Closing the gap? Dynamic analyses of emission efficiency and sector productivity in Europe

Giovanni Marin

No 2/2012, Working Papers from IMT School for Advanced Studies Lucca

Abstract: This paper investigates the patterns of emission efficiency (value added per emission) growth of 23 manufacturing sectors in 12 European countries with a focus on five emissions (CO2, NOx, NMVOC, SOx and CO). Emission efficiency growth is expected to be triggered by improvements in the efficiency of frontier countries through the diffusion of better technologies to laggard countries. This effect is likely to differ according to the distance from the frontier country. Finally, the role of productivity patterns (Total Factor Productivity) and energy prices dynamics is assessed. Results based on the European NAMEA (National Accounting Matrix including Environmental Accounts) further merged with sector accounts highlight significant spillovers from leaders in emission efficiency and a general tendency to converge for laggard countries and sectors (except for NMVOC emission efficiency). Energy prices weakly induce improvements in emission efficiency, with the effect being generally stronger for sectors and countries farther away from the emission efficiency frontier. Finally, total factor productivity (TFP) is strongly correlated with emission efficiency while the distance from TFP frontier significantly harms emission efficiency growth.

Keywords: convergence; environmental efficiency; NAMEA; technological diffusion (search for similar items in EconPapers)
JEL-codes: O33 Q55 Q56 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2012-05, Revised 2012-05
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published in EIC working paper series

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Persistent link: https://EconPapers.repec.org/RePEc:ial:wpaper:2/2012

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