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Is the environmental performance of industrialized countries converging? A 'SURE' approach to testing for convergence

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  • Camarero, Mariam
  • Picazo-Tadeo, Andrés J.
  • Tamarit, Cecilio

Abstract

In this paper, we test for convergence in the environmental performance of a sample of OECD countries, with data ranging from 1971 to 2002. First, we use Data Envelopment Analysis (DEA) to compute two environmental performance indicators (EPIs) in the production theory framework. Second, we propose the use of a sequential multivariate approach to test for convergence in environmental performance. These tests allow us to reconcile the time series literature with the cross-sectional dimension, which is basic when testing for convergence in regional blocs. The SURE technique is used, which allows for the existence of correlations across the series without imposing a common speed of mean reversion. The empirical results show that the group of countries as a whole, as well as the majority of countries considered on an individual basis (results for some countries vary between EPIs), are catching-up with Switzerland (the benchmark country).

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 66 (2008)
Issue (Month): 4 (July)
Pages: 653-661

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Handle: RePEc:eee:ecolec:v:66:y:2008:i:4:p:653-661

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Web page: http://www.elsevier.com/locate/ecolecon

Related research

Keywords: Convergence Environmental performance OECD Multivariate tests Unit roots SURE;

References

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Cited by:
  1. Zhou, P. & Ang, B.W. & Wang, H., 2012. "Energy and CO2 emission performance in electricity generation: A non-radial directional distance function approach," European Journal of Operational Research, Elsevier, vol. 221(3), pages 625-635.
  2. Halkos, George & Papageorgiou, George, 2014. "Spatial environmental efficiency indicators in regional waste generation: A nonparametric approach," MPRA Paper 53400, University Library of Munich, Germany.
  3. Mariam Camarero & Juana Castillo & Andrés Picazo-Tadeo & Cecilio Tamarit, 2013. "Eco-Efficiency and Convergence in OECD Countries," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 55(1), pages 87-106, May.
  4. George Halkos & Nickolaos Tzeremes, 2013. "National culture and eco-efficiency: an application of conditional partial nonparametric frontiers," Environmental Economics and Policy Studies, Society for Environmental Economics and Policy Studies - SEEPS, vol. 15(4), pages 423-441, October.
  5. Halkos, George & Tzeremes, Nickolaos, 2011. "Towards a culture of environmental efficiency: An application of conditional partial nonparametric frontiers," MPRA Paper 28690, University Library of Munich, Germany.

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