Total factor productivity and education on CO2 emissions: evidence from ASEAN + 3 countries
Carbon dioxide (CO2) emissions from fossil fuel combustion significantly contribute to environmental degradation and climate change, leading to severe societal impacts, such as extreme weather and disrupted agriculture. This study examines the relationship between total factor productivity (TFP), educational attainment, and CO2 emissions in selected ASEAN + 3 countries from 1991 to 2022. Using dynamic panel data methods and the pooled mean group (PMG) estimator, findings reveal that while population growth and economic development positively affect CO2 emissions, TFP and education have a negative long-term impact. In the short term, only population growth is statistically significant. Prioritising TFP growth and responsible consumption can reduce emissions. Higher educational attainment fosters innovation in low-carbon technologies, accelerating emission reductions across industries. Policymakers can facilitate TFP growth and promote climate-friendly practices, while educated individuals play a crucial role in systematically mitigating CO2 emissions.
- Research Article
5
- 10.2134/jpa1996.289
- Apr 1, 1996
- Journal of Production Agriculture
Continuous cotton ( Gossypium hirsutum L.) production was examined using data from Alabama's long‐term Old Rotation experiment (c. 1896). Index values were used to examine trends in productivity and sustainability for 95 yr. Treatments studied were those receiving (i) no N fertilizers and no winter legumes for 95 yr, (ii) only winter legumes as a source of N, and (iii) chemical fertilizer N. Three sets of index numbers were calculated from all inputs and outputs involved in the production systems: (i) total factor productivity (TFP), which accounts for all direct production inputs, but which does not consider production externalities; (ii) productivity relative to a base plot;and (iii) total social factor productivity (TSFP), which accounts for all direct production inputs as well as externalities of soil erosion and pesticide use. Viewed from the 95‐yr perspective of the Old Rotation experiment, all three treatments fulfill at least one criterion required for a system to be considered sustainable. Output per unit of input is higher in 1991 than in 1896, even when externalities are valued. None of the systems showed a linear trend in output or TFP over the life of the experiment;productivity cycles are present in all three systems, despite a positive overall trend. An average annual rate of TSFP growth of 1.8%/yr was attained. Accounting for erosion and pesticide externalities reduced the annual productivity growth rate by 0.2%/yr. The system that has neither an organic nor a chemical source of added N was less productive and less sustainable than the two other systems, with a 0.3%/yr TSFP growth rate. The plots using organic and chemical sources of N had similar productivity impacts. Valuing soil erosion and pesticide externalities had only a modest effect on measured productivity. The most dramatic single event to affect the productivity of cotton farming was the introduction of the mechanical cotton picker. The impact of this technology was powerful enough to offset the effect of many other changes in the system. Research Question Is cotton production in the southeastern USA sustainable? How do we measure sustainability of a crop that has been produced for almost 200 yr in the same region but has a reputation for depleting the soil of nutrients, extensive soil erosion, and high pesticide use? The objective of this study was to use input and output indexes and a calculation of total factor productivity (TFP) to determine if cotton production using different management strategies is sustainable over nearly a century of continuous production. Literature Summary Most researchers agree that a sustainable system should maintain or enhance agricultural production, reduce the level of production risk for the farmer, protect natural resources, be economically viable, and be socially acceptable. Measuring all of these attributes of a production system is very difficult. However, using the extensive data available from historical, long‐term experiments should provide insight as to sustainability of certain production systems. Alabama's Old Rotation (c. 1896) is the oldest continuous cotton experiment in the world. Input and output (yield) records and estimates allow calculation of TFP indexes over the 95‐yr history of continuous cotton production. Different cotton production systems can be compared. Study Description Three continuous cotton systems from the Old Rotation were chosen for comparison: (i) No N and no winter legumes since 1896 (No N), (ii) winter legumes (crimson clover and/or vetch) as the only source of N since 1896 (winter legumes), and (iii) no winter cover crop and 120 lb N/acre as ammonium nitrate since 1956 (N fertilizer). Where input records were not recorded (e.g., labor, costs, machinery, etc.), they were estimated from USDA, Alabama Agricultural Experiment Station, and Alabama Cooperative Extension Service publications. Soil erosion estimates for the three cropping systems on a Pacolet fine sandy loam, were made using Erosion Productivity Index Calculator modeling. Input, output, TFP, and