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A conditional directional distance function approach for measuring regional environmental efficiency: Evidence from UK regions

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  • Halkos, George E.
  • Tzeremes, Nickolaos G.

Abstract

This paper, by using conditional directional distance functions as introduced by Simar and Vanhems [J. Econometrics 166 (2012) 342–354] modifies the model by Färe and Grosskopf [Eur. J. Operat. Res. 157 (2004) 242–245] and examines the link between regional environmental efficiency and economic growth. The proposed model using conditional directional distance functions incorporates the effect of regional economic growth on regions’ environmental efficiency levels. The results from UK regional data reveal a negative relationship between regions’ GDP per capita and environmental inefficiency up to a certain GDP per capita level. After that level it appears that the relationship becomes positive. As an overall result the regional environmental inefficiency-GDP per capita relationship appears to have a ‘U’ shape form.

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  • Halkos, George E. & Tzeremes, Nickolaos G., 2013. "A conditional directional distance function approach for measuring regional environmental efficiency: Evidence from UK regions," European Journal of Operational Research, Elsevier, vol. 227(1), pages 182-189.
    • Handle: RePEc:eee:ejores:v:227:y:2013:i:1:p:182-189
    DOI: 10.1016/j.ejor.2012.12.009
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    More about this item

    Keywords

    Regional environmental efficiency; Directional distance function; Conditional measures; UK regions;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General

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