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Energy consumption and carbon dioxide environmental efficiency for former Soviet Union economies. evidence from DEA window analysis

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  • Arazmuradov, Annageldy

Abstract

The main source of convertible energy—fossil-fuel combustion—generates desirable means for production of national output (GDP) along with an undesirable by-product—carbon dioxide (CO2) emissions. This paper investigates the effect of this supply process for environmental quality. By introducing energy and non-energy production factors, we estimate economic and CO2 efficiency. We build an alternative environmental efficiency indicator with respect to CO2 emissions by applying non-parametric data-envelopment analysis (DEA)—window analysis under variable returns to scale (VRS)—to 15 former Soviet Union (FSU) economies for the period 1992–2008. There is a clear distinction between three FSU economies—Estonia, Latvia, and Lithuania (now EU member states)—and the rest of the sample in that they display better environmental performance. In these three countries, economic efficiency directly influences the environmental performance. Results also show that over time FSU economies improve their CO2 environmental efficiency and comply with the Kyoto Protocol directives. However, this positive gain comes with costs; it seems there is a tradeoff between positive output production (GDP) and controlling for carbon emission. On average, we observe a 15.9-percent drop in producing GDP, while there is a 1.59 -percent rise in positive environmental CO2 efficiency.

Suggested Citation

  • Arazmuradov, Annageldy, 2011. "Energy consumption and carbon dioxide environmental efficiency for former Soviet Union economies. evidence from DEA window analysis," MPRA Paper 36903, University Library of Munich, Germany, revised 24 Feb 2012.
  • Handle: RePEc:pra:mprapa:36903
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    References listed on IDEAS

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    2. Charles Fang Chin Cheng & Nicola Cantore, 2020. "The Inclusive and Sustainable Development Index: a Data Envelopment Analysis Approach," Working Papers 2020.05, Fondazione Eni Enrico Mattei.
    3. Charles Fang Chin Cheng & Nicola Cantore, 2020. "The Inclusive and Sustainable Industrial Development Index: A Data Envelopment Analysis approach," SEEDS Working Papers 0320, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Mar 2020.
    4. Brizga, Janis & Feng, Kuishuang & Hubacek, Klaus, 2013. "Drivers of CO2 emissions in the former Soviet Union: A country level IPAT analysis from 1990 to 2010," Energy, Elsevier, vol. 59(C), pages 743-753.

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    More about this item

    Keywords

    Eurasia; carbon dioxide emissions; environmental efficiency; DEA window analysis;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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