A new frontier approach to model the eco-efficiency in European countries. (15th September 2015)

• Record Type: Journal Article
• Authors: Robaina-Alves, Margarita; Moutinho, Victor; Macedo, Pedro
• Is Part Of: Journal of cleaner production. Volume 103(2015:Sep. 15)
• Page Start: 562
• Page End: 573
• Publication Date: 2015-09-15
• Subjects: Eco-efficiency -- European countries -- Renewable energy -- Stochastic frontier approach; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2015.01.038
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: This study aims to evaluate the resource and environment efficiency problem of European countries. We specify a new stochastic frontier model where Gross Domestic Product (GDP) is considered as the desirable output and Greenhouse Gases (GHG) emissions as the undesirable output. Capital, Labor, Fossil fuels and Renewable Energy consumption are regarded as inputs. GDP/GHG ratio is maximized given the values of the other four variables. The study is divided into two distinct periods: 2000–2004 and 2005–2011. This division is related to the implementation of the Kyoto Protocol in 2005, and will allow us to evaluate the difference between the levels of efficiency before and after the establishment of environmental targets. Since stochastic frontier models are typically ill-posed, a new maximum entropy approach to assess technical efficiency, which combines information from the data envelopment analysis and the structure of composed error from the stochastic frontier approach without requiring distributional assumptions, is presented in this work.