total social factor productivity (TSFP) indexes for 95 yr were calculated. Total social factor productivity includes estimated values for the negative offsite effects of soil erosion and pesticide use. Applied Questions Is continuous cotton production sustainable? Viewed from the 95‐yr perspective of the Old Rotation, the no N, winter legume, and N‐fertilized continuous cotton plots all fulfill at least one criterion required for a system to be sustainable. Output per unit of input is higher in 1991 than in 1896, even when externalities (erosion and pesticides) are valued. The average growth rates on the No N plot are 0.5%/yr for TFP and 0.3%/yr for TSFP. On the winter legume plot, TFP and TSFP grew at a rate of 2.0%/yr and 1.8%/yr, respectively. The plots using organic and chemical sources of N had similar productivity records. None of the systems shows a linear trend in TFP over the history of the experiment. Productivity cycles are present in all three systems, despite the positive overall trend. An important focus of future research will be to explain whether these cycles are related to weather, technology, or changes in the resource base. As one would expect, the system that has neither an organic or a chemical source of added N is less productive than the two other systems. This system compares even more poorly when externality costs are assigned. Organic and chemical sources of N have similar productivity impacts. How have externalities such as soil erosion and the negative impact of pesticide use on the environment affected TFP? Soil erosion and pesticide externalities have had only a modest effect on measured productivity. The no N plot indexes are not changed at all; TFP on the legume and N‐fertilized plots decreased by 4 and 6%, respectively. The main conclusions of the previous question are therefore unaffected. How have technological advancements affected long‐term productivity/sustainability of continuous cotton production? The most dramatic single event to affect productivity was the introduction of the mechanical cotton picker around 1960. The impact of this technology is powerful enough to offset the effect of many other changes in the system. This advancement allowed cotton production to move from a labor‐intensive environment with increasing labor costs per pound of yield to an environment where harvesting costs were not seriously affected by increasing yields. Because technological advancements cannot be predicted into the future, predicting the long‐term sustainability of a system becomes very difficult.
- Research Article
5
- 10.9734/ajeba/2020/v15i430218
- Jun 5, 2020
- Asian Journal of Economics, Business and Accounting
Purpose of the Study: Egyptian agriculture suffers from many problems related to the use of available economic resources, the most important of which is lack of optimal utilization of resources, wasteful use of agricultural production inputs, reduced efficiency of irrigation water use, and the fertility of agricultural lands are deteriorating, in addition to increasing rates of encroachments on agricultural lands and shifting it from agricultural use to other non-agricultural uses, which limits the agricultural sector ability to achieve high growth rates, especially with the increasing global production of biofuels from crops that individuals consume as food, including wheat and corn, which constitutes an explicit threat to Egyptian food and national security.
 Objectives: The research aimed to:
 
 Estimate the changes in the sources and components of the total productivity of the factors for the main cereal crops in Egypt in the presence and absence of carbon dioxide emissions,
 Environmental impact assessment of changes in the productivity of these crops.
 
 Methods: The study applied analytical approaches to measure changes in productivity, as parameter analysis methods are used as methods of the aggregate production function, and non-parameterized methods of estimation, in addition to (Malmquist, 1953) which is one of the most important indicators of measurement changes in productivity and relies on a Data Envelopment Analysis (DEA) to measure efficiency and changes in TFP productivity and identify the sources of changes in productivity through changes in technical competence and technological change, as the two most important components of the change in total productivity.
 Results: Wheat Crop: Wheat crop by estimating the change in the different efficiencies of the wheat crop with co2 emissions, it was clear that a decrease in technological change (TC) during the study period, and thus a decrease in the average change in the total factor productivity (TFP), while without co2 emissions effect, the average change in the total factor productivity of (TFPc) indicates an increase in the actual wheat efficiency which is low due to the environmental impact of the emissions.
 Rice Crop: Rice crop by estimating the change in the different efficiencies of the rice crop with co2 emissions, it became clear that a decrease in the average technological change (TC), thus increasing the average change in the total factor productivity of the (TFP), whereas, without co2 emissions, it was found that the average change in the total factor productivity of the (TFPc) for the study areas was higher.
