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The Role of International Trade and Urbanization on Environmental Technical Efficiency in EU Member and Candidate Countries

Year 2017, Volume: 17 Issue: 4, 481 - 492, 01.11.2017

Abstract

In recent years, global attention has been devoted towards the devastating effects of high carbon emissions on the environment and economy. The Paris Agreement which was accepted by over 190 countries in December 2015 marks the beginning of a new era towards the battle against climate change. The reason for such a collective action towards a renown global phenomenon is to provide a cleaner environment and sustainable economy for the future generations. Understanding environmental efficiency is one of the most significant aspects of this endeavor. This paper uses environmental efficiency scores estimated through a parametric hyperbolic distance function for EU member and candidate countries over the years 1990-2011, and investigates its relationship with per capita income, industrial share of GDP, openness to trade, and urbanization by using a Tobit model. The results suggest that all the variables are significant determinants of environmental technical efficiency. The relation between environmental technical efficiency and economic development shows a U-shaped curve, whereas industrial share of GDP follows an inverse U-shaped curve. There is an inverse relationship between environmental technical efficiency and openness to trade, and a positive relationship with urbanization

References

  • Ang BW, Zhang FQ (2000) A survey of index decomposition analysis in energy and environmental studies. Energy 25:1149–1176.
  • Arrow K, Bolin B, Costanza R, et al (1995) Economic growth, carrying capacity, and the environment. Ecol Econ 15:91–95.
  • Cuesta RA, Lovell CAK, Zofío JL (2009) Environmental efficiency measurement with translog distance functions: A parametric approach. Ecol Econ 68:2232–
  • Cuesta RA, Zofío JL (2005) Hyperbolic Efficiency and Parametric Distance Functions: With Application to
  • Spanish Savings Banks. J Product Anal 24:31–48. Dean JM (2002) Does trade liberalization harm the environment? A new test. Can J Econ Can d`Economique :819–842.
  • Edwards S (1993) Openness, Trade Liberalization, and Growth in Developing Countries. J Econ Lit 31:1358–
  • Ekins P, Folke C, Costanza R (1994) Trade, Environment and Development - the Issues in Perspective. Ecol Econ :1–12.
  • Färe R, Grosskopf S, Hernandez-Sancho F (2004)
  • Environmental performance: An index number approach. Resour Energy Econ 26:343–352. Grossman GM, Krueger AB (1995) Economic growth and the environment. Q J Econ 110:353–377.
  • Grossman GM, Krueger AB (1991) Environmental
  • Impacts of a North American Free Trade Agreement. Natl Bur Econ Res Work Pap Ser No. 3914:1–57.
  • Jevons WS (1865) The Coal Question; An Inquiry concerning the Progress of the Nation, and the Probable
  • Exhaustion of our Coal-mines. Khazzoom JD (1980) Economic Implications of Mandated
  • Efficiency in Standards for Household Appliances. Source Energy J 1:21–40. Kraft A, Kraft J (1978) On the relationship between energy and GNP. J Energy Dev 3:401–403.
  • Kumar S (2006) Environmentally sensitive productivity growth: A global analysis using Malmquist–Luenberger index. Ecol Econ 56:280–293.
  • Kumar S, Khanna M (2009) Measurement of environmental efficiency and productivity: a cross- country analysis. Environ Dev Econ 14:473.
  • Li M, Wang Q (2014) International environmental efficiency differences and their determinants. Energy :411–420.
  • McDonald J (2009) Using least squares and tobit in second stage DEA efficiency analyses. Eur J Oper Res :792–798.
  • Ramanathan R (2005) An analysis of energy consumption and carbon dioxide emissions in countries of the Middle
  • East and North Africa. Energy 30:2831–2842.
  • Simar L, Wilson PW (2011) Two-stage DEA: Caveat emptor. J Product Anal 36:205–218.
  • Simar L, Wilson PW (2007) Estimation and inference in two-stage, semi-parametric models of production processes. J Econom 136:31–64.
  • Taskin F, Zaim O (2001) The role of international trade on environmental efficiency: A DEA approach. Econ Model 18:1–17.
  • Tobin J (1958) Estimation of Relationships for Limited
  • Dependent Variables. Source Econom 26:24–36. Yu-Ying Lin E, Chen PY, Chen CC (2013) Measuring green productivity of country: A generlized metafrontier
  • Malmquist productivity index approach. Energy 55:340– Zaim O, Taskin F (2000) A Kuznets curve in environmental efficiency: An application on OECD countries. Environ Resour Econ 17:21–36.
  • Zhou P, Ang BW, Poh KL (2008) A survey of data envelopment analysis in energy and environmental studies. Eur J Oper Res 189:1–18.
  • Zhou P, Poh KL, Ang BW (2007) A non-radial DEA approach to measuring environmental performance. Eur J Oper Res 178:1–9. APPENDIX

