EPSD Research Project, AUEB
The objective of this proposal is to bring to the forefront the importance of the appropriate handling of technological heterogeneity, attached to alternative technological structures and/or regimes, when evaluating environmental performance and designing related policies. The project unfolds in two standalone discussion papers examining distinct, yet intrinsically connected, questions and one technical report discussing global competitiveness and eco-innovation patterns across the globe. The first discussion paper examines environmental efficiency through heterogeneous environmental awareness and development levels across the globe. Countries are categorized using statistical techniques whereas heterogeneity is being accounted by adopting the metafrontier framework. The second discussion paper considers the relationship between environmental efficiency, energy efficiency and productive performance under alternative eco-innovation regimes across Europe by examining whether there is a relationship running through measures of performance. Data are collected through publicly available sources. Econometric methods used herein account for the (possible) endogeneous relationship between the performance measures in conjunction to the tools of efficiency and productivity analysis, and statistical techniques. From a policy perspective, the aim is to highlight that lack of appropriate handling of technological heterogeneity distorts the benchmarking process leading to incorrect results. In this line, the role of a tailored policy based on achievements and capabilities of each country economy is highlighted in enhancing performance instead of a one-size-fits-all policy directive.