IDEAS home Printed from https://ideas.repec.org/a/tei/journl/v2y2009i2p65-86.html
   My bibliography  Save this article

The use of the DEA method for simultaneous analysis of the interrelationships among economic growth, environmental pollution and energy consumption

Author

Listed:
  • Christina Bampatsou

    (Democritus University of Thrace, Greece)

  • George Hadjiconstantinou

    (Democritus University of Thrace, Greece)

Abstract

In this study Data Envelopment Analysis (DEA) is used not only to develop an efficiency index which combines economic activity, CO2 emissions and energy consumption of the production process in the 31 countries of Europe for the year 2004, but also to make estimates about the margins of long term increase or decrease in the consumption levels of exhaustible energy resources of a selected sample (Switzerland, Greece, United Kingdom, and Luxembourg) of European countries (out of 31) which belong to the high income group of OECD members.As shown, each country can achieve better TE when its increased economic activity is combined with improved ecological performance. It can be noticed from the analysis that the developed economies that tend to stabilize their environmental degradation through time (Switzerland), as the GDP (per capita GDP) increases, ensure satisfactory margins for the increase in the consumption of the ‘dirty’ energy index (DEI) in the long term, and thus contribute to sustainable economic development. This fact is significantly different in countries showing either intense deterioration (Greece) or temporary improvement (United Kingdom, Luxemburg) in the pollution levels without any indications of a temperate stabilization of environmental degradation

Suggested Citation

  • Christina Bampatsou & George Hadjiconstantinou, 2009. "The use of the DEA method for simultaneous analysis of the interrelationships among economic growth, environmental pollution and energy consumption," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 2(2), pages 65-86, December.
    • Handle: RePEc:tei:journl:v:2:y:2009:i:2:p:65-86
    as

