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Total Factor Productivity Growth and the Environment: A Case for Green Growth Accounting AgEcon
Xepapadeas, Anastasios; Tzouvelekas, Vangelis; Vouvaki, Dimitra.
We examine whether the use of the environment, proxied by CO2 emissions, as a factor of production contributes, in addition to conventional factors of production to output growth, and thus it should be accounted for in total factor productivity growth (TFPG) measurement and deducted from the .residual. A theoretical framework of growth accounting methodology with environment as a factor of production which is unpaid in the absence of environmental policy is developed. Using data from a panel of 23 OECD countries, we show that emissions. growth have a statistically significant contribution to the growth of output, that emission augmenting technical change is present along with labor augmenting technical change, and that part of output growth which is...
Tipo: Working or Discussion Paper Palavras-chave: Solow Residual; Total Factor Productivity Growth; Growth; Environment; Green Growth Accounting; Environmental Economics and Policy; O47; Q2.
Ano: 2007 URL: http://purl.umn.edu/9319
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Total Factor Productivity Growth when Factors of Production Generate Environmental Externalities AgEcon
Vouvaki, Dimitra; Xepapadeas, Anastasios.
Total factor productivity growth (TFPG) has been traditionally associated with technological change. We show that when a factor of production, such as energy, generates an environmental externality in the form of CO2 emissions which is not internalized because of lack of environmental policy, then TFPG estimates could be biased. This is because the contribution of environment as a factor of production is not accounted for in the growth accounting framework. Empirical estimates confirm this hypothesis and suggest that part of what is regarded as technology’s contribution to growth could be attributed to the use of environment in output production.
Tipo: Working or Discussion Paper Palavras-chave: Total Factor Productivity; Sources of Growth; Environmental Externalities; Energy; Environmental Policy; Environmental Economics and Policy; O47; Q20; Q43.
Ano: 2009 URL: http://purl.umn.edu/50405
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