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Economic growth and environmental efficiency: Evidence from U.S. regions

Halkos, George and Tzeremes, Nickolaos (2012): Economic growth and environmental efficiency: Evidence from U.S. regions.

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Abstract

This paper proposes a conditional directional distance function model in order to examine the link between regional environmental efficiency and GDP per capita levels. As an illustrative example we apply our model to USA regional data revealing an inverted ‘U’ shape relationship between regional environmental efficiency and per capita income. The results derived from a non-parametric regression indicate a turning point at 49,000 dollars.

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