The Contribution of Greenhouse Pollution to Productivity Growth

Pantelis Kalaitzidakis, Theofanis Mamuneas () and Thanasis Stengos

No 802, Working Papers from University of Guelph, Department of Economics and Finance

Abstract: In this paper we examine the effect of greenhouse pollution, as measured by CO2 emissions, on economic growth among a set of OECD countries during the period 1981-1998. We examine the relationship between total factor productivity (TFP) growth and pollution using a semiparametric smooth coefficient model that allow us to directly estimate the output elasticity of pollution. The results indicate that there exists a nonlinear relationship between pollution and TFP growth. The output elasticity of pollution is small with an average sample value of 0.014. In addition we find an average contribution of pollution to productivity growth of about 1 percent for the period 1981-1998.

Keywords: TFP Growth; Greenhouse Pollution; CO2; Semiparametric Estimation. (search for similar items in EconPapers)
JEL-codes: C14 O13 O40 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2008
New Economics Papers: this item is included in nep-eff, nep-ene and nep-env
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gue:guelph:2008-2

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