Abstract

This study has the objective to calculate and analyze environmental efficiency when a country ratified the Kyoto Protocol or not to ratify it both the developed and developing countries as well. Output to be analyzed is GDP and CO2 emissions, while the input to be analyzed is the use of energy, stocks traded and Labour. The analysis Metod of is Envelope Data analysis (DEA) with samples of G20 countries by 2004-2014. To be analyzed is the degree of efficiency after implementing the Kyoto protocol and how the processing results when viewed from based on the input and output targets. This is to answer the formulation of the problem posed in this study namely How the level of environmental efficiency if the Kyoto Protocol is implemented and how policy advice for each of the G20 countries based on the input and output targets. The study concluded the following: with the policy implemented Kyoto Protocol was able to further improve environmental efficiency in some other countries such as Russia, Argentina, China and Germany. This shows that the policy of the Kyoto Protocol been successful in carrying out its role as controller of the growth in emissions in developed countries and growing, especially G20 members. Besides, there are also countries that suffered losses in the level of environmental efficiency if not implement the Kyoto Protocol. But on the other side of some countries are not affected if there is no Kyoto Protocol, for example Italy, Mexico, Saudi Arabia, Australia and America. Efficiency is not the only primary standard to make a country become a standard for other countries, on the other hand the performance quality of the environment should also be considered. One country may succeed in reducing the environmental inefficiency by ratifying the Kyoto Protocol, and it has the efficient performance in relation to environmental quality and sustainable productive based on Malmquist index. Based on the criteria of the target input and target output, it can be seen that the member countries of G20 reach the optimal level when viewed from the variable GDP (positive output) and shares traded or stock traded (input) eg Argentina, Australia, Brazil, Canada and Indonesia. However, this is not optimal when viewed through the use of energy (input target), emissions (output targets), and labor (input target).