A New Index of Environmental Quality Based on Greenhouse Gas Emissions
A weighting scheme is proposed to construct a new index of environmental quality based on greenhouse gas (GHG) emissions for different countries using an approach that relies on consistent tests for stochastic dominance (SD) efficiency. The benchmark is an index that is based on the average actual contributions of the respective GHG emission types to the total. Our index stochastically dominates the chosen benchmark and allows us to gure out the “worst” and “best” case scenarios, where environmental degradation is at its maximum and minimum, respectively. If a common global action were to be taken by all countries involved, these scenarios would correspond to the most and least effective possible actions, respectively, that could be undertaken when compared to the benchmark. Then, countries are ranked and their rankings are compared with alternative rankings (e.g., the Kyoto Protocol, Annex I, and the Environmental Sustainability Index, ESI). The test statistics and the estimators are computed using mixed integer programming methods. Then, employing a complementary SD approach, pairwise SD tests are employed to examine the dynamic progress of each separate GHG emission (i.e.,CO2, methane, nitrous oxide, and other GHG emissions) over time, from 1990 to 2005, within 5-year horizons. Pairwise SD tests are used to examine the major industry contributors to the GHG emissions at any given time and to uncover the industry which contributes the most to total emissions.
|Date of creation:||Jan 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.rcfea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:oup:renvpo:v:6:y::i:1:p:45-64 is not listed on IDEAS
- Nikolas Topaloglou & Olivier Scaillet & University of Geneva, 2006.
"Testing foe Stochastic Dominance Efficiency,"
Computing in Economics and Finance 2006
74, Society for Computational Economics.
- Garry F. Barrett & Stephen G. Donald, 2003. "Consistent Tests for Stochastic Dominance," Econometrica, Econometric Society, vol. 71(1), pages 71-104, January.
- Burtraw, Dallas & Palmer, Karen, 2005.
"Cost-Effectiveness of Renewable Electricity Policies,"
dp-05-01, Resources For the Future.
- Palmer, Karen & Burtraw, Dallas, 2005. "Cost-effectiveness of renewable electricity policies," Energy Economics, Elsevier, vol. 27(6), pages 873-894, November.
- Kenneth J. Arrow & Partha Dasgupta & Lawrence H. Goulder & Kevin J. Mumford & Kirsten Oleson, 2010.
"Sustainability and the Measurement of Wealth,"
NBER Working Papers
16599, National Bureau of Economic Research, Inc.
- Mehmet Pinar & Thanasis Stengos & Nikolas Topaloglou, 2013.
"Measuring human development: a stochastic dominance approach,"
Journal of Economic Growth,
Springer, vol. 18(1), pages 69-108, March.
- Mehmet Pinar & Thanasis Stengos & Nikolas Topaloglou, 2012. "Measuring Human Development: A Stochastic Dominance Approach," Working Paper Series 42_12, The Rimini Centre for Economic Analysis.
- Mehmet Pinar & Thanasis Stengos & Nikolas Topaloglou, 2012. "Measuring human development: a stochastic dominance approach," Working Papers 1209, University of Guelph, Department of Economics and Finance.
- Agliardi, Elettra & Agliardi, Rossella & Pinar, Mehmet & Stengos, Thanasis & Topaloglou, Nikolas, 2012. "A new country risk index for emerging markets: A stochastic dominance approach," Journal of Empirical Finance, Elsevier, vol. 19(5), pages 741-761.
- Davidson, R. & Duclos, J.-Y., 1998.
"Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality,"
98a14, Universite Aix-Marseille III.
- Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
- Davidson, Russell & Duclos, Jean-Yves, 1998. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Cahiers de recherche 9805, Université Laval - Département d'économique.
- Yan, Xiaoyu & Crookes, Roy J., 2009. "Reduction potentials of energy demand and GHG emissions in China's road transport sector," Energy Policy, Elsevier, vol. 37(2), pages 658-668, February.
- Elettra Agliardi, 2011. "Sustainability in Uncertain Economies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 48(1), pages 71-82, January.
- Kenneth Arrow & Partha Dasgupta & Lawrence Goulder & Gretchen Daily & Paul Ehrlich & Geoffrey Heal & Simon Levin & Karl-Göran Mäler & Stephen Schneider & David Starrett & Brian Walker, 2004. "Are We Consuming Too Much?," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 147-172, Summer.
- Richard Schmalensee, 2012. "Evaluating Policies to Increase Electricity Generation from Renewable Energy," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 6(1), pages 45-64.
- Hamilton, Kirk & Clemens, Michael, 1999. "Genuine Savings Rates in Developing Countries," World Bank Economic Review, World Bank Group, vol. 13(2), pages 333-56, May.
When requesting a correction, please mention this item's handle: RePEc:rim:rimwps:12_13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marco Savioli)
If references are entirely missing, you can add them using this form.