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The Contribution of Pollution to Productivity Growth

Author

Listed:
  • Pantelis Kalaitzidakis

    () (University of Crete, Greece and The Rimini Centre for Economic Analysis, Rimini, Italy)

  • Theofanis P. Mamuneas

    () (University of Cyprus, Cyprus and The Rimini Centre for Economic Analysis, Rimini, Italy)

  • Thanasis Stengos

    () (University of Guelph, Canada and The Rimini Centre for Economic Analysis, Rimini, Italy)

Abstract

In this paper we examine the effect of pollution, as measured by CO2 emissions, on economic growth among a set of OECD countries during the period 1981-1998. We examine the relationship between total factor productivity (TFP) growth and pollution using a semiparametric smooth coefficient model that allow us to directly estimate the output elasticity of pollution. The results indicate that there exists a nonlinear relationship between pollution and TFP growth. The output elasticity of pollution is small with an average sample value of 0.008. In addition we find an average contribution of pollution to productivity growth of about 1 percent for the period 1981-1998. JEL Classifications: C14, O13, O40

Suggested Citation

  • Pantelis Kalaitzidakis & Theofanis P. Mamuneas & Thanasis Stengos, 2008. "The Contribution of Pollution to Productivity Growth," Working Paper series 06_08, Rimini Centre for Economic Analysis.
  • Handle: RePEc:rim:rimwps:06_08
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    References listed on IDEAS

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    Cited by:

    1. Shiyi Chen & Amelia U. Santos-Paulino, 2010. "Energy Consumption and Carbon Emission-Based Productivity Change and Industrialization in Post-Reform China," WIDER Working Paper Series wp-2010-078, World Institute for Development Economic Research (UNU-WIDER).
    2. Lal, Amant, 2009. "An Empirical Time Series Model of Economic Growth and Environment," MPRA Paper 66475, University Library of Munich, Germany.
    3. Vangelis Tzouvelekas & Dimitra Vouvaki & Anastasios Xepapadeas, 2006. "Total Factor Productivity Growth and the Environment: A Case for Green Growth Accounting," Working Papers 0617, University of Crete, Department of Economics.

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    More about this item

    Keywords

    TFP Growth; Pollution; Semiparametric Estimation;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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