardize data provided by the same dimensions for the indicator values of advantages for the development process in accordance with fuzzy logic rules: Si = (S - Smin) / (Smax-Smin) (1) Note: Si: The value of the indicator standardized i th ; S: The value of the indicator i th in measuring the current state of the system research; Smax: The maximum value of the i th indicator in the research system; Application of Principle Component Analysis to build Provincial Eco-Efficiency Index 255 Smin: minimum value of the i th indicator in the research system. • Step 3: Using the method of analysis of the PCA to determine the weight of the indicators through the use of software Minitab 16. • Step 4: As the weights were determined by PCA, SDI component indexs, RCI and EPRI were estimated by the following formula: S= m i WiCi 1 (2) S: are the value of the index scores of SDI, RCI and EPRI; Wi: The weight of the i th ;indicators; Ci: The value of the i th indicator after data standardization; m: Number of indicators. • Step 5: Apply the formula to calculate the composite index Regional Eco-efficiency set by Zhou Zhenfeng et al. [2]: 2/)( EPIRCI SDI ESI . (3) 3.4. Application of computational steps in case of Binh Duong Province 3.4.1. Description of the study area, Binh Duong Province Regarding the industrial development, from 2001 to 2012, this is a 12-year period after the re-establishment, the total development investment capital increased by 3.8 times. In 2001, the province has 3,051 businesses engaged in manufacturing industry and by 2012 had doubled to 6731 enterprises. Number of employees participating in the industrial activity increased rapidly, within 12 years the number of industrial workers increased by 5.6 times. 3.4.2. Calculate and analyze the Regional Eco-efficiency Index of Binh Duong in 2001-2012 period According to the principles and methodology presented above, using data gathered from years 2001-2012, the calculation of the index components were made as follows: 1. Standardize data indicators of indexes: SDI (SDI1-SDI9) by the method mentioned above fuzzy theory, RCI and EPRI (EPrI1-EPrI10) was calculated. 2. Using software Minitab 16 to perform analysis for the weighted PCA of SDI, RCI and EPrI. 3. According to the calculation, SDI index will have two main components are drawn. These two components represent 97.5 % of the difference of the directive join SDI index calculation. For RCI index, it also has 2 main components are drawn, representing 94.8% of the variation of the directive join RCI index calculation. Also has three main components are drawn into the directive join as EPRI calculated, 3 components represent 99.5% of the variation of the directive. 4. Using the formula (1) and (2) to calculate the index scores for SDI, RCI and EPRI. Using the formula (3), to calculate the index scores for the ecological synthetic performance of Binh Duong Province. Results are presented in Table 2 below: Doan Ngoc Nhu Tam, Che Dinh Ly 256 Table 2. Summary of SDI, RCI, EPRI and Regional Eco-efficiency Index of Binh Duong period 2001-2012. 3.5. Assessment of regional Eco-efficiency Index of Binh Duong province in period of 2001-2012 Based on the results of calculation of the index scores components: SDI, RCI, EPRI and ESI, we can draw graphs to show trends over time evolution of the above indexes. Figure 1. The trend movements of each index components: SDI, RCI, EPrI, and ESI performance. SDI has a slow downward trend from 2001 to 2010 but from 2010 to 2012 it increases rapidly; meanwhile, resource consumption index-RCI decreases steadily over the years, but the rate of reduction is still slow. For environmental pressure index _ EPRI, in the period 2001-2012 there have been many changes. In the early years 2001-2010, EPRI has decreased, but at a slower pace, especially within 3 years (from 2010-2012), environmental pressures up Binh Duong province up from the early years of establishment Binh Duong. Eco-efficiency Synthetic Index - ESI of Binh Duong is the integration of the component index, SDI, RCI and EPRI, it shows the general trends of the three index components. Overall, the ESI index of Binh Duong province has improved significantly in 12 years. From 2005-2007, ESI has been trending downwards, but from 2007 onwards, the ESI has improved and tends to increase. Tendency to slow growth of Eco-efficiency Synthetic Index - ESI of Binh Duong fitted the changes in the use of resources and environmental pressures of the province. Besides determining the