    Download full text from publisher

    File URL: http://ijbesar.teiemt.gr/docs/volume2_issue2/dea.pdf
    Download Restriction: no
    File URL: http://ijbesar.teiemt.gr/volume2_issue2.php
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daly, Herman E., 1992. "Allocation, distribution, and scale: towards an economics that is efficient, just, and sustainable," Ecological Economics, Elsevier, vol. 6(3), pages 185-193, December.
    2. Wagner, Jeffrey, 2006. "On the economics of sustainability," Ecological Economics, Elsevier, vol. 57(4), pages 659-664, June.
    3. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    4. Fare, Rolf & Grosskopf, Shawna, 2004. "Modeling undesirable factors in efficiency evaluation: Comment," European Journal of Operational Research, Elsevier, vol. 157(1), pages 242-245, August.
    5. 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.
    6. Golany, Boaz & Thore, Sten, 1997. "The Economic and Social Performance of Nations: Efficiency and Returns to Scale," Socio-Economic Planning Sciences, Elsevier, vol. 31(3), pages 191-204, September.
    7. R. Ramanathan, 2002. "Combining indicators of energy consumption and CO 2 emissions: a cross-country comparison," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 17(3), pages 214-227.
    8. Richard Schmalensee & Thomas M. Stoker & Ruth A. Judson, 1998. "World Carbon Dioxide Emissions: 1950-2050," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 15-27, February.
    9. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, November.
    10. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    11. Christensen, Paul P., 1989. "Historical roots for ecological economics -- Biophysical versus allocative approaches," Ecological Economics, Elsevier, vol. 1(1), pages 17-36, February.
    12. Lozano, Sebastián & Gutiérrez, Ester, 2008. "Non-parametric frontier approach to modelling the relationships among population, GDP, energy consumption and CO2 emissions," Ecological Economics, Elsevier, vol. 66(4), pages 687-699, July.
    13. Fare, Rolf, et al, 1989. "Multilateral Productivity Comparisons When Some Outputs Are Undesirable: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 90-98, February.
    14. Seiford, Lawrence M. & Zhu, Joe, 2002. "Modeling undesirable factors in efficiency evaluation," European Journal of Operational Research, Elsevier, vol. 142(1), pages 16-20, October.
    15. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2006. "Introduction to Data Envelopment Analysis and Its Uses," Springer Books, Springer, number 978-0-387-29122-2, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Khalid Mehmood & Yaser Iftikhar & Shouming Chen & Shaheera Amin & Alia Manzoor & Jinlong Pan, 2020. "Analysis of Inter-Temporal Change in the Energy and CO 2 Emissions Efficiency of Economies: A Two Divisional Network DEA Approach," Energies, MDPI, vol. 13(13), pages 1-17, June.
    2. Christina Bampatsou & George Halkos & Andreas Dimou, 2017. "Determining economic productivity under environmental and resource pressures: an empirical application," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-16, December.
    3. Chai, Jingxia & Wu, Haitao & Hao, Yu, 2022. "Planned economic growth and controlled energy demand: How do regional growth targets affect energy consumption in China?," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    4. Anna Łozowicka, 2020. "Evaluation of the Efficiency of Sustainable Development Policy Implementation in Selected EU Member States Using DEA. The Ecological Dimension," Sustainability, MDPI, vol. 12(1), pages 1-17, January.
    5. Makridou, Georgia & Andriosopoulos, Kostas & Doumpos, Michael & Zopounidis, Constantin, 2016. "Measuring the efficiency of energy-intensive industries across European countries," Energy Policy, Elsevier, vol. 88(C), pages 573-583.
    6. Iftikhar, Yaser & Wang, Zhaohua & Zhang, Bin & Wang, Bo, 2018. "Energy and CO2 emissions efficiency of major economies: A network DEA approach," Energy, Elsevier, vol. 147(C), pages 197-207.
    7. Bampatsou, Christina & Papadopoulos, Savas & Zervas, Efthimios, 2013. "Technical efficiency of economic systems of EU-15 countries based on energy consumption," Energy Policy, Elsevier, vol. 55(C), pages 426-434.
    8. Annageldy Arazmuradov, 2016. "Economic prospect on carbon emissions in Commonwealth of Independent States," Economic Change and Restructuring, Springer, vol. 49(4), pages 395-427, November.
    9. Halkos, George & Bampatsou, Christina, 2016. "Investigating the effect of efficiency and technical changes on productivity," MPRA Paper 76287, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "A survey of data envelopment analysis in energy and environmental studies," European Journal of Operational Research, Elsevier, vol. 189(1), pages 1-18, August.
    2. Taleb, Mushtaq & Khalid, Ruzelan & Ramli, Razamin & Ghasemi, Mohammad Reza & Ignatius, Joshua, 2022. "An integrated bi-objective data envelopment analysis model for measuring returns to scale," European Journal of Operational Research, Elsevier, vol. 296(3), pages 967-979.
