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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)
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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  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. Simar, L. & Wilson, P.W., 1995. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Non-parametric Frontier Models," Papers 9543a, Catholique de Louvain - Center for Operations Research and Economics.
  3. 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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  1. 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!]
  2. Anastasios Xepapadeas & E. Tzouvelekas & D. Vouvaki, 2007. "Total Factor Productivity Growth and the Environment: A Case for Green Growth Accounting," Working Papers 2007.38, Fondazione Eni Enrico Mattei. [Downloadable!]
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