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The role of environmental factors in growth accounting

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Author Info
Byung M. Jeon (Korea Institute of Public Finance, Seoul, Korea)
Robin C. Sickles (Department of Economics, Rice University, USA)

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Abstract

This paper explores a relatively new methodology, the directional distance function method, to analyse productivity growth. The method allows us to explicitly evaluate the role that undesirable outputs of the economy, such as carbon dioxide and other greenhouse gases, have on the frontier production process which we specify as a piecewise linear and convex boundary function. We decompose productivity growth into efficiency change (catching up) and technology change (innovation). We test the statistical significance of the estimates using recently developed bootstrap methods. We also explore implications for growth of total factor productivity in the OECD and Asian economies. Copyright © 2004 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jae.769
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File URL: http://qed.econ.queensu.ca:80/jae/2004-v19.5/
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 19 (2004)
Issue (Month): 5 ()
Pages: 567-591
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Handle: RePEc:jae:japmet:v:19:y:2004:i:5:p:567-591

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Léopold Simar, Paul W. Wilson, 2000. "A general methodology for bootstrapping in non-parametric frontier models," Journal of Applied Statistics, Taylor and Francis Journals, vol. 27(6), pages 779-802, August. [Downloadable!] (restricted)
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  2. I. Gijbels & E. Mammen & B. Park & L. Simar, . "On Estimation of Monotone and Concave Frontier Function," Sonderforschungsbereich 373 1998-9, Humboldt Universitaet Berlin.
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  3. V. Eldon Ball & Rolf Fare & Shawna Grosskopf & Richard Nehring, 2001. "Productivity of the U.S. Agricultural Sector: The Case of Undesirable Outputs," NBER Chapters, in: New Developments in Productivity Analysis, pages 541-586 National Bureau of Economic Research, Inc. [Downloadable!]
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  1. Azomahou, Theophile & Mishra, Tapas, 2009. "Stochastic environmental effects, demographic variation, and economic growth," UNU-MERIT Working Paper Series 016, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  2. Subhash C. Ray & Kankana Mukherjee, 2007. "Efficiency in Managing the Environment and the Opportunity Cost of Pollution Abatement," Working papers 2007-09, University of Connecticut, Department of Economics. [Downloadable!]
  3. Vangelis Tzouvelekas & Dimitra Vouvaki & Anastasios Xepapadeas, 2006. "Total Factor Productivity Growth and the Environment: A Case for Green Growth Accounting," Working Papers 0617, University of Crete, Department of Economics. [Downloadable!]
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  4. Jens Kjærsgaard & Niels Vestergaard & Kristiaan Kerstens, 2009. "Ecological Benchmarking to Explore Alternative Fishing Schemes to Protect Endangered Species by Substitution: The Danish Demersal Fishery in the North Sea," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(4), pages 573-590, August. [Downloadable!] (restricted)
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  5. Kent Matthews & Nina Zhang, 2009. "Bank Productivity in China 1997-2007: An Exercise in Measurement," Working Papers 252009, Hong Kong Institute for Monetary Research. [Downloadable!]
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