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A metafrontier approach for measuring an environmentally sensitive productivity growth index

  • Oh, Dong-hyun

This paper presents an alternative environmentally sensitive productivity growth index to incorporate group heterogeneities into a conventional Malmquist-Luenberger productivity growth index. The proposed approach allows the calculation of both efficiency and technical changes, for economic agents operating under different technologies. Moreover, it also enables the computation of changes in the technological gap between regional and global frontier technologies. The proposed index is employed in measuring productivity growth and its decomposed components in 46 countries between 1993 and 2003. The main finding is that Europe has taken the lead in the world frontier technology and that Asia has attempted to move towards the frontier technology. Subsequent policy implications are provided based on some empirical studies.

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Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 32 (2010)
Issue (Month): 1 (January)
Pages: 146-157

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Handle: RePEc:eee:eneeco:v:32:y:2010:i:1:p:146-157
Contact details of provider: Web page: http://www.elsevier.com/locate/eneco

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  1. Fare, Rolf & Grosskopf, Shawna & Weber, William L., 2006. "Shadow prices and pollution costs in U.S. agriculture," Ecological Economics, Elsevier, vol. 56(1), pages 89-103, January.
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  8. Yoruk, BarIs K. & Zaim, Osman, 2005. "Productivity growth in OECD countries: A comparison with Malmquist indices," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 401-420, June.
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  10. Fare, Rolf & Grosskopf, Shawna & Noh, Dong-Woon & Weber, William, 2005. "Characteristics of a polluting technology: theory and practice," Journal of Econometrics, Elsevier, vol. 126(2), pages 469-492, June.
  11. George Battese & D. Rao & Christopher O'Donnell, 2004. "A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies," Journal of Productivity Analysis, Springer, vol. 21(1), pages 91-103, January.
  12. George E. Battese & D. S. Prasada Rao, 2002. "Technology Gap, Efficiency, and a Stochastic Metafrontier Function," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 1(2), pages 87-93, August.
  13. Kumar, Surender, 2006. "Environmentally sensitive productivity growth: A global analysis using Malmquist-Luenberger index," Ecological Economics, Elsevier, vol. 56(2), pages 280-293, February.
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