Economic and environmental efficiencies of greenhouse gases’ emissions under institutional influence

Henrique Ryosuke Tateishi, Cassiano Bragagnolo and Rosane Nunes de Faria

Technological Forecasting and Social Change, 2020, vol. 161, issue C

Abstract: Countries face the challenge of mitigating GHG emissions while, at least, not hampering economic outcomes, which generates conflict within and between them. Managing conflict accrues underlying costs that bolsters inefficiency in emissions reduction (environmental efficiency – EE) and in economic output generation (technical efficiency – TE). Although institutions play a role by alleviating these costs, its influence are not only difficult to measure, but also different institutions can influence distinctively EE and TE. This study covered the assessment of the role of distinct institutions in GHG mitigation efficiency, and in GDP efficiency based on the concept of transaction costs, which enabled the combination of new institutional economics with the empirical assessment of inefficiency in production. We employed Stochastic Frontier Analysis with a by-production approach on a panel data, using a sample of 116 countries from 1993 to 2012. Results indicated that indeed not any institution improved EE or TE. Furthermore, for countries with very-high institutional quality, their EE and TE were close to the efficient frontier, but also presented a higher elasticity of non-renewable energy input in EE frontier. Conversely, there is a larger room for improvement in efficiency through enhancements in institutional quality for countries with lower institutional quality.

Keywords: Production economics; Greenhouse gases; Environmental efficiency; Institutional economics (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0040162520311471
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:tefoso:v:161:y:2020:i:c:s0040162520311471

DOI: 10.1016/j.techfore.2020.120321

Access Statistics for this article

Technological Forecasting and Social Change is currently edited by Fred Phillips

More articles in Technological Forecasting and Social Change from Elsevier
Bibliographic data for series maintained by Catherine Liu ().