Investigating the effect of efficiency and technical changes on productivity

Better management of natural capital, an efficient allocation of resources and technological progress can contribute to productivity change. The present study uses Data Envelopment Analysis to determine the Total Factor Productivity Index, in the case of the EU15 countries, using panel data on energy consumption for a period spanning from 1995 to 2011. The aim is not only to determine the index of total factor productivity change but also to record its driving forces for the decision making units under consideration, showing whether the productivity gains come mainly from an improvement in efficiency or derive merely as a result of technological progress. In terms of eco-efficiency, the paper contributes in showing whether the overall development is more driven by input-saving or environmental-saving processes. The detailed decomposition offers policy makers additional insights into more valuable reference material representing the driving forces of productivity gains or losses

Technical efficiency, productivity change and environmental degradation

This study deals with the nonparametric frontier analysis in the case of the EU 28 countries for a period spanning from 1993 to 2012. It provides statistical inference about the radial output based measure of technical efficiency under the assumption of Constant Returns to Scale (CRS) and it performs scale analysis that allows determining the nature of scale inefficiency of each data point. Furthermore, an order-α approach is developed for determining partial frontiers. Both traditional Malmquist-Luenberger and bootstrapped Malmquist productivity indexes between 1993 and 2012 are constructed. Analysis of productivity change by decomposing the Total Factor Productivity Index into Efficiency Change and Technical Change is performed showing respectively whether productivity gains derive mainly from improvements in efficiency or are mostly the result of technological progress

Driving forces of different productivity models

In the present study, Data Envelopment Analysis (DEA) is used for the period spanning from 1980 to 2012 and for a total of 32 countries which are classified into four groups, according to their level of development (Developing, BRICS, Developed, G7). DEA allows us to measure technical efficiency under constant (CRS) and variable (VRS) returns to scale and also the Malmquist index and its components (TECHCH, EFFCH, PECH, SECH). Furthermore, we develop an order-α approach for the determination of partial frontiers. An output oriented model is applied. Labor and capital are used as inputs while the GDP index is used as output. Subsequently, energy is incorporated in the model as an additional input variable and CO2 emissions as undesirable output. A comparison of productivity indices as derived from the analysis, allows us to highlight the different levels of productivity before and after the integration of energy and CO2 emissions as additional variables, for each group of countries and therefore their sustainability gaps

Environmental performance assessment of european countries

The European Union(EU) has been promoting an integrated approach to climate protection and energy policy, through a set of key objectives for 2020, 2030 and 2050, linking Europe’s green agenda with its need for energy security and competitiveness.This paper aims to evaluate the environmental efficiency of European Countries from 2010 to 2015 towards the set targets, through a Data Envelopment Analysis (DEA) model.The DEA model assesses the ability of each country in minimizing current resources while maximizing the gross domestic product and minimizing undesirable outputs,such as GHG emissions.The DEA model is based on directional distance Function, imposing weak disposability for the undesirable output. Results obtained show that globally, in the period under analysis, the EU has increased its environmental efficiency which is consistent with the analysis of the indicators of the 2020 climate and energy package.info:eu-repo/semantics/publishedVersio

The sustainable economic development under the prism of neoclassical economic theory and ecological economics: theoretical analysis & empirical documentation

