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Measurement of environmental efficiency and productivity: a cross-country analysis

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  • KUMAR, SURENDER
  • KHANNA, MADHU

Abstract

This paper measures environmental efficiency (EE) and environmental productivity (EP) in 38 countries over the period 1971–92 and analyzes differences in these across countries. It explores several macro-economic factors that could explain these differences, such as income levels and the degree of openness in these countries. The average EE and EP indexes are found to be almost steady over the period 1971–92. In the annex-I countries, an increase in income levels initially leads to an increase in the average EE but subsequently to a decline in EE. In non-annex I countries, EE is increasing over the range of income in these countries. This study also finds an EKC type relationship between EP and per capita GDP in annex-I countries. The degree of openness has a significant positive impact on EE in annex-I countries.

Suggested Citation

  • Kumar, Surender & Khanna, Madhu, 2009. "Measurement of environmental efficiency and productivity: a cross-country analysis," Environment and Development Economics, Cambridge University Press, vol. 14(4), pages 473-495, August.
    • Handle: RePEc:cup:endeec:v:14:y:2009:i:04:p:473-495_00
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    Cited by:

    1. Masayuki Shimizu, 2020. "The relationship between pollution abatement costs and environmental regulation: Evidence from the Chinese industrial sector," Review of Development Economics, Wiley Blackwell, vol. 24(2), pages 668-690, May.
    2. Nikos Chatzistamoulou & Phoebe Koundouri, 2024. "Is Green Transition in Europe Fostered by Energy and Environmental Efficiency Feedback Loops? The Role of Eco-Innovation, Renewable Energy and Green Taxation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(6), pages 1445-1472, June.
    3. Yavuz Selman DUMAN & Adnan KASMAN, 2017. "The Role of International Trade and Urbanization on Environmental Technical Efficiency in EU Member and Candidate Countries," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 17(4), pages 481-491.
    4. Surender Kumar & Rakesh Kumar Jain, 2021. "Cost of CO2 emission mitigation and its decomposition: evidence from coal-fired thermal power sector in India," Empirical Economics, Springer, vol. 61(2), pages 693-717, August.
    5. Stergiou, Eirini, 2022. "Environmental Efficiency of European Industries across Sectors and Countries," MPRA Paper 114635, University Library of Munich, Germany.
    6. Emilio Galdeano‐Gómez, 2010. "Exporting and Environmental Performance: A Firm‐level Productivity Analysis," The World Economy, Wiley Blackwell, vol. 33(1), pages 60-88, January.
    7. Colesnic, Olga & Kounetas, Konstantinos & Michael, Polemis, 2020. "Estimating risk efficiency in Middle East banks before and after the crisis: A metafrontier framework," Global Finance Journal, Elsevier, vol. 46(C).
    8. Halkos, George & Bampatsou, Christina, 2017. "Technical efficiency, productivity change and environmental degradation," MPRA Paper 77176, University Library of Munich, Germany.
    9. Halkos, George & Tzeremes, Nickolaos, 2011. "Does the Kyoto Protocol Agreement matters? An environmental efficiency analysis," MPRA Paper 30652, University Library of Munich, Germany.
    10. Liobikiene, Genovaite & Chen, Xueli & Streimikiene, Dalia & Balezentis, Tomas, 2020. "The trends in bioeconomy development in the European Union: Exploiting capacity and productivity measures based on the land footprint approach," Land Use Policy, Elsevier, vol. 91(C).
    11. Zhou, D.Q. & Wang, Qunwei & Su, B. & Zhou, P. & Yao, L.X., 2016. "Industrial energy conservation and emission reduction performance in China: A city-level nonparametric analysis," Applied Energy, Elsevier, vol. 166(C), pages 201-209.
    12. Kounetas, Konstantinos, 2015. "Heterogeneous technologies, strategic groups and environmental efficiency technology gaps for European countries," Energy Policy, Elsevier, vol. 83(C), pages 277-287.
    13. Kumar, Surender & Managi, Shunsuke, 2016. "Carbon-sensitive productivity, climate and institutions," Environment and Development Economics, Cambridge University Press, vol. 21(1), pages 109-133, February.
    14. Masayuki Shimizu, 2022. "Effects of pollution abatement activities on environmental efficiency and productivity: Empirical evidence from the Chinese industrial sector," Review of Development Economics, Wiley Blackwell, vol. 26(1), pages 484-509, February.
    15. Kounetas, Kostas & Zervopoulos, Panagiotis, 2017. "Annex I and non-Annex I countries’productive performance revisited using a generalized directional distance function under a metafrontier framework: Is there any convergence-divergence pattern for technology gaps?," MPRA Paper 80904, University Library of Munich, Germany.
    16. Masayuki Shimizu & Oscar Tiku, 2023. "Evaluation of environmental energy efficiency and its influencing factors: a prefecture-level analysis of Japanese manufacturing industries," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 12(1), pages 1-26, December.
    17. Wen-Chi Yang & Wen-Min Lu & Alagu Perumal Ramasamy, 2021. "International Environmental Efficiency Trends and the Impact of the Paris Agreement," Energies, MDPI, vol. 14(15), pages 1-16, July.
    18. Yu-Ying Lin, Eugene & Chen, Ping-Yu & Chen, Chi-Chung, 2013. "Measuring green productivity of country: A generlized metafrontier Malmquist productivity index approach," Energy, Elsevier, vol. 55(C), pages 340-353.
    19. Juan Aparicio & Javier Barbero & Magdalena Kapelko & Jesus T. Pastor & Jose L. Zofio, 2016. "Environmental Productivity Change in World Air Emissions: A new Malmquist-Luenberger Index Approach," JRC Research Reports JRC104083, Joint Research Centre.
    20. Li, Mingquan & Wang, Qi, 2014. "International environmental efficiency differences and their determinants," Energy, Elsevier, vol. 78(C), pages 411-420.
    21. George Halkos & Nickolaos Tzeremes, 2014. "Measuring the effect of Kyoto protocol agreement on countries’ environmental efficiency in CO 2 emissions: an application of conditional full frontiers," Journal of Productivity Analysis, Springer, vol. 41(3), pages 367-382, June.
    22. Nikos Chatzistamoulou & Kostas Kounetas, 2023. "Tracing green growth through industrial resource efficiency patterns: The role of competitiveness and clean technologies," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(7), pages 4011-4026, October.
    23. Kounetas, Konstantinos & Zervopoulos, Panagiotis D., 2019. "A cross-country evaluation of environmental performance: Is there a convergence-divergence pattern in technology gaps?," European Journal of Operational Research, Elsevier, vol. 273(3), pages 1136-1148.
    24. Wen-Chi Yang & Wen-Min Lu, 2023. "Achieving Net Zero—An Illustration of Carbon Emissions Reduction with A New Meta-Inverse DEA Approach," IJERPH, MDPI, vol. 20(5), pages 1-20, February.

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