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Greenhouse gas emissions and the productivity growth of electricity generators

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  • Greg Murtough

    (Productivity Commission)

  • David Appels

    (Productivity Commission)

  • Anna Matysek

    (Productivity Commission)

  • CA Knox Lovell

Abstract

This paper analyses electricity generation in four Australian states and the Northern Territory in the late 1990s It finds that productivity growth estimates for electricity generators can change significantly when allowance is made for greenhouse gas emissions. Using an innovative analytical technique for incorporating environmental impacts in productivity estimates, it shows that productivity growth is overestimated when emission intensity is rising and underestimated when emission intensity is falling. This is because emissions are undesirable and so if they fall (grow) per unit of output then this will tend to increase (decrease) estimated productivity.

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File URL: http://128.118.178.162/eps/othr/papers/0201/0201002.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Others with number 0201002.

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Date of creation: 17 Jan 2002
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Handle: RePEc:wpa:wuwpot:0201002

Note: Type of Document - PDF; prepared on IBM PC ; to print on HP;
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Web page: http://128.118.178.162

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Keywords: greenhouse gas emissions - productivity growth - electricity - abatement;

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  1. Yaisawarng, Suthathip & Klein, J Douglass, 1994. "The Effects of Sulfur Dioxide Controls on Productivity Change in the U.S. Electric Power Industry," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 447-60, August.
  2. Reig-Martinez, Ernest & Picazo-Tadeo, Andres & Hernandez-Sancho, Francesc, 2001. "The calculation of shadow prices for industrial wastes using distance functions: An analysis for Spanish ceramic pavements firms," International Journal of Production Economics, Elsevier, vol. 69(3), pages 277-285, February.
  3. Gian Carlo Scarsi, 1999. "Local Electricity Distribution in Italy: Comparative Efficiency Analysis and Methodological Cross-Checking," Working Papers 1999.16, Fondazione Eni Enrico Mattei.
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