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Closing the gap? Dynamic analyses of emission efficiency and sector productivity in Europe

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  • Giovanni Marin

    () (IMT Lucca Institute for Advanced Studies)

Abstract

This paper investigates the patterns of emission efficiency (value added per emission) growth of 23 manufacturing sectors in 12 European countries with a focus on five emissions (CO2, NOx, NMVOC, SOx and CO). Emission efficiency growth is expected to be triggered by improvements in the efficiency of frontier countries through the diffusion of better technologies to laggard countries. This effect is likely to differ according to the distance from the frontier country. Finally, the role of productivity patterns (Total Factor Productivity) and energy prices dynamics is assessed. Results based on the European NAMEA (National Accounting Matrix including Environmental Accounts) further merged with sector accounts highlight significant spillovers from leaders in emission efficiency and a general tendency to converge for laggard countries and sectors (except for NMVOC emission efficiency). Energy prices weakly induce improvements in emission efficiency, with the effect being generally stronger for sectors and countries farther away from the emission efficiency frontier. Finally, total factor productivity (TFP) is strongly correlated with emission efficiency while the distance from TFP frontier significantly harms emission efficiency growth.

Suggested Citation

  • Giovanni Marin, 2012. "Closing the gap? Dynamic analyses of emission efficiency and sector productivity in Europe," Working Papers 2/2012, IMT Institute for Advanced Studies Lucca, revised May 2012.
  • Handle: RePEc:ial:wpaper:2/2012
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    File URL: http://eprints.imtlucca.it/1278/1/EIC_WP_2.pdf
    File Function: First version, 2012
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    More about this item

    Keywords

    convergence; environmental efficiency; NAMEA; technological diffusion;

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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