A multiplicative environmental DEA approach to measure efficiency changes in the world's major polluters

Abbas Valadkhani, Israfil Roshdi () and Russell Smyth

Energy Economics, 2016, vol. 54, issue C, 363-375

Abstract: We propose a multiplicative environmental data envelopment analysis (ME-DEA) approach to measure the performance of 46 countries that generate most of the world's carbon dioxide (CO2) emissions. In the model, we combine economic (labour and capital), environmental (freshwater) and energy inputs with a desirable output (GDP) and three undesirable outputs (CO2, methane and nitrous oxide emissions). We rank each country according to the optimum use of its resources employing a multiplicative extension of environmental DEA models. By computing partial efficiency scores for each input and output separately, we thus identify major sources of inefficiency for all sample countries. Based on the partial efficiency scores obtained from the model, we define aggregate economic, energy and environmental efficiency indexes for 2002, 2007 and 2011, reflecting points in time before and after the official enactment of the Kyoto Protocol. We find that for most countries efficiency scores increase over this period. In addition, there exists a positive relationship between economic and environmental efficiency, although, at the same time, our results suggest that environmental efficiency cannot be realized without first reaching a certain threshold of economic efficiency. We also find support for the Paradox of Plenty, whereby an abundance of natural and energy resources results in their inefficient use.

Keywords: Environment; Energy; Efficiency; Super-efficiency; GDP; Data envelopment analysis (search for similar items in EconPapers)
JEL-codes: C61 O44 Q43 Q51 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988316000086
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:54:y:2016:i:c:p:363-375

DOI: 10.1016/j.eneco.2015.12.018

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().