Halkos, George and Tzeremes, Nickolaos (2011): Regional environmental efficiency and economic growth: NUTS2 evidence from Germany, France and the UK.
Download (427kB) | Preview
This paper by applying nonparametric techniques measures spatial environmental heterogeneities of 98 regions from Germany, France and the UK. Specifically environmental performance indexes are constructed for the 98 regions (NUTS 2 level) identifying their ability to produce higher growth rates and reduce pollution (in the form of municipal waste) generated from regional economic activity. By applying conditional stochastic kernels and local constant estimators it investigates the regional economic activity – environmental quality relationship. The results indicate several spatial environmental heterogeneities among the examined regions. It appears that regions with higher GDP per capita levels tend to have higher environmental performance.
|Item Type:||MPRA Paper|
|Original Title:||Regional environmental efficiency and economic growth: NUTS2 evidence from Germany, France and the UK|
|Keywords:||Regional environmental efficiency; directional distance function; conditional stochastic kernel; nonparametric regression|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q50 - General
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C60 - General
|Depositing User:||G.E. Halkos|
|Date Deposited:||25. Sep 2011 00:14|
|Last Modified:||31. Dec 2015 06:11|
Ali AI, Lerme CS, Seiford LM (1995) Components of efficiency evaluation in data envelopment analysis. European Journal of Operational Research 80: 462–473.
Andreoni J, Levinson A (2001) The simple analytics of the Environmental Kuznets Curve. Journal of Public Economics 80: 269–286.
Anselin L (2001) Spatial effects in econometric practice in environmental and resource economics. American Journal of Agricultural Economics 83:705-710.
Ansuategi A, Perrings C (2000) Transboundary externalities in the environmental transition hypothesis. Environmental and Resource Economics 17: 353–373.
Antweiler W, Copeland B, Taylor S (2001) Is free trade good for the environment? American Economic Review 91: 877– 908.
Batabyal AA, Nijkamp P (2004) The environment in regional science: An eclectic review. Papers in Regional Science 83: 291-316.
Bergh JCJM van den, Nijkamp P (1998) A multiregional perspective on growth and environment: The role of endogenous technology and trade. Annals of Regional Science 32: 115–131.
Bian Y, Yang F (2010) Resource and environment efficiency analysis of provinces in China: A DEA approach based on Shannon’s entropy. Energy Policy 38: 1909-1917.
Bockstael NE (1996) Modeling economics and ecology: The importance of a spatial perspective. American Journal of Agricultural Economics 78: 1168-1180.
Boles JN (1967) Efficiency squared—efficient computation of efficiency indexes, Western Farm Economic Association Proceedings 1966, 137–142.
Boles JN (1971) The 1130 Farrell efficiency system–multiple products, multiple factors. Giannini Foundation of Agricultural Economics, University of California, Berkeley, USA.
Bulte EH, van Soest DP (2001) Environmental degradation in developing countries: households and the (reverse) Environmental Kuznets Curve. Journal of Development Economics 65: 225–235.
Carson RT, Jeon Y, McCubbin DR (1997) The relationship between air pollution emissions and income:US data. Environment and Development Economics 2: 433-450.
Cavlovic T, Baker K, Berrens R, Gawande K (2000) A meta analysis of the Environmental Kuznets Curve studies. Agriculture and Resource Economics Review 29: 32–42.
Charnes A, Cooper WW, Rhodes EL (1978) Measuring the efficiency of decision making units. European Journal of Operational Research 2: 429-444.
Chung Y, Färe R, Grosskopf S (1997) Productivity and undesirable outputs: a directional function approach. Journal of Environmental Management 51: 229– 240.
Cropper ML, Oates WE (1992) Environmental economics: a survey. Journal of Economic Literature 30: 675–740.
Dasgupta S, Laplante B, Wang H, Wheeler D (2002) Confronting the Environmental Kuznets Curve. Journal of Economic Perspectives 16: 147– 168.
Dyckhoff H, Allen K (2001) Measuring ecological efficiency with data envelopment analysis. European Journal of Operational Research 132: 312–325.
Ekins P (1997) The Kuznets curve for environment and economic growth: examining the evidence. Environment and Planning A 29: 805–830.
Enflo K, Hjertstrand P (2009) Relative sources of European regional productivity convergence: a bootstrap frontier approach. Regional Studies 43: 643-659.
Färe R, Grosskopf S, Tyteca D (1996) An activity analysis model of the environment performance of firms: application to fossil-fuel-fired electric utilities. Ecological Economics 18: 161–175.
Färe R, Grosskopf S, Lovell CAK, Pasurka C (1989) Multilateral productivity comparisons when some outputs are undesirable: a nonparametric approach. Review of Economics and Statistics 71: 90–98.
Färe, R. and S. Grosskopf (2003), ‘Non-parametric Productivity Analysis with Undesirable Outputs: Comment’, American Journal of Agricultural Economics 85:1070–74.
Färe R, Grosskopf S (2004) Modeling undesirable factors in efficiency evaluation: Comment. European Journal of Operational Research 157: 242–245.