In this thesis, it is being performed an exploration of the basic meanings of Economic Development, Economic Growth and Sustainability, as they are being assigned by the approaches of Neoclassical and Ecological Economics. By having as an objective to locate the points of differentiation between the two approaches concerning the issue of Sustainable Economic Activity, the analysis proceeds to the exploration of the way that both Weak and Strong Sustainability perceive the relation between economic activity and environmental quality. Afterwards, it is being demonstrated the way according to which the degradation of a fossil fuel (e.g. oil, carbon) can lead to restricted possibilities of sustainability, both for an open economic subsystem and a closed earth’s subsystem. In the presented analysis, there are being connected the high CO2 emission levels, which result from the flaring of fossil fuels causing in this way an important environmental degradation (greenhouse effect), with the entropic degradation performed within the earth’s natural subsystem, and therefore with the restricted sustainability possibilities both of the open economic subsystem and the closed earth’s subsystem. Through the non parametric method D.E.A. (Data Envelopment Analysis) and the parametric method for panel data SFA (Stochastic Frontier Analysis), there are being applied 2 models considering as inputs the energy consumption indices of fossil and non fossil fuels, and as outputs the indices of GDP and CO2 emissions, on the one hand, and only the GDP index, on the other hand. According to the analysis conclusions: (a) Each country can achieve better TE when its increased economic activity is combined with improved ecological performance (b) The developed economies that tend to stabilize their environmental degradation through time, as the GDP increases, ensure satisfactory margins for the increase in the consumption of fossil fuels in the long term, and furthermore, regular economic activity. This fact is significantly different in countries showing either intense deterioration or temporary improvement in the pollution levels without any indications of a temperate stabilization of environmental degradation(c) When an economy achieves not only a steady release of a non-clean energy consumption but also a better exploitation of clean energy resources, its ‘capacity’ to produce more output with the given levels of inputs, has definitely improved. On the contrary, when the economy’s growth depends more on non-clean energy consumption and less on clean energy consumption, its ‘capacity’ becomes restrictedΣτη παρούσα διατριβή, γίνεται διερεύνηση των βασικών εννοιών της Οικονομικής Ανάπτυξης, της Οικονομικής Μεγέθυνσης και της Βιωσιμότητας, όπως τις αποδίδουν οι προσεγγίσεις των Νεοκλασικών και Οικολογικών Οικονομικών. Με αντικειμενικό στόχο τον εντοπισμό των σημείων διαφοροποίησης μεταξύ των δύο προσεγγίσεων στο ζήτημα της Βιώσιμης οικονομικής δραστηριότητας, η ανάλυση προχωρά στη διερεύνηση του τρόπου με τον οποίο τόσο η Ασθενής, όσο και η Ισχυρή Βιωσιμότητα αντιλαμβάνονται την σχέση μεταξύ της οικονομικής δραστηριότητας και της περιβαλλοντικής ποιότητας. Στη συνέχεια αποδεικνύεται πως η ποιοτική υποβάθμιση ενός φυσικού καυσίμου (πχ. πετρελαίου, άνθρακα) μπορεί να οδηγήσει σε περιορισμένες δυνατότητες βιωσιμότητας, τόσο του ανοικτού οικονομικού υποσυστήματος, όσο και του κλειστού γήινου υποσυστήματος. Στην ανάλυση που παρουσιάζεται, συνδέονται τα υψηλά επίπεδα εκπομπών CO2, τα οποία προκύπτουν από την καύση φυσικών καυσίμων επιφέροντας σημαντική περιβαλλοντική υποβάθμιση (φαινόμενο θερμοκηπίου), με τον εντροπικό υποβιβασμό που συντελείται εντός του γήινου φυσικού υποσυστήματος και επομένως με τις περιορισμένες δυνατότητες βιωσιμότητας τόσο του ανοικτού οικονομικού υποσυστήματος όσο και του κλειστού γήινου υποσυστήματος. Δια της μη-παραμετρικής μεθόδου D.E.A (Περιβάλλουσα Ανάλυση Δεδομένων) και δια της παραμετρικής μεθόδου για πάνελ δεδομένα SFA (Στοχαστική Ανάλυση Συνόρων), εφαρμόζονται 2 υποδείγματα που λαμβάνουν ως εισροές τους δείκτες ενεργειακής κατανάλωσης φυσικών και μη-φυσικών καυσίμων και ως εκροές, αφενός μεν τους δείκτες του ΑΕΠ και των εκπομπών CO2, αφετέρου δε μόνο τον δείκτη του ΑΕΠ. Σύμφωνα με τα συμπεράσματα της ανάλυσης: (α) Κάθε χώρα πετυχαίνει καλύτερη τεχνική αποτελεσματικότητα, όταν η αυξημένη οικονομική της δραστηριότητα συνοδεύεται από βελτιωμένη οικολογική απόδοση. (β) Οι ανεπτυγμένες οικονομίες που εμφανίζουν μια τάση σταθεροποίησης της περιβαλλοντικής υποβάθμισης διαχρονικά καθώς αυξάνεται το ΑΕΠ, εξασφαλίζουν ικανοποιητικά περιθώρια αύξησης του δείκτη κατανάλωσης φυσικών καυσίμων μακροχρόνια και κατ’ επέκταση μια ομαλή οικονομική δραστηριότητα. Αντίθετα οι χώρες που παρουσιάζουν είτε έντονη επιδείνωση είτε παροδικές βελτιώσεις των επιπέδων μόλυνσης χωρίς ενδείξεις μιας ήπιας σταθεροποίησης της περιβαλλοντικής υποβάθμισης, εμφανίζουν περιορισμένες δυνατότητες μακροχρόνιας βιωσιμότητας. (γ) Η ‘ικανότητα’ παραγωγής υψηλότερου Α.Ε.Π. για δεδομένα επίπεδα εισροών, εμφανίζεται σαφώς βελτιωμένη όταν η οικονομική μεγέθυνση της χώρας συνοδεύεται από μια σταθερή τάση αποδέσμευσης από την μη-καθαρή κατανάλωση ενέργειας με παράλληλη ενίσχυση της εκμετάλλευσης των καθαρών μορφών ενέργειας. Αντιθέτως, η ικανότητα παραγωγής υψηλότερου Α.Ε.Π. είναι σαφώς περιορισμένη, όταν η οικονομική μεγέθυνση εξαρτάται κυρίως από την μη-καθαρή κατανάλωση ενέργειας και πολύ λιγότερο από την καθαρ

