Environmental Efficiency of European Industries across Sectors and Countries

Eirini Stergiou

MPRA Paper from University Library of Munich, Germany

Abstract: Green growth is recognized as the fundamental development strategy in Europe due to the immense pressure of environmental pollution, economic growth and energy usage. In this study, a non-radial directional distance function is used to measure environmental efficiency (ENE) of 54 industries from 28 European countries across the three sectors of an economy over the 2000-2014 period. The complexity of heterogeneity is examined by incorporating the metafrontier approach under distinct group frontiers. The results reveal that industries present higher levels of environmental efficiency within their sectors while manufacturing industries achieved the lowest progress in environmental efficiency. Thus, it is critical to introduce and implement sector-oriented policies rather than common guidelines for all European countries.

Keywords: Environmental efficiency; Directional distance function; Metafrontier; Heterogeneity; European industries (search for similar items in EconPapers)
JEL-codes: C44 D29 L23 Q01 Q53 Q56 Q57 (search for similar items in EconPapers)
Date: 2022-09-20
New Economics Papers: this item is included in nep-eff, nep-ene, nep-env and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:114635

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