Measuring the Effect of Economic Growth on Countries’ Environmental Efficiency

A Conditional Directional Distance Function Approach

George E. Halkos, Shunsuke Managi

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

Using a recently developed probabilistic approach of a conditional directional distance function, we measure the effect of economic growth on countries’ environmental efficiency in carbon dioxide emissions for a sample of 99 countries over the period of 1980–2010. Our approach directly accounts for the exogenous factors influencing countries’ environmental production; therefore, we do not impose the separability condition on the estimated environmental efficiencies. When examining the entire sample as well as the sample of developed countries, our results reveal an inverted U-shaped relationship between countries’ GDP per capita and environmental efficiency. However, when examining the relationship for the sample of developing countries, the results reveal an N-shaped form. Moreover, our results show that countries ratifying the Kyoto Protocol tend to have higher efficiency scores, implying that their mitigation activity is less costly.

Original languageEnglish
Pages (from-to)753-775
Number of pages23
JournalEnvironmental and Resource Economics
Volume68
Issue number3
DOIs
Publication statusPublished - Nov 1 2017

Fingerprint

economic growth
Economics
Kyoto Protocol
Gross Domestic Product
mitigation
carbon dioxide
developing world
Developing countries
Carbon dioxide
effect
measuring
Directional distance function
Economic growth
Environmental efficiency
developed country

All Science Journal Classification (ASJC) codes

  • Aerospace Engineering
  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

Cite this

@article{135d6da8e210484f9e1352ce929dcedd,
title = "Measuring the Effect of Economic Growth on Countries’ Environmental Efficiency: A Conditional Directional Distance Function Approach",
abstract = "Using a recently developed probabilistic approach of a conditional directional distance function, we measure the effect of economic growth on countries’ environmental efficiency in carbon dioxide emissions for a sample of 99 countries over the period of 1980–2010. Our approach directly accounts for the exogenous factors influencing countries’ environmental production; therefore, we do not impose the separability condition on the estimated environmental efficiencies. When examining the entire sample as well as the sample of developed countries, our results reveal an inverted U-shaped relationship between countries’ GDP per capita and environmental efficiency. However, when examining the relationship for the sample of developing countries, the results reveal an N-shaped form. Moreover, our results show that countries ratifying the Kyoto Protocol tend to have higher efficiency scores, implying that their mitigation activity is less costly.",
author = "Halkos, {George E.} and Shunsuke Managi",
year = "2017",
month = "11",
day = "1",
doi = "10.1007/s10640-016-0046-y",
language = "English",
volume = "68",
pages = "753--775",
journal = "Environmental and Resource Economics",
issn = "0924-6460",
publisher = "Springer Netherlands",
number = "3",

}

TY - JOUR

T1 - Measuring the Effect of Economic Growth on Countries’ Environmental Efficiency

T2 - A Conditional Directional Distance Function Approach

AU - Halkos, George E.

AU - Managi, Shunsuke

PY - 2017/11/1

Y1 - 2017/11/1

N2 - Using a recently developed probabilistic approach of a conditional directional distance function, we measure the effect of economic growth on countries’ environmental efficiency in carbon dioxide emissions for a sample of 99 countries over the period of 1980–2010. Our approach directly accounts for the exogenous factors influencing countries’ environmental production; therefore, we do not impose the separability condition on the estimated environmental efficiencies. When examining the entire sample as well as the sample of developed countries, our results reveal an inverted U-shaped relationship between countries’ GDP per capita and environmental efficiency. However, when examining the relationship for the sample of developing countries, the results reveal an N-shaped form. Moreover, our results show that countries ratifying the Kyoto Protocol tend to have higher efficiency scores, implying that their mitigation activity is less costly.

AB - Using a recently developed probabilistic approach of a conditional directional distance function, we measure the effect of economic growth on countries’ environmental efficiency in carbon dioxide emissions for a sample of 99 countries over the period of 1980–2010. Our approach directly accounts for the exogenous factors influencing countries’ environmental production; therefore, we do not impose the separability condition on the estimated environmental efficiencies. When examining the entire sample as well as the sample of developed countries, our results reveal an inverted U-shaped relationship between countries’ GDP per capita and environmental efficiency. However, when examining the relationship for the sample of developing countries, the results reveal an N-shaped form. Moreover, our results show that countries ratifying the Kyoto Protocol tend to have higher efficiency scores, implying that their mitigation activity is less costly.

UR - http://www.scopus.com/inward/record.url?scp=84976402529&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84976402529&partnerID=8YFLogxK

U2 - 10.1007/s10640-016-0046-y

DO - 10.1007/s10640-016-0046-y

M3 - Article

VL - 68

SP - 753

EP - 775

JO - Environmental and Resource Economics

JF - Environmental and Resource Economics

SN - 0924-6460

IS - 3

ER -