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The use of the DEA method for simultaneous analysis of the interrelationships among economic growth, environmental pollution and energy consumption

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  • Christina Bampatsou

    ()
    (Democritus University of Thrace, Greece)

  • George Hadjiconstantinou

    ()
    (Democritus University of Thrace, Greece)

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    Abstract

    In this study Data Envelopment Analysis (DEA) is used not only to develop an efficiency index which combines economic activity, CO2 emissions and energy consumption of the production process in the 31 countries of Europe for the year 2004, but also to make estimates about the margins of long term increase or decrease in the consumption levels of exhaustible energy resources of a selected sample (Switzerland, Greece, United Kingdom, and Luxembourg) of European countries (out of 31) which belong to the high income group of OECD members.As shown, each country can achieve better TE when its increased economic activity is combined with improved ecological performance. It can be noticed from the analysis that the developed economies that tend to stabilize their environmental degradation through time (Switzerland), as the GDP (per capita GDP) increases, ensure satisfactory margins for the increase in the consumption of the ‘dirty’ energy index (DEI) in the long term, and thus contribute to sustainable economic development. This fact is significantly different in countries showing either intense deterioration (Greece) or temporary improvement (United Kingdom, Luxemburg) in the pollution levels without any indications of a temperate stabilization of environmental degradation

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    Bibliographic Info

    Article provided by Technological Educational Institute (TEI) of Kavala, Greece in its journal International Journal of Economic Sciences and Applied Research (IJESAR).

    Volume (Year): 2 (2009)
    Issue (Month): 2 (December)
    Pages: 65-86

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    Handle: RePEc:tei:journl:v:2:y:2009:i:2:p:65-86

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    Related research

    Keywords: Technical Efficiency index; Sustainability; Energy Consumption; Environmental Pollution; Economic Development; DEA; Future Estimations;

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    1. Lozano, Sebastián & Gutiérrez, Ester, 2008. "Non-parametric frontier approach to modelling the relationships among population, GDP, energy consumption and CO2 emissions," Ecological Economics, Elsevier, vol. 66(4), pages 687-699, July.
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    7. Christensen, Paul P., 1989. "Historical roots for ecological economics -- Biophysical versus allocative approaches," Ecological Economics, Elsevier, vol. 1(1), pages 17-36, February.
    8. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    9. Fare, Rolf & Grosskopf, Shawna, 2004. "Modeling undesirable factors in efficiency evaluation: Comment," European Journal of Operational Research, Elsevier, vol. 157(1), pages 242-245, August.
    10. Daly, Herman E., 1992. "Allocation, distribution, and scale: towards an economics that is efficient, just, and sustainable," Ecological Economics, Elsevier, vol. 6(3), pages 185-193, December.
    11. Richard Schmalensee & Thomas M. Stoker & Ruth A. Judson, 1998. "World Carbon Dioxide Emissions: 1950-2050," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 15-27, February.
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