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A dynamic approach to measuring ecological-economic performance with directional distance functions: greenhouse gas emissions in the European Union

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  • Andrés J. Picazo-Tadeo

    ()
    (Departamento de Economía Aplicada II. Universidad de Valencia)

  • Juana Castillo

    (Departamento de Economía Aplicada II. Universidad de Valencia)

  • Mercedes Beltrán-Esteve

    (Departamento de Economía Aplicada II. Universidad de Valencia)

Abstract

The impact of economic activity on the environment is a matter of growing concern for firm managers, policymakers, researchers and society as a whole. Building on previous work by Kortelainen [Kortelainen, M., 2008. Dynamic environmental performance analysis: A Malmquist index approach. Ecological Economics 64, 701-715], we contribute an approach to assessing dynamic ecological- economic performance, or simply dynamic eco-performance, and its two determinants, ecologicaleconomic efficiency change and technical change, at specific-environmental-pressure level. In doing so, we use Data Envelopment Analysis techniques, directional distance functions and Luenberger indices. Our approach is employed to assess dynamic eco-performance in the emission of greenhouse gases in the European Union-27 over the period 1990-2010. The main result is that eco-performance has been boosted by technical change rather than by increases in eco-efficiency. Accordingly, policy measures aimed at enhancing eco-efficiency are recommended to improve eco-performance in European countries regarding greenhouse gas emissions.

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File URL: ftp://147.156.210.157/RePEc/pdf/eec_1304.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1304.

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Length: 31 pages
Date of creation: Jan 2013
Date of revision:
Handle: RePEc:eec:wpaper:1304

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Keywords: Dynamic eco-performance; directional distance functions; Data Envelopment Analysis; greenhouse gases emissions; European Union;

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  1. Mariam Camarero & Andrés J. Picazo-Tadeo & Cecilio Tamarit, 2012. "Are the determinants of CO2 emissions converging among OECD countries?," Working Papers 1215, Department of Applied Economics II, Universidad de Valencia.
  2. Picazo-Tadeo, Andrés J. & Beltrán-Esteve, Mercedes & Gómez-Limón, José A., 2012. "Assessing eco-efficiency with directional distance functions," European Journal of Operational Research, Elsevier, vol. 220(3), pages 798-809.
  3. Andrés J. Picazo-Tadeo & José A. Gómez-Limón & Ernest Reig-Martínez, 2010. "Assessing farming eco-efficiency: A Data Envelopment Analysis approach," Working Papers 1004, Department of Applied Economics II, Universidad de Valencia.
  4. Laurens Cherchye & Willem Moesen & Nicky Rogge & Tom Puyenbroeck, 2007. "An Introduction to ‘Benefit of the Doubt’ Composite Indicators," Social Indicators Research, Springer, vol. 82(1), pages 111-145, May.
  5. Mercedes Beltrán-Esteve & José A. Gómez-Limón & Andrés J. Picazo-Tadeo & Ernest Reig-Martínez, 2012. "A metafrontier directional distance function approach to assessing eco-efficiency," Working Papers 1206, Department of Applied Economics II, Universidad de Valencia.
  6. Mariam Camarero & Juana Castillo & Andrés J. Picazo-Tadeo & Cecilio Tamarit, 2011. "Eco-efficiency and convergence in OECD countries," Working Papers 1116, Department of Applied Economics II, Universidad de Valencia.
  7. Huppes, Gjalt & Ishikawa, Masanobu, 2009. "Eco-efficiency guiding micro-level actions towards sustainability: Ten basic steps for analysis," Ecological Economics, Elsevier, vol. 68(6), pages 1687-1700, April.
  8. Kortelainen, Mika, 2008. "Dynamic environmental performance analysis: A Malmquist index approach," Ecological Economics, Elsevier, vol. 64(4), pages 701-715, February.
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  14. Jean-Philippe Boussemart & Walter Briec & Kristiaan Kerstens & Jean-Christophe Poutineau, 2003. "Luenberger and Malmquist Productivity Indices: Theoretical Comparisons and Empirical Illustration," Bulletin of Economic Research, Wiley Blackwell, vol. 55(4), pages 391-405, October.
  15. Korhonen, Pekka J. & Luptacik, Mikulas, 2004. "Eco-efficiency analysis of power plants: An extension of data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 154(2), pages 437-446, April.
  16. Zhang, Bing & Bi, Jun & Fan, Ziying & Yuan, Zengwei & Ge, Junjie, 2008. "Eco-efficiency analysis of industrial system in China: A data envelopment analysis approach," Ecological Economics, Elsevier, vol. 68(1-2), pages 306-316, December.
  17. 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.
  18. Juan Antonio Duro & Emilio Padilla, 2011. "Cross-country polarisation in CO2 emissions per capita in the European Union: changes and explanatory factors," Working Papers wpdea1106, Department of Applied Economics at Universitat Autonoma of Barcelona.
  19. Mahlberg, Bernhard & Sahoo, Biresh K., 2011. "Radial and non-radial decompositions of Luenberger productivity indicator with an illustrative application," International Journal of Production Economics, Elsevier, vol. 131(2), pages 721-726, June.
  20. Zhou, P. & Ang, B.W. & Poh, K.L., 2006. "Comparing aggregating methods for constructing the composite environmental index: An objective measure," Ecological Economics, Elsevier, vol. 59(3), pages 305-311, September.
  21. Mahlberg, Bernhard & Luptacik, Mikulas & Sahoo, Biresh K., 2011. "Examining the drivers of total factor productivity change with an illustrative example of 14 EU countries," Ecological Economics, Elsevier, vol. 72(C), pages 60-69.
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