Greenhouse Gas Emission Inefficiency Spillover Effects in European Countries

Levent Kutlu and Ran Wang
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Levent Kutlu: Department of Economics and Finance, University of Texas Rio Grande Valley, Edinburg, TX 77539, USA
Ran Wang: Trust Financial Corporation, 303 Peachtree St, Atlanta, GA 30308, USA

IJERPH, 2021, vol. 18, issue 9, 1-14

Abstract: In our study, we examine whether spatial spillover effects exist for greenhouse gas emission efficiency for 38 European countries between 2005 and 2014. We find that inefficiencies of other countries would lead to lower efficiency levels for a country. This negative inefficiency spillover effect goes down till 2008 then goes up till 2011, then stays relatively stable after 2011. Any strategy to reduce inefficiencies of other countries could potentially improve the efficiency levels. We find that human development index shows significant positive impact on greenhouse gas emission efficiency levels. In particular, one standard deviation increase in human development index would lead to a 11.12 percentage points increase in the greenhouse gas emission efficiencies on average. Different countries show different efficiency levels and efficiency growth patterns over time. However, the pattern of spatial spillover is quite similar among all countries over time.

Keywords: eco-efficiency; greenhouse gas; Kyoto protocol; stochastic frontier analysis; pollution; spillover (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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