A conditional directional distance function approach for measuring regional environmental efficiency: Evidence from UK regions

George Halkos and Nickolaos G. Tzeremes

European Journal of Operational Research, 2013, vol. 227, issue 1, 182-189

Abstract: This paper, by using conditional directional distance functions as introduced by Simar and Vanhems [J. Econometrics 166 (2012) 342–354] modifies the model by Färe and Grosskopf [Eur. J. Operat. Res. 157 (2004) 242–245] and examines the link between regional environmental efficiency and economic growth. The proposed model using conditional directional distance functions incorporates the effect of regional economic growth on regions’ environmental efficiency levels. The results from UK regional data reveal a negative relationship between regions’ GDP per capita and environmental inefficiency up to a certain GDP per capita level. After that level it appears that the relationship becomes positive. As an overall result the regional environmental inefficiency-GDP per capita relationship appears to have a ‘U’ shape form.

Keywords: Regional environmental efficiency; Directional distance function; Conditional measures; UK regions (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (58)

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Working Paper: A conditional directional distance function approach for measuring regional environmental efficiency: Evidence from the UK regions (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:227:y:2013:i:1:p:182-189

DOI: 10.1016/j.ejor.2012.12.009

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