Avrupa Birliği Üye ve Aday Ülkelerde Uluslararası Ticaret ve Kentleşmenin Çevresel Teknik Verimlilik Üzerindeki Rolü

Year 2017, Volume: 17 Issue: 4, 481 - 492, 01.11.2017

Abstract

Son yıllarda küresel dikkat, yüksek karbon emisyonlarının çevre ve ekonomi üzerindeki yıkıcı etkileri konusuna ayrılmıştır. Aralık 2015’te 190’dan fazla ülke tarafından kabul edilen Paris Anlaşması iklim değişikliğine karşı savaşta yeni bir dönemin başlamasını işaret ediyor. Kötü şöhretli bir küresel olguya karşı böylesine bir ortak eylemin amacı, gelecek nesiller için daha temiz bir çevre ve sürdürülebilir ekonomi sağlamaktır. Çevre verimliliğini anlamak bu çabanın en önemli yönlerinden biridir. Bu makale, 1990-2011 yılları arasında AB üye ve aday ülkeleri için parametrik hiperbolik bir mesafe fonksiyonu aracılığıyla tahmin edilen çevresel verimlilik puanları ile kişi başına düşen gelir, sanayinin GSYİH içindeki payı, ticarete açıklık ve kentleşme arasındaki ilişkiyi bir Tobit modeli kullanarak araştırmaktadır. Sonuçlar, tüm değişkenlerin çevresel teknik verimliliğin önemli birer belirleyicisi olduğuna işaret etmektedir. Çevresel teknik verimlilik ile ekonomik kalkınma arasındaki ilişki U şeklinde bir eğriyi gösterirken, sanayinin GSYİH payı ters U şeklinde bir eğri izlemektedir. Çevresel teknik verimliliğin ticarette açıklık ile arasında ters, kentleşme ile pozitif bir ilişkisi vardır

