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Combining parametric and non-parametric approach, variable & source -specific productivity changes and rebound effect of energy & environment

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  • Miao, Zhuang
  • Chen, Xiaodong

Abstract

In light of that the existing literature rarely investigated the impact mechanism of endogenous Total Factor Productivity (TFP) on rebound effect (RE), this paper develops a non-parametric framework variable-specifically and source-specifically, mixing econometric model and Data Envelopment Analysis (DEA). The total-factor nature allows incorporating multiple input and output variables, and further heterogeneity analysis. The method decomposes TFP (defined as dynamic inefficiencies changes) into pure & scale efficiency change (PEC & SEC), pure & scale technological progress (PTP & STP). On this basis, we estimate the rebound effect value of energy and environment variables relative to PEC, SEC, PTP and STP. Empirically, we apply the novel approach to China's 34 industrial sub-sectors, throughout 2004–2015. Results indicate that the RE can be adjusted by controlling the PEC, SEC, PTP and STP jointly. Hence, the excess rebound effect can be achieved across the whole country if the proper policy regulations can be considered, following our conclusions.

Suggested Citation

  • Miao, Zhuang & Chen, Xiaodong, 2022. "Combining parametric and non-parametric approach, variable & source -specific productivity changes and rebound effect of energy & environment," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    • Handle: RePEc:eee:tefoso:v:175:y:2022:i:c:s004016252100799x
    DOI: 10.1016/j.techfore.2021.121368
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