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On the properties of an emission-generating technology and its parametric representation

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  • Sushama Murty

    (Department of Economics, University of Exeter)

Abstract

We propose a set of comprehensive axioms that seek to capture our intuitive understanding of the properties of an emission-generating technology (EGT). We show that an EGT that satis es these axioms can be parametrically represented by more than one implicit production function that are derived from it. Here, these production functions take the form of distance functions rst introduced by Shephard [1953] and Malmquist [1953]. One of these production relations has properties of a neo-classical production function that shows how standard inputs are transformed into standard (intended) outputs. The remaining re ect trade-offs, observed in nature, between emissions, emission-causing goods, and cleaning-up activities of the producing unit. We illustrate this by considering two cases: (i) where each type of cleaning-up activity jointly mitigates all types of emissions and (ii) where cleaning-up activities are emission-speci c allowing also for the possibility that a cleaning-up activity while helping to reduce certain emissions, can also contribute to more of some other types of emissions.

Suggested Citation

  • Sushama Murty, 2012. "On the properties of an emission-generating technology and its parametric representation," Discussion Papers 1202, University of Exeter, Department of Economics.
  • Handle: RePEc:exe:wpaper:1202
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    References listed on IDEAS

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    1. Murty, Sushama, 2010. "Externalities and fundamental nonconvexities: A reconciliation of approaches to general equilibrium externality modeling and implications for decentralization," Journal of Economic Theory, Elsevier, vol. 145(1), pages 331-353, January.
    2. Murty, Sushama & Russell, R. Robert, 2010. "On modeling pollution-generating technologies," Economic Research Papers 271176, University of Warwick - Department of Economics.
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    9. Hailu, Atakelty & Veeman, Terrence S., 2000. "Environmentally Sensitive Productivity Analysis of the Canadian Pulp and Paper Industry, 1959-1994: An Input Distance Function Approach," Journal of Environmental Economics and Management, Elsevier, vol. 40(3), pages 251-274, November.
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    11. Fuss, Melvyn & McFadden, Daniel (ed.), 1978. "Production Economics: A Dual Approach to Theory and Applications," Elsevier Monographs, Elsevier, edition 1, number 9780444850133.
    12. Murty, M.N. & Kumar, Surender, 2002. "Measuring the cost of environmentally sustainable industrial development in India: a distance function approach," Environment and Development Economics, Cambridge University Press, vol. 7(3), pages 467-486, July.
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    Cited by:

    1. Sushama Murty, 2015. "On the properties of an emission-generating technology and its parametric representation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(2), pages 243-282, October.
    2. Benjamin Hampf, 2014. "Separating environmental efficiency into production and abatement efficiency: a nonparametric model with application to US power plants," Journal of Productivity Analysis, Springer, vol. 41(3), pages 457-473, June.
    3. Førsund, Finn R, 2017. "Pollution Meets Efficiency: Multi-equation modelling of generation of pollution and related efficiency measures," Memorandum 09/2017, Oslo University, Department of Economics.
    4. Sushama Murty, 2016. "Measuring unilateral and multilateral gains from tackling current economic inefficiencies in CO2 reductions: Theory and evidence," Discussion Papers 1604, University of Exeter, Department of Economics.

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    More about this item

    Keywords

    theory of production; emission-generating production technologies; free input and output disposability; weak disposability; costly disposability; functional representations of multi-output production technologies.;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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