Revealing environmentally adjusted efficiency and productivity differential effects in European Union countries.
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| Title: | Revealing environmentally adjusted efficiency and productivity differential effects in European Union countries. |
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| Authors: | Borozan, Djula1 (AUTHOR) borozan@efos.hr |
| Source: | Environment, Development & Sustainability. May2026, Vol. 28 Issue 5, p12121-12145. 25p. |
| Subject Terms: | *Economic efficiency, *Data envelopment analysis, *Sustainable development, *Countries, *Production (Economic theory), *Technological innovations, *Renewable energy transition (Government policy) |
| Company/Entity: | European Union |
| Abstract: | In response to the global demand for robust yet environmentally sensitive economic growth, this paper assesses environmentally adjusted technical efficiency and productivity for European Union (EU) countries from 2000 to 2018. It sets efficiency and productivity in a multivariate framework and compares them across the EU and between advanced (EU-17) and post-transition (EU-11) countries, distinguishing between the periods marked by expansion (2000–2006) and turbulence and crises (2007–2018). Based on data envelopment analysis and the Malmquist productivity index, the results confirm the difference in efficiency between the EU-17 and the EU-11, which is in favor of the former. Although all technically inefficient countries have higher environmentally adjusted efficiency than the non-adjusted ones, the catching-up effect is observed only within the EU-17. A favorable trend in environmentally adjusted productivity is detected over time for both groups, primarily due to the innovation effect. In contrast, managerial and organizational practices failed to keep pace with changes in economic conditions and technology. The results also signal a countercyclical nature of productivity and show that while adopting renewable energy is essential for sustainability, an increasing share of this type of energy is an important but not a sufficient condition for achieving optimal technical efficiency. [ABSTRACT FROM AUTHOR] |
| Database: | Energy & Power Source |
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| Abstract: | In response to the global demand for robust yet environmentally sensitive economic growth, this paper assesses environmentally adjusted technical efficiency and productivity for European Union (EU) countries from 2000 to 2018. It sets efficiency and productivity in a multivariate framework and compares them across the EU and between advanced (EU-17) and post-transition (EU-11) countries, distinguishing between the periods marked by expansion (2000–2006) and turbulence and crises (2007–2018). Based on data envelopment analysis and the Malmquist productivity index, the results confirm the difference in efficiency between the EU-17 and the EU-11, which is in favor of the former. Although all technically inefficient countries have higher environmentally adjusted efficiency than the non-adjusted ones, the catching-up effect is observed only within the EU-17. A favorable trend in environmentally adjusted productivity is detected over time for both groups, primarily due to the innovation effect. In contrast, managerial and organizational practices failed to keep pace with changes in economic conditions and technology. The results also signal a countercyclical nature of productivity and show that while adopting renewable energy is essential for sustainability, an increasing share of this type of energy is an important but not a sufficient condition for achieving optimal technical efficiency. [ABSTRACT FROM AUTHOR] |
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| ISSN: | 1387585X |
| DOI: | 10.1007/s10668-024-05280-3 |
