Open AccessTotal Factor Environmental Productivity in the Mediterranean Countries: A Malmquist–Luenberger Index Approach
Author(s) -
Eya Jebali,
Hédi Essid
Publication year - 2020
Publication title -
international journal of applied management and technology
Language(s) - English
Resource type - Journals
ISSN - 1544-4740
DOI - 10.5590/ijamt.2020.19.1.05
Subject(s) - data envelopment analysis , productivity , technical change , total factor productivity , index (typography) , malmquist index , economics , technical progress , technological change , econometrics , natural resource economics , economic growth , statistics , mathematics , computer science , macroeconomics , world wide web
This paper examines the environmental productivity in the Mediterranean countries over the period 2009-2014.We use the Malmquist-Luenberger productivity index (MLPI) that can handle undesirable outputs within Data Envelopment Analysis (DEA) approach. We decompose the MLPI index into technical efficiency, technological change and scale efficiency change in order to determine the source of productivity changes. Empirical findings indicate that the total factor environmental productivity in the Mediterranean countries have a negative developmental trend. Furthermore, we find that technological progress is the main source of productivity growth. Finally, Mediterranean countries need a considerable effort on R&D to optimize the potential for technical development and enhance the environmental efficiency levels.