Technological changes in the pulp and paper industry and the role of uniform versus selective environmental policy
AbstractAlthough environmental regulations may imply a cost increase on firm's conventional input factors, such regulations could stimulate the incentives to improve factor productivity. Productivity measures including indicators capturing environmental improvements may also show higher or lower progress than productivity measures ignoring environmental aspects. We apply a Malmquist productivity index approach on micro data for the Norwegian pulp and paper industry, and find that the overall productivity growth accounting for changes in emissions of COD to water is higher than the growth in the productivity measure including conventional inputs only. We find the opposite result when including emissions of acids and climate gases to air. This is probably due to environmental regulations with opposing effects on different emissions. A decomposition of the Malmquist index into a technical efficiency change factor and a technical change component shows that the frontier technology has changed, while the average distance to the frontier has increased.
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Bibliographic InfoPaper provided by Research Department of Statistics Norway in its series Discussion Papers with number 357.
Date of creation: Oct 2003
Date of revision:
Emissions; Productivity change; Paper and pulp; Malmquist index; Frontier technology;
Find related papers by JEL classification:
- L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - Government Policy; Regulatory Policy
This paper has been announced in the following NEP Reports:
- NEP-AGR-2003-11-23 (Agricultural Economics)
- NEP-ALL-2003-11-23 (All new papers)
- NEP-GEO-2003-11-23 (Economic Geography)
- NEP-INO-2003-11-23 (Innovation)
- NEP-TID-2003-11-23 (Technology & Industrial Dynamics)
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