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The good, the bad and the ugly? Balancing environmental and economic impacts towards efficiency

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  • Halkos, George
  • Polemis, Michael

Abstract

This paper estimates the efficiency of the power generation sector in the USA by using Window Data Envelopment Analysis (W-DEA). We integrate radial and non-radial efficiency measurements in DEA using the hybrid measure while we extend the proposed model by considering inputs and good and bad outputs as separable and non separable. Then in the second stage analysis we perform various econometric techniques (parametric and non-parametric) in order to model the relationship between the calculated environmental efficiencies and economic growth in attaining sustainability. Our empirical findings indicate an N-shape relationship between environmental efficiency and regional economic growth in the case of global and total pollutants but an inverted N-shape in the case of assessing local pollutants and using the appropriate dynamic specification. This implies that attention is required when considering local and global pollutants and the extracted environmental efficiencies.

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  • Halkos, George & Polemis, Michael, 2016. "The good, the bad and the ugly? Balancing environmental and economic impacts towards efficiency," MPRA Paper 72132, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:72132
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    Cited by:

    1. Michael L. Polemis, 2018. "Revisiting the Environmental Kuznets Curve: a semi-parametric analysis on the role of market structure on environmental pollution," Letters in Spatial and Resource Sciences, Springer, vol. 11(1), pages 27-35, March.
    2. Halkos, George & Bampatsou, Christina, 2016. "Driving forces of different productivity models," MPRA Paper 75398, University Library of Munich, Germany.
    3. Halkos, George & Bampatsou, Christina, 2017. "Technical efficiency, productivity change and environmental degradation," MPRA Paper 77176, University Library of Munich, Germany.
    4. Halkos, George & Polemis, Michael, 2016. "Examining the impact of financial development on the environmental Kuznets curve hypothesis," MPRA Paper 75368, University Library of Munich, Germany.
    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. George E. Halkos & Michael L. Polemis, 2017. "Does Financial Development Affect Environmental Degradation? Evidence from the OECD Countries," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1162-1180, December.
    7. 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

    Energy; Efficiency; Sustainability; Window DEA; Electricity; EKC hypothesis; USA.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • 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

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