correlation coefficient between SDI and RCI, between SDI and EPRI, the study also identifies the regression model between these factors in the regression equation in Figure 2 as below: Year 2001 2000 2001 2002 2003 2004 2005 2006 2007 2008 2011 2012 SDI 0,50 0,52 0,53 0,51 0,36 0,30 0,12 0,17 0,12 0,16 0,43 0,55 RCI 0,77 0,79 0,67 0,59 0,51 0,42 0,31 0,26 0,22 0,22 0,15 0,02 EprI 0,59 0,38 0,4 0,21 0,1 0,2 0,07 0,18 0,07 0,03 0,38 0,61 ESI 0,74 0,89 0,99 1,28 1,18 0,97 0,63 0,77 0,83 1,28 1,62 1,75 Application of Principle Component Analysis to build Provincial Eco-Efficiency Index 257 Figure 2. Correlation of SDI and RCI (left), SDI and EPRI (right). EPRI tended to decrease during the period 2005-2006, then continued to rise, but a slower pace than in the early years. EPRI increase is unavoidable for the economic development situation of Binh Duong now. 3.6. Propose measurements to improve the ecological performance of Binh Duong To increase eco-efficiency, the process of the social economic development of Binh Duong province to simultaneously satisfy three objectives: Increase the value of social and economic development (increase SDI), Reduce exploitation and consumption of resources (reducing RCI), and Reduce environmental pressures (reducing EPrI). Binh Duong province tends to develop economic and social tradition, social and economic growths high, and high demand for using of natural resources. That also means that a large amount of natural resources will continue to be exploited, leading to a volume of waste from production and consumption will be released into the natural environment. Meanwhile, the province's eco-efficiency can be increased. However, this increase goes against the objectives of sustainable development of Binh Duong Province. So based on the above objectives, in order to enhance the ecological performance, Binh Duong province necessarily changes the approach of social and economic development in addition to the implementation of environmental protection measures former. To reduce pressure on the environment, Binh Duong province also need to make reducing resource consumption in the production process. 4. CONCLUSIONS The research results show that the ecological performance Binh Duong Province improved markedly from 2001 to 2012. Reporting has developed a set of indicators to assess the Eco- efficiency Synthetic Index of Binh Duong includes 26 indicators, divided into 3 groups: Social economic development indicators (SDI) (9 indicators); Resource consumption indicators (RCI) (7 indicators) and Environmental Pressure indicators (EPrI) (10 indicators). To integrate the indicators into component indicators of ecological efficiency, the report has successfully used the PCA method and calculate ESI of Binh Duong Province in period of 2001-2012: ESI = (SDI) / [RCI + EPRI) / 2]. Doan Ngoc Nhu Tam, Che Dinh Ly 258 Eco-efficiency Synthetic Index - ESI of Binh Duong province over the years are: Between Socioeconomic Development Index (SDI), Resources Consumption Index (RCI) and Environmental Pressure Index (EPrI) there is a very close relationship in models: RCI = 0.7388 - 3.795 SDI + 4.837 SDI^2 [R 2 =81,3, F=20, p value=0] EPrI = 0.4421 - 3.581 SDI + 7.320 SDI^2 [R 2 =75, F= 13, p value = 0] The research results have proposed solutions that Binh Duong improve ecological performance in the next stage. Including: the solutions of socio-economic development, continue to promote the strengths of Binh Duong province to promote economic growth. Besides, they also proposed measures to limit the economic dependence of Binh Duong on excessive consumption of resources, as well as implementing measures reduce environmental pressures in the industrial, urban and agricultural areas of the province. REFERENCES 1. Zhou Zhenfeng, Sun Lei, Sun Yinglan - Research on Indicator System of Regional Eco- efficiency: A Case Study of Chengyang District, Chinese Journal of Population, Resources and Environment 4 (4) (2006) 54-58. 2. Per Mickwitz, Matti Melanen, U. R. J. S. - Measuring regional eco-efficiency - case Kymenlaakso. Key results of the ECOREG project, The Finnish Environment 735en, Edita Prima Oy, Helsinki, Finland, 2004, pp.1-112. 3. Francois Schneider - Eco-efficiency of regions. 7th European Roundtable on Cleaner Production. Sustainable Europe Research Institute, Schwarzspanierstr. 4/8, A-1090 WIEN. Lund 2-4 May 2001, pp.1-22. Year 2001 2000 2001 2002 2003 2004 2005 2006 2007 2008 2011 2012 ESI 0,74 0,89 0,99 1,28 1,18 0,97 0,63 0,77 0,83 1,28 1,62 1,75