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On the Theory of By-Production of Emissions

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  • Sushama Murty

    (Department of Economics, University of Exeter)

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    Abstract

    We identify the disposability properties of a production technology resulting from the simultaneous play of nature's emission-generating mechanism and the firm's intended production activities. Our axioms define a "by-production" technology (BPT), which has a novel functional representation and can be decomposed into a standard neo-classical intended-production technology and a nature's emission generation set.

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    File URL: http://people.exeter.ac.uk/cc371/RePEc/dpapers/DP1202.pdf
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    Bibliographic Info

    Paper provided by Exeter University, Department of Economics in its series Discussion Papers with number 1202.

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    Date of creation: 2012
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    Handle: RePEc:exe:wpaper:1202

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    Web page: http://business-school.exeter.ac.uk/about/departments/economics/
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    Related research

    Keywords: theory of production; emission-generating production technologies; free input and output disposability; weak disposability; costly disposability; functional representations of multi-output production technologies.;

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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. Fare, Rolf & Grosskopf, Shawna & Noh, Dong-Woon & Weber, William, 2005. "Characteristics of a polluting technology: theory and practice," Journal of Econometrics, Elsevier, vol. 126(2), pages 469-492, June.
    3. 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.
    4. Boyd, John III & Conley, John P., 1997. "Fundamental Nonconvexities in Arrovian Markets and a Coasian Solution to the Problem of Externalities," Journal of Economic Theory, Elsevier, vol. 72(2), pages 388-407, February.
    5. 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(03), pages 467-486, July.
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