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Environmental production functions and environmental directional distance functions

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  • Färe, Rolf
  • Grosskopf, Shawna
  • Pasurka, Carl A.
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    Abstract

    This study derives the relationship between environmental production functions and environmental directional distance functions. These two approaches make different assumptions when modeling the joint production of good and bad outputs. The environmental production function credits a producer solely for expanding good output production, while the directional environmental distance function credits a producer for simultaneously increasing production of the good output and reducing production of bad outputs. Estimates of technical efficiency and pollution abatement costs are calculated using data from coal-fired power plants. These results provide the empirical basis for comparing the environmental production function to the environmental directional distance function.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0360544206002519
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    Bibliographic Info

    Article provided by Elsevier in its journal Energy.

    Volume (Year): 32 (2007)
    Issue (Month): 7 ()
    Pages: 1055-1066

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    Handle: RePEc:eee:energy:v:32:y:2007:i:7:p:1055-1066

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    Web page: http://www.journals.elsevier.com/energy

    Related research

    Keywords: Environmental production functions; Environmental directional distance functions; Pollution abatement costs;

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