 Summer Maize Crop: It was clear that the average technological change (TC) for the summer maize crop with co2 emissions, decreased during the study period, and therefore a decrease in the average change in the total factor productivity of the (TFP), but without co2, an increase in the annual average of the change in technical efficiency (TEC), and a decrease in the average technological change (TC), i.e. in the use of technology, and an increase in the average change in the total factor productivity (TFPc).
- Conference Article
- 10.36880/c13.02481
- Aug 1, 2021
- Uluslararası Avrasya ekonomileri konferansı
According to the economics literature, there are two main sources of economic growth. While the first of the resources is the accumulation of production factors, the other is the part of the output that cannot be explained by the amount of input used in production, in other words, the total factor productivity. The level of total factor productivity is measured according to how efficiently the inputs are used in the production process. In this study, the hypothesis that public spending affects real economic growth through total productivity is investigated. In the first stage, whether the changes in public expenditures affect the total factor productivity or not; if it does, to what extent and in what direction it has been tried to be revealed. In the second stage, the effect of total factor productivity on economic growth was examined and the statistical significance, direction and extent of the relationship between variables were investigated. Annual data were used in the study and the year range is 2000-2017. The sampling economies were selected according to data availability, and there are a total of 20 developed and developing economies. Research was conducted using multiple panel regression analysis. According to the findings, the relationship between public expenditures and total factor productivity is statistically significant. An increase in public expenditures reduces the total factor productivity. The relationship between total factor productivity and economic growth is statistically significant, and an increase in total factor productivity also increases economic growth. An increase in public expenditures affects economic growth negatively by reducing the total factor productivity.
- Research Article
6
- 10.3390/app14062406
- Mar 13, 2024
- Applied Sciences
This paper investigates the relationship between port productivity and carbon dioxide (CO2) emissions in port cities. The study initially employs the global Malmquist productivity index (MPI) to measure productivity growth in 16 major inland ports along the Yangtze River, obtaining data on the ports’ total factor productivity (TFP). Through an analysis using the panel data model with two-way fixed effects, we find a positive correlation between the improvement of port TFP and the increase in CO2 emissions in port cities. Further panel quantile regression analysis reveals the heterogeneity of this impact, especially in cities with medium and higher CO2 emissions, where the positive effects of TFP on carbon emissions are particularly significant. The study also indicates a threshold effect of port size in the relationship between TFP and CO2 emissions: in smaller ports, the impact of TFP improvement on CO2 emissions is less significant; however, once the port size exceeds a certain threshold, the growth in TFP significantly promotes an increase in CO2 emissions. These findings provide theoretical justification and decision-making references for policymakers to adopt effective measures to mitigate the growth of CO2 emissions while promoting the efficiency of port production.
- Research Article
2
- 10.1108/ijesm-05-2023-0016
- Dec 26, 2023
- International Journal of Energy Sector Management
PurposeThis study aims to examine the impact of oil consumption on carbon dioxide (CO2) emissions and total factor productivity (TFP) in highly oil-consuming countries of the world from 1995 to 2019.Design/methodology/approachFor this purpose, fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) are applied.FindingsFMOLS and DOLS models reveal that oil consumption, human capital, population, trade openness and nonrenewable energy have a significant positive effect on CO2 emissions. While information and communication technology (ICT), as proxied by mobile and natural resources, has a significant negative effect on CO2 emissions. In the case of TFP, oil consumption, ICT and natural resources have a significant positive effect on the TFP. On the other hand, trade openness, population, human capital and nonrenewable energy have a significant negative effect on TFP. The results of this study can help to provide policy recommendations to reduce CO2 emissions in studied highly oil-consuming countries of the world.Originality/valueDue to the threat to sustainable development, climate change has become a major topic for debate around the world. The influence of oil consumption on CO2 emission and TFP is less known in the available literature. Another significance of this study is that many researchers considered aggregate energy consumption to study this relationship, but the authors have studied the effect of energy consumption, particularly from oil in the top oil-consuming countries, which is a significant shortcoming of the present research.
