Total Factor Productivity Growth and the Environment: A Case for Green Growth Accounting

Anastasios Xepapadeas, Vangelis Tzouvelekas and Dimitra Vouvaki ()

No 2007.38, Working Papers from Fondazione Eni Enrico Mattei

Abstract: We examine whether the use of the environment, proxied by CO2 emissions, as a factor of production contributes, in addition to conventional factors of production to output growth, and thus it should be accounted for in total factor productivity growth (TFPG) measurement and deducted from the .residual. A theoretical framework of growth accounting methodology with environment as a factor of production which is unpaid in the absence of environmental policy is developed. Using data from a panel of 23 OECD countries, we show that emissions. growth have a statistically significant contribution to the growth of output, that emission augmenting technical change is present along with labor augmenting technical change, and that part of output growth which is traditionally attributed to technical change should be attributed to the use of the environment as a not fully compensated factor of production. Our results point towards the need for developing a concept of "Green Growth Accounting".

Keywords: Solow Residual; Total Factor Productivity Growth; Growth; Environment; Green Growth Accounting (search for similar items in EconPapers)
JEL-codes: O47 Q2 (search for similar items in EconPapers)
Date: 2007-04
New Economics Papers: this item is included in nep-eff and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Related works:
Working Paper: Total Factor Productivity Growth and the Environment: A Case for Green Growth Accounting (2007)
Working Paper: Total Factor Productivity Growth and the Environment: A Case for Green Growth Accounting (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2007.38

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