The Estimation of a Polluting By-Production Technology Using Statistical Copulas

Alexandre Repkine ()
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Alexandre Repkine: College of Social Sciences

Journal of Productivity Analysis, 2023, vol. 60, issue 1, No 4, 49-62

Abstract: Abstract We estimate the parameters of a two-equation by-production technology defined as an intersection of two sub-technologies producing one good, and two polluting outputs using a sample of 130 countries for the period between 2000 and 2011. We use Frank, Farlie-Gumbel-Morgenstern, and Ali-Mikhail-Haq copulas in order to account for stochastic dependence between technical inefficiency components of the composite error terms characterizing the two sub-technologies. Our empirical results suggest a positive stochastic association between the technical inefficiency of producing a good output, or GDP, and that of producing carbon dioxide and methane. Introducing copulas results in significant changes in the values of the estimated parameters of the by-production technology.

Keywords: Environmental pollution; By-production framework; Statistical copulas (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11123-023-00672-5

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