Sulphur Emissions and Productivity Growth in Industrialised Countries

[en] In this paper, we examine the relationship between economic and environmental performance. More specifically, we analyse the impact of SO2 reduction in the eighties (1980-1992) on productivity growth, technical efficiency and technological progress for a set of 12 OECD countries. Our timeframe roughly corresponds to the adoption and implementation of the First Sulphur Protocol signed in 1985. First, we estimate an output based Malmquist productivity index using distance functions derived from successive DEA (Data Envelopment Analysis) frontiers. This index is decomposed in two components namely technical and efficiency change. Second, we regress the change in productivity and its two components on a set of explanatory variables including annual variations in SO2 emissions. The results indicate that reductions in SO2 do not seem to have had a significant impact on productivity growth. The decomposition into efficiency and technology changes suggests that two countervailing effects may explain this result. On one hand, SO2 cutbacks adversely affect efficiency but on the other hand, they stimulate technical change.
[fr] Dans cet article, nous examinons la relation entre les performances économiques et environnementale. Plus précisément, on analyse l’impact qu’ont eu les réductions d’émissions de SO2 au cours de la période 1980–1992 sur la croissance économique, le progrès technologique et l’efficacité technique de 12 pays membres de l’OCDE. La période analyse correspond approximativement à celle au cours de laquelle a été adopté et appliqué le Premier protocole sur le sulfure signé en 1985. Nous estimons d’abord un indice de productivité de Malmquist par la méthode des frontières DEA (Data Enveloment Analysis). Cet indice est décomposé en ses deux composantes : progrès technologique et changement d’efficacité technique. En deuxième lieu, nous testons économétriquement l’impact sur la productivité et ses composantes d’une série de variables, parmi lesquelles les taux de variations annuelles des émissions de SO2. Les résultats indiquent que les réductions d’émissions ne semblent pas avoir eu un effet significatif sur la croissance de la productivité. Mais deux effets de signe contraire peuvent expliquer ce résultat. La réduction des émissions de SO2 aurait stimulé le progrès technologique mais affecté négativement l’efficacité technique.

Research Center/Unit :

CREPP - Centre de Recherche en Économie Publique et de la Population - ULiège

Disciplines :

Economic systems & public economics

Author, co-author :

Barla, Philippe

Perelman, Sergio ; Université de Liège - ULiège > HEC-Ecole de gestion : UER > Economie publique appliquée

Language :

English

Title :

Sulphur Emissions and Productivity Growth in Industrialised Countries

Publication date :

2005

Journal title :

Annals of Public and Cooperative Economics

ISSN :

1370-4788

eISSN :

1467-8292

Publisher :

Blackwell Publishing

Volume :

Issue :

Pages :

275-300

Peer reviewed :

Peer Reviewed verified by ORBi

Available on ORBi :

since 17 February 2010

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