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http://dx.doi.org/10.15266/KEREA.2014.23.3.365

Effect of Fossil Fuels and Green House Gas on Production Efficiency and Economic Growth  

Kang, Sangmok (Department of Economics, Pusan National University)
Publication Information
Environmental and Resource Economics Review / v.23, no.3, 2014 , pp. 365-408 More about this Journal
Abstract
The purpose of this paper is to compare efficiencies, two stage efficiencies, and the reduction of economic growth due to the restraint of $CO_2$ and fossil fuel in two efficiency approach by pointing out the limit of traditional efficiency approach and introducing material balance approach. The efficiencies under the traditional approach and the material balance approach report significant gaps when they are analyzed in detail. Especially, in case not including fossil fuels, the low income countries show the bad performance of production efficiencies, but OECD and high-middle income countries reveal the better performance than that of the low countries. It fails to reflect the reality justly. Based on the material balance approach, the low income countries report the higher performance and the alleviated effect of environmental components for economic growth than OECD's.
Keywords
Traditional approach; Material balance approach; Fossil fuel; Production efficiency; Economic growth;
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