The idea that gains in ‘environmental efficiency’ may have opportunity costs in terms of ‘economic efficiency’ has still a significant role in the environmental and industrial policy debate. In this paper we exploit a detailed NAMEA-based dataset to explore the evidence regarding the dynamic trade off or ‘joint dynamics’, between economic and environmental productivities in the Italian economy. The quite long period of observations (1993-2006) allows a robust ex post dynamic assessment. Sectoral heterogeneity and variance in emission-economic productivity relationships is fully captured; the panel is well balanced. We do not observe joint economic-environmental productivities in the case of CO2 emissions per labour with relative delinking performances that seem to be worsening since the late 90’s, as elasticities and some structural breaks show. This evidence gives food for thought, since the stagnation period experienced by Italy seems to have had effects on its environmental ‘efficiency’ performances. CO2 on value added instead correlates with labour productivity showing a joint dynamic efficiency improvement. SOx analyses again show the presence of relevant structural breaks that fully explain the reduction of SOx per unit of labour – technical efficiency. As for carbon, a joint productivity dynamic relationship is observed for SOx on value added and labour productivity, with slightly larger elasticities. The analyzed period was characterized by a sharp increase of globalization trends. The economic globalization we consider interestingly appears to be a driver of emission efficiency with different effects for CO2 and SOx. Nevertheless, trade – environment relationships at sector level need further examinations by means of decomposition and input output frameworks that could fruitfully be complement of NAMEA based analyses.
Joint Economic and Environmental Efficiency
MAZZANTI, Massimiliano;
2010
Abstract
The idea that gains in ‘environmental efficiency’ may have opportunity costs in terms of ‘economic efficiency’ has still a significant role in the environmental and industrial policy debate. In this paper we exploit a detailed NAMEA-based dataset to explore the evidence regarding the dynamic trade off or ‘joint dynamics’, between economic and environmental productivities in the Italian economy. The quite long period of observations (1993-2006) allows a robust ex post dynamic assessment. Sectoral heterogeneity and variance in emission-economic productivity relationships is fully captured; the panel is well balanced. We do not observe joint economic-environmental productivities in the case of CO2 emissions per labour with relative delinking performances that seem to be worsening since the late 90’s, as elasticities and some structural breaks show. This evidence gives food for thought, since the stagnation period experienced by Italy seems to have had effects on its environmental ‘efficiency’ performances. CO2 on value added instead correlates with labour productivity showing a joint dynamic efficiency improvement. SOx analyses again show the presence of relevant structural breaks that fully explain the reduction of SOx per unit of labour – technical efficiency. As for carbon, a joint productivity dynamic relationship is observed for SOx on value added and labour productivity, with slightly larger elasticities. The analyzed period was characterized by a sharp increase of globalization trends. The economic globalization we consider interestingly appears to be a driver of emission efficiency with different effects for CO2 and SOx. Nevertheless, trade – environment relationships at sector level need further examinations by means of decomposition and input output frameworks that could fruitfully be complement of NAMEA based analyses.I documenti in SFERA sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