    3. Bian, Yiwen & Yang, Feng, 2010. "Resource and environment efficiency analysis of provinces in China: A DEA approach based on Shannon's entropy," Energy Policy, Elsevier, vol. 38(4), pages 1909-1917, April.
    4. Atkinson, Scott E. & Tsionas, Mike G., 2021. "Generalized estimation of productivity with multiple bad outputs: The importance of materials balance constraints," European Journal of Operational Research, Elsevier, vol. 292(3), pages 1165-1186.
    5. Zhou, Peng & Poh, Kim Leng & Ang, Beng Wah, 2007. "A non-radial DEA approach to measuring environmental performance," European Journal of Operational Research, Elsevier, vol. 178(1), pages 1-9, April.
    6. César Salazar & Roberto Cárdenas-Retamal & Marcela Jaime, 2023. "Environmental efficiency in the salmon industry—an exploratory analysis around the 2007 ISA virus outbreak and subsequent regulations in Chile," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8107-8135, August.
    7. George Halkos & George Papageorgiou, 2016. "Spatial environmental efficiency indicators in regional waste generation: a nonparametric approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 59(1), pages 62-78, January.
    8. Sun, Jiasen & Yuan, Yang & Yang, Rui & Ji, Xiang & Wu, Jie, 2017. "Performance evaluation of Chinese port enterprises under significant environmental concerns: An extended DEA-based analysis," Transport Policy, Elsevier, vol. 60(C), pages 75-86.
    9. Chu, Junfei & Shao, Caifeng & Emrouznejad, Ali & Wu, Jie & Yuan, Zhe, 2021. "Performance evaluation of organizations considering economic incentives for emission reduction: A carbon emission permit trading approach," Energy Economics, Elsevier, vol. 101(C).
    10. Jie Wu & Qingyuan Zhu & Pengzhen Yin & Malin Song, 2017. "Measuring energy and environmental performance for regions in China by using DEA-based Malmquist indices," Operational Research, Springer, vol. 17(3), pages 715-735, October.
    11. Chiu, Yung-Ho & Lee, Jen-Hui & Lu, Ching-Cheng & Shyu, Ming-Kuang & Luo, Zhengying, 2012. "The technology gap and efficiency measure in WEC countries: Application of the hybrid meta frontier model," Energy Policy, Elsevier, vol. 51(C), pages 349-357.
    12. Cordero Ferrera, Jose Manuel & Alonso Morán, Edurne & Nuño Solís, Roberto & Orueta, Juan F. & Souto Arce, Regina, 2013. "Efficiency assessment of primary care providers: A conditional nonparametric approach," MPRA Paper 51926, University Library of Munich, Germany.
    13. Wang, Ke & Wei, Yi-Ming & Huang, Zhimin, 2018. "Environmental efficiency and abatement efficiency measurements of China's thermal power industry: A data envelopment analysis based materials balance approach," European Journal of Operational Research, Elsevier, vol. 269(1), pages 35-50.
    14. Pierrick Jan & Markus Lips & Michel Dumondel, 2010. "Technical efficiency of Swiss dairy farms locat-ed in the mountain area considering both eco-nomic and environmental resources," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 3(1), pages 39-76.
    15. Ke Wang & Yi-Ming Wei & Zhimin Huang, 2017. "Environmental efficiency and abatement efficiency measurements of China¡¯s thermal power industry: A data envelopment analysis based materials balance approach," CEEP-BIT Working Papers 108, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    16. Chang, Young-Tae & Zhang, Ning & Danao, Denise & Zhang, Nan, 2013. "Environmental efficiency analysis of transportation system in China: A non-radial DEA approach," Energy Policy, Elsevier, vol. 58(C), pages 277-283.
    17. Pérez, Karen & González-Araya, Marcela C. & Iriarte, Alfredo, 2017. "Energy and GHG emission efficiency in the Chilean manufacturing industry: Sectoral and regional analysis by DEA and Malmquist indexes," Energy Economics, Elsevier, vol. 66(C), pages 290-302.
    18. Halkos, George & Tzeremes, Nickolaos, 2011. "Does the Kyoto Protocol Agreement matters? An environmental efficiency analysis," MPRA Paper 30652, University Library of Munich, Germany.
    19. Cook, Wade D. & Seiford, Larry M., 2009. "Data envelopment analysis (DEA) - Thirty years on," European Journal of Operational Research, Elsevier, vol. 192(1), pages 1-17, January.
    20. Pyoungsoo Lee & You-Jin Park, 2017. "Eco-Efficiency Evaluation Considering Environmental Stringency," Sustainability, MDPI, vol. 9(4), pages 1-18, April.

    More about this item

    Keywords

    Technical Efficiency index; Sustainability; Energy Consumption; Environmental Pollution; Economic Development; DEA; Future Estimations;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tei:journl:v:2:y:2009:i:2:p:65-86. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kostas Stergidis (email available below). General contact details of provider: https://edirc.repec.org/data/dbikagr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.