An analysis of Spain’s global and environmental efficiency from a European Union perspective

Abstract

Sustainable economic growth from the environmental point of view is one of the commitments of the EU-28. Different measures have been implemented to deal with this issue. This work analyses Spain’s natural efficiency and management efficiency, in their static and dynamic sense, for the years 2005–2012, in comparison EU-28. The analysis has been carried out using the Malmquist Index and natural and managerial efficiency. Three variables have been considered as inputs: work, gross fixed capital formation and final energy consumption. Two variables are the outputs: the GDP as a desirable output and greenhouse effect gas emissions as an undesirable output. The result is that Spain’s managerial efficiency and natural efficiency are, though their values are lower, evolving in a similar manner to those of the countries which have been at the heart of the EU longer. These levels of efficiency are higher than those of the block of countries which have joined the EU-28 more recently. The natural Malmquist Index results indicate that these are the countries which have had a greater growth in productivity, above Spain’s and the average of the more “veteran” countries.