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A sequential Malmquist-Luenberger productivity index: Environmentally sensitive productivity growth considering the progressive nature of technology
Samsung Economics Research Institute, Samsung Life Seocho Towe, 1321-15, 29th Fl., Seocho 2-dong, Seocho-gu, Seoul, 137-955, South Korea, and Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Drottning Kristinas väg 30B, 100 44, Stockholm, Sweden.
Department of Food and Resources Economics, College of Life Sciences and Biotechnology, Korea University, Anam-dong, Seongbuk-gu, Seoul, 136-701, South Korea.ORCID iD: 0000-0002-7902-4683
2010 (English)In: Energy Economics, ISSN 0140-9883, E-ISSN 1873-6181, Vol. 32, no 6, 1345-1355 p.Article in journal (Refereed) Published
Abstract [en]

This study proposes an index for measuring environmentally sensitive productivity growth which appropriately considers the nature of technical change. The rationale of this methodology is to exclude a spurious technical regress from the macroeconomic perspective. In order to incorporate this in developing the index, a directional distance function and the concept of the successive sequential production possibility set are combined. With this combination, the conventional Malmquist-Luenberger productivity index is modified to give the sequential Malmquist-Luenberger productivity index. This index is employed in measuring environmentally sensitive productivity growth and its decomposed components of 26 OECD countries for the period 1970-2003.We distinguish two main empirical findings. First, even though the components of the conventional Malmquist-Luenberger productivity index and the proposed index are different, the trends of rates of average productivity growth are similar. Second, unlike in previous studies, the efficiency change is the main contributor to the earlier study period, whereas the effect of technical change has prevailed over time. ©2010 Elsevier B.V.

Place, publisher, year, edition, pages
2010. Vol. 32, no 6, 1345-1355 p.
Keyword [en]
Directional distance function; Empirical findings; Environmentally sensitive; OECD countries; Productivity growth; Productivity index; Sequential production; Technical change, Productivity, energy efficiency; index method; macroeconomics; OECD; technological development
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-24473DOI: 10.1016/j.eneco.2010.09.003Scopus ID: 2-s2.0-78149410039OAI: oai:DiVA.org:hj-24473DiVA: diva2:742720
Available from: 2014-09-02 Created: 2014-09-01 Last updated: 2016-01-14Bibliographically approved

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CiteExportLink to record
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  • apa
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