Total Factor Productivity Growth when Factors of Production Generate Environmental Externalities

Anastasios Xeapapadeas and Dimitra Vouvaki ()
Additional contact information
Anastasios Xeapapadeas: Athens University of Economics and Business

No 2009.20, Working Papers from Fondazione Eni Enrico Mattei

Abstract: Total factor productivity growth (TFPG) has been traditionally associated with technological change. We show that when a factor of production, such as energy, generates an environmental externality in the form of CO2 emissions which is not internalized because of lack of environmental policy, then TFPG estimates could be biased. This is because the contribution of environment as a factor of production is not accounted for in the growth accounting framework. Empirical estimates confirm this hypothesis and suggest that part of what is regarded as technology’s contribution to growth could be attributed to the use of environment in output production.

Keywords: Total Factor Productivity; Sources of Growth; Environmental Externalities; Energy; Environmental Policy (search for similar items in EconPapers)
JEL-codes: O47 Q20 Q43 (search for similar items in EconPapers)
Date: 2009-03
New Economics Papers: this item is included in nep-agr, nep-eff, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://feem-media.s3.eu-central-1.amazonaws.com/w ... oads/NDL2009-020.pdf (application/pdf)

Related works:
Working Paper: Total Factor Productivity Growth when Factors of Production Generate Environmental Externalities (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2009.20

Access Statistics for this paper

More papers in Working Papers from Fondazione Eni Enrico Mattei Contact information at EDIRC.
Bibliographic data for series maintained by Alberto Prina Cerai ( this e-mail address is bad, please contact ).