The Contribution of Greenhouse Pollution to Productivity Growth

Pantelis Kalaitzidakis, Theofanis P. Mamuneas () and Thanasis Stengos ()

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

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)
New Economics Papers: this item is included in nep-eff, nep-ene and nep-env
Date: 2008
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Persistent link: http://EconPapers.repec.org/RePEc:gue:guelph:2008-2

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