Does the Kyoto Protocol Agreement matters? An environmental efficiency analysis

This paper uses both conditional and unconditional Data Envelopment Analysis (DEA) models in order to determine different environmental efficiency levels for a sample of 110 countries in 2007. In order to capture the effect of countries compliance with the Kyoto Protocol Agreement (KPA), we condition the years since a country has signed the agreement until 2007. Particularly, various DEA models have been applied alongside with bootstrap techniques in order to determine the effect of Kyoto protocol agreement on countries’ environmental efficiencies. The study illustrates how the recent developments in efficiency analysis and statistical inference can be applied when evaluating environmental performance issues. The results indicate that the first six years after countries signed the Kyoto protocol agreement have a positive effect on their environmental efficiencies. However after that period it appears that countries avoid complying with the actions imposed by the agreement which in turn has an immediate negative effect on their environmental efficiencies.