- Research Article
26
- 10.1038/s41598-021-93770-z
- Jul 9, 2021
- Scientific Reports
Forestry plays an essential role in reducing CO2 emissions and promoting green and sustainable development. This paper estimates the CO2 emissions of 30 provinces in China from 2008 to 2017, and uses Global DEA-Malmquist to measure the total factor productivity of the forestry industry and its decomposition index. On this basis, by constructing a spatial econometric model, this paper aims to empirically study the impact of forestry industry's total factor productivity and its decomposition index on CO2 emissions, and further analyze its direct, indirect and total effects. The study finds that the impact of forestry industry's total factor productivity on CO2 emissions shows an "inverted U-shaped" curve and the inflection point is 0.9395. The spatial spillover effect of CO2 emissions is significantly negative. The increase of CO2 emissions in adjacent areas will provide a "negative case" for the region, so that the region can better address its own energy conservation and emission reduction goals. TFP of forestry industry also has positive spatial spillover effect. However, considering the particularity of forestry industry, this effect is not very significant. For other factors, such as foreign direct investment, urbanization level, industrial structure and technology market turnover will also significantly affect regional CO2 emissions.
- Research Article
27
- 10.1007/s10018-023-00377-x
- Sep 27, 2023
- Environmental Economics and Policy Studies
This paper analyzes the impact of renewable energy consumption, total factor productivity (TFP), income, imports, and exports on consumption-based CO2 emissions in Turkey from 1990 to 2019, utilizing the Autoregressive Distributed Lagged (ARDL) method. The findings indicated that the use of renewable energy, total factor productivity and exports negatively influence CO2 emissions. On the other hand, the positive impact of income and imports on CO2 emissions was found. The negative impact of renewable energy consumption and total factor productivity highlights the importance of implementing environmentally friendly measures in the energy sector (particularly raising the proportion of renewable energy in overall energy consumption) and technological innovation.
- Research Article
3
- 10.1186/s40008-015-0018-3
- Jun 27, 2015
- Journal of Economic Structures
This paper provides empirical evidence of changes in the productivities of manufacturing firms in Indonesia over time, in the form of total factor productivity (TFP), from 1990 to 2010 with and without considering carbon dioxide (CO2) emissions. Employing cleaned and balanced panel datasets for four periods, 1990–1995, 1998–2000, 2003–2006, and 2008–2010, the analysis enables an evaluation of the impact of implemented policies or economic circumstances during each period. The Malmquist productivity index is employed to estimate TFP without CO2 emissions over time, whereas the Malmquist-Luenberger productivity index is applied to estimate TFP with CO2 emissions over time. Furthermore, the influence of energy factors on environmental productivity is also investigated. The results show that on average, TFP with CO2 emissions over time has grown faster than TFP without CO2 emissions, particularly for periods 1, 2, and 4. Technical progress is the basis of productivity growth after removing energy subsidies, and the change in environmental productivity is associated with the adjusted energy prices. Constructive policy designs can be derived from this paper that will enhance manufacturing sector performance after changes in the prices of oil commodities.
- Research Article
18
- 10.1007/s11356-023-31321-x
- Dec 15, 2023
- Environmental science and pollution research international
The BRICS countries are important contributors to global efforts aimed at preventing a climate catastrophe. These countries account for half of the total emissions generated by the G20 nations. In this context, this paper examines the relationship between total factor productivity (TFP) and CO2 emissions (CE) in BRICS countries from 1996 to 2022, with institutional quality serving as a moderating factor. Moreover, a diverse range of methodologies was employed to address the problem of cross-sectional dependence; i.e., the CS-ARDL technique is used to analyze the relationship between variables in both the long and short-run. The AMG and CCEMG methods are employed for robustness analysis, while the Dumitrescu-Hurlin causality test is used to assess causality. Our empirical analysis demonstrates that TFP is positively associated with CE. Conversely, we find that institutional quality has a negative impact on CE. Furthermore, the study confirms that the interaction between TFP and institutional quality has a negative effect on CE. This implies that an improvement in institutional quality leads to a decrease in CE, as it strengthens the regulatory system governing CE and reduces pollution. Environmental policy must include economic flexibility and policy unpredictability in order to meet CO2 reduction targets. In addition, the study has identified bidirectional causal links between CE and variables such as TFP, institutional quality, and other control variables. According to our study, the BRICS countries should encourage digitalization and renewable energy production while preserving a reasonable standard of institutional quality since they have significant resource advantages in the renewable energy sector.