Non-Parametric Computational Measures for the Analysis of Resource Productivity

In this study, we assumed that 28 European countries (Decision Making Units (DMUs)) aimed to accomplish higher economic outputs, using fewer resources and producing fewer emissions in the form of environmental degradation. In this context, we studied the drivers of total factor productivity change (TFPCH) in DMUs, associated with either managerial capabilities (efficiency change (EC)) or innovations (technical change (TC)) in resource-saving production methods, before and after the integration of CO2 (carbon dioxide) emissions as an additional variable (undesirable output) in the initial model of one output (gross domestic product (GDP)) and five inputs (labor, capital, energy, domestic material consumption and recycled municipal waste). The primary focus of this study is to identify best practices that policymakers can adopt as they attempt to reduce productivity loss. Our results highlight the weak areas of individual countries and seem to indicate the action that should be taken to improve their productivity by taking into consideration the main driving force behind productivity and technical efficiency change. Our findings reveal that an effective use of technological developments is determined as important strategic information for ensuring managerial performance

Technical efficiency of economic systems of EU-15 countries based on energy consumption

c Technical efficiency index of EU-15 countries is determined through the DEA method. c Level of the TE index is determined from the energy mix used in each country. c TE level depends on the maximization level of GDP without waste of energy resources. c Capacity of an economy to produce more GDP for a given energy input is determined. c TE differentiation before and after the integration of nuclear energy is performed. a r t i c l e i n f o t r a c t In the present study, Data Envelopment Analysis is used to determine the Technical Efficiency index of EU-15 countries from 1980 to 2008, using cross-country comparison. Technical Efficiency index represents the capacity of an economy to produce a higher level of Gross Domestic Product for a given level of total energy input. The level of the Technical Efficiency index is determined from the energy mix (fossil fuels, non-fossil fuels, nuclear energy) of each country and depends on the maximization level of the production of the Gross Domestic Product of the economic system, without waste of energy resources. The current study is applied in the case of the EU15 countries. Its scope is to highlight the differentiations of country classifications before and after the integration of nuclear energy in the energy mix of each country. The main result is that the integration of nuclear energy as an additional input in the energy mixture affects negatively the Technical Efficiency of countries. Also, when an economy achieves a decrease of the energy consumption produced from fossil fuels, and a better exploitation of renewable energy sources, clearly improves its capacity to produce more output with the given levels of inputs

Determining economic productivity under environmental and resource pressures: an empirical application

Abstract The current study is divided into two parts. Part I deals with the indices of resource and impact decoupling for 13 countries of the EU, for a period spanning from 1990 to 2011. Employing the major pressures, of GHG emissions, mineral resource extraction and land use, the different cases of relative/absolute and no decoupling are determined. Part II uses data envelopment analysis to determine the resource productivity index on the basis of the same sample of countries, over the same period of time. Resource productivity index attempts to quantify the simultaneous application and the interrelationships of decoupling indices. The index of the GDP is used as output, while the indices of material resources, land resources and GHG emissions are used as inputs. Then, the index of total factor productivity changes is decomposed into efficiency change and technical change, showing, respectively, whether the productivity gains come mainly from improvements in efficiency or are mainly the result of technological progress. Finally, the index of efficiency change is decomposed into pure efficiency and scale efficiency, showing, respectively, whether the major source of efficiency change comes mainly from improvements in pure technical efficiency or is mainly the result of an improvement in scale efficiency

Public Perception of Climate Change in a Period of Economic Crisis

The present study surveys the opinion of the residents of the Athens area in Greece on a wide range of issues related to climate change, such as their environmental consciousness and awareness and their willingness to take action against climate change. This study is performed at a time of a severe economic crisis in Greece. Based on a questionnaire, this study examines the general trends reported on various environmental issues, more particularly concerning climate change. The main results are that Greek citizens are aware of the problems of environmental and of climate change and also believe that the environmental quality of Greece is quite poor. They believe they are fairly well informed about climate change. However, the current economic crisis in Greece has reversed the progress made in the past concerning the awareness of climate change. Also, the citizens have very low confidence in the public authorities and the big enterprises to deal with climate change, while they have high level of trust in scientific and environmental organizations. They agree with public actions, but are against individual actions to protect the environment as they consider the main stakeholders (state, industry) to be mainly responsible for environmental degradation