Measurement of Environmental Efficiency Based on Stochastic Directional Distance Function : A Metafrontier Approach

Title
Measurement of Environmental Efficiency Based on Stochastic Directional Distance Function : A Metafrontier Approach
Other Titles
Measurement of Environmental Efficiency Based on Stochastic Directional Distance Function : A Metafrontier Approach
Authors
Ziyao Li; Sangmok Kang
Issue Date
2021-12-31
Publisher
한국환경연구원,한국환경정책학회
Series/Report No.
환경정책 : 제29권 특별호 2021년 12월
Page
57-87 p.
URI
https://repository.kei.re.kr/handle/2017.oak/23425
Language
영어
Abstract
This study measures environmental efficiency (EE) based on CO2 emissions for five groups of countries between 1998 and 2018, using the stochastic metafrontier directional distance function. The model estimates environmental efficiency scores for a panel of 163 countries using data on GDP and CO2 emissions as economic growth and the consumption of fossil fuels lead to increased CO2 emissions. Moreover, meta inefficiency and technical gap differences (TGD) are compared, and the findings indicate that most countries have higher mean TGDs than their group’s average inefficiency measures. Furthermore, except for the low-income group, the OECD group is closest to the meta environmental frontier, suggesting that the OECD countries have advanced technologies to govern the environment. Alternatively, the findings also showed that upper-middle-income countries have the worst meta efficiency, implying that this group of countries sustain a high pollution growth path. Finally, we compare the difference between the stochastic metafrontier method and the pooling method and show that the pooling approach underestimates the severity of environmental problems. [Key Words] Environmental Efficiency, Stochastic Metafrontier, Directional Distance Function, Technical Gap Difference, Income Group

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Periodicals(정기간행물) Journal of Environmental Policy and Administration(환경정책)
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