- Research Article
43
- 10.3390/su14159309
- Jul 29, 2022
- Sustainability
The scientific and reasonable measurement of agricultural green total factor productivity is helpful to grasp the direction of rural-factor-market reform. This study constructs a Malmquist productivity index based on a non-radial and non-angular SBM directional distance function. This study calculates the agricultural green total factor productivity of 28 provinces (cities and autonomous regions) in China from 1997 to 2020 by considering unexpected outputs such as carbon emissions and agricultural non-point-source pollution. Finally, this study uses the spatial Dobbin model to explore the spatial impact of agricultural green total factor productivity under the distortion of the factor market. The results show that the agricultural green total factor productivity, considering the unexpected outputs, is more in line with the level of high-quality green development in China’s agriculture. Regardless of whether the unexpected output is included, the increase in China’s agricultural total factor productivity is primarily due to progress in agricultural technology, and the double boost is little in agricultural technology progress and technical efficiency. Agricultural green total factor productivity shows an increasing trend, but the growth rate is slow, and differences in different regions are significant. Factor market distortion negatively impacts agricultural green total factor productivity, and other factors improve the agricultural total green factor productivity. However, factor market distortion has a particular spatial spillover effect, which hinders the synchronous growth of agricultural green total factor productivity in different regions. Therefore, the government should promote the reform of the agricultural mode of production and agricultural green production, eliminate the blocking effect of factor market distortion on the improvement in agricultural green total factor productivity, narrow the regional gap of agricultural total factor productivity, and establish a policy system for high-quality green development of modern agriculture.
- Research Article
17
- 10.16538/j.cnki.jfe.2019.02.006
- May 10, 2019
- Journal of finance and economics
Since the reform and opening up, the Chinese economy has achieved rapid growth, accompanied by the gradual slowdown in the growth rate of total factor productivity. Compared with developed countries, China’s total factor productivity is still at a low level and there is a serious imbalance between regions. The rapid rise in house prices and land prices has made local governments’ development mode centered on land transfer, and it has been classified as the culprit” of high housing prices. What is worth exploring is: What impact does local governments’ development mode with land transfer as its core have on China’s total factor productivity? Can we explain the trend of change and regional differences in China’s total factor productivity from the perspective of land lease? This paper focuses on the impact of local governments’ land lease behavior on urban total factor productivity. Based on the existing research literature, this paper proposes two hypotheses of this study through the analysis of the status quo and the theoretical mechanism. On the empirical test, the SFA method is used to calculate the overall TFP of 230 prefecture-level and above cities. The instrument variable method tests the impact of local governments’ land lease behavior on the overall TFP of the city, and the adjustment effect of land price distortion on urban TFP under the horizontal subsidy” mode. At the same time, the matching data of the industrial enterprise database is used to verify the intermediate mechanism that the scale expansion of land lease income affects TFP. The main conclusions of the study are as follows: First, the expansion of land lease income significantly inhibits the total factor productivity of the city; local governments’ land fiscal expansion enhances the scale efficiency, but significantly inhibits the improvement of urban technology and technology allocation efficiency, and then has a hindrance to the total factor productivity of the city. Second, in the process of the expansion of land sale income, local governments tend to sell commercial land at high prices and transfer industrial land at low prices. The mode of horizontal subsidy” leads to land price distortion, and further aggravates the inhibition of total factor productivity by the expansion of land lease income. Third, the results of the mechanism test show that the excessive expansion of local governments’ land lease income leads to the resources misallocation” effect at the industry and city level, which in turn inhibits the total factor productivity of the city. The conclusions of the paper have important reference value for China’s land finance system reform and the total factor productivity improvement of the city. The marginal contributions of the paper mainly lie in three aspects: First, it enriches the existing research on total factor productivity from the perspective of local governments’ land lease. Second, it theoretically analyzes the impact of land lease behavior on urban total factor productivity. The intermediate mechanism reveals the resource misallocation” effect brought about by the excessive expansion of land lease income, and the overall efficiency loss caused by land price distortion under the local governments’ horizontal subsidy” mode. Third, the empirical study uses the instrumental variable method to solve the endogenous problems of local governments’ land lease behavior and economic activities.
