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Technical change and pollution abatement costs

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  • Färe, Rolf
  • Grosskopf, Shawna
  • Pasurka, Carl

Abstract

There is continuing interest in the trend of costs associated with pollution abatement activities. We specify an environmental production technology to model the joint production of good and bad outputs. The joint production model calculates pollution abatement costs and identifies changes in these costs associated with: (1) technical change, (2) input changes, and (3) changes in bad output production. Estimates of the relative importance of each factor are estimated using data from 1995 to 2005 for a sample of coal-fired power plants in the United States. Finally, we discuss the potential usefulness of the decomposition model for identifying discrepancies between ex ante and ex post pollution abatement costs that are linked to the underlying joint production model.

Suggested Citation

  • Färe, Rolf & Grosskopf, Shawna & Pasurka, Carl, 2016. "Technical change and pollution abatement costs," European Journal of Operational Research, Elsevier, vol. 248(2), pages 715-724.
  • Handle: RePEc:eee:ejores:v:248:y:2016:i:2:p:715-724
    DOI: 10.1016/j.ejor.2015.07.040
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    References listed on IDEAS

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    Cited by:

    1. D’Inverno, Giovanna & Carosi, Laura & Romano, Giulia & Guerrini, Andrea, 2018. "Water pollution in wastewater treatment plants: An efficiency analysis with undesirable output," European Journal of Operational Research, Elsevier, vol. 269(1), pages 24-34.
    2. Ke Wang & Yujiao Xian & Chia-Yen Lee & Yi-Ming Wei & Zhimin Huang, 2019. "On selecting directions for directional distance functions in a non-parametric framework: a review," Annals of Operations Research, Springer, vol. 278(1), pages 43-76, July.
    3. Surender Kumar & Shunsuke Managi & Rakesh Kumar Jain, 2019. "CO2 Mitigation Policy for Indian Thermal Power Sector-Potential Gains from Emission Trading," Working papers 302, Centre for Development Economics, Delhi School of Economics.
    4. repec:gam:jsusta:v:8:y:2015:i:1:p:28:d:61444 is not listed on IDEAS
    5. Jaber, Jamal O. & Awad, Wael & Rahmeh, Taieseer Abu & Alawin, Aiman A. & Al-Lubani, Suleiman & Dalu, Sameh Abu & Dalabih, Ali & Al-Bashir, Adnan, 2017. "Renewable energy education in faculties of engineering in Jordan: Relationship between demographics and level of knowledge of senior students’," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 452-459.
    6. Zuoren Sun & Rundong Luo & Dequn Zhou, 2015. "Optimal Path for Controlling Sectoral CO 2 Emissions Among China’s Regions: A Centralized DEA Approach," Sustainability, MDPI, Open Access Journal, vol. 8(1), pages 1-20, December.
    7. Rolf Färe & Shawna Grosskopf & Carl A. Pasurka & Ron Shadbegian, 2018. "Pollution abatement and employment," Empirical Economics, Springer, vol. 54(1), pages 259-285, February.
    8. Cui, Qiang & Li, Ye & Wei, Yi-Ming, 2017. "Exploring the impacts of EU ETS on the pollution abatement costs of European airlines: An application of Network Environmental Production Function," Transport Policy, Elsevier, vol. 60(C), pages 131-142.
    9. Li, Tianxiang & Baležentis, Tomas & Makutėnienė, Daiva & Streimikiene, Dalia & Kriščiukaitienė, Irena, 2016. "Energy-related CO2 emission in European Union agriculture: Driving forces and possibilities for reduction," Applied Energy, Elsevier, vol. 180(C), pages 682-694.
    10. Jorge Bonilla & Jessica Coria & Thomas Sterner, 2018. "Technical Synergies and Trade-Offs Between Abatement of Global and Local Air Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(1), pages 191-221, May.
    11. Cui, Qiang & Li, Ye & Lin, Jing-ling, 2018. "Pollution abatement costs change decomposition for airlines: An analysis from a dynamic perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 96-107.
    12. Manello, Alessandro, 2017. "Productivity growth, environmental regulation and win–win opportunities: The case of chemical industry in Italy and Germany," European Journal of Operational Research, Elsevier, vol. 262(2), pages 733-743.

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