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Localized Innovation, Localized Diffusion and the Environment: An Analysis of CO2 Emission Reductions by Passenger Cars, 2000-2007

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  • Bart Los

    (Faculty of Economics and Business, University of Groningen)

  • Bart Verspagen

    (Centre for Technology, Innovation and Culture, University of Oslo)

Abstract

We investigate technological change with regard to CO2 emissions by passenger cars, using a Free Disposal Hull methodology to estimate technological frontiers. We have a sample of cars available in the UK market in the period 2000 – 2007. Our results show that the rates of technological change (frontier movement) and diffusion (distance to frontier at the car brand level) differ substantial between segments of the car market. We conclude that successful policies should be aimed at diffusion of best-practice technology, and take account of the different potential for further progress between different segments of the market (e.g., diesel and gasoline engines, and small vs. large engines).

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Bibliographic Info

Paper provided by Centre for Technology, Innovation and Culture, University of Oslo in its series Working Papers on Innovation Studies with number 20080527.

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Length: 22 pages
Date of creation: May 2008
Date of revision:
Handle: RePEc:tik:inowpp:20080527

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  1. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
  2. Los, Bart & Timmer, Marcel P., 2005. "The 'appropriate technology' explanation of productivity growth differentials: An empirical approach," Journal of Development Economics, Elsevier, vol. 77(2), pages 517-531, August.
  3. Cinzia Daraio & Leopold Simar, 2003. "Introducing Environmental Variables in Nonparametric Frontier Models: a Probabilistic Approach," LEM Papers Series 2003/17, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  4. Kwon, Tae-Hyeong, 2005. "Decomposition of factors determining the trend of CO2 emissions from car travel in Great Britain (1970-2000)," Ecological Economics, Elsevier, vol. 53(2), pages 261-275, April.
  5. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January.
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