Environmental Efficiency and Regional Convergence Clusters in Japan: A Nonparametric Density Approach

Mendez-Guerra, Carlos (2019): Environmental Efficiency and Regional Convergence Clusters in Japan: A Nonparametric Density Approach.

Abstract

This paper studies environmental efficiency convergence across the prefectures of Japan over the 1992-2008 period. Using a novel nonparametric density estimation clustering framework, two alternative indicators of environmental efficiency are contrasted: a conventional indicator, based on the ratio of gross regional product to CO2 emissions, and a more comprehensive indicator, based on the data envelopment analysis (DEA) model. Results show, on the one hand, a lack of intra-distributional mobility and potentially a unique convergence cluster when using the more conventional indicator. On the other hand, large backward mobility and at least two convergence clusters are identified when using the DEA-based indicator of environmental efficiency. The paper concludes arguing the importance of accounting for production inputs, as they appear to be driving the formation of regional convergence clusters in Japan.

• Item Type: MPRA Paper
• Language: English
• Keywords: environmental efficiency, convergence, nonparametric density, Japan
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R10 - General; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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