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Technical Change and Measuring Pollution Abatement Costs: An Activity Analysis Framework

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  • Carl Pasurka

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Abstract

The cornerstones of studies that estimate the effectof environmental regulations on an economy areestimates of the pollution abatement costs incurred bythe manufacturing and electric utility sectors.However, there are concerns regarding the accuracy ofthe surveys used to generate these cost estimates.This paper demonstrates that technical change tends toresult in an increasing share of pollution abatementcosts being impossible to measure. This finding hasimportant implications for estimating the productivityeffects of environmental regulations, developingregulatory budgets, and data collection effortsrelated to environmental accounting. Copyright Kluwer Academic Publishers 2001

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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 18 (2001)
Issue (Month): 1 (January)
Pages: 61-85

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Handle: RePEc:kap:enreec:v:18:y:2001:i:1:p:61-85

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Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: joint production; pollution abatement casts; technical change;

References

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  1. John G. Myers & Leonard Nakamura, 1980. "Energy and Pollution Effects on Productivity: A Putty-Clay Approach," NBER Chapters, in: New Developments in Productivity Measurement, pages 463-506 National Bureau of Economic Research, Inc.
  2. Fare, Rolf, et al, 1993. "Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 374-80, May.
  3. Wayne B Gray & Ronald J Shadbegian, 1994. "Pollution Abatement Costs, Regulation And Plant-Level Productivity," Working Papers 94-14, Center for Economic Studies, U.S. Census Bureau.
  4. Fare, Rolf & Grosskopf, Shawna, 1983. "Measuring output efficiency," European Journal of Operational Research, Elsevier, vol. 13(2), pages 173-179, June.
  5. Nestor, Deborah Vaughn & Pasurka, Carl A, Jr, 1995. "Environment-Economic Accounting and Indicators of the Economic Importance of Environmental Protection Activities," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 41(3), pages 265-87, September.
  6. Fare, R. & Grosskopf, S. & Pasurka, C., 1986. "Effects on relative efficiency in electric power generation due to environmental controls," Resources and Energy, Elsevier, vol. 8(2), pages 167-184, June.
  7. Runar Brännlund & Rolf Färe & Shawna Grosskopf, 1995. "Environmental regulation and profitability: An application to Swedish pulp and paper mills," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 6(1), pages 23-36, July.
  8. Fare, Rolf, et al, 1989. "Multilateral Productivity Comparisons When Some Outputs Are Undesirable: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 90-98, February.
  9. Conrad, Klaus & Wastl, Dieter, 1995. "The Impact of Environmental Regulation on Productivity in German Industries," Empirical Economics, Springer, vol. 20(4), pages 615-33.
  10. Wolff, Edward N., 1994. "Productivity measurement within an input-output framework," Regional Science and Urban Economics, Elsevier, vol. 24(1), pages 75-92, February.
  11. Jorgenson, Dale W. & Wilcoxen, Peter J., 1990. "Intertemporal general equilibrium modeling of U.S. environmental regulation," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 715-744.
  12. William A Pizer & Jhih-Shyang Shih & Richard D Morgenstern, 1997. "Are We Overstating the Economic Costs of Environmental Protection?," Working Papers 97-12, Center for Economic Studies, U.S. Census Bureau.
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Cited by:
  1. Aiken, Deborah Vaughn & Pasurka, Carl Jr., 2003. "Adjusting the measurement of US manufacturing productivity for air pollution emissions control," Resource and Energy Economics, Elsevier, vol. 25(4), pages 329-351, October.
  2. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March.

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