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Determining drivers of eco-efficiency: decomposition method

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  • Eduard Nezinsky

    (University of Economics in Bratislava, Faculty of National Economy, Department of Economic Policy)

Abstract

There has been a lively discussion about measures of social welfare beyond GDP induced by Stiglitz Report (Stiglitz et al, 2009) which can be viewed as a summation of the earlier efforts to deal with those challenges. Environmental indicators constitute one important dimension to be taken into account in assessing the welfare along with the economic and social indicators. Employing non-parametrical approach, the Data Envelopment Analysis SBM model is extended for environment to measure the so called eco-efficiency. Resulting scores and benchmarks are used to decompose eco-productivity into factors attributable to changes in efficiency, technology, extensive factors of production, and emissions. Results suggest that in European countries in the span 2000 – 2010, an environment-saving rather than input-saving technology change has been taking place.

Suggested Citation

  • Eduard Nezinsky, 2014. "Determining drivers of eco-efficiency: decomposition method," Department of Economic Policy Working Paper Series 007, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.
    • Handle: RePEc:brt:depwps:007
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    eco-efficiency; data envelopment analysis; beyond GDP; decomposition;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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