Environmentally Adjusted Multifactor Productivity: Methodology and Empirical Results for OECD and G20 Countries

Rodríguez, Miguel Cárdenas; Haščič, Ivan; Souchier, Martin

doi:10.1016/j.ecolecon.2018.06.015

Cited by 53 publications

(18 citation statements)

References 22 publications

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“…The EAMFP measures a country's ability to produce more income than in the past from a given set of inputs (including domestic natural resources), also counting undesirable by-products, such as pollution). The EAMFP makes the connection between "growth" and "green" and produce a measure of economic and environmental performance (Cárdenas Rodríguez, Haščič, & Souchier, 2018). The growth in GDP measured economic growth.…”

Section: Dependent Variablesmentioning

confidence: 99%

Green growth versus economic growth: Do sustainable technology transfer and innovations lead to an imperfect choice?

et al. 2021

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A concern with the mitigation of climate change cuts a transversal line across economic agents, epitomized by two contradictory viewpoints. Some defend that green growth can be achieved without harming economic growth; others argue that it is not possible to respect sustainability if intensive consumption of goods continues to foster economic growth. Our research aims to analyze the role that sustainable technology transfer and sustainable innovations play in green growth and ascertain the impact of green growth on economic growth. We use aggregated country-level data provided by the OECD, including national accounts, population, and environment statistics (including patents) between 1990 and 2013 for 32 countries, corresponding to an unbalanced panel of 591 observations. We estimate econometric models based on dynamic panel methodologies to capture differences that exist over time. The results show that sustainable technology transfer and sustainable innovation promote green growth, which in turn positively impacts economic growth. We contribute new insight to the green growth versus economic growth debate and provide several political and management implications.

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Section: Dependent Variablesmentioning

confidence: 99%

Green growth versus economic growth: Do sustainable technology transfer and innovations lead to an imperfect choice?

et al. 2021

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“…Environmentally adjusted multifactor productivity (EAMFP) “measures a country's ability to generate income from a given set of inputs, while accounting for the consumption of natural resources and production of undesirable environmental outputs” (Cárdenas Rodríguez et al ., 2018). As EAMFP measures the growth rate of the pollution adjusted total factor productivity in a way that is more accurate as an index of technical progress than standard total factor productivity (Nanere et al , 2007), assessments of EAMFP growth could serve as a starting point for analyzing countries pursuing green growth and sustainable development via green innovation.…”

Section: Green Growth Through Innovationmentioning

confidence: 99%

“…As EAMFP measures the growth rate of the pollution adjusted total factor productivity in a way that is more accurate as an index of technical progress than standard total factor productivity (Nanere et al , 2007), assessments of EAMFP growth could serve as a starting point for analyzing countries pursuing green growth and sustainable development via green innovation. Importantly, EAMFP is derived from the following growth accounting transformation function (Cárdenas Rodríguez et al ., 2018) that builds upon models previously developed by Brandt et al . (2013, 2014):

H ((), Y, R, L, K, S, t) \geq 1

where Y depicts gross domestic product (the desirable output of the economy), R depicts air pollution flows (undesirable outputs of the economy), L , K , and S , respectively, denote labor, produced capital, and natural capital, and t denotes time.…”

Section: Green Growth Through Innovationmentioning

confidence: 99%

Green Innovation and Finance in Asia

Tolliver

Fujii

Keeley

et al. 2020

Asian Economic Policy Review

210

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Green innovation and green finance are two key components of sustainable development. In the most populous, fastest‐growing region in the world, Asian countries are pressed to maintain economic growth while addressing climate change and environmental externalities. Japan, South Korea, and China have each implemented policies to promote green innovation and finance conducive to such ends. While each country possesses unique capabilities, the extent to which they can promote environmentally adjusted multifactor productivity growth, green patent registrations, green bond issuances, green foreign direct investment, and environmental, social, and governance information disclosures stands to impact on their shifts to sustainable growth paradigms.

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“…Even the green growth taken in this study is based on the production-side approach, it can be used interchangeably with demand-based CO 2 productivity as the correlations are higher than .97 for all three panels. Albeit at a lower magnitude, our green growth definition is also positively and significantly correlated with green total factor productivity measured as a pollution abatement component of GDP growth based on the methodology of Rodríguez et al (2018). Total CO 2 emissions per capita, a widely used proxy of environmental degradation, is negatively and significantly (but weakly) correlated with our green growth indicator, whereas it is positively and moderately correlated with our gray growth measure.…”

Section: Comparison Of Alternative Green and Gray Growth Indicatorsmentioning

confidence: 76%

“…Despite the overall increased awareness of communities regarding sustainability, the sustainable growth indicators substantially vary across countries. Some countries heavily rely on the extraction of subsoil assets, while other countries grow through productivity improvements (Rodríguez et al 2018).…”

Section: Conceptualization Of Green and Gray Growthmentioning

confidence: 99%

Where is the gray side of green growth? Theoretical insights, policy directions, and evidence from a multidimensional approach

Demiral

2021

Environ Sci Pollut Res

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Addressing the geographical relocation of the pollution-intensive gray side of low-carbon green production, our study analyzes potential determinants of green and gray growth performance of industrialized/developed countries (IDCs) and industrializing/ emerging economies (IEEs) over the 1996-2015 period. We define green growth by low-carbon output, while we link gray growth to comparative advantages of pollution havens. Green and gray growth models include such predictors as domestic income and foreign direct investment (FDI) together with composite indices for globalization, environmental policy stringency (EPS), industrialization, and control of corruption. Considering non-stationarity, cross-section dependency, endogeneity, and heterogeneity concerns, we employ bootstrap and residual-based cointegration analyses followed by long-run estimations using the Common Correlated Effects Mean Group (CCEMG) and Dynamic Ordinary Least Squares (DOLS) estimators and causality examination through Dumitrescu-Hurlin and Emirmahmutoglu-Kose tests. The key findings of the study are as follows: (i) income is positively associated with green growth for both IEEs and IDCs, whereas the income-gray growth nexus is negative for IEEs. (ii) Although inward FDI stocks are positively related to green and gray growth of IEEs and outward FDI stocks are negatively associated with green and gray growth of IDCs, these relationships are mediated by EPS. (iii) Globalization encourages both green and gray growth for IDCs. (iv) Even though EPS inhibits green growth and encourage gray growth in IEEs, these direct effects widely depend on the indirect effects of control of corruption. (v) IEEs' higher gray growth performance is substantially explained by their increased industrial competitiveness, whereas the link is negative for IDCs. (vi) Control of corruption fosters both green and gray growth in IEEs. Overall, "growing gray" does not necessarily mean "not growing green" and vice versa. Globally, the low-carbon benefits of greening countries may be counterbalanced by the environmental costs of graying economies. From a policy perspective, IEEs need to reinforce environmental policies by green efficiency, green industrialization, and anti-corruption plans to decouple economic growth from carbon dioxide emissions.

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Environmentally Adjusted Multifactor Productivity: Methodology and Empirical Results for OECD and G20 Countries

Cited by 53 publications

References 22 publications

Green growth versus economic growth: Do sustainable technology transfer and innovations lead to an imperfect choice?

Green growth versus economic growth: Do sustainable technology transfer and innovations lead to an imperfect choice?

Green Innovation and Finance in Asia

Where is the gray side of green growth? Theoretical insights, policy directions, and evidence from a multidimensional approach

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