Environmentally sensitive productivity growth: A global analysis using Malmquist–Luenberger index

Kumar, Surender

doi:10.1016/j.ecolecon.2005.02.004

Cited by 408 publications

(169 citation statements)

References 15 publications

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“…This means that China's air pollution regulations regime may be ineffective. The conclusion is consistent with the views of Kumar et al [5] and Zhang et al [6]. The reasons for this situation may be high-pollution industries have shown little initiative in establishing cleaner production processes.…”

Section: Dynamic ML Index and Malmquist Index (M Index) And Their Decsupporting

confidence: 82%

“…In traditional economic growth theory, productivity has acted as a significant engine of economic growth and improved the people's living standards [5]. However, during production processes, desirable or good outputs are frequently obtained alongside harmful by-products (what we call constructed from directional distance functions rather than Shepherd distance functions.…”

Section: Introductionmentioning

confidence: 99%

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Productivity Growth-Accounting for Undesirable Outputs and Its Influencing Factors: The Case of China

et al. 2016

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Abstract:Presently, China's social development is facing the dilemma of supporting economic growth and reducing emissions. Therefore, it is crucial to analyse productivity growth and examine its relationship with influencing factors in China. This study evaluated the total factor productivity (TFP) growth of 30 provinces in China by adopting the Malmquist-Luenberger (ML) productivity index and incorporating undesirable outputs from 2011-2014. Then, a Tobit regression model was employed to explore the factors that influence China's TFP growth. The results show that the average annual growth of the Malmquist-Luenberger productivity index was lower than that of the traditional Malmquist (M) productivity index growth during the research period. The findings reveal several key conclusions: First, the true TFP growth in China will be overestimated if undesirable outputs are ignored. Second, technical changes are the main contributor to TFP growth. Third, there are huge regional disparities of productivity growth in China. Fourth, coal intensity, environmental regulations, and industrial structure have significantly negative effects on productivity growth, while real per capita gross domestic product (GDP) and foreign direct investment (FDI) have strongly positive effects on productivity growth.

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Section: Dynamic ML Index and Malmquist Index (M Index) And Their Decsupporting

confidence: 82%

Section: Introductionmentioning

confidence: 99%

Productivity Growth-Accounting for Undesirable Outputs and Its Influencing Factors: The Case of China

et al. 2016

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“…The Shepard's input distance function could also be appropriate because a proportional change in inputs with good and bad outputs held constant is an unambiguous indicator of welfare change (Hailu and Veeman, 2001;Murty et al 2006). There are some recent studies using the directional distance function, a generalization of Shepard's output distance function, for estimating the technical and environmental efficiency of polluting firms (Fare and Grosskopf, 2004;Fare et al 2005;Kumar, 2006). The polluting firm's technical efficiency in increasing good output and reducing bad output, namely pollution, could be measured using the directional distance function because it allows one to consider the proportional changes in outputs and allows one output to be expanded while another output is contracted.…”

Section: Introductionmentioning

confidence: 99%

Measuring environmental efficiency of industry: a case study of thermal power generation in India

Murty

Kumar

Dhavala

2006

Environ Resource Econ

Self Cite

119

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Technical and environmental efficiency of some coal-fired thermal power plants in India is estimated using a methodology that accounts for firm's efforts to increase the production of good output and reduce pollution with the given resources and technology. The methodology used is directional output distance function. Estimates of firm-specific shadow prices of pollutants (bad outputs), and elasticity of substitution between good and bad outputs are also obtained. The technical and environmental inefficiency of a representative firm is estimated as 0.10 implying that the thermal power generating industry in Andhra Pradesh state of India could increase production of electricity by 10 per cent while decreasing generation of pollution by 10 percent. This result shows that there are incentives or win-win opportunities for the firms to voluntarily comply with the environmental regulation. It is found that there is a significant variation in marginal cost of pollution abatement or shadow prices of bad outputs across the firms and an increasing marginal cost of pollution abatement with respect to pollution reduction by the firms. The variation in marginal cost of pollution abatement and compliance to regulation across firms could be reduced by having economic instruments like emission tax.JEL Classification: Q 25

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“…The researchers [1,20,21] employed the MalmquistLuenberger productivity index to measure the total factor productivity change with undesirable output. The directional distance function enables both an expansion of desirable output and shrinkage of undesirable output, defined as follows [22]:…”

Section: Null-joint Outputmentioning

confidence: 99%

CO2 Emissions and Productivity in APEC Member Economies

Ke¹,

Hu²

2011

TOENVIRJ

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Global warming is one of the most important issues globally. In 1997 the Kyoto Protocol regulated the greenhouse gas reduction obligation of developed economies. This study takes carbon dioxide as an undesirable output and respectively uses Malmquist and Malmquist-Luenberger indices to compute the productivity change of APEC member economies. A panel dataset of 15 APEC economies from 1995 to 2003 is constructed. Developed economies have higher productivity if CO 2 emission is not considered in the Malmquist index. Since developed economies face stricter CO 2 abatement obligations, they have lower productivity than developing nations if the CO 2 abatement is taken into account in the Malmquist-Luenberger index. This study has found that, in terms of the Malmquist productivity index, the average productivity indices and technical changes of 15 economies generally regressed during the observation period. There are productivity improvements in Oceania and Central and South America. In terms of the degree of development, the productivity of developed economies is superior to that of developing economies. Developed economies have generally accepted higher productivity while disregarding CO 2 emission.

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Environmentally sensitive productivity growth: A global analysis using Malmquist–Luenberger index

Cited by 408 publications

References 15 publications

Productivity Growth-Accounting for Undesirable Outputs and Its Influencing Factors: The Case of China

Productivity Growth-Accounting for Undesirable Outputs and Its Influencing Factors: The Case of China

Measuring environmental efficiency of industry: a case study of thermal power generation in India

CO2 Emissions and Productivity in APEC Member Economies

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