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Examining the drivers of total factor productivity change with an illustrative example of 14 EU countries

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  • Mahlberg, Bernhard
  • Luptacik, Mikulas
  • Sahoo, Biresh K.

Abstract

Based on the different models developed by Korhonen and Luptacik [Korhonen, P., Luptacik, M., 2004. Eco-efficiency analysis of power plants: An extension of data envelopment analysis. European Journal of Operational Research 154, 437–46], this contribution centers on the development of an intertemporal comparison in order to analyze eco-efficiency change over time. In this setup two model variants by Korhonen and Luptacik (2004) are used in order to provide deeper insights concerning the driving forces for the change in the eco-efficiency. Which bias in technical change can be observed? Is it more input-saving or pollution-reducing? For illustration purposes the proposed approach is used to analyze the performance of 14 countries of the European Union for the period 1995–2004. An average eco-productivity growth of 22% is observed. The estimated contribution of improved use of input is 20% and that of reduced relation of greenhouse gas emissions is 23%. Therefore it is concluded that, on average, the eco-productivity growth is more driven by improved environmental conditions.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 72 (2011)
Issue (Month): C ()
Pages: 60-69

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Handle: RePEc:eee:ecolec:v:72:y:2011:i:c:p:60-69

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

Related research

Keywords: Eco-productivity; Radial and input-oriented efficiency measure; Malmquist index;

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Cited by:
  1. Mahlberg, Bernhard & Luptacik, Mikulas, 2014. "Eco-efficiency and eco-productivity change over time in a multisectoral economic system," European Journal of Operational Research, Elsevier, vol. 234(3), pages 885-897.
  2. Yang, Fuxia & Yang, Mian & Nie, Hualin, 2013. "Productivity trends of Chinese regions: A perspective from energy saving and environmental regulations," Applied Energy, Elsevier, vol. 110(C), pages 82-89.
  3. M. Lábaj & M. Luptáčik & E. Nežinský, 2014. "Data envelopment analysis for measuring economic growth in terms of welfare beyond GDP," Empirica, Springer, vol. 41(3), pages 407-424, August.
  4. Leleu, Hervé, 2013. "Shadow pricing of undesirable outputs in nonparametric analysis," European Journal of Operational Research, Elsevier, vol. 231(2), pages 474-480.
  5. Picazo-Tadeo, Andrés J. & Castillo-Giménez, Juana & Beltrán-Esteve, Mercedes, 2014. "An intertemporal approach to measuring environmental performance with directional distance functions: Greenhouse gas emissions in the European Union," Ecological Economics, Elsevier, vol. 100(C), pages 173-182.
  6. Andrés J. Picazo-Tadeo & Juana Castillo & Mercedes Beltrán-Esteve, 2013. "A dynamic approach to measuring ecological-economic performance with directional distance functions: greenhouse gas emissions in the European Union," Working Papers 1304, Department of Applied Economics II, Universidad de Valencia.
  7. Martin Lábaj & Mikuláš Luptáèik & Eduard Nežinský, 2013. "Data Envelopment Analysis for Measuring of Economic Growth in Terms of Welfare Beyond GDP," Department of Economic Policy Working Paper Series 002, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.

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