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An intertemporal approach to measuring environmental performance with directional distance functions: Greenhouse gas emissions in the European Union

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  • Picazo-Tadeo, Andrés J.
  • Castillo-Giménez, Juana
  • Beltrán-Esteve, Mercedes

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 (2008) [Dynamic environmental performance analysis: A Malmquist index approach. Ecological Economics 64, 701–715], we contribute an approach to assessing intertemporal environmental performance at the level of the management of specific pollutants, as the result of change in eco-efficiency and environmental technical change, which identify catching-up with best available environmental practices and eco-innovation, respectively. In doing so, we use Data Envelopment Analysis techniques, directional distance functions and Luenberger productivity indicators. Our approach is employed to assess environmental performance in the emission of greenhouse gases in the European Union-28 over the period 1990–2011. The main result is that environmental performance has been boosted by environmental technical change rather than by increases in eco-efficiency, although with certain differences among air pollutants. Accordingly, policy measures aimed at enhancing eco-efficiency are recommended to improve environmental performance in European countries regarding greenhouse gas emissions.

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  • Picazo-Tadeo, Andrés J. & Castillo-Giménez, Juana & Beltrán-Esteve, Mercedes, 2014. "An intertemporal approach to measuring environmental performance with directional distance functions: Greenhouse gas emissions in the European Union," Ecological Economics, Elsevier, vol. 100(C), pages 173-182.
    • Handle: RePEc:eee:ecolec:v:100:y:2014:i:c:p:173-182
    DOI: 10.1016/j.ecolecon.2014.02.004
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    More about this item

    Keywords

    Intertemporal environmental performance; Directional distance functions; Data Envelopment Analysis; Greenhouse gases emissions; European Union;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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