Greenhouse Gas Emission Reduction Potentials in Europe: A Nonparametric Efficiency Analysis Approach Using Sectoral Data

51 Pages Posted: 3 Dec 2020

See all articles by Jens J. Krüger

Jens J. Krüger

Technical University of Darmstadt

Moritz Tarach

Technical University of Darmstadt

Date Written: September 30, 2020

Abstract

The contribution of efficiency improvements to the reduction of greenhouse gas emissions is not much investigated. We provide an environmental efficiency analysis with nonparametric methods to quantitatively assess the emission reductions originating from possible efficiency improvements in 16 EU countries. Therefore we apply nonparametric methods with a special focus on correctly including undesirable output such as emissions. A special feature is that the analysis is based on sectoral data and therefore accounts for sectoral differences. This leads to more realistic estimates of potential emission reductions than using macroeconomic data. We find sizable emission reductions which could be potentially realized by efficiency improvements and which could be a substantial contribution to the targets of EU climate policy.

Keywords: climate policy, environmental efficiency, nonparametric measurement, Europe

JEL Classification: Q54, E23, C14

Suggested Citation

Krüger, Jens J. and Tarach, Moritz, Greenhouse Gas Emission Reduction Potentials in Europe: A Nonparametric Efficiency Analysis Approach Using Sectoral Data (September 30, 2020). Available at SSRN: https://ssrn.com/abstract=3716203 or http://dx.doi.org/10.2139/ssrn.3716203

Jens J. Krüger (Contact Author)

Technical University of Darmstadt ( email )

Hochschulstraße 1
Darmstadt, 64289
Germany

Moritz Tarach

Technical University of Darmstadt ( email )

Hochschulstraße 1
Darmstadt, 64289
Germany

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