Complementarity between Environmental Efficiency and Labour Productivity in a Cumulative Growth Process

The aim of this paper is to analyse the potential complementarity between environmental efficiency and labour productivity within growth process in theoretical and empirical terms. Firstly, I analyse the theoretical elements that justify the positive relationship between the two efficiencies. Secondly, through a Structuralist-Keynesian baseline model, I illustrate how this complementarity is a necessary condition to obtain ecologically sustainable cumulative growth. Finally, I verify this complementarity with a Dynamic Panel analysis for the European countries in the period 1992-2012 at macro level and manufacturing sector level