Färe R, Grosskopf S (2009) A Comment on Weak Disposability in Nonparametric Production Analysis. American Journal of Agricultural Economics 91: 535-538.
Färe R, Primont D (1995) Multi-Output Production and Duality: Theory and Applications. Kluwer Academic Publishers, Boston.
Färe R, Grosskopf S, Hernandez-Sancho F (2004) Environmental performance: an index number approach. Resource & Energy Economics 26: 343–352.
Färe R, Grosskopf S (2004) Modeling undesirable factors in efficiency evaluation: Comment. European Journal of Operational Research 157: 242-245.
Farrell M (1957) The measurement of productive efficiency. Journal of the Royal Statistical Society Series A 120: 253–281. Førsund FR, Sarafoglou N (2002) On the origins of Data Envelopment Analysis. Journal of the Productivity Analysis 17: 23-40.
Førsund FR, Kittelsen SAC, Krivonozhko VE (2009) Farrell revisited–Visualizing properties of DEA production frontiers. Journal of the Operational Research Society 60: 1535-1545.
Fotopoulos G (2006) Nonparametric analysis of regional income dynamics: The case of Greece. Economics Letters 91: 450-457.
Goodchild M, Anselin L, Appelbaum R, Harthorn BH (2000) Towards spatially integrated social science. International Regional Science Review 23: 139-159.
Grossman GM, Krueger AB (1991) Environmental impacts of a north American free trade agreement. NBER Working Paper 3914. NBER. Cambridge, MA.
Grossman GM, Krueger AB (1995) Economic growth and the environment. Quarterly Journal of Economics 33: 353-377.
Guo XD, Zhu L, Fan X, Xie BC (2011) Evaluation of potential reductions in carbon emissions in Chinese provinces based on environmental DEA. Energy Policy 39: 2352-2360.
Hailu A (2003) Non-parametric Productivity Analysis with Undesirable Outputs: Reply. American Journal of Agricultural Economics 85:1075–1077.
Hailu A, Veeman TS (2001) Non-parametric Productivity Analysis with Undesirable Outputs: An Application to the Canadian Pulp and Paper Industry. American Journal of Agricultural Economics 83: 605–616.
Halkos GE (2003) Environmental Kuznets Curve for sulfur: evidence using GMM estimation and random coefficient panel data models. Environment and Development Economics 8: 581-601.
Halkos GE, Tzeremes NG (2010) Measuring regional economic efficiency: The case of Greek prefectures. Annals of Regional Science 45: 603–632.
Halkos GE, Tzeremes NG (2011) Modelling regional welfare efficiency applying conditional full frontiers. Spatial Economic Analysis (forthcoming).
Hall P, Racine JS, Li Q (2004) Cross-validation and the estimation of conditional probability densities. Journal of the American Statistical Association 99: 1015–1026.
Hayfield T, Racine JS (2008) Nonparametric Econometrics: The np Package. Journal of Statistical Software 27: 1-32.
Hettige H, Lucas RBE, Wheeler D (1992) The toxic intensity of industrial production: Global patterns, trends and trade policy. American Economic Review 82: 478-481.
Hoffman AJ (1957) Discussion on Mr. Farrell’s Paper. Journal of the Royal Statistical Society Series A 120: 284.
Honma S, Hu JL (2009) Total factor energy productivity growth of regions in Japan. Energy Policy 37: 3941-3950.
Korhonen P, Luptacik M (2004) Eco-efficiency analysis of power plants: an extension of data envelopment analysis. European Journal of Operational Research 154:437–446.
Kuosmanen T (2005) Weak disposability in nonparametric production analysis with undesirable outputs. American Journal of Agricultural Economics 87:1077-1082.
Kuosmanen T, Podinovski V (2009) Weak disposability in nonparametric production analysis: reply to Färe and Grosskopf. American Journal of Agricultural Economics 91:539-545.
Kuznets S (1955) Economic growth and income inequality. American Economic Review 45: 1-28.
Le Gallo J, Ertur C (2003) Exploratory spatial data analysis of the distribution of regional per capita GDP in Europe, 1980–1995. Papers in Regional Science 82: 175-201.
Li Q, Racine JS (2007) Nonparametric econometrics: Theory and practice. Princeton University Press, Oxford.
Managi S (2006) Are there increasing returns to pollution abatement? Empirical analytics of the Environmental Kuznets Curve in pesticides. Ecological Economics 58: 617-636.
Mandal SK, Madheswaran S (2010) Environmental efficiency of the Indian cement industry: An interstate analysis. Energy Policy 38:1108-1118.
Maudos J, Pastor JM, Serrano L (2000) Efficiency and productive specialization: an application to the Spanish regions. Regional Studies 34: 829-842.
Nadaraya E A (1964) On Estimating Regression. Theory of Probability and its Applications 9: 141–142.
Picazo-Tade A, García-Reche A (2007) What makes environmental performance differ between firms? Empirical evidence from the Spanish tile industry. Environment and Planning A 39: 2232–2247.
Pittman RW (1981) Issues in pollution control: interplant cost differences and economies of scale. Land Economics 57:1–17.
