A cross-country evaluation of environmental performance: Is there a convergence-divergence pattern in technology gaps?

A balanced panel of 103 countries for the period 1995–2011 is introduced into a metafrontier framework to gain insight into the idiosyncratic performance of countries in two distinct groups — developed (Annex I) countries and developing (non-Annex I) countries. We measure efficiency using a generalized directional distance function model suitable for dealing with anthropogenic emissions. The measurement of efficiency and technology gaps takes into account the group-specific heterogeneity. Moreover, we examine the convergence-divergence hypothesis for the technology gaps defined for each period. Our findings reveal significant patterns between the groups and among countries.