References

  • Ang BW, Zhang FQ (2000) A survey of index decomposition analysis in energy and environmental studies. Energy 25:1149–1176.
  • Arrow K, Bolin B, Costanza R, et al (1995) Economic growth, carrying capacity, and the environment. Ecol Econ 15:91–95.
  • Cuesta RA, Lovell CAK, Zofío JL (2009) Environmental efficiency measurement with translog distance functions: A parametric approach. Ecol Econ 68:2232–
  • Cuesta RA, Zofío JL (2005) Hyperbolic Efficiency and Parametric Distance Functions: With Application to
  • Spanish Savings Banks. J Product Anal 24:31–48. Dean JM (2002) Does trade liberalization harm the environment? A new test. Can J Econ Can d`Economique :819–842.
  • Edwards S (1993) Openness, Trade Liberalization, and Growth in Developing Countries. J Econ Lit 31:1358–
  • Ekins P, Folke C, Costanza R (1994) Trade, Environment and Development - the Issues in Perspective. Ecol Econ :1–12.
  • Färe R, Grosskopf S, Hernandez-Sancho F (2004)
  • Environmental performance: An index number approach. Resour Energy Econ 26:343–352. Grossman GM, Krueger AB (1995) Economic growth and the environment. Q J Econ 110:353–377.
  • Grossman GM, Krueger AB (1991) Environmental
  • Impacts of a North American Free Trade Agreement. Natl Bur Econ Res Work Pap Ser No. 3914:1–57.
  • Jevons WS (1865) The Coal Question; An Inquiry concerning the Progress of the Nation, and the Probable
  • Exhaustion of our Coal-mines. Khazzoom JD (1980) Economic Implications of Mandated
  • Efficiency in Standards for Household Appliances. Source Energy J 1:21–40. Kraft A, Kraft J (1978) On the relationship between energy and GNP. J Energy Dev 3:401–403.
  • Kumar S (2006) Environmentally sensitive productivity growth: A global analysis using Malmquist–Luenberger index. Ecol Econ 56:280–293.
  • Kumar S, Khanna M (2009) Measurement of environmental efficiency and productivity: a cross- country analysis. Environ Dev Econ 14:473.
  • Li M, Wang Q (2014) International environmental efficiency differences and their determinants. Energy :411–420.
  • McDonald J (2009) Using least squares and tobit in second stage DEA efficiency analyses. Eur J Oper Res :792–798.
  • Ramanathan R (2005) An analysis of energy consumption and carbon dioxide emissions in countries of the Middle
  • East and North Africa. Energy 30:2831–2842.
  • Simar L, Wilson PW (2011) Two-stage DEA: Caveat emptor. J Product Anal 36:205–218.
  • Simar L, Wilson PW (2007) Estimation and inference in two-stage, semi-parametric models of production processes. J Econom 136:31–64.
  • Taskin F, Zaim O (2001) The role of international trade on environmental efficiency: A DEA approach. Econ Model 18:1–17.
  • Tobin J (1958) Estimation of Relationships for Limited
  • Dependent Variables. Source Econom 26:24–36. Yu-Ying Lin E, Chen PY, Chen CC (2013) Measuring green productivity of country: A generlized metafrontier
  • Malmquist productivity index approach. Energy 55:340– Zaim O, Taskin F (2000) A Kuznets curve in environmental efficiency: An application on OECD countries. Environ Resour Econ 17:21–36.
  • Zhou P, Ang BW, Poh KL (2008) A survey of data envelopment analysis in energy and environmental studies. Eur J Oper Res 189:1–18.
  • Zhou P, Poh KL, Ang BW (2007) A non-radial DEA approach to measuring environmental performance. Eur J Oper Res 178:1–9. APPENDIX
There are 28 citations in total.

Details

Other ID JA56NE89SA
Journal Section Research Article
Authors

Yavuz Selman Duman This is me

Adnan Kasman This is me

Publication Date November 1, 2017
Published in Issue Year 2017 Volume: 17 Issue: 4

Cite

APA Duman, Y. S., & Kasman, A. (2017). The Role of International Trade and Urbanization on Environmental Technical Efficiency in EU Member and Candidate Countries. Ege Academic Review, 17(4), 481-492.
AMA Duman YS, Kasman A. The Role of International Trade and Urbanization on Environmental Technical Efficiency in EU Member and Candidate Countries. ear. November 2017;17(4):481-492.
Chicago Duman, Yavuz Selman, and Adnan Kasman. “The Role of International Trade and Urbanization on Environmental Technical Efficiency in EU Member and Candidate Countries”. Ege Academic Review 17, no. 4 (November 2017): 481-92.
EndNote Duman YS, Kasman A (November 1, 2017) The Role of International Trade and Urbanization on Environmental Technical Efficiency in EU Member and Candidate Countries. Ege Academic Review 17 4 481–492.
IEEE Y. S. Duman and A. Kasman, “The Role of International Trade and Urbanization on Environmental Technical Efficiency in EU Member and Candidate Countries”, ear, vol. 17, no. 4, pp. 481–492, 2017.
ISNAD Duman, Yavuz Selman - Kasman, Adnan. “The Role of International Trade and Urbanization on Environmental Technical Efficiency in EU Member and Candidate Countries”. Ege Academic Review 17/4 (November 2017), 481-492.
JAMA Duman YS, Kasman A. The Role of International Trade and Urbanization on Environmental Technical Efficiency in EU Member and Candidate Countries. ear. 2017;17:481–492.
MLA Duman, Yavuz Selman and Adnan Kasman. “The Role of International Trade and Urbanization on Environmental Technical Efficiency in EU Member and Candidate Countries”. Ege Academic Review, vol. 17, no. 4, 2017, pp. 481-92.
Vancouver Duman YS, Kasman A. The Role of International Trade and Urbanization on Environmental Technical Efficiency in EU Member and Candidate Countries. ear. 2017;17(4):481-92.