Human Capital, Trade Competitiveness and Environmental Efficiency Convergence Across Asia Pacific Countries

This study mainly investigates 14 Asia Pacific economies' environmental efficiency. Departing from previous studies ignoring environmental technology heterogeneity, we evaluate environmental efficiency through metafrontier super epsilon based model (EBM). We compare environmental efficiency convergence across different regions via unit root test and truncated regressions. We analyze how trade competitiveness impact environmental efficiency. We also explore effect of green technology and human capital on environmental efficiency from the perspective of endogenous growth. Our findings indicate that stochastic and absolute beta-convergence tendencies were confirmed. Human capital can enhance environmental efficiency convergence. Trade competitiveness showed a mixed impact on environmental efficiency convergence, confirming scale, composition and technical effects. It is better to enhance human capital, strengthening environmental regulations under international competition as well as relentlessly pursuing green industrialization across Asia Pacific countries.

Automated summary

This study investigates the environmental efficiency of 14 Asia Pacific economies. Using a metafrontier super epsilon based model (EBM), we evaluate environmental efficiency, taking into account environmental technology heterogeneity. We compare the convergence of environmental efficiency across different regions and analyze the impact of trade competitiveness on environmental efficiency. Additionally, we explore the effects of green technology and human capital on environmental efficiency from the perspective of endogenous growth. The findings suggest that there are stochastic and absolute beta-convergence tendencies, and human capital plays a role in enhancing environmental efficiency convergence. However, the impact of trade competitiveness on environmental efficiency convergence is mixed, depending on factors such as scale, composition, and technical effects.