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

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  • 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), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 2(2), pages 65-86, December.
    • Handle: RePEc:tei:journl:v:2:y:2009:i:2:p:65-86
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    References listed on IDEAS

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    Cited by:

    1. 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).
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. Gulmira Mombekova & Murat Nurgabylov & Assel Baimbetova & Bektur Keneshbayev & Bibigul Izatullayeva, 2024. "The Relationship Between Energy Consumption, Population and Economic Growth in Developing Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 368-374, May.
    7. 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.
    8. 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.
    9. 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.
    10. Halkos, George & Bampatsou, Christina, 2016. "Investigating the effect of efficiency and technical changes on productivity," MPRA Paper 76287, University Library of Munich, Germany.

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    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

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