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Plant Level Productivity, Efficiency, and Environmental Performance of the Container Glass Industry

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  • Gale Boyd
  • George Tolley
  • Joseph Pang
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    Abstract

    This paper presents a methodology and empirical results based on theMalmquist productivity index. We measure productivity while treatingpollution as an undesirable output. Our estimates show that technicalchange has contributed to productivity and environmental performancegrowth in the container glass industry, an energy and pollution intensivesector. Changes in inter-plant efficiency over time have made thisproductivity growth more rapid than otherwise would have occurred withthe underlying technical change. The efficiency estimates show that thereare both opportunities to improve productivity and reduce pollution in thisindustry, as well as productivity losses associated with the emissionscontrol. The shadow prices for NOx, the undesirable output we analyze,is quite high compared to other regulated sectors. Copyright Kluwer Academic Publishers 2002

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    File URL: http://hdl.handle.net/10.1023/A:1020236517937
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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): 23 (2002)
    Issue (Month): 1 (September)
    Pages: 29-43

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    Handle: RePEc:kap:enreec:v:23:y:2002:i:1:p:29-43

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

    Related research

    Keywords: malmquist index; marginal abatement costs; productivity;

    References

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    1. Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
    2. 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.
    3. 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.
    4. Karen Palmer & Wallace E. Oates & Paul R. Portney, 1995. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 119-132, Fall.
    5. Wayne B. Gray & Ronald J. Shadbegian, 1993. "Environmental Regulation and Manufacturing Productivity at the Plant Level," NBER Working Papers 4321, National Bureau of Economic Research, Inc.
    6. Boyd, Gale A. & McClelland, John D., 1999. "The Impact of Environmental Constraints on Productivity Improvement in Integrated Paper Plants," Journal of Environmental Economics and Management, Elsevier, vol. 38(2), pages 121-142, September.
    7. 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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