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Examining the drivers of total factor productivity change with an illustrative example of 14 EU countries

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  • Mahlberg, Bernhard
  • Luptacik, Mikulas
  • Sahoo, Biresh K.

Abstract

Based on the different models developed by Korhonen and Luptacik [Korhonen, P., Luptacik, M., 2004. Eco-efficiency analysis of power plants: An extension of data envelopment analysis. European Journal of Operational Research 154, 437–46], this contribution centers on the development of an intertemporal comparison in order to analyze eco-efficiency change over time. In this setup two model variants by Korhonen and Luptacik (2004) are used in order to provide deeper insights concerning the driving forces for the change in the eco-efficiency. Which bias in technical change can be observed? Is it more input-saving or pollution-reducing? For illustration purposes the proposed approach is used to analyze the performance of 14 countries of the European Union for the period 1995–2004. An average eco-productivity growth of 22% is observed. The estimated contribution of improved use of input is 20% and that of reduced relation of greenhouse gas emissions is 23%. Therefore it is concluded that, on average, the eco-productivity growth is more driven by improved environmental conditions.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:ecolec:v:72:y:2011:i:c:p:60-69
    DOI: 10.1016/j.ecolecon.2011.10.001
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Juan Aparicio & Magdalena Kapelko & Bernhard Mahlberg & Jose L. Sainz-Pardo, 2017. "Measuring input-specific productivity change based on the principle of least action," Journal of Productivity Analysis, Springer, vol. 47(1), pages 17-31, February.
    3. Mikulas Luptácik & Eduard Nežinský & Martin Lábaj, 2015. "Drivers of the change in social welfare," WWWforEurope Working Papers series 105, WWWforEurope.
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    5. Dakpo, K & Jeanneaux, Philippe & Latruffee, Laure, 2015. "Empirical comparison of pollution generating technologies in nonparametric modelling: The case of greenhouse gas emissions in French sheep meat farming," 2015 Conference, August 9-14, 2015, Milan, Italy 211557, International Association of Agricultural Economists.
    6. repec:eee:proeco:v:189:y:2017:i:c:p:30-39 is not listed on IDEAS
    7. Leleu, Hervé, 2013. "Shadow pricing of undesirable outputs in nonparametric analysis," European Journal of Operational Research, Elsevier, vol. 231(2), pages 474-480.
    8. Shen, Zhiyang & Boussemart, Jean-Philippe & Leleu, Hervé, 2017. "Aggregate green productivity growth in OECD’s countries," International Journal of Production Economics, Elsevier, vol. 189(C), pages 30-39.
    9. Mahlberg, Bernhard & Luptacik, Mikulas, 2014. "Eco-efficiency and eco-productivity change over time in a multisectoral economic system," European Journal of Operational Research, Elsevier, vol. 234(3), pages 885-897.
    10. Andrés J. Picazo-Tadeo & Juana Castillo & Mercedes Beltrán-Esteve, 2013. "A dynamic approach to measuring ecological-economic performance with directional distance functions: greenhouse gas emissions in the European Union," Working Papers 1304, Department of Applied Economics II, Universidad de Valencia.
    11. Yang, Fuxia & Yang, Mian & Nie, Hualin, 2013. "Productivity trends of Chinese regions: A perspective from energy saving and environmental regulations," Applied Energy, Elsevier, vol. 110(C), pages 82-89.
    12. Eduard Nezinsky, 2014. "Eco-efficiency and convergence," Department of Economic Policy Working Paper Series 008, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.
    13. repec:ers:journl:v:xx:y:2017:i:3a:p:920-930 is not listed on IDEAS
    14. Zhang, Zibin & Ye, Jianliang, 2015. "Decomposition of environmental total factor productivity growth using hyperbolic distance functions: A panel data analysis for China," Energy Economics, Elsevier, vol. 47(C), pages 87-97.
    15. Wang, Ke & Zhang, Xian & Yu, Xueying & Wei, Yi-Ming & Wang, Bin, 2016. "Emissions trading and abatement cost savings: An estimation of China's thermal power industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 1005-1017.
    16. M. Lábaj & M. Luptáčik & E. Nežinský, 2014. "Data envelopment analysis for measuring economic growth in terms of welfare beyond GDP," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 407-424, August.
    17. repec:eee:ejores:v:269:y:2018:i:1:p:171-187 is not listed on IDEAS
    18. repec:eee:eneeco:v:66:y:2017:i:c:p:279-289 is not listed on IDEAS
    19. Jeanneaux, Philippe & Latruffe, Laure, 2016. "Modelling pollution-generating technologies in performance benchmarking: Recent developments, limits and future prospects in the nonparametric frameworkAuthor-Name: Dakpo, K. Hervé," European Journal of Operational Research, Elsevier, vol. 250(2), pages 347-359.
    20. Halkos, George & Bampatsou, Christina, 2016. "Driving forces of different productivity models," MPRA Paper 75398, University Library of Munich, Germany.
    21. Martin Lábaj & Mikuláš Luptáèik & Eduard Nežinský, 2013. "Data Envelopment Analysis for Measuring of Economic Growth in Terms of Welfare Beyond GDP," Department of Economic Policy Working Paper Series 002, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.
    22. Halkos, George & Bampatsou, Christina, 2017. "Technical efficiency, productivity change and environmental degradation," MPRA Paper 77176, University Library of Munich, Germany.
    23. Eduard Nezinsky, 2014. "Determining drivers of eco-efficiency: decomposition method," Department of Economic Policy Working Paper Series 007, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.
    24. Halkos, George & Bampatsou, Christina, 2016. "Investigating the effect of efficiency and technical changes on productivity," MPRA Paper 76287, University Library of Munich, Germany.
    25. Tomas Baležentis, 2015. "The Sources of the Total Factor Productivity Growth in Lithuanian Family Farms: A Färe-Primont Index Approach," Prague Economic Papers, University of Economics, Prague, vol. 2015(2), pages 225-241.

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