Abstract
Global warming is one of the most important issues globally. In 1997 the Kyoto Protocol regulated the greenhouse gas reduction obligation of developed economies. This study takes carbon dioxide as an undesirable output and respectively uses Malmquist and Malmquist-Luenberger indices to compute the productivity change of APEC member economies. A panel dataset of 15 APEC economies from 1995 to 2003 is constructed. Developed economies have higher productivity if CO2 emission is not considered in the Malmquist index. Since developed economies face stricter CO2 abatement obligations, they have lower productivity than developing nations if the CO2 abatement is taken into account in the Malmquist-Luenberger index. This study has found that, in terms of the Malmquist productivity index, the average productivity indices and technical changes of 15 economies generally regressed during the observation period. There are productivity improvements in Oceania and Central and South America. In terms of the degree of development, the productivity of developed economies is superior to that of developing economies. Developed economies have generally accepted higher productivity while disregarding CO2 emission.
Highlights
The Kyoto Protocol was passed in Kyoto, Japan in December 1997, with the purpose of restricting greenhouse gas emission in industrialized countries, so as to mitigate the danger of global warming
One study incorporated the impact of CO2 emission on Asia-Pacific Economic Cooperation (APEC) nations’ productivity [15], but did not mention whether the Kyoto Protocol would have different influences on developing and developed countries, as economic development is the main policy of every country
CO2 emission is treated as an undesirable output to measure the productivity change of member economies, in order to see if there is a significant difference when undesirable output is included in the model
Summary
The Kyoto Protocol was passed in Kyoto, Japan in December 1997, with the purpose of restricting greenhouse gas emission in industrialized countries, so as to mitigate the danger of global warming. Based on green GDP, when considering the national output level, negative factors should be included. One study incorporated the impact of CO2 emission on APEC nations’ productivity [15], but did not mention whether the Kyoto Protocol would have different influences on developing and developed countries, as economic development is the main policy of every country. Output, impacts the national productivity of APEC member economics according to the regulations of the Kyoto Protocol. This study uses Malmquist and Malmquist-Luenberger productivity indices to evaluate APEC member economies in the Asia-Pacific Region under the Kyoto Protocol. CO2 emission is treated as an undesirable output to measure the productivity change of member economies, in order to see if there is a significant difference when undesirable output is included in the model
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