Arazmuradov, Annageldy (2011): Energy consumption and carbon dioxide environmental efficiency for former Soviet Union economies. evidence from DEA window analysis.
Download (893kB) | Preview
The main source of convertible energy—fossil-fuel combustion—generates desirable means for production of national output (GDP) along with an undesirable by-product—carbon dioxide (CO2) emissions. This paper investigates the effect of this supply process for environmental quality. By introducing energy and non-energy production factors, we estimate economic and CO2 efficiency. We build an alternative environmental efficiency indicator with respect to CO2 emissions by applying non-parametric data-envelopment analysis (DEA)—window analysis under variable returns to scale (VRS)—to 15 former Soviet Union (FSU) economies for the period 1992–2008. There is a clear distinction between three FSU economies—Estonia, Latvia, and Lithuania (now EU member states)—and the rest of the sample in that they display better environmental performance. In these three countries, economic efficiency directly influences the environmental performance. Results also show that over time FSU economies improve their CO2 environmental efficiency and comply with the Kyoto Protocol directives. However, this positive gain comes with costs; it seems there is a tradeoff between positive output production (GDP) and controlling for carbon emission. On average, we observe a 15.9-percent drop in producing GDP, while there is a 1.59 -percent rise in positive environmental CO2 efficiency.
|Item Type:||MPRA Paper|
|Original Title:||Energy consumption and carbon dioxide environmental efficiency for former Soviet Union economies. evidence from DEA window analysis|
|Keywords:||Eurasia; carbon dioxide emissions; environmental efficiency; DEA window analysis|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q50 - General
P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P28 - Natural Resources ; Energy ; Environment
P - Economic Systems > P5 - Comparative Economic Systems > P52 - Comparative Studies of Particular Economies
|Depositing User:||Annageldy Arazmuradov|
|Date Deposited:||24 Feb 2012 15:55|
|Last Modified:||24 Sep 2016 14:15|
Allen, K. (1999). DEA in the ecological context: An overview. In: G. Westermann (Ed.), Data envelopment analysis in the service sector (pp. 203-235) Wissenschaft, Germany: Gabler Edition.
Ang W. B. (1999). Is the energy intensity a less useful indicator than the carbon factor in the study of climate change? Energy Policy, 27, 943–946.
Ang, J. B. (2007). CO2 emissions, energy consumption, and output in France. Energy Policy, 35, 4772–4778.
Apergis , N., & Payne, J. E. (2010). The emissions, energy consumption, and growth nexus: Evidence from the commonwealth of independent states. Energy Policy, 38, 650–655.
Asmild, M., Paradi, C. V., Aggarwall, V., & Schaffnit, C. (2004). Combining DEA window analysis with the Malmquist Index approach in a study of the Canadian banking industry. Journal of Productivity Analysis, 21, 67–89.
Banker, R. D., Charnes, A., Cooper, W. W. (1984). Models for estimation of technical and scale inefficiencies in data envelopment analysis. Management Science, 30, 1078–1092.
Barker, T., Ekins, P., & Foxon, T. (2007). Macroeconomic effects of efficiency policies for energy-intensive industries: The case of the UK Climate Change Agreements, 2000–2010. Energy Economics, 29, 760–778.
Birdsall, N., & Wheeler, D. (1993). Trade policy and industrial pollution in Latin America: Where are the pollution havens? Journal of Environment and Development, Winter(2:1), 137– 49.
Coelli, T., Rao, D. S. P., & Battese, G. E. (1998). An introduction to efficiency and productivity analysis. Boston: Kluwer Academic Publishers.
Cooper, W. W., Seiford, L. M., & Tone, K. (2007). Data envelopment analysis: A comprehensive text with models, applications, references and DEA-solver software (2nd ed.). New York: Springer Science + Business Media.
Cooper, W. W., Seiford, L. M.,Thanassoulis, E., & Zanakis, S. H. (2004). DEA and its uses in different countries. European Journal of Operational Research, 154, 337–344.
Chung, Y. H., Färe, R., Grosskopf, S. (1997). Productivity and undesirable outputs: A directional distance function. Journal of Environmental Management 51, 229–240.
Dasgupta, S., Wang, H., & Wheeler, D. (1997). Surviving success: Policy reform and the future of industrial pollution in China. World Bank Policy Research Department Working Paper No. 1856, October.
Emrouznejad, A., Parker, B. R., & Tavares, G. (2008). Evaluation of research in efficiency and productivity: A survey and analysis of the first 30 years of scholarly literature in DEA. Socio-Economic Planning Sciences, 42, 151–157.
Färe, R., & Grosskopf, S., 2004a. Modeling undesirable factors in efficiency evaluation: Comment. European Journal of Operational Research, 157, 242–245.
Färe, R., Grosskopf, S., & Hernandez-Sancho, F. (2004b). Environmental performance: An index number approach. Resource and Energy Economics, 26, 343–352.
Färe, R., Grosskopf, S., & Whittaker, G. (2004c). Distance functions with applications to DEA. In: W. W. Cooper, L. M. Seiford, & J. Zhu (Eds.), Handbook on data envelopment analysis (pp. 139–152). Place of publication: Kluwer Academic Publishers.
