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Technological changes in the pulp and paper industry and the role of uniform versus selective environmental policy

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Author Info
Annegrete Bruvoll, Torstein Bye, Jan Larsson and Kjetil Telle () (Statistics Norway)

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Abstract

Although 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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Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 357.

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Date of creation: Oct 2003
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Handle: RePEc:ssb:dispap:357

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Related research
Keywords: Emissions; Productivity change; Paper and pulp; Malmquist index; Frontier technology;

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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 - - - 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, and Regional Economics - - Production Analysis and Firm Location - - - Government Policies; Regulatory Policies

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bovenberg, A Lans & van der Ploeg, Frederick, 1994. " Green Policies and Public Finance in a Small Open Economy," Scandinavian Journal of Economics, Blackwell Publishing, vol. 96(3), pages 343-63.
  2. Klette, T.J., 1998. "Market Power, Scale Economies and Productivity: Estimates from a Panel of Establishment Data," Memorandum 15/1998, Oslo University, Department of Economics.
    Other versions:
  3. Tulkens, Henry & Vanden Eeckaut, Philippe, 1995. "Non-frontier measures of efficiency, progress and regress for time series data," International Journal of Production Economics, Elsevier, vol. 39(1-2), pages 83-97, April. [Downloadable!] (restricted)
  4. Hailu, Atakelty & Veeman, Terrence S., 2001. "Alternative methods for environmentally adjusted productivity analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 211-218, September. [Downloadable!] (restricted)
  5. Tor Jakob Klette and Arvid Raknerud, 2002. "How and why do Firms differ?," Discussion Papers 320, Research Department of Statistics Norway. [Downloadable!]
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  6. Goulder, Lawrence H. & Parry, Ian W. H. & Williams III, Roberton C. & Burtraw, Dallas, 1999. "The cost-effectiveness of alternative instruments for environmental protection in a second-best setting," Journal of Public Economics, Elsevier, vol. 72(3), pages 329-360, June. [Downloadable!] (restricted)
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  7. Runar Brännlund & Rolf Färe & Shawna Grosskopf, 1995. "Environmental regulation and profitability: An application to Swedish pulp and paper mills," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 6(1), pages 23-36, July. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jan Larsson and Kjetil Telle, 2005. "Consequences of the IPPC-directive’s BAT requirements for abatement costs and emissions," Discussion Papers 411, Research Department of Statistics Norway. [Downloadable!]
  2. Torstein Bye, Annegrete Bruvoll and Jan Larsson, 2006. "Capacity utilization in a generalized Malmquist index including environmental factors. A decomposition analysis," Discussion Papers 473, Research Department of Statistics Norway. [Downloadable!]
    Other versions:
  3. Kjetil Telle and Jan Larsson, 2004. "Do environmental regulations hamper productivity growth? How accounting for improvements of firms' environmental performance can change the conclusion," Discussion Papers 374, Research Department of Statistics Norway. [Downloadable!]
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