The Contribution of Pollution to Productivity Growth

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

Working Paper Series from Rimini Centre for Economic Analysis

Abstract: In this paper we examine the effect of 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 0.008. In addition we find an average contribution of pollution to productivity growth of about 1 percent for the period 1981-1998. JEL Classifications: C14, O13, O40

Keywords: TFP Growth; Pollution; Semiparametric Estimation. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-ene and nep-env
Date: 2008-01, Revised 2008-01
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Persistent link: http://EconPapers.repec.org/RePEc:rim:rimwps:06-08

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