Examining the Drivers of Total Factor Productivity Change with an Illustrative Example of 14 EU Countries

Posted: 6 Feb 2012

See all articles by Bernhard Mahlberg

Bernhard Mahlberg

Institute for Industrial Research (IWI); Vienna University of Economics and Business - Institute for Production Management

Mikuláš Luptáčik

Vienna University of Economics and Business - Department of Economics

Biresh Sahoo

Xavier Institute of Management

Date Written: February 4, 2012

Abstract

Based on the different models developed by Korhonen and Luptacik [Korhonen, P., Luptacik, M., 2004. Eco-efficiency analysis of power plants: An extension of data envelopment analysis. European Journal of Operational Research 154, 437–46], this contribution centers on the development of an intertemporal comparison in order to analyze eco-efficiency change over time. In this setup two model variants by Korhonen and Luptacik (2004) are used in order to provide deeper insights concerning the driving forces for the change in the eco-efficiency. Which bias in technical change can be observed? Is it more input-saving or pollution-reducing? For illustration purposes the proposed approach is used to analyze the performance of 14 countries of the European Union for the period 1995–2004. An average eco-productivity growth of 22% is observed. The estimated contribution of improved use of input is 20% and that of reduced relation of greenhouse gas emissions is 23%. Therefore it is concluded that, on average, the eco-productivity growth is more driven by improved environmental conditions.

Keywords: Eco-productivity, Radial and input-oriented efficiency measure, Malmquist index

JEL Classification: O47, Q53, Q57

Suggested Citation

Mahlberg, Bernhard and Luptáčik, Mikuláš and Sahoo, Biresh K., Examining the Drivers of Total Factor Productivity Change with an Illustrative Example of 14 EU Countries (February 4, 2012). Ecological Economics, Vol. 72, No. 1, 2011. Available at SSRN: https://ssrn.com/abstract=1999189

Bernhard Mahlberg (Contact Author)

Institute for Industrial Research (IWI) ( email )

Mittersteig 10/4
Vienna, 1050
Austria
+43 1 513 44 11 0 (Phone)
+43 1 513 44 11 2099 (Fax)

HOME PAGE: http://www.iwi.ac.at/

Vienna University of Economics and Business - Institute for Production Management ( email )

Welthandelsplatz 1
Building D2, Entrance C, 3rd floor
Vienna, 1020
Austria
+43 1 313 36 - 5615 (Phone)

HOME PAGE: http://https://www.wu.ac.at/en/prodmanengl/

Mikuláš Luptáčik

Vienna University of Economics and Business - Department of Economics ( email )

Augasse 2-6
A-1090 Wien
Austria

Biresh K. Sahoo

Xavier Institute of Management ( email )

Xavier Square
Bhubaneswar, 751 013
India
+91 674 6647 735 (Phone)

HOME PAGE: http://hib.xub.edu.in/Hibiscus/Pub/faccvDet.php?client=xu&facid=XF325

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