Poletti Laurini M, Valls Pereira PL (2009) Conditional stochastic kernel estimation by nonparametric methods. Economics Letters 105: 234-238.
Pulina M, Detotto C, Paba A (2010) An investigation into the relationship between size and efficiency of the Italian hospitality sector: A window DEA approach. European Journal of Operational Research 204:613-620.
Racine JS (2008) Nonparametric Econometrics: A Primer. Found and Trends Econometrics 3: 1-88.
Racine JS (1997) Consistent significance testing for nonparametric regression. Journal of Business and Economic Statistics 15: 369–379.
Racine J S, Hart JD, Li Q (2006) Testing the significance of categorical predictor variables in nonparametric regression models. Econometric Reviews 25: 523–544.
Reinhard S, Lovell CAK, Thijssen G (2000) Environmental efficiency with multiple environmentally detrimental variables estimated with SFA and DEA. European Journal of Operational Research 121: 287–303.
Rupasingha A, Goetz SJ, Debertin DL, Pagoulatos A (2004) The environmental Kuznets curve for US counties: A spatial econometric analysis with extensions. Papers in Regional Science 83: 407-424.
Seiford LM, Zhu J (1998) Identifying excesses and deficits in chinese industrial productivity (1953–1990): A weighted data envelopment analysis approach. Omega-International Journal of Management Science 26:269–279.
Seiford LM, Zhu J (2005) A response to comments on modeling undesirable factors in efficiency evaluation. European Journal of Operational Research 161:579–581.
Selden T, Song D (1994) Environmental quality and development: is there a Kuznets curve for air pollution emissions? Journal of Environmental Economics and Management 27: 147-162.
Shephard RW (1970) Theory of Cost and Production Functions. Princeton University Press, Princeton, NJ.
Shephard RW, Färe R (1974) The law of diminishing returns. Zeitschrift für Nationalökonomie 34: 60–90.
Silverman BW (1986) Density Estimation for Statistics and Data Analysis. Chapman and Hall, London.
Stern DI, Common MS, Barbier EB (1996) Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development. World Development 24: 1151-1160.
Stern DI (1998) Progress on the Environmental Kuznets Curve? Environment and Development Economics 3: 175– 198.
Stern DI (2002) Explaining changes in global sulfur emissions: an econometric decomposition approach. Ecological Economics 42: 201–220. Stern DI (2004) The rise and fall of the Environmental Kuznets Curve. World Development 32: 1419–1439.
Suzuki S, Nijkamp P, Rietveld P (2010) Regional efficiency improvement by means of data envelopment analysis through Euclidean distance minimization including fixed input factors: An application to tourist regions in Italy. Papers in Regional Science 90: 67-90.
Taskin F, Zaim O (2001) The role of international trade on environmental efficiency: a DEA approach. Economic Modelling 18: 1-17.
Thrall RM (1996) Duality, classification and slacks in DEA. Annals of Operational Research 66: 109–138.
Tyteca D (1996) On the Measurement of the Environmental Performance of Firms- A Literature Review and a Productive Efficiency Perspective. Journal of Environmental Management 46: 281- 308.
Tyteca D (1997) Linear programming models for the measurement of environmental performance of firms: concepts and empirical results. Journal of Productivity Analysis 8:175–189.
Vincent JR (1997) Testing for environmental Kuznets curves within a developing country. Environment and Development Economics 2: 417-431.
Watanabe M, Tanaka K (2007) Efficiency analysis of Chinese industry: A directional distance function approach. Energy Policy 35, 6323-6331.
Watson G S (1964) Smooth regression analysis. Sankhya 26: 359–372.
Yörük BK, Zaim O (2006) The Kuznets curve and the effect of international regulations on environmental efficiency. Economics Bulletin 17: 1-7.
Zabala-Iturriagagoitia JM, Voigt P, Gutiérrez-Gracia A, Jiménez-Sáez F. (2007) Regional innovation systems: how to assess performance. Regional Studies 41: 661–672.
Zaim O (2004) Measuring environmental performance of state manufacturing through changes in pollution intensities: a DEA framework. Ecological Economics 48: 37-47.
Zaim O, Taskin F (2000) Environmental efficiency in carbon dioxide emissions in the OECD: A non-parametric approach. Journal of Environmental Management 58: 95–107.
Zelenyuk V, Zheka V (2006) Corporate governance and firm’s efficiency: the case of a transitional country, Ukraine. Journal of Productivity Analysis 25: 143-157.
Zhong W, Yuan W, Li S, Huang Z (2011) The performance evaluation of regional R&D investments in China: An application of DEA based on the first official China economic census data. Omega-International Journal of Management Science 39: 447-455.
Zhou P, Ang BW, Poh KL (2006) Slacks-based efficiency measures for modelling environmental performance. Ecological Economics 60:111–118.
Zhou P, Poh KL, Ang BW (2007) A non-radial DEA approach to measuring environmental performance. European Journal of Operational Research 178: 1–9.
Zofio JL, Prieto AM (2001) Environmental efficiency and regulatory standards: the case of CO2 emissions from OECD industries. Resource and Energy Economics 23:63–83.