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Multilevel Quality of Government and eco-productivity convergence in Europe

Author

Listed:
  • Marc Aliana

    (Department of Finance and Accounting, Universitat Jaume I, Castellón, Spain)

  • Maria Teresa Balaguer-Coll

    (Department of Finance and Accounting, Universitat Jaume I, Castellón, Spain)

  • Diego Prior

    (Department of Business, Universitat Autònoma de Barcelona, Spain)

  • Emili Tortosa-Ausina

    (IVIE, Valencia and IIDL and Department of Economics, Universitat Jaume I, Castellón, Spain)

Abstract

This paper examines eco-productivity convergence across European Union regions while explicitly incorporating institutional quality within a multilevel governance framework. Using a panel of 216 NUTS-2 regions over the period 2010–2023, we analyse whether regions converge in their ability to generate economic output while limiting environmental pressures, and how this process is shaped by both national and regional Quality of Government (QoG). Ecoproductivity is measured using a nonparametric frontier approach based on Data Envelopment Analysis, with labour and capital as inputs, GDP as a desirable output, and Greenhouse Gas (GHG) emissions, transformed into an outputoriented ‘GHG savings’ indicator. The results show that average eco-productivity levels are around 8% higher when QoG is accounted for, cross-regional dispersion is considerably lower, and β-convergence is consistently stronger and statistically significant across all subperiods. Overall, eco-productivity convergence is associated with QoG, suggesting that sustainable regional catch-up is more likely where green investment is matched by improvements in institutional quality.

Suggested Citation

  • Marc Aliana & Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, 2026. "Multilevel Quality of Government and eco-productivity convergence in Europe," Working Papers 2026/05, Economics Department, Universitat Jaume I, Castellón (Spain).
    • Handle: RePEc:jau:wpaper:2026/05
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    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • 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
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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