Färe, R., Grosskopf, S., & Lovell, C. A. K. (1994). Production frontiers. Cambridge, UK: Cambridge University Press.
Färe, R., Grosskopf, S., Lovell, C. A. K., & Pasurka, C. (1989). Multilateral productivity comparisons when some outputs are undesirable: A nonparametric approach. The Review of Economics and Statistics, 71, 90–98.
Färe, R., Grosskopf, S., & Tyteca, D. (1996). An activity analysis model of the environmental performance of firms—application to fossil-fuel-fired electric utilities. Ecological Economics, 18, 161–175.
Halkos, G., & Tzeremes, N. G. (2008). Trade efficiency and economic development: Evidence from a cross country comparison. Applied Economics, 40, 2749–2764.
Halkos, G., & Tzeremes, N. G. (2009a). Exploring the existence of Kuznets’ curve in countries’ environmental efficiency using DEA window analysis. Ecological Economics, 68, 2168–2176.
Halkos, G., & Tzeremes, N. G. , (2009b). Electricity generation and economic efficiency: Panel data evidence from world and east Asian countries. Global Economic Review, 38, 251–263.
Halkos, G., & Tzeremes, N. G. (2009c). Economic efficiency and growth in the EU enlargement. Journal of Policy Modeling, 31, 847–862.
Halkos, G., & Tzeremes, N. G. (2011). Oil consumption and economic efficiency: A comparative analysis of advanced, developing and emerging economies. Ecological Economics, 70, 1354–1362.
Haynes, S .K. E., Ratick, S., Bowe, S., & Cummings-Saxton, J. (1993). Environmental decision models: U.S. experience and a new approach to pollution management. Environmental International, 19, 261–275.
Hartman, T. E., & Storbeck, J. E. (1996). Input congestion in loan operations. International Journal of Production Economics, 46(47), 413–421.
Hettige, M., Dasgupta, S., & Wheeler, D. (2000). What improves environmental compliance? Evidence from Mexican industry. Journal of Environmental Economics and Management, 391, 39–66.
Klopp, G. A., (1985), The analysis of the efficiency of productive systems with multiple inputs and outputs, Ph.D. dissertation, University of Illinois, Chicago.
Lee, H., & Roland-Holst, D. (1997). The environment and welfare implications of trade and tax policy. Journal of Development Economics, February, (52), 65–82.
Lucas, R., Hettige, H. & Wheeler, D. (1992). The toxic intensity of industrial production: Global patterns, trends, and trade policy. American Economic Review Papers and Proceedings, (May, 82)2, 478–81.
Lucas, R., Dasgupta, S., & Wheeler, D. (2002). Plant size, industrial air pollution, and local incomes: Evidence from Mexico and Brazil. Environment and Development Economics, 7, 365–381.
Mani, M., Hettige, H., & Wheeler, D. (2000). Industrial pollution in economic development: The environmental Kuznets curve revisited. Journal of Development Economics, 2(2), 445–76.
Niu, S., Y., Ding, Y., Niu, Y., Li, & G., Luo. 2011. Economic growth, energy conservation and emissions reduction: A comparative analysis based on panel data for 8 Asian-Pacific countries. Energy Policy 39: 2121–2131.
Ozturk, I., & Acaravci, A. (2010). CO2 emissions, energy consumption and economic growth in Turkey. Renewable and Sustainable Energy Reviews, 14, 3220–3225.
Pao, H. T., & Tsai, C. M. Modeling and forecasting the CO2 emissions, energy consumption, and economic growth in Brazil. Energy, 36, 2450–2458.
Scott, M. J., Roop, J. M., Schultz, D. M., Anderson, & Cort, K. A. (2008). The impact of DOE building technology energy efficiency programs on U.S. employment, income and investment. Energy Economics, 30(2), 2283–2301.
Soytas, U., Sari, R., & Ewing, B. T. (2007). Energy consumption, income, and carbon emissions in the United States. Ecological Economics, 62, 482–489.
Thoresen, J. (1999). Environmental performance evaluation– a tool for industrial improvement. Journal of Cleaner Production, 7, 365–370.
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, 183–197. Vukina, T., Beghin, J. C., & Solakoglu, E. G. (1999). Transition to markets and the environment: Effects of the change in the composition of manufacturing output. Environment and Development Economics, 4(4), 582–98.
Wang, S. S., Zhou, D. Q., Zhou, P., & Wang, Q. W. (2011). CO2 emissions, energy consumption and economic growth in China: A panel data analysis. Energy Policy, 39, 4870–4875. Webb, R. M. (2003). Levels of efficiency in UK retail banks: A DEA window analysis. International Journal of the Economics of Business, 10 (3), 305–322.
Wheeler, D., 2001. Racing to bottom? Foreign investment and air pollution in developing countries. Journal of Environment & Development, 10(3), 225–245.
Yue, P. 1992. Data envelopment analysis and commercial bank performance: A primer with applications to Missouri banks. Federal Reserve Bank of St. Louis Review, 74 (1), 31–45.
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.
Zhou, P., Ang, B. W., & Poh, K. L. (2008). A survey of data envelopment analysis in energy and environmental studies. European Journal of Operational Research, 189, 1–18.