| Summary: | The role of Environmental Efficiency (EE) is an important and crucial issue in the
policy agenda and therefore it is vital to have an accurate assessment of environmental
performance. In order to assess the impact of industrial / country carbon emissions,
we use a Directional Distance Function (DDF) for assessing environmental performance.
In addition, we propose a relatively new indicator in the bibliography called the ”Envi-
ronmental Performance Gap” for adverse effects and its measurement using data from
17 European countries and 13 industries for the period 1999-2006, without ignoring the
presence of a common technology for all sectors / countries. Thus, taking into account
the underlying heterogeneity, in this report we adopt a non-parametric metafrontier to
assess the efficiency of carbon dioxide. The proposed efficiency ratings are estimated on
the assumption that two hierarchies (one for the countries and one for the industries) are
dominated. Our empirical assessments show that the environmental performance of Euro-
pean countries / industries seems to have separate champions and backsliders. Relying on
empirical results, the high yield of low dispersed Environmental Efficiency Technological
Gaps (EETG) have been detected independently of the imposed hierarchy.
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