A dynamic approach to measuring ecological-economic performance with directional distance functions: greenhouse gas emissions in the European Union

Andres Picazo-Tadeo, Juana Castillo and Mercedes Beltrán-Esteve
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Mercedes Beltrán-Esteve: Departamento de Economía Aplicada II. Universidad de Valencia

No 1304, Working Papers from Department of Applied Economics II, Universidad de Valencia

Abstract: The impact of economic activity on the environment is a matter of growing concern for firm managers, policymakers, researchers and society as a whole. Building on previous work by Kortelainen [Kortelainen, M., 2008. Dynamic environmental performance analysis: A Malmquist index approach. Ecological Economics 64, 701-715], we contribute an approach to assessing dynamic ecological- economic performance, or simply dynamic eco-performance, and its two determinants, ecologicaleconomic efficiency change and technical change, at specific-environmental-pressure level. In doing so, we use Data Envelopment Analysis techniques, directional distance functions and Luenberger indices. Our approach is employed to assess dynamic eco-performance in the emission of greenhouse gases in the European Union-27 over the period 1990-2010. The main result is that eco-performance has been boosted by technical change rather than by increases in eco-efficiency. Accordingly, policy measures aimed at enhancing eco-efficiency are recommended to improve eco-performance in European countries regarding greenhouse gas emissions.

Keywords: Dynamic eco-performance; directional distance functions; Data Envelopment Analysis; greenhouse gases emissions; European Union (search for similar items in EconPapers)
JEL-codes: C61 O44 Q01 Q54 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2013-01
New Economics Papers: this item is included in nep-agr, nep-eff, nep-ene, nep-env and nep-eur
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Citations: View citations in EconPapers (4)

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