Energy and CO 2 emissions as the determinants of countries' productivity with different levels of economic development

Christina Bampatsou and George Halkos

International Journal of Global Energy Issues, 2017, vol. 40, issue 5, 277-293

Abstract: In the present study, Data Envelopment Analysis (DEA) is used for the period spanning from 1980 to 2012 and for a total of 32 countries which are classified into four groups, according to their level of development (Developing, BRICS, Developed, G7). DEA allows us to measure technical efficiency under constant and variable returns to scale and also the Malmquist index and its components. Furthermore, we develop an order-α approach for the determination of partial frontiers. An output oriented model is applied. Labour and capital are used as inputs while the GDP index is used as output. Subsequently, energy is incorporated in the model as an additional input and CO₂ emissions as undesirable output. A comparison of productivity indices, allows us to highlight the different levels of productivity, before and after the integration of energy and CO₂ emissions as additional variables, for each group of countries and therefore their sustainability gaps.

Keywords: data envelopment analysis; technical progress; efficiency change; pure efficiency change; scale efficiency change; Malmquist Index; full frontiers; order-α approach; energy; CO 2 emissions. (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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