Environmental Efficiency of European Industries across Sectors and Countries

Stergiou, Eirini (2022): Environmental Efficiency of European Industries across Sectors and Countries.

Abstract

Green growth is recognized as the fundamental development strategy in Europe due to the immense pressure of environmental pollution, economic growth and energy usage. In this study, a non-radial directional distance function is used to measure environmental efficiency (ENE) of 54 industries from 28 European countries across the three sectors of an economy over the 2000-2014 period. The complexity of heterogeneity is examined by incorporating the metafrontier approach under distinct group frontiers. The results reveal that industries present higher levels of environmental efficiency within their sectors while manufacturing industries achieved the lowest progress in environmental efficiency. Thus, it is critical to introduce and implement sector-oriented policies rather than common guidelines for all European countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: Environmental efficiency, Directional distance function, Metafrontier, Heterogeneity, European industries
• Subjects: C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics > C44 - Operations Research ; Statistical Decision Theory; D - Microeconomics > D2 - Production and Organizations > D29 - Other; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L23 - Organization of Production; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General > Q01 - Sustainable Development; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q57 - Ecological Economics: Ecosystem Services ; Biodiversity Conservation ; Bioeconomics ; Industrial Ecology

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