- Research Article
1
- 10.2478/subboec-2021-0005
- Apr 1, 2021
- Studia Universitatis Babes-Bolyai Oeconomica
Total factor productivity is an important driver of economic growth. It is therefore important to understand its determinants. This will help to enhance it and accelerate economic growth. The objective of this paper is therefore to investigate drivers of total factor productivity in Angola. The investigation covers the period 1995 – 2018. It is conducted for selected sectors of the economy. The results show that foreign direct investment has a positive effect on total factor productivity in all sectors. Increase in openness of the economy and depreciation the exchange rate have a positive effect on total factor productivity in the manufacturing sector. However, an increase in these two variables is associated with a decrease in total factor productivity of the primary and service sectors. The results indicate that a rise in inflation is associated with a decrease in total factor productivity in the manufacturing and service sectors. However, an increase in inflation is positively associated with an increase in total factor productivity in the primary sector. Increase in official development assistance impact negatively on total factor productivity in the primary and service sectors. This variable has a positive effect on total factor productivity of the manufacturing sector. The implication of these results is that Angola should pursue policies that attract foreign direct investment in order to ensure sustainable total factor productivity growth. The impact of other drivers such as openness of the economy, inflation, official development assistance and exchange rate depends on sectors. This implies that it is important for Angola to implement policies, which are specific to sectors. This will help to enhance the growth of total factor productivity.
- Research Article
- 10.5897/ajbm11.2277
- Feb 28, 2013
- AFRICAN JOURNAL OF BUSINESS MANAGEMENT
Man has always thought of efficient utilization of available potentials and sources. Today this subject drives more serious attention compared to the past. Limited available resources, increasing population and growing human needs and demands of those involved make the economy, politics and management and community organizations increase productivity in its priority programs. Productivity has positive effect on phenomena such as competition in international markets, equitable distribution of income, raising living standards, economic development and even political power of a government. However, the study in this field requires knowledge about its development process. So far there has been no comparison of total factor productivity factor in Iran with other countries in the cement industry with regard to position and valuable role in the economy. This research should be considered a step toward eliminating the deficiencies outlined. In this study, using the relative index of total factor productivity factor, the relative total factor productivity factor in Iran and Turkey, South Korea and the United States has been evaluated and analyzed between the years (2007 to 1990) in the cement industry. Also, using panel data approach, the effect of macro and institutional factors such as the role of government, the degree of openness, inflation, and human capital on total factor productivity factor is evaluated. The findings indicate that there is a wide gap between total factor productivity of Iran's cement industry and that of the United States and the trend is not a proper one. This is an alarm for Iran's policy makers and planning managers to plan and utilize proper policies and take necessary actions to close or reduce this wide gap. It is also adversely shown that interference of the government may negatively affect the total factor productivity but, developed human resources and an open economic environment will have positive effect on the productivity. It is also noted that inflation has an adverse effect on total productivity. Key words: Total productivity, cement industry board data, equal purchasing power.
- Research Article
210
- 10.1007/s11356-018-3331-1
- Oct 1, 2018
- Environmental Science and Pollution Research
The main objective of this study is to examine the linkage between CO2 emissions, total factor productivity as a measure of income, information and communication technology (ICT), trade, financial development, and energy consumption in Tunisia from 1975 to 2014. To achieve this goal, the autoregressive distributed lag (ARDL) with the break point method is performed. The results demonstrate the rejection of the Kuznets environmental curve (EKC) hypothesis by obtaining a higher value of the long-term total factor productivity parameter compared to the short-term one. Moreover, our result shows an insignificant impact of ICT on CO2 emissions as a measure of pollution. In addition, trade, financial development, and energy consumption affect negatively the environmental quality. As a result, Tunisian policymakers should enhance the total factor productivity, expand the information and communication technology, further develop the financial sector, enhance the share of renewable energy consumption, and reduce the energy consumption resulting in import and export goods. These goals will be achieved by improving Tunisia's technological and innovation capacity, enhancing the use of ICT in transport, building, and industry sectors considered as the most pollutant ones, and creating renewable energy projects.
- Supplementary Content
3
- 10.7939/r3tm72691
- Jan 1, 1997
- RePEc: Research Papers in Economics
Science, Technology, and Competitiveness in Alberta's Agriculture and Food Sector