International Comparison Of Environmental Efficiency With The Consideration Of Technical Heterogeneity

All aspects of the countries of the world have developed with the overall development of the global economy, such as education, agriculture, industry, economy, technology and so on. But advances in technology bring not only the development and prosperity, but also the deterioration of environment. All countries in the world are facing different kinds of environmental concerns. Ecological environment is threatened seriously by the increasing pollution. The global economic system needs to be further perfected to adjust the global environmental problems. The environmental degradation with the economic development has become the focus of global attention, all countries in the world are looking for ways to increase productivity and reduce environmental degradation at the same time. Whether environmental technology of the world is efficient, how much potential the country has in technological progress and how much the pollutant emission cost are the question of reality which all governments need to pay attention.Based on these problems, this paper measured the environmental efficiency and the shadow price of carbon dioxide of the38countries between1990and2011. We scientifically grouped the world for the high-income countries, above average income countries and below average income countries. We use flat panel data to empirical analysis during the study period. The production process in this paper includes an expectation output (GDP), an unexpected output (CO2emissions) and three inputs (labor, capital and energy). However the traditional production function cannot describe the production process with the expected output. Therefore, we use directional output distance function to research. And then, on the basis of building directional output distance function, we establish the stochastic frontier analysis model of countries’group to examine environmental efficiency under the similar technology within the group and matafrontier function analysis model to examine environmental efficiency under the common technology. The results show that the EE of high income group is largest and the trend is relatively stable. Besides that, the environmental efficiency of above average income and below average income group is relatively low, and the environmental efficiency of two groups of value is closed. In addition, we speculated that the global economic crisis causes this situation which the trend of the environmental efficiency of three groups under metafrontier declined in2007. And then we compute the value of MTR based on the EE of group and metafrontier. This result shows that the technical level in the countries of high income group is more advance because the value of MTR in high income group is largest. And the technical level in the countries of below average income group is relatively more backward, but in the other hand the potential of technical progress is massive.Finally, we analyze the shadow prices of carbon dioxide in38countries based on the stochastic frontier analysis empirical model. The overall results show that the shadow price of three group decline, shadow price of high income group is lowest, shadow price of below average income group is higher. Therefore, the high income group could implement more stringent environmental management policy to stronger the economic and environment system. And the below average income group could implement more looser environmental management policy to avoid the situation of economic recession.