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Environmental Emissions and Production Economics: Implications of the Materials Balance

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  • Udo Ebert
  • Heinz Welsch

Abstract

In modeling emissions, the literature has usually specified an explicit emission function, or treated emissions as a production input. We examine the validity of these approaches, taking into account the materials balance principle. We show that a technology can equivalently be described by (i) a production function with material and nonmaterial inputs and bounded marginal product of the material input, (ii) a well-behaved production function with emissions as an input, and (iii) a well-behaved emission function, if the materials balance is accounted for as an additional condition. We offer a forma derivation of common, but not rigorously established modeling approaches. Copyright 2007, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.00997.x
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 89 (2007)
Issue (Month): 2 ()
Pages: 287-293

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Handle: RePEc:oup:ajagec:v:89:y:2007:i:2:p:287-293

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Cited by:
  1. Mary Graham, 2008. "Developing an Integrated Measure of Farm Performance," Economics Series 2008_18, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  2. Kortelainen, Mika, 2008. "Estimation of semiparametric stochastic frontiers under shape constraints with application to pollution generating technologies," MPRA Paper 9257, University Library of Munich, Germany.
  3. Mehmet Ulubasoglu & Nejat Anbarci, 2005. "Endogenous Liberalization and Within-Country Inequality: A Theoretical and Empirical Analysis," Economics Series 2005_18, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  4. Førsund, Finn R., 2008. "Good Modelling of Bad Outputs: Pollution and Multiple-Output Production," Memorandum 30/2008, Oslo University, Department of Economics.
  5. Mahlberg, Bernhard & Luptacik, Mikulas, 2014. "Eco-efficiency and eco-productivity change over time in a multisectoral economic system," European Journal of Operational Research, Elsevier, vol. 234(3), pages 885-897.
  6. Margaret Brock & Monica Keneley, 2004. "Section 46: The High Court, Dawson and The Senate: A Review of the Recent Debate," Economics Series 2004_18, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  7. Kuosmanen, Natalia & Kuosmanen, Timo, 2013. "Modeling Cumulative Effects of Nutrient Surpluses in Agriculture: A Dynamic Approach to Material Balance Accounting," Ecological Economics, Elsevier, vol. 90(C), pages 159-167.
  8. Lauwers, Ludwig, 2009. "Justifying the incorporation of the materials balance principle into frontier-based eco-efficiency models," Ecological Economics, Elsevier, vol. 68(6), pages 1605-1614, April.
  9. Khanna, Neha, 2013. "Output, emissions, and technology: Some thoughts," Economics Letters, Elsevier, vol. 118(2), pages 284-286.
  10. Van Meensel, Jef & Lauwers, Ludwig H. & Van Huylenbroeck, Guido & Van Passel, Steven, 2009. "Exploring production-theoretical insights for analyzing trade-offs between economic performance and environmental pressure at firm level," 2009 Conference, August 16-22, 2009, Beijing, China 51725, International Association of Agricultural Economists.

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