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Int. J. Environ. Res. Public Health 2016, 13(11), 1116; doi:10.3390/ijerph13111116

Measurement of Low Carbon Economy Efficiency with a Three-Stage Data Envelopment Analysis: A Comparison of the Largest Twenty CO2 Emitting Countries

1
and
2,*
1
Economics and Management School, Wuhan University, Wuhan 430072, China
2
School of Information and Safety Engineering, Zhongnan University of Economics and Law, Wuhan 430073, China
*
Author to whom correspondence should be addressed.
Academic Editor: Jason K. Levy
Received: 30 July 2016 / Revised: 19 October 2016 / Accepted: 27 October 2016 / Published: 9 November 2016
(This article belongs to the Special Issue Ecological Economics, Environmental Health Policy and Climate Change)
View Full-Text   |   Download PDF [334 KB, uploaded 9 November 2016]

Abstract

This paper employs a three-stage approach to estimate low carbon economy efficiency in the largest twenty CO2 emitting countries from 2000 to 2012. The approach includes the following three stages: (1) use of a data envelopment analysis (DEA) model with undesirable output to estimate the low carbon economy efficiency and calculate the input and output slacks; (2) use of a stochastic frontier approach to eliminate the impacts of external environment variables on these slacks; (3) re-estimation of the efficiency with adjusted inputs and outputs to reflect the capacity of the government to develop a low carbon economy. The results indicate that the low carbon economy efficiency performances in these countries had worsened during the studied period. The performances in the third stage are larger than that in the first stage. Moreover, in general, low carbon economy efficiency in Annex I countries of the United Nations Framework Convention on Climate Change (UNFCCC) is better than that in Non-Annex I countries. However, the gap of the average efficiency score between Annex I and Non-Annex I countries in the first stage is smaller than that in the third stage. It implies that the external environment variables show greater influence on Non-Annex I countries than that on Annex I countries. These external environment variables should be taken into account in the transnational negotiation of the responsibility of promoting CO2 reductions. Most importantly, the developed countries (mostly in Annex I) should help the developing countries (mostly in Non-Annex I) to reduce carbon emission by opening or expanding the trade, such as encouraging the import and export of the energy-saving and sharing emission reduction technology. View Full-Text
Keywords: efficiency; low carbon economy; data envelopment analysis; stochastic frontier approach; three-stage DEA efficiency; low carbon economy; data envelopment analysis; stochastic frontier approach; three-stage DEA
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Liu, X.; Liu, J. Measurement of Low Carbon Economy Efficiency with a Three-Stage Data Envelopment Analysis: A Comparison of the Largest Twenty CO2 Emitting Countries. Int. J. Environ. Res. Public Health 